OffshoreOperations

Strike at Shell’s Prelude FLNG extended to September

Shell’s giant Prelude floating liquefied natural gas (FLNG) facility offshore Western Australia will most likely stay shut until at least early September after unions extended their strike action over a pay dispute.

The UK supermajor shut down the production in July as work stoppages, which began on June 10, were affecting the company’s ability to moor carriers at the site to pick up LNG cargo.

The Offshore Alliance, which combines the Maritime Union of Australia and the Australian Workers’ Union, overwhelmingly rejected Shell’s previous pay offers and said its strike action for “job security and Tier 1 rates and conditions” has been extended until September 1.

“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 alliance said.

The union alliance claimed that Shell has lost about $1.3bn of earnings by refusing to agree to a zero cost claim of ensuing permanent direct-hire jobs are not outsourced to low-wage labour hire contractors, adding that the company’s losses work out at over $5m per Prelude employee.

The Prelude FLNG was shut down last December due to power failures caused by a fire and came back on line in April. Shell owns 67.5% of the 3.6 million tonne per year facility in the Browse Basin. Partners in the project included Japan’s Inpex with a 17.5% stake; Korea’s Kogas with 10%; and Taiwan’s CPC holding a 5% ownership interest. 

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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