The claim was made after concerns were raised on Perth radio yesterday about Woodside cutting the local proportion of the work on the new liquefied natural gas train in Karratha to 45%, down from 66% in the fourth train.
“Australia is effectively being eliminated as a player,” wrote local content promoter the Industry Capability Network in a recent report.
Unions WA secretary Dave Robinson told EnergyReview.net that Woodside, the North West Shelf operator, made the admission during a meeting several weeks ago between industry development officers from the peak union body and managers of the North West Shelf project.
General manager, onshore expansion projects, Wim Kemper, and industrial relations manager, Ian Masson, were at the meeting, Robinson said.
“Woodside dropped the issue of a skills shortage. It was purely about cost,” Robinson said.
A spokeswoman for Woodside confirmed Kemper and Masson were at the meeting about four weeks ago, but denied Robinson’s claim the statement was made.
No contracts had been awarded other than an engineering procurement agreement with Foster Wheeler WA and Worley Parson Services.
“The phase five project is going to bring significant benefits to the area. We anticipate Australian participation of $900 million, providing Australian companies are internationally competitive,” the spokeswoman said.
Robinson’s claim was made after the Australian Broadcasting Corporation asked Western Australian minister for energy Alan Carpenter about the reductions in potential local content.
Carpenter said the state was not being “sold down the river” and he was going to “get serious” about local manufacturers benefiting from major projects.
