Energy News understands there is a one-week ban on generating or signing permits the employees of contractors, meaning they cannot work. As a new level of protected industrial action kicks in from July 1 the group of contractors set to head to the ship tomorrow has been stood down. 

 

Speaking to Energy News over the weekend a union source said that management had decided to shut in the 3.6 million tonne per annum vessel as talks continue over enterprise bargaining agreements for the workforce. 

 

However Shell has not confirmed this and the union rep said today the company "kept changing the narrative". 

 

"They're talking about reducing POB (people on board) to 140," they said. A shut in, or ‘lighthouse mode' would require far fewer than 140 persons. 

 

From the first day of next month, a stricter level of protected industrial action occurs, which will further limit operations on the ship. 

 

Last week the PIA was extended from 12 days to 19 days. 

 

"They'll be stoppages (of cargoes)," Energy News was told by an unnamed union member when the PIA was first announced two weeks ago. 

 

"It will affect their ability to do offtakes, there are bans on restarting compressors and when they hit tank tops they may have to shut down the facility." 

 

"There are different bans on different days, we'll see how they manage. Offtakes will be a lot slower and they may lose several cargoes before all this is over." 

 

"It's going to be really, really expensive for Shell. I've never seen a company willing to burn hundreds of millions of dollars in an industrial dispute before."

 

The 3.6 million tonne per annum vessel only restarted in April after a December fire that could have had "catastrophic consequences" according to a report from the offshore safety regulator. 

 

The offshore safety regulator is currently also investigating a new safety case where 200 smoke alarms are out of action, and under qualified workers are taking on positions such as loading cargoes with zero experience. It has not published a direction or notice yet, however. 

 

A month ago the company took a positive final investment decision on the Crux field, to be used as backfill later this decade. 

 

Energy News contacted Shell, which declined to offer official comment.