His letter to EnergyReview.net follows:
I agree that there is a lot of haste and waste in the industry at the moment, but to highlight that 10% overrun as a case in point I think is a complete mistake.
At a time when 50%-plus overruns in major projects are becoming the inexcusable norm, I think Woodside should be congratulated for having a reasonable handle on the costs in the first place, and for effectively foreseeing some of the increases or locking in certain prices so as to avoid them.
It is interesting that Woodside were berated for hedging a substantial volume of oil in a period when oil price rose, yet when they manage to keep costs under a hat that could have blown away they also can’t take a trick.
Steven Purse (Woodside employee on secondment to Shell in Norway … where the cost overruns are something to really harp about!)