Part of this would be recovered from the original EPIC contractor, Clough Limited, through the current arbitration process, said Origin, the BassGas operator.
Origin blames Clough for the delays to the project, which was first supposed to have been commissioned in June last year. It now looks as if the development and commercialisation of the Yolla gas field will not be completed until October this year.
Origin yesterday said significant extra rectification work and documentation was needed at the onshore plant and offshore platform.
Clough maintains it is not responsible for delays. It has argued that changes imposed by Origin are responsible for the hold-ups and the late discovery of mercury in the Yolla gas stream has created problems for the project.
Yolla is intended to provide about 10% of Victoria's gas needs. Despite the problems, it should still ultimately be profitable as it was committed on the basis of an oil price equivalent to $US18-$US20 a barrel.
The BassGas partners have had some good news in that development drilling has increased BassGas's estimated proven and probable reserves. Gas reserves have been revised up 26% to 324 PJ, condensates have risen 2% to 14 million barrels, oil reserves remain unchanged and LPG reserves have dropped 4% to 972 kt.
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%).
