BHP Billiton began proceedings early last week in the Supreme Court of Victoria to recover losses arising from the Longford incident.

In return Esso filed a lawsuit of its own against BHP this week claiming that the plant was a 50-50 venture in which both companies were to share in the costs, risks and rewards.

Esso said BHP hadn't paid half of the A$32.5 million compensation package approved by the Victorian Supreme Court for businesses that suffered in the wake of the Longford explosion. Esso also wants BHP to pay half of the legal costs incurred in the class action suit.

BHP Billiton is claiming that Esso failed to operate the Longford plant in accordance with the standards required by the joint venture agreement and that Esso breached the duty of care that it owed BHP Billiton in directing operations at the facility.

BHP Billiton has not specified the amount of money it was seeking, but in December 1998 it said it lost A$60 million after the explosion led to the shutdown of production from Bass Strait.

The Longford disaster on 25 September 1998 killed two workers and injured eight others and left Victoria without natural gas for almost two weeks.