It is immaterial! from AFR: Beach Energy’s Perth Basin gas...

It is immaterial!

from AFR:
Beach Energy’s Perth Basin gas project costs to blow out

Mr Engelbrecht said after reporting Beach’s December-quarter results on Tuesday that inflation and the tight labour market might have some bearing on the cost of the new contract, but played down the long-term implications for the project as immaterial.

“The inefficiency of the administration process ... the tight labour market as well as inflation, that will have an impact on labour costs. But if you think about the overall cost of projects ... it’s immaterial.

——————-

Waitsia Stage 2 Project budget was around $770m.
Clough fix contract to build Waitsia Stage 2 was for only around $560m and the rest is for the 6 development wells.
Clough employs about 200 workers in the Waitsia project. If you give each worker $500 per day increase, cost increases by $500,000 per week assuming 5 day roster. For 50 weeks, costs goes up by only $25m. How on earth will this project have a cost blowout of $250m! Those people claiming huge cost increase should back their views with numbers.
If we assume that each worker receives $1,000 per day prior to Clough going to administration, a $500 per day increase will put each worker’s pay at $375,000 in one year. That should be enough to fill up any vacancy in Waitsia project.