Inpex seeks urgent orders to stop strike action in Darwin

Oil and gas giant Inpex is seeking urgent orders to stop strike action at its Ichthys LNG facility in Darwin, Australia, citing potential significant disruptions to global and domestic gas supply. The company has filed proceedings with the Fair Work Commission, which has scheduled a hearing for Friday.

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If the Ichthys production facilities are taken offline, there will be impacts to our LNG buyers and to the recipients of our domestic gas supply in the Northern Territory.

The Offshore Alliance, a union representing over 400 workers, flagged an escalation of protected industrial action earlier this week. The union accused Inpex of mishandling enterprise bargaining negotiations and is pushing for improved conditions and a three percent annual pay rise. The union stated on social media that members endorsed increasing current four-hour work stoppages to eight hours starting Thursday.

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We're ready to step up and take Inpex.

Inpex senior vice president Bill Townsend warned that if the Ichthys production facilities are taken offline, it would impact LNG buyers and the Northern Territory's domestic gas supply. He emphasized the significance of such disruption in the context of current fuel supply constraints. The facility produces about two percent of the world's LNG, a critical commodity amid global supply strains from Middle East conflict.

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Whilst the Inpex HR bosses have completely butchered these negotiations by failing to agree to a single bargaining claim in the first seven months of bargaining, the Inpex bosses in Tokyo have signed off on extensive Protected Industrial Action.

Despite the dispute, Townsend stated that Inpex remains engaged in "good-faith" negotiations and is committed to a fair and sustainable deal. He noted that while substantial progress has been made, key items like pay rates, allowances, and career progression remain unresolved. Inpex recently shared various agreement options with bargaining representatives and employees, all of which they claim offer improvements to overall terms and conditions and opportunities for substantial pay increases.

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In the context of current fuel supply constraints, the disruption would be significant.