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Defining the problem

BUILD it and they will come. It used to be a simple enough truth but the offshore construction in...

Defining the problem

The problem is that with a myriad of LNG projects coming onstream, the jobs are there and waiting but there just aren't enough people to fill them.

SKILLED offshore chief executive officer John Kempe yesterday told the Australasian Oil and Gas expo that the need for offshore skills was unprecedented due to the ramp-up of the LNG sector in the next four to five years.

"There are an unprecedented amount of LNG projects coming onstream at the same time," he said.

"Last year, seven LNG projects were sanctioned in Australia and by way of comparison, only one LNG project worldwide is usually commissioned per year.

"We know we have the technical ability to meet these challenges but what we need now is the ability to solve our skills needs."

He said demand for offshore workers would peak in 2013 through to 2016.

Kempe told the conference that historically, the need for offshore projects would be for 200-300 workers on three to eight-month contracts.

Projects now required offshore workers measuring 600-800 in number working on contracts which could last from 18 months to 24 months.

"Hiring has traditionally been done on an ad hoc basis … and it was mainly the same people working on the same contracts," he said.

"In fact, you'll find the experienced guys are already working on Gorgon, North Rankin B and Kipper Tura Turrum."

He urged not just the offshore sector but the oil and gas sector as a whole to come together to answer just how many workers we would need to undertake the work to feed the LNG projects.

"This problem is not just an offshore problem … it's an industry-wide problem," he said.

Kempe said due to improving costs of training and a focus from all sectors on Australian industry participation, the industry's preference would be to train Australians but the offshore sector couldn't simply pluck workers from the onshore sector.

"Unfortunately, you can't just take everybody working onshore and expect them to be able to work offshore … it's a different ball game," he said.

However, there was a glimmer of hope. He said the pull factors were there to attract talent.

"The wages and conditions offshore tend to be very attractive. Guys can attract about $350,000 a year … I'm thinking about skilling up myself," he joked.

Of course, he said, the offshore sector didn't exist in a vacuum and more and more industries were offering higher and higher wages.

Kempe said it was a key reason the industry needed to get together and define exactly how many workers would be needed and when.

Then, industry could work with state and federal governments on implementing the training programs and migration schemes which could meet demand.

"I think defining the problem is very important, because if you don't define the problem you can't get government to buy in and seek a solution," he said.

"Industry has defined the problem in some areas but not across all areas."

Earlier in the day, Peter Dyball, managing director of PitCrew said LNG projects would have a "massive impact on the demand for labour."

He said major oil, gas and construction projects with a capital value of $282.5 billion could raise the number of workers needed to 160,000 by 2014 - prompting an acute labour shortage.

"What's happening now, with the raft of projects being given approval, is the demand for labour is going to ramp up," he said.

"There's the potential of doubling the requirement onsite, there's the prospect of pretty huge growth.

"The prospect of a labour shortage is very real. The project market over the next six to 12 months will largely define the Australian economy for the next ten years.

"Queensland and Western Australia will compete for resources and some states will see an outflow of skills.

"Industry and government could be a lot more effective by concentrating on filling the employee void left by those going to work for major projects."

Australian Petroleum Production and Exploration Association director of Miranda Taylor said there is a need to get past the "rabbit in head lights response to the skills shortage."

"LNG is a high skills industry so the big issue for us is in sourcing the LNG operator skills.

"In the short-term immigration has to be a component. As we go forward, in five or ten years down the track, we should be in a position for Australia to be a source of skills for the rest of the world."

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