Beach expects first gas from Waitsia Stage 2 project by mid 2024

Australian energy producer Beach Energy has revised its timeline for the Waitsia Stage 2 project in Western Australia, now targeting the commencement of first gas production in mid-2024, it said on August 14.

The company's initial aim to achieve the first gas by the end of 2023 faced delays due to labour shortages in the region. Beach has an estimated capital expenditure ranging between A$450mn ($292mn) and A$500mn for the project. 

The company had partnered with Italy's Webuild in February of this year to complete the Waitsia Stage 2 project, pending the finalisation of the Clough administration.

The Waitsia gas field is one of the largest onshore gas fields ever found in Australia. In 2020, Beach and Japan's Mitsui made a final investment decision to proceed with the project. 

In terms of financial performance, Beach reported a 24% year/year decline in underlying net profit for the 12 months ending June 30, amounting to A$384.8mn. The net profit for the period was recorded at A$400.8mn, down from A$500.8mn in the previous year. The company's production volume for the year stood at 19.5mn barrels of oil equivalent (boe), a decrease from 21.8mn boe recorded in the previous year.

Looking ahead, Beach forecasts a production range of 18mn to 21mn boe for the current fiscal year ending on June 30, 2024. 

Beach last week announced the appointment of Brett Woods as the new managing director and CEO. He is set to assume his new role on February 21, 2024, or as otherwise agreed upon.