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Chevron Agrees To Terms That Could End Strike At LNG Facilities

Chevron has agreed to the terms and recommendations made by Australia's Fair Work Commission in a move that could end the strikes at Australia's LNG facilities.

"After considering the recommendation, Chevron has accepted the recommendation to resolve all outstanding issues and finalise the agreements," a Chevron spokesperson said on Thursday.

"We have informed the Commissioner of our position and written to the unions and other employee bargaining representatives confirming our acceptance."

The union, however, has said only that it is meeting to discuss the FWC's offer.

The Fair Works Commission is set to meet on Friday morning to determine whether it should stop the strike. The Commission published a list of proposed terms that it hoped would resolve the issue prior to that meeting.

Chevron had been hoping to get a so-called "intractable bargaining" declaration from the Fair Work Commission, meaning the FWC could force workers to agree to terms proposed by Chevron.

On Wednesday, talks between Chevron and the trade unions failed, with Chevron saying that "The ongoing lack of agreement reinforces our view that there is no reasonable prospect of agreement between parties."

The Offshore Alliance trade union said in a tweet on Wednesday that Chevron was telling media "that they are doing a bang up job whilst copping Protected Industrial Action on their West Coast oil and gas facilities. This is simply unadulterated bullshit from a mob who are masters of spin."

But the new recommendation from FWC has garnered Chevron's support, and it could mean an end to the strikes even before Friday's meet.

The dispute between Chevron and the trade union is over pay and conditions at two of the company's LNG projects in Australia, which combined account for 7% of the global LNG market.

By Julianne Geiger for Oilprice.com

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Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More

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