Shell Delays Prelude LNG Maintenance Due to Industrial Action

Sonali Paul
Monday, August 8, 2022

Shell Plc said on Monday it is deferring planned maintenance work at the Prelude floating liquefied natural gas (FLNG) facility that was due to go ahead in September because of industrial action at the site off northwest Australia.

"As a result of the ongoing Protected Industrial Action and inability to complete preparation work, we are not able to proceed with the planned turnaround at this time," a Shell spokesperson said in emailed comments.

She said the extensive maintenance work, called a turnaround, would be put off to next year, with the timing to depend on a range of factors including weather conditions, contractor availability, and when the industrial action ends.

Shell shut the 3.6-million-tonne-a-year Prelude facility in July and told customers it would be unable to supply LNG cargoes for the duration of protected industrial action - work stoppages approved by Australia's Fair Work Commission - over a long-running pay dispute.

The Offshore Alliance most recently extended its work stoppages to Aug. 11, fighting to match an April wage deal reached with Inpex Corp at its Ichthys LNG operation.

Shell asked the Fair Work Commission to stop the industrial action and impose a "cooling off period," which would have allowed it to go ahead with preparations for a turnaround, but the commission rejected the request.

The Offshore Alliance said on Monday it remained willing to enter mediation with Shell. A spokesperson for the Fair Work Commission was not immediately available for comment.

(Reuters - Reporting by Sonali Paul; Editing by Christopher Cushing and Jacqueline Wong)

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

Related Stories

Subsea Supplies Targets US in Partnership with DRIFT Offshore

Lebanon and Cyprus Clear Path for Gas Exploration with Maritime Border Deal

OEUK Warns of Major Job Losses Without Urgent Windfall Tax Reform

Current News

ESG Completes Service Operation Vessel Conversion for HOS

Orbital Marine Power Secures $9.31m Investment

Shell Seeks Buyer for 20% Stake in Brazilian Oilfield Cluster

VAALCO Energy Spuds First Well in New Drilling Campaign off Gabon

Subscribe for OE Digital E‑News