Norwegian oil and gas workers start strike and reduce production

OSLO, July 5 (Reuters) – Norwegian offshore workers started a strike on Tuesday that will reduce oil and gas production, said the union that leads the labor struggle to Reuters.

The strike, in which workers are demanding wage increases to compensate for rising inflation, comes amid high oil and gas prices, with supplies of natural gas to Europe particularly tight following Russian export cuts.

– The strike has started, said the leader of the Leaders in an interview, Audun Ingvartsen.

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Operator Equinor (EQNR.OL) has initiated a closure of three fields in the North Sea as a result of a strike, the company said on Tuesday. read more

The Ministry of Labor reiterated that they followed the conflict “closely”. It can intervene to stop a strike if there are special circumstances.

On Tuesday, oil and gas production will be reduced by 89,000 barrels of oil equivalents per day (boepd), of which gas production amounts to 27,500 boepd, Equinor repeated on Tuesday.

On Wednesday, the strike will deepen the cut to the country’s gas production to a total of 292,000 barrels of oil equivalents per day, or 13% of production, NOG said on Sunday, in line with Equinor’s estimates. read more

Oil production from Wednesday will be reduced by 130,000 barrels per day, Equinor said, in line with the lobby’s previous estimate.

This corresponds to around 6.5% of Norway’s production, according to a calculation from Reuters.

A further planned escalation by Saturday could see close to a quarter of Norway’s gas production closed, as well as around 15% of oil production, according to a calculation from Reuters.

“The consequences of this escalation are not yet clear,” Equinor said.

It is ultimately the operator’s – Equinors’ decision to close production.


Arbeidskamp started at midnight local time (2200 GMT) at three fields – Gudrun, Oseberg Sør and Oseberg Øst – and will expand to three other fields – Kristin, Heidrun and Aasta Hansteen – from midnight on Wednesday.

A seventh field, Tyrihans, must also be closed on Wednesday because the production has been processed by Kristin.

By 9 July, Sleipner, Gullfaks A and Gullfaks C will probably stop producing as Lederne members are considered crucial for operations, with potential ripple effects on other fields that pump their product via these fields.

If they did, it could reduce crude oil and other oil fluids by another 160,000 boepd and natural gas production by nearly 230,000 boepd, according to a Reuters estimate.

On Thursday, members of Fagforbundet Lederne voted down a proposal for a wage agreement that had been negotiated by companies and union leaders. read more

Norway’s other oil and gas unions have accepted the wage agreement and will not go on strike.

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Further reporting by Victoria Klesty, editing by Kim Coghill and Jason Neely

Our standards: Thomson Reuters Trust Principles.

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