By David Winning


SYDNEY--Beach Energy Ltd. said its share of capital expenditure on the Waitsia Stage 2 natural-gas project in Australia has risen after the insolvency of a key contractor led it search for a company that could complete the development.

Beach estimated its share of capex at between 400 million Australian dollars (US$276 million) and A$450 million, up from an original forecast of A$350 million-A$400 million. The Waitsia project is being developed by a joint venture between Beach and Japan's Mitsui & Co. Ltd.

Beach said Webuild SpA would take on responsibility for completing the Waitsia project after Clough Ltd. became insolvent. First gas from the Waitsia Gas Plant is expected by the end of this year.

"This marks an important step toward completion of the Waitsia Stage 2 project and is a key milestone in providing renewed momentum, stability and continuity to the project," Chief Executive Morné Engelbrecht said of the agreement with Webuild.


Write to David Winning at david.winning@wsj.com


(END) Dow Jones Newswires

02-05-23 1644ET