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Monday
04 Sep 2023

Chevron Poised for Mediation Talks to Avert Australia Lng Strike

04 Sep 2023  by reuters   

The Chevron logo is pictured after the U.S. government granted a six-month license allowing Chevron to boost oil output in U.S.-sanctioned Venezuela, in Caracas, Venezuela, December 2, 2022. REUTERS/Gaby Oraa//File Photo Acquire Licensing Rights

Mediation talks to avert strikes at Chevron's (CVX.N) two major liquefied natural gas (LNG) facilities in Australia will begin on Monday after workers rejected the company's offer on wages and working conditions last week.

A senior member of the Fair Work Commission (FWC), Australia's industrial umpire, will host the talks from 9 a.m.(0100 GMT) in the Western Australia state capital of Perth through this week, a schedule of hearings showed. Chevron filed a request for mediation with the FWC on Friday.

A union alliance has said industrial action will begin at Chevron's Gorgon and Wheatstone projects, which account for more than 5% of global LNG capacity, on Thursday, if parties cannot find a resolution.

Employees plan work stoppages of up to 11 hours in two blocks and will stop performing certain tasks until at least Sept. 14, the Offshore Alliance union said.

Australia is the world's biggest LNG exporter and the ongoing dispute has stoked volatility in natural gas markets nervous about the risk of long-term disruption.

A similar dispute between the union alliance and Woodside-operated (WDS.AX) North West Shelf LNG facility, Australia's biggest, was resolved last month after workers approved a deal.


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