A parliamentary question regarding the construction and fabrication of oil and gas projects in Western Australia to ensure local content, jobs, and workforce retention during an economic downturn, and the Minister's response outlining existing mechanisms and policies to support local industry participation.

AnsweredQoN 487Legislative Council
Asked
13 May 2009
Portfolio
State Development

QuestionView source ↗

OIL AND GAS PROJECTS — Western Australian WORKFORCE
I refer to the multimillion-dollar oil and gas projects planned for construction by Woodside, Apache and others off the coast of Western Australia. (1) What is the minister doing to ensure that these plants are constructed and fabricated in Western Australia, thereby guaranteeing local content and jobs for Western Australian workers? (2) What are the minister and the state government doing to ensure that Western Australia’s highly skilled oil and gas construction workforce remains employed in the current economic downturn? Hon NORMAN MOORE

AnswerView source ↗

I thank the member for some notice of this question. (1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
(1) What is the minister doing to ensure that these plants are constructed and fabricated in Western Australia, thereby guaranteeing local content and jobs for Western Australian workers? (2) What are the minister and the state government doing to ensure that Western Australia’s highly skilled oil and gas construction workforce remains employed in the current economic downturn? Hon NORMAN MOORE replied: I thank the member for some notice of this question. (1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
(2) What are the minister and the state government doing to ensure that Western Australia’s highly skilled oil and gas construction workforce remains employed in the current economic downturn? Hon NORMAN MOORE replied: I thank the member for some notice of this question. (1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
Hon NORMAN MOORE replied: I thank the member for some notice of this question. (1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
I thank the member for some notice of this question. (1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
(1)-(2) Under the mechanisms of the Industry Capability Network of Western Australia and Project Connect, an online database tool that links buyers with suppliers, Western Australian companies are provided full, fair and reasonable opportunities to participate in oil and gas projects. The Departments for State Development and for Commerce meet regularly with project operators and service companies to promote Western Australian participation, as required by the state government’s Building Local Industry policy. With respect to the North West Shelf and Gorgon projects, the respective state agreements require the joint venturers “as far as reasonable and economically practicable to do so” to use local services, labour and materials in developing and constructing their projects. The joint venturers are required to give preference, where possible, to local suppliers, manufacturers and contractors where price, quality delivery and service are equal. The government monitors compliance with these requirements for the projects through reporting provisions of the state agreements. The Department for Commerce has also supported the establishment of Subsea Energy Australia, which has the mission of linking all sectors of the Australian sub-sea industry by facilitating networking and promoting capacity under a consistent Australian brand. The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.
The Gorgon, Pluto, Ichthys and Browse projects are currently in front-end engineering and design phases or approaching their final investment decisions. This workflow is likely to maintain the demand for a skilled oil and gas construction workforce in the coming decade. This government will continue to strenuously lobby the oil and gas industry to support the retention of design and fabrication work for major projects in Western Australia.

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