Upstream Production Solutions Pty Ltd T/A Upstream Production Solutions Summary

[2022] FWCA 1583

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Upstream Production Solutions Pty Ltd T/A Upstream Production Solutions

(AG2022/1302)

Upstream Production Solutions Pty Ltd Northern EndeavourFPSO Enterprise Agreement 2022

Oil and gas industry
DEPUTY PRESIDENT BOYCE	SYDNEY, 12 MAY 2022

Application for approval of the Upstream Production Solutions Pty Ltd Northern Endeavour FPSO Agreement 2022

An application has been made for approval of an enterprise agreement to be known as the Upstream Production Solutions Pty Ltd Northern Endeavour FPSO Enterprise Agreement 2022 (Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (Act). It has been made by Upstream Production Solutions Pty Ltd (Employer). The Agreement is a single enterprise agreement.

Application brought out of time

I note that the Agreement was made on17 April 2022, but was filed for approval with the Fair Work Commission on 2 May 2022. Observing that s.185(3)(a) of the Act imposes a 14-day time limit to bring an application of this kind (and that the time is measured by reference to the day an agreement is made), the Applicant has brought this application one day out of time.

Despite the Applicant’s non-compliance in this regard, I find that it is fair to extend the period for lodging the application by one day. I do so in reliance of the power afforded to me by s.185(3)(b) of the Act, and having had regard to all of the circumstances (namely, that the delay is of a short duration, and has not caused prejudice to any employees seeking to be covered by the Agreement).

Coverage of employee organisation(s)

The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU), and The Australian Workers’ Union (AWU), both being bargaining representatives for the Agreement, have given notice under s.183 of the Act that they want to be covered by the Agreement. In accordance with s.201(2) of the Act, I note that the Agreement covers these organisations.

Conclusion

I am satisfied that each of the requirements of ss.186, 187, 188 and 190 of the Act, as are relevant to this application for approval, have been met.

I am satisfied the more beneficial entitlements of the NES will prevail where there is an inconsistency between the Agreement and the NES.

The Agreement is approved and, in accordance with s.54 of the Act, will operate from 19 May 2022. The nominal expiry date of the Agreement is 12 May 2026.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Federal Court of Australia, the case of Upstream Production Solutions Pty Ltd T/A Upstream Production Solutions involves an application for the approval of a 2022 agreement for the Northern Endeavour Floating Production, Storage, and Offloading vessel. The applicant, Upstream Production Solutions, seeks the court's approval to proceed with the contract, which is a crucial part of its operations in the offshore oil and gas industry.

The legal issues before the court were whether the proposed agreement complied with relevant legislation and regulatory requirements, and whether the approval of the agreement would be in the public interest. The applicant needed to demonstrate that the agreement was fair and reasonable and did not contravene any laws or regulations that govern the offshore petroleum activities. The court also had to consider if the approval would facilitate the orderly development of offshore resources and promote efficient use of facilities.

The court carefully reviewed the terms of the agreement and considered the applicant's submissions and evidence. It assessed the agreement against the criteria set out in the relevant legislation, which includes the terms of the agreement being fair and reasonable and the approval being in the public interest. The court was satisfied that the agreement met these criteria and approved the application. The approval was based on the evidence presented by the applicant and the court's finding that the agreement would facilitate the efficient development of offshore resources and would be in the public interest.

The court's decision was made in the context of the Petroleum (Production and Exploration) Act 1992, which governs the production and exploration of petroleum in Australian waters. The court's approval of the agreement allows Upstream Production Solutions to proceed with the Northern Endeavour FPSO Agreement 2022, subject to the terms and conditions of the court's order. The court's order also includes specific conditions that the applicant must comply with in relation to the operation of the FPSO.

Upstream Production Solutions Pty Ltd T/A Upstream Production Solutions

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established