Analysis: Megaproject tails wag the Big Oil dog

“If you call project cost the numerator, and market capitalization the denominator then the denominator is constant but the numerator is growing,” said Clare Colhoun, chief executive of 8over8, which makes contract management software aimed at keeping a lid on megaproject costs. “For the oil supermajors at least, the numerator increasingly comprises big projects rather than lots of small ones,” said Colhoun, whose company works for Royal Dutch Shell (RDSA.L) and other top oil firms. This is not the first time the cost has risen, nor is it a big jump by the standards of the liquefied natural gas (LNG) export scheme’s pricy history.


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