Norway’s oil and gas output could be cut by about 440,000 barrels of oil equivalents per day, or about 11% of total production, if workers go on strike from from June 4, industry association Norwegian Oil and Gas (NOG) said June 3.
A government-appointed mediator is leading negotiations between oil companies and employees represented by the Lederne union in a bid to avert a strike.
Altogether nine fields would have to shut in the event of industrial action, NOG said in statement.
Lederne members are planning to strike at Neptune Energy’s Gjoea field, Okea’s Draugen, Aker BP’s Ivar Aasen and Equinor’s Kristin, Oseberg East and Gudrun fields.
In addition, production would have to shut at Equinor’s Tyrihans, as well as at the Maria and Vega fields, both operated by Wintershall DEA, NOG said.
Workers are also planning to strike at some of the offshore installations at ConocoPhillips-operated Ekofisk, although that field has already shut on June 3 for maintenance, the industry group said.
Lederne is the smallest of the three Norwegian oil workers unions with about 1,000 members. It has not published its pay demands.
Two larger labour unions, Industri Energi and Safe, representing a combined 6,000 offshore workers, do not have the right to go on strike this year under collective bargaining rules.
Norway is Western Europe's largest producer of crude oil, condensate and natural gas with an overall daily output last month of 3.9 million barrels of oil equivalents.
Other companies producing oil and gas offshore Norway include Eni, Lundin Petroleum, DNO, Shell and Exxon Mobil.
Recommended Reading
Kosmos Energy’s RBL Increased, Maturity Date Extended
2024-04-29 - Kosmos Energy’s reserve-based lending facility’s size has been increased by about 8% to $1.35 billion from $1.25 billion, with current commitments of approximately $1.2 billion.
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.
NOV Announces $1B Repurchase Program, Ups Dividend
2024-04-28 - NOV expects to increase its quarterly cash dividend on its common stock by 50% to $0.075 per share from $0.05 per share.
Repsol to Drop Marcellus Rig in June
2024-04-28 - Spain’s Repsol plans to drop its Marcellus Shale rig in June and reduce capex in the play due to the current U.S. gas price environment, CEO Josu Jon Imaz told analysts during a quarterly webcast.
US Drillers Cut Most Oil Rigs in a Week Since November
2024-04-26 - The number of oil rigs fell by five to 506 this week, while gas rigs fell by one to 105, their lowest since December 2021.