Ann: Impairment of Orbost Gas Processing Plant, page-7

Am i understanding this completely. APA have accepted that this plant cannot meet the "badge" quantities that it was built for, hence there will be a drop in income. To achieve the contracted quantities money will have to be spent to upgrade the plant. these two factors have caused this write down. on HC on the COE site an engineer applied for a job at the Orbost plant but because APA were not willing to pay the going rate for engineers the positions were mostly filled by locals. you pay peanuts, you get monkeys.
Lordolean suggests that this is not APA's fault but faulty gas and equipment. You would not design a gas plant until you had a sample of the gas. Also, APA contracted Downers to do the job. ESSO had not trouble with the gas from here. COE is just a passenger here. it is costing them money and reputation and there is nothing they can do about it. Totally reliant on APA. All in all......very amateurish behaviour from a company that confidently spruiks that we are an expert in gas production. The biggest losers here are shareholders. their treatment by management with silence when they would have known for some time that they could not fix this problem. total lack of transparency.