Australian unions to cease Ichthys LNG strike after INPEX bargaining campaign settlement

Australian unions will cease all Ichthys LNG strike actions June 17 after endorsing the settlement of the INPEX bargaining campaign earlier in the day, the Offshore Alliance said in a statement sent to Platts, part of S&P Global Energy.

"Unions have notified INPEX there will be a cessation of all strike action by 6:00 pm tonight," the Offshore Alliance, a partnership between the Australian Workers' Union and the Maritime Union of Australia, said.

"At 6:00 am this morning, over 400 Offshore Alliance, AWU (Australian Workers' Union) and ETU (Electrical Trades Union) members endorsed the settlement of our INPEX bargaining campaign," the Offshore Alliance, a partnership between the AWU and the Maritime Union of Australia, said in a Facebook post.

"Through the unbending collective struggle of our 430+ INPEX members, we have now secured the best EBA (Enterprise Bargaining Agreement) in the oil and gas industry," the post said.

"This dispute cost INPEX 1 train (which was shut down at ILNG yesterday), 2 Conde tankers and an LNG carrier. And about $200 million in lost production," the Offshore Alliance said.

An INPEX spokesperson declined to comment June 17 on whether one Ichthys LNG train was shut.

After hundreds of members engaged in industrial action that delayed cargoes and caused production losses for INPEX to the tune of millions of dollars a day, the Offshore Alliance said in the statement that it "has today secured a landmark agreement with the company that establishes a new benchmark for wages, conditions and job security across Australia's offshore oil and gas industry."

"Following months of negotiations and the prospect of further protected industrial action, Offshore Alliance members have won an agreement that delivers significant gains in job security, pay, career progression, workplace rights and working arrangements," the Offshore Alliance said.

"The agreement is expected to set a new industry standard for Australian offshore oil and gas workers and will serve as a benchmark for future bargaining across the sector," it added.

In a separate statement sent to Platts June 17, INPEX Senior Vice President Corporate, Bill Townsend, confirmed that an in-principle agreement has been reached between the parties.

"Protected industrial action has ceased at the Ichthys LNG facilities and we are pleased to confirm cargo loading has recommenced," Townsend said.

"INPEX remains focused on maintaining safe operations at Ichthys LNG -- and importantly, ensuring reliable energy supply to the Northern Territory and our key trading partners in the Indo-Pacific region amid ongoing global market disruption," he added.

The settlement comes as Townsend said June 16 INPEX expects "imminent disruption" to production at its operated Ichthys LNG project in Australia, as Australian unions extend their strike action through July 6.

Protected industrial action by Australian unions, including the Offshore Alliance, began May 27, with more significant forms of action starting June 11.

The Ichthys project has a nameplate capacity of 9.3 million metric tons/year of LNG, 1.65 million mt/year of LPG and 100,000 barrels/day of condensate, with about 70% of LNG output destined for Japanese buyers, according to INPEX.

The INPEX-chartered Symphonic Breeze arrived at the Ichthys LNG terminal at 0149 GMT on June 16, according to S&P Global Commodities at Sea data. Earlier, the Archy Vanguard departed the terminal near Darwin at 0752 GMT on June 11 following its arrival at 0221 GMT on June 10, CAS data showed.