Beach Energy provides Waitsia Stage 2 update

Beach Energy Ltd (ASX: $BPT) has provided an update on the schedule and cost estimate for Waitsia Stage 2. The company announced that the Waitsia Joint Venture has encountered quality issues during pre-commissioning, leading to delays and increased costs. The updated guidance includes a delay in the first gas target to early-CY2025 and an increase in total capital expenditure to $600 - 650 million net to Beach.

Executive Commentary on Waitsia Stage 2 update

It is extremely disappointing to be continually encountering quality and execution issues given the late stage of the project. Having to redirect existing onsite labour to remedial works is slowing the progress of pre-commissioning activities, resulting in further delay and cost increases. Beach is committed to driving the construction of Waitsia Gas Plant to its conclusion and will work closely with the operator and contractor to deliver this strategically important project.

Summary of Waitsia Stage 2 update

Beach Energy's update on Waitsia Stage 2 indicates a delay in the first gas target to early-CY2025 and an increase in total capital expenditure to $600 - 650 million net to Beach. The company expressed disappointment in encountering quality and execution issues at this late stage of the project. Beach remains committed to completing the construction of the Waitsia Gas Plant and is exploring mutually beneficial time swap opportunities to facilitate LNG cargoes prior to the plant's completion.