The Australian reported on the weekend that some estimates suggest the budget increase for the project, located in north-western Australia, could be as high as $3 billion.

In addition, the newspaper said “representatives of the joint venture” told it that between 40 and 130 people have been retrenched.

Gorgon operator Chevron, which has a 50% stake in the project, announced on Friday that it was currently undertaking a study to try to offset these cost increases.

ExxonMobil and Shell each own 25% in the joint venture.

News of the retrenchment came as Federal Environment Minister Ian Campbell announced he would delay a decision on a recommendation by the Australian Heritage Council to list most of the Burrup Peninsula and Dampier Archipelago, an area where Woodside Petroleum has proposed to build its Pluto LNG plant.