Beach tosses Waitsia schedule as labour market bites
PERTH (miningweekly.com) – ASX-listed Beach Energy is reviewing the cost and timing of its Waitsia Stage 2 project, saying on Thursday that the company can no longer maintain its previously targeted schedule or capital estimates for the project.
Beach in February this year flagged a cost increase at Waitsia Stage 2, after reaching an agreement with contractor Webuild to complete the project build, after the fall of Clough.
Following Webuild’s due diligence and review of costs and work schedule, Beach revised the capatial expenditure for Waitsia Stage 2 from the original A$350-million to A$400-million to between A$400-million and A$450-million.
However, the company on Thursday said that the ongoing tight labour market, in Western Australia in particular, had impacted construction progress, creating a range of uncertainty in outcomes. Review of cost and schedule by the Waitsia joint venture operator and Webuild is ongoing to identify and implement opportunities to mitigate impacts on the project and constrain the range of uncertainty.
Beach told shareholders that it would provide an update when this review was concluded, but maintained that the Waitsia project remained strongly value accretive and a key element in the company’s future growth.
The final investment decision on the Stage 2 project was reached in December 2020. The development involves the drilling of up to six wells, construction of a new 250 TJ/d gas processing facility and associated gas gathering infrastructure.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
