OPERATIONS

Prelude turnaround cancelled for 2022 

Blames union strike for delayed turnaround 

Prelude turnaround cancelled for 2022 

In a note to employees asset manager Peter Norman said "as of today Prelude remains shut down and production is suspended as a result of the ongoing protected industrial action on the facility. 
 
"With the existing PIA in place we cannot prepare nor proceed with the Turnaround". 
 
He did not give a firm date in 2023 for the important maintenance to be undertaken. However he said "significant progress" had been made over the past weekend in negotiations with the unions. 
 
"When we are able to reschedule the turnaround will depend on a variety of factors, including weather conditions, contractor availability and when the ongoing PIA concludes," a Shell spokesperson said. 
 
"We remain committed to reaching an agreement and working together to find a way forward with our workforce.
 
"We have continued to keep the offshore regulator, NOPSEMA, updated on the impacts of the ongoing PIA and will continue to work closely with them."
 
Industrial action as unions negotiate a new enterprise bargaining agreement began in June and has been officially extended to August 11. Shell shut off production last month; the 3.6 million tonne per annum ship typically sends three, sometimes four, cargoes a month. 
 
Late July Shell cancelled a lockout of workers but maintained the shut in. 
 
The prior week the company  announced it would lock out workers and stop paying them in an effort to stem losses and pressure unions into accepting its proposed enterprise bargaining agreement. 
 
According to the Offshore Alliance - made up of the Australian Workers Union and the Australian Maritime Union- losses from protected strikes at the vessel have cost Shell nearly $1 billion. The Electrical Trades Union is also part of the strike. 
 
Negotiations between workers and Shell management have been ongoing for around 19 months. Both parties failed to compromise on key aspects of proposed workplace agreements which led to the protected industrial action. 
 
 

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry