The agreement would resolve a wage fight that has roiled global gas markets since early August, amid fears strikes would disrupt output from Chevron's Gorgon and Wheatstone LNG projects that produce around 7% of the world's LNG supply.
"The Offshore Alliance will now work with Chevron to finalise the drafting of the agreement and members will soon cease current industrial action," Offshore Alliance spokesperson Brad Gandy said in a statement.
The proposed deal, which would put an end to strikes that started two weeks ago, includes "substantial improvements" in pay, job security, locked-in rosters and career progression, the alliance, which combines two unions, said.
On Thursday, the Fair Work Commission (FWC), which has the power to impose a settlement, said it "strongly recommended" parties accept its proposals to end work stoppages.
Chevron accepted arbitration terms late on Thursday to resolve all outstanding issues and finalise the agreements with the unions.
The two sides had until 9 a.m. on Friday (2300 GMT on Thursday) to decide whether to accept the commission's recommendations, ahead of a scheduled hearing later in the day.
