Joint venture partners Mitsui E&P Australia (Mepau) and Beach Energy have underlined their commitment to making sure that all workers and contractors on their A$770 million (US$514.22 million) Waitsia gas project stage 2 onshore Australia will continue to be paid what they are owed despite lead contractor Clough this week going into voluntary administration.

Australian energy services contractor Clough has been placed into voluntary administration following the collapse of an acquisition agreement with the Italian group Webuild.

Mepau and Beach on Wednesday confirmed they have provided Clough’s administrators with funds for the payment of wages to workers on the Waitsia site.

“We are committed to ensuring workers and contractors on the Project will be paid. We hope that this provides a great level of confidence for the team. Work can continue, bills will be paid, and wages will be paid,” said Mepau chief executive Ken Yamamura.

“We know that certainty for the workforce and contractors is incredibly important. We heard this message clearly on site yesterday (6 December) and we are committed to standing by the team throughout this process.”

He added that Mepau is committed to maintaining continuity for the Waitsia gas project stage 2 and would work with Beach to deliver on their commitments.

Mepau operates this development phase, which involves constructing a new, purpose-built production facility, the Waitsia gas plant, capable of producing around 250 terajoules (235 million cubic feet) per day of gas. Development drilling is already under way on the up to eight production wells campaign.

Never miss a must-read story
Get notified when we publish articles from your selected sectors, businesses or journalists.