An acceptance testing program at the BasGas site had uncovered several “defects and potential defects” affecting key systems, according to Origin.
“These systems were the responsibility of Clough to design and construct,” the company said.
“Defects in these systems will need to be rectified prior to start-up. Rectification of these systems is likely to be the key determinant of when the plant as a whole meets the RFSU milestone, and is likely to take several weeks. The RFSU milestone is now expected to be reached in July 2005, following which commissioning of the plant will commence.”
For several months the BassGas joint venture and the original EPIC contra tor Clough Limited have been in dispute over the BassGas project, blaming each other for the delays to the project.
On 16 December last year Clough submitted a certificate issued by Lloyds of London certifying the offshore facilities were contractually ready for start-up (RFSU) and implied that the delays had much to do with the mercury levels in the gas.
The following day, Origin ejected all Clough staff from the BassGas onshore and offshore worksites.
Origin said the Lloyds inspection did not cover all of the work required to be completed under the Contract to ensure that RFSU was achieved. It also maintained that Clough was misrepresenting the mercury issue.
After Clough was ejected from the project, Downer Engineering was appointed to complete the remaining rectification works and modify the offshore facilities and onshore processing plant to handle some impurities in the gas stream.
The BassGas joint venture comprises Origin Energy Resources (operator and 32.5%), AWE Petroleum Pty Ltd (30%), CalEnergy (Australia) Limited (20%), Wandoo Petroleum Pty Ltd (12.5%) and Origin Energy Northwest Limited (5%).
