Shell's Giant Prelude FLNG Unit to Remain Shut for Longer as Pay Dispute Continues

Sonali Paul
Thursday, August 18, 2022

Unions at Shell Plc's Prelude floating liquefied natural gas (FLNG) site off Australia have extended industrial action to Sept. 1 over a long-running pay dispute, the company said on Thursday. 

Shell shut down the 3.6-million-tonne-a-year site in July and told customers it would be unable to supply LNG cargoes for the duration of work stoppages approved by Australia's Fair Work Commission, or Protected Industrial Action (PIA). 

"We can confirm it's been renewed until Sept. 1," a Shell spokesperson said of the protected industrial action. The work stoppages began on June 10 and no cargoes have been shipped from the site in about five weeks, worsening a global LNG supply crunch amid the Ukraine conflict. 

The Offshore Alliance, which represents workers from the Australian Workers' Union and the Maritime Union of Australia, said on its Facebook site it would extend industrial action for as long as it took to reach a new enterprise bargain agreement with Shell. 

"Our Prelude members have drawn a line in the sand on job security and have this week supported the extension of Protected Industrial Action until our bargaining claims are resolved," the Offshore Alliance said in a posting on Thursday. 

One of the main outstanding issues is the unions' demand that Shell ensure that it will not outsource jobs to contractors at lower rates than they pay their own staff for the same jobs, the alliance said. 

Unions are using an April pay deal with Japan's Inpex Corp at its Ichthys LNG operation as a benchmark for talks with other oil and gas majors. Prelude is co-owned by Shell, Inpex, Korea Gas Corp (KOGAS) and Taiwan's state-run Chinese Petroleum Corp.

(Reuters -  Reporting by Sonali Paul; Editing by Edmund Blair)


Categories: Offshore Industry News Activity Floating Production FLNG Australia/NZ People & Company News

Related Stories

Production Restart at Australian Offshore Fields Boosts Jadestone's Oil Output

ADES Lands New Offshore Drilling Rig Deals in Angola and Indonesia

Shell to Exit Australia's North West Shelf Project in $1.45B Deal with XRG

Eni, Petronas JV Brings Indonesian Offshore Gas Field Online

TotalEnergies to Take Operatorship of Two Major Gas Fields off Malaysia

Idemitsu Taps PV Drilling for Vietnam's Offshore Drilling Campaign

Oil India Discovers Gas in Shallow Waters of Krishna-Godavari Basin

SLB Secures Aramco Well Construction Work for 450 Wells

ONGC Strikes Gas in Deepwater Well off India

Petronas, PTTEP Get Approvals for New Gas Block Sharing Contract

Current News

First Oil Flows from Vietsovpetro's Platform Offshore Vietnam

Iran Brings South Pars Gas Platform Fire Under Control

Oil Prices Slide as Trump Signals Pause in Iran Strikes

Murphy Oil Secures Six Offshore Israel Licenses Near Leviathan Gas Field

VAALCO Advances Côte d'Ivoire Offshore Exploration Ahead of 2028 Drilling

Aramco’s Building in Riyadh Damaged by Houthi Attack

ADES Lands $117M ONGC Drilling Contracts for Two Jack-Ups

Velesto’s Jack-Up Rig Up for Drilling Job with Petronas

Tender-Assist Rigs: Southeast Asia’s Quiet Workhorses Head for Full Utilization

Aker Solutions Lands Major Role in Qatar’s Offshore Oil Field Revamp

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