VIC: Oil flows from Longford, unions end dispute

AAP General News (Australia)
12-04-1998
VIC: Oil flows from Longford, unions end dispute

By Alan Gale, Industrial Correspondent

MELBOURNE, Dec 4 AAP - Crude oil has finally started flowing from the Esso-BHP Longford
plant, nine weeks after the massive explosion and fire knocked it off line on September 25.

Delayed by union wage and conditions claims, the last of which was settled overnight, the
re-connection of Longford to the 11 Bass Strait oil rigs feeding the plant ends million dollar
a day losses for the joint operators.

It has taken five weeks to bring the plant to the stage where both gas and oil are
produced, however Longford is yet to reach the gas production levels needed to meet the peak
winter demand.

"Gas production from Gas Plants 2 and 3 commenced in early October ... restoration work is
continuing on the gas facilities required to restore gas production capacity," BHPs Group
Manager External Affairs Dr Robert Porter said in a statement.

No estimate has been given on the resumption of full gas production.

Late last night the final industrial hurdle was removed from the resumption of oil
supplies, when offshore oil workers settled their claim for pay parity with their shore based
colleagues.

Faced with increasing delays in repair work, mounting losses from the inactive plant and
the threat of a Federal Court injunction, Esso granted maintenance and construction workers at
Longford and the secondary processing plant at Long Island Point a 15 per cent pay increase.

This prompted industrial action by the rig workers for a similar increase, which was
settled late last night.

AAP ag/jlw/rap

KEYWORD: GAS UNION (CARRIED EARLIER)

1998 AAP Information Services Pty Limited (AAP) or its Licensors.