Shell reaches union deal at Prelude LNG
Shell has struck a deal with Australian trade unions to restart production at its stalled 3.6mn metric tons/yr Prelude LNG facility off Western Australia in the Browse Basin, union representative Offshore Alliance announced August 24.
Full details of the agreement will be announced by the alliance later in the week. It follows a protracted 76-day strike action that has seen key Asian customers lose access to Prelude LNG cargoes.
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The wage dispute revolved around matching working conditions at the Itchys LNG project, operated by Japan's Inpex, and reaching a compromise on the use of temporary shift workers on the same jobs as permanent staff.
In a statement emailed to Reuters, Shell said processes to lift the work bans in place under Australia's trade union law would be completed "shortly", but it didn't say when the facility would be back online.
"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.
"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."