Woodside Energy (NYSE:WDS) early on Tuesday the estimated cost has been raised its Scarborough natural gas project by another $500 million to $12.5 billion, bringing the company’s share of development costs to $8.2 billion, with the escalate “largely due to maturation of the Pluto Train 1 modification project scope.”

Woodside (WDS) also reported revenue of $3.03 billion for the quarter ended June 30, up slightly from $2.97 billion in the March quarter. The escalate was primarily due to the timing of LNG deliveries from the Pluto facility, with about half of all LNG deliveries sold on the spot market during the quarter.

The company said it remains on track to meet its full-year production guidance of 185-195 million boe, despite a slight decline in quarterly production to 44.4 million boe from 44.9 million boe in the previous quarter, due to adverse weather conditions impacting operations at the North West Shelf LNG facility and unplanned outages at the Wheatstone and Julimar projects.

Woodside’s (WDS) update comes a day after the company announced a roughly $1.2 billion deal to buy Tellurian and the planned Driftwood LNG project in the U.S., as it bets on continued forceful global demand for natural gas.

Analysts say Dow Jones believes Tellurian’s acquisition is logical move for Woodside (WDS), adding another LNG project that could offset the natural decline in production from current operations, although some are skeptical about whether it will deliver the expected internal rates of return.