Workers on Shell's Prelude FLNG to Start 12-day Strike on Friday

Sonali Paul
Thursday, June 9, 2022

Workers on Shell Plc's Prelude floating liquefied natural gas (FLNG) facility off Western Australia are set to begin 12 days of industrial action on Friday over a pay fight, a union alliance said on Thursday.

Shell did not comment on what impact the mix of short work stoppages and bans on certain tasks, to run through June 21 might have on output at the 3.6 million-tonnes-a-year LNG facility.

"Shell recognizes the entitlement of all workers to exercise their rights, including the right to participate in industrial action," a Shell spokeswoman said in emailed comments.

The action comes two months after Prelude resumed shipping LNG after a four-month shutdown due to a major power failure.

The Offshore Alliance, which combines the Australian Workers Union (AWU) and the Maritime Union of Australia, is pressing to stop Shell from hiring contract workers at lower pay than the company's own employees doing the same job.

"We will not budge from that basic starting point," AWU national secretary Daniel Walton said in emailed comments. The wage battle follows more than two years of bargaining and comes as resource projects face a tight labor market.

Japan's Inpex Corp in April sealed a five-year pay deal for its Ichthys LNG project, which the AWU hailed as "outstanding" and said would serve as a benchmark for deals with other oil and gas majors. That agreement has base rates of pay between A$125,000 and A$258,000 ($90,000-$185,000) plus allowances, up from between A$92,000-A$102,000.

Separately, the National Offshore Petroleum Safety and Environmental Management Authority said on Thursday it has launched an investigation after receiving a complaint from the Offshore Alliance about problems with smoke detectors on Prelude and being notified by Shell about an issue with fire suppression equipment at the facility.

"The issue does not impact the ability to safely operate the Prelude FLNG facility, and there are no impacts to people or production as a result of the issue," Shell's spokeswoman said.

($1 = 1.3943 Australian dollars)

(Reuters - Reporting by Sonali Paul)

Categories: Offshore Energy LNG Vessels People Industry News Activity Production FLNG Australia/NZ People & Company News

Related Stories

Indonesia Picks Winners for Six Oil and Gas Blocks, Puts Eight More on Offer

MODEC, Eld Energy Advance Fuel Cell Power for FPSOs

XRG, ADNOC and SEFE Deepen Gas Ties in Europe

BP Completes Central Azeri Platform Maintenance, Ramps Up Production

BP Moves Indonesia CCUS Project Into Offshore Installation Phase

Inpex Starts Construction of Indonesia's Abadi LNG Project

Hormuz Crossings Decline as US Renews Iran Blockade

Hormuz Traffic Falls to Five-Week Low as Tensions Escalate

ADNOC Launches Global LNG Trading Powerhouse

Hormuz Reopening Risks Turning Oil Shortage Into Glut

Current News

Oil Goes Down 2% as Saudi Supply Concerns Recede

Indonesia Picks Winners for Six Oil and Gas Blocks, Puts Eight More on Offer

PTTEP Gets Thai Approval for Offshore Stake Transfer to Valeura Energy

Valeura Finds New Oil Near Manora Field in Gulf of Thailand

MODEC, Eld Energy Advance Fuel Cell Power for FPSOs

Santos Expands LNG Portfolio with Asia, Canada Deals

Petronas, PTTEP Get Approvals for New Gas Block Sharing Contract

TPAO Eyes Karabakh Offshore Expansion with SOCAR

XRG, ADNOC and SEFE Deepen Gas Ties in Europe

Saudi Oil Lifeline Shut After Attack as Red Sea Threat Grows

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com