Mitsui E&P Australia and Beach Energy Ltd., joint venture partners of the Waitsia Stage 2 gas plant development program in Western Australia, will work with Deloitte to ensure the project progresses following placement of Clough, the project’s engineering, procurement, and construction contractor, into voluntary administration.
The move follows a decision by Clough’s owners, Murray & Roberts of South Africa and Webuild of Italy, to terminate the sale of Clough to Webuild for $350 million (Aus.).
The companies agreed there was “no reasonable prospect of the acquisition proceeding through to a successful completion.”
Clough’s board has subsequently decided to place Clough and its Australian subsidiaries into voluntary administration with Deloitte appointed as administrator to try to restructure and recapitalize the business.
Murray & Roberts said it had been forced to act after Webuild pulled out of the conditional purchase deal that would have included a funds injection of $30 million (Aus.).
Perth-based Clough has about 1,250 staff in Australia and a similar number spread across North America, Asia and the UK.
The company said previously it suffered cost overruns on several projects including the Waitsia gas development and the Snowy 2 hydro scheme.