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Strike Action Creating Problems for Woodside Petroleum

Woodside Petroleum Ltd. sent a statement to the Australian Securities Exchange warning about delays and rising costs at its Pluto LNG project. The Oil and Gas producer is facing rising construction costs and delays due to the strike action taken by its employees.

12 crane drivers and fork lift operators began a strike on April 28, 2010. The employees are asking for more pay and improved working conditions. This strike has affected the $13 billion Pluto liquefied natural gas project.

Pluto LNG Project infrastructure, Image Credit: Woodside Petroleum Ltd.

Woodside Pertoleum Ltd has said that it is going to make an application to Fair Work Australia to try and stop the strike. The continued industrial action will delay mechanical construction activities and impact the project’s schedule and cost.

The striking workers are needed to complete several key heavy lifts on the project. The stopped work is having a negative follow on impact on the mechanical and electrical contractors on the site.

Woodside shares have also dropped in the corresponding period. The Pluto project has a target start up date at the end of Feb 2011 and the first LNG by the end of March 2011. At preset this seems improbable.

Joel Scanlon

Written by

Joel Scanlon

Joel emigrated to Australia in 1995 and worked for five years in the mining industry as an exploration geotechnician, using GIS mapping and CAD software. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm. After that, he ran a successful business providing web services to businesses along the eastern seaboard of Australia. During this time, he developed and launched News-Medical.Net. Joel has been working with AZoNetwork since the company was founded in 2000.


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