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Hundreds of Norway oil workers start strike, one field shut

Reuters  |  OSLO 

By Fouche and Lefteris Karagiannopoulos

OSLO (Reuters) - Hundreds of workers on Norwegian offshore and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated oilfield and helping to send Brent crude prices higher.

Shortly after a midnight deadline passed, a state-appointed said talks between two trade unions, Safe and YS, and the Shipowners' Association, representing the rig employers, had failed to reach a deal.

"The parties were so far apart from each other there was no point presenting a proposal that could be recommended to both sides," said in a statement.

Some 670 workers will walk out from Tuesday, with an additional 901 employees joining them from midnight on Sunday if the dispute is not resolved, Safe said in letters to the on Tuesday.

In total, up to 2,250 workers could join the action, it said.

Industri Energi, the union which represents the majority of Norwegian workers, concluded a wage deal earlier this year with the

At 0750 GMT, Brent crude was up 0.8 percent at $78.70 per barrel, following a 1.2-percent climb on Monday.

OUTPUT IMPACT

Safe said it would initially take out 106 workers from the Petrojarl production ship operating at Royal Dutch Shell's Knarr field, which has a daily production of 23,900 barrels of mostly oil, along with some liquids and

Equinor, formerly known as and the biggest operator of and gas platforms offshore Norway, said the strike was so far not disrupting production and there were no changes on projects and for now.

Norway, Western Europe's biggest oil producer, pumped 1.97 million barrels of oil and liquids a day in 2017, according to data from Statistical Review published in June.

was 123 billion cubic metres last year, reported, making the world's seventh biggest and Europe's second-largest after

MORE WORKERS TO WALK OUT

Safe said workers on rigs that conduct exploration or production drilling for would also walk out on Tuesday.

That includes 117 workers from the Spitsbergen rig; 80 from the Enabler; 71 from Odfjell Drilling's Deepsea Stavanger; and 60 from North Atlantic Drilling's West Elara rig, among others.

Others set to join the action include 40 Archer drilling workers on the Snorre B platform operated by Equinor; 67 from COSL working on the COSL Innovator rig; 50 from Island Offshore, a supply vessel firm; and 59 from the MODU drilling working on the Askeladden rig.

The employees that could walk out on Sunday work on exploration and production drilling rigs owned by Saipem, Transocean, Songa Offshore, Odfjell Drilling, Archer and COSL, among others.

Some catering workers will also be striking, Safe said.

(Editing by and Mark Potter)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 16:49 IST
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