AUSTRALIA'S booming oil and gas sector has been given a negative outlook by ratings agency Fitch on concerns about funding, cost blowouts and future demand from Asia.
Fitch energy and utilities analyst Sajal Kishore said Australian upstream projects faced rising competition for similar resources and higher development costs, with increasing cost overruns and schedule slippage.
Woodside's $16 billion Pluto project on WA's Burrup Peninsula was hit with a 25 per cent cost blowout from its original budget, and Exxon Mobil has flagged cost increases at its Scarborough liquefied natural gas joint venture with BHP Billiton.
"Australian projects face delays and increasing cost pressures from skilled labour shortages adding to labour costs, along with the cost and availability of material and equipment," Mr Kishore said.
The Australian
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