WOPEF - Woodside hikes Scarborough cost estimate by 5% to US$12B

Woodside Petroleum (OTCPK:WOPEF) raises the capital spending estimate on its Scarborough natural gas project in Western Australia to US$12B, a ~5% increase on an earlier estimate nearly two years ago. But the estimate is below expectations of some analysts, Dow Jones reports; Jarden has said costs could be as high as US$14B, citing a 20% expansion of the scope of the project, a more than doubling in steel costs, and labor shortages in Western Australia. Woodside is targeting a final investment decision with partner BHP in the next six months. Woodside warned in June that it was facing surging steel prices and labor shortages for the project.

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Woodside hikes Scarborough cost estimate by 5% to US$12B