Shell and unions representing workers at its Prelude floating LNG (FLNG) facility have reached a wage deal to end a long-running strike and restart production at the site off northwest Australia, they said on Aug. 24.
Shell shut the 3.6 million-tonnes-a-year Prelude facility in July and told customers it would be unable to supply LNG for the duration of the protected industrial action, or strikes approved by Australia's Fair Work Commission, over a wage dispute.
"Shell is pleased to confirm an in-principle Enterprise Agreement has been reached with the Australian Workers’ Union and Electrical Trades Union in relation to the Prelude FLNG facility," the company said in an emailed statement.
"The process to formally lift the work bans in place under the Protected Industrial Actions is expected to be completed shortly, which will enable the facility to commence the process to prepare for a hydrocarbon restart," it said.
Shell did not give a timeframe for restarting production or resuming LNG shipments at Prelude. The company would need to work through a staged start-up process, a spokeswoman said.
The Offshore Alliance, which combines the Australian Workers' Union and Maritime Union of Australia, said workers would vote on the enterprise bargaining agreement (EBA) later this week.
"76 days of lawful Protected Industrial Action to secure an EBA which prevents jobs being outsourced to low-wage labor hire contracts is a fight worth having," the Offshore Alliance said on its Facebook site.
The unions said they would disclose details about pay and rostering improvements secured in the agreement later this week.
However, on their key demand for job security, the Offshore Alliance said Shell had agreed that if it increases the use of contract labor, it will not cut the number of employees covered by the new agreement as a consequence.
"I know our members are keen to get back to work as usual – more secure in their jobs – and able to help Shell Prelude be as successful as it can be," Offshore Alliance spokesperson Daniel Walton said in a statement.
Recommended Reading
Chevron, Exxon in Dispute Over Hess Stake in Guyana Oil Block
2024-02-27 - Chevron’s $53 billion deal to buy Hess’ interests in the Stabroek Block offshore Guyana could be derailed as Exxon, CNOOC say they have first rights of refusal on the block’s interests.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Kimmeridge-SilverBow Public Feud Gets Ugly as Firm Suggests New Directors
2024-04-01 - Kimmeridge Energy Management said in a letter that should SilverBow continue to “stonewall” consideration of a merger offer, shareholders should elect three new independent board members.
Sitio Royalties Dives Deeper in D-J with $150MM Acquisition
2024-02-29 - Sitio Royalties is deepening its roots in the D-J Basin with a $150 million acquisition—citing regulatory certainty over future development activity in Colorado.