Webuild SpA and Beach Energy Limited have struck an agreement under which Webuild will deliver the Waitsia Stage 2 project, subject to the completion of the Clough Limited administration.
Beach has revised its total capital expenditure estimate to $400–450 million net to Beach (from $350–400 million initially), with the Waitsia Joint Venture and Webuild aiming to produce the first gas from the Waitsia Gas Plant by the end of 2023. This revision follows Webuild’s due diligence and review of costs and work schedules.
Following Beach’s announcement on 6 December 2022 concerning the voluntary administration of Clough Limited, Beach and Mitsui E&P Australia (Mitsui), its joint venture partner and Waitsia operator, have cooperated with the Clough administrators to ensure that employee wages, subcontractors’ wages, and suppliers’ payments continue, enabling the construction of the Waitsia Gas Plant to proceed despite the challenging circumstances.
According to Beach, Webuild’s acquisition of Clough and its staff, technology, and processes will allow project execution to proceed as planned.
Webuild Chief Executive Officer Morné Engelbrecht stated that this is a significant step towards completing the Waitsia Stage 2 project and a vital milestone in giving the project increased energy, stability, and continuity.
“The dedication and commitment of the project team has been second to none and will ensure the Waitsia Gas Plant becomes an important piece of energy infrastructure for Western Australia for many years to come,” Engelbrecht said.
Engelbrecht added, “We look forward to working with Webuild and Mitsui to complete the project and commencing supply of LNG while we continue to meet our domestic gas commitments with first gas targeted by the end of 2023.”
