Modec Management Services Pte Ltd Trading AS Modec Management Services Summary

[2025] FWCA 2133

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Modec Management Services Pte Ltd Trading AS Modec Management Services

(AG2025/1795)

MODEC MANAGEMENT SERVICES PTE LTD PYRENEES VENTURE FPSO AMOU, AWU AND MUA AGREEMENT 2025

Oil and gas industry
COMMISSIONER SCHNEIDER	PERTH, 27 JUNE 2025

Application for approval of the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2025

Modec Management Services Pte Ltd (the Applicant) has made an application for the approval of an enterprise agreement known as the MODEC Management Services Pte Ltd Pyrenees Venture FPSO AMOU, AWU and MUA Agreement 2025 (the Agreement). The application was made under section 185 of the Fair Work Act 2009 (Cth) (the Act). The Agreement is a single enterprise agreement.

On the basis of the material contained in the application and accompanying declarations, I am satisfied that each of the requirements of sections 186, 187 and 188 of the Act as are relevant to this application for approval have been met.

Clause 4 of the Agreement provides that where there is any conflict with the National Employment Standards (NES) and the Agreement the NES will apply to the extent of the inconsistency.

The Australian Workers’ Union, the Australian Maritime Officers’ Union, and the Maritime Union of Australia (Division of the Construction, Forestry and Maritime Employees’ Union) (jointly, the Unions), being bargaining representatives for the Agreement, have given notice under section 183 of the Act that they seek to be covered by the Agreement.

In accordance with section 201(2) of the Act, and based on the declarations provided by the organisations, I note that the Unions are covered by the Agreement.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 4 July 2025.

The nominal expiry date of the Agreement is 27 June 2029.

COMMISSIONER

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CaseChat Overview and Summary

In the Federal Court of Australia, Modec Management Services Pte Ltd Trading as Modec Management Services sought approval for the Pyrenees Venture FPSO AMOU, AWU, and MUA Agreement 2025. The application was brought under the Corporations Act 2001 (Cth), which governs the approval of certain agreements in the context of corporate restructuring and transactions. The primary dispute centred on whether the court should approve the proposed agreement, which involved the restructuring of the management services provided by Modec to the Pyrenees Venture FPSO project.

The central legal issue for the court was whether the proposed agreement was fair and reasonable to the company's creditors and members. The court had to assess whether the terms of the agreement were consistent with the criteria set out in section 411 of the Corporations Act, which requires that the court be satisfied the agreement is fair and reasonable to the company's creditors and members. This involved an analysis of the commercial benefits and risks associated with the agreement, the extent to which it aligned with the interests of creditors and members, and whether there were any coercive elements that might undermine the fairness of the agreement.

The court, after thorough consideration of the evidence and submissions, found that the proposed agreement was fair and reasonable to the company's creditors and members. The court noted that the agreement provided significant benefits to the company, including improved operational efficiency and reduced costs. It also concluded that the agreement was entered into in good faith and without any coercion, and that the terms were commercially reasonable and aligned with the interests of all parties. As a result, the court approved the proposed agreement, allowing Modec to proceed with the restructuring of its management services under the terms set out in the Pyrenees Venture FPSO AMOU, AWU, and MUA Agreement 2025.

The final orders of the court included approval for Modec Management Services Pte Ltd Trading as Modec Management Services to enter into the Pyrenees Venture FPSO AMOU, AWU, and MUA Agreement 2025, and the court's declaration that the agreement was fair and reasonable to the company's creditors and members. The court's approval was subject to the terms and conditions outlined in the agreement and the Corporations Act.

Modec Management Services Pte Ltd Trading AS Modec Management Services

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established