Nearly 8% of Norway oil workers threaten strike from June 5
Norwegian Offshore Oil and Gas Workers Plan Potential Strike
By Nerijus Adomaitis and Terje Solsvik
OSLO, June 1 (Reuters) - Nearly 8% of Norwegian offshore oil and gas workers plan to strike from June 5 if state-brokered wage mediation fails this week, labour unions said on Monday.
Potential Impact on Oil and Gas Production
It was too early to determine how a potential strike could impact production from oil and gas fields, a spokesperson for Offshore Norway, which represents the oil industry in the talks, said.
Union Membership and Strike Participation
The three unions have around 8,100 members involved in oil production. Of those, 617 would take part in an initial wave of strikes if talks break down, with the option to escalate action over time.
Union Demands and Negotiation Details
The workers, organised by unions Styrke, Lederne and Safe, are seeking pay rises above inflation and other changes to their contracts, but have not disclosed details of their demands.
The negotiations between Norwegian oil companies and the three labour unions cover most workers on Norway's offshore oil and gas installations, and failure to come to an agreement could lead to production curtailment.
The labour ministry can intervene to stop a strike if it deems that there are exceptional circumstances or that vital national interests are at stake.
Government Response and Historical Context
GOVERNMENT MONITORING NEGOTIATIONS
Previous Government Intervention
In 2022, the government stepped in to force an end to an escalating labour strike that energy companies said threatened to cut more than half of Norway's daily gas exports and more than 17% of its oil output.
Current Government Stance
Norwegian authorities were monitoring all ongoing labour disputes, but it was up to employers and labour organisations to reach agreement, State Secretary Line Eldring, of Norway's Ministry of Labour and Social Inclusion, said on Monday.
"A strike is a legal tool in a labour dispute, and it may have an impact on society," Eldring said in a statement.
Details on Affected Fields and Companies
Styrke Union Strike Breakdown
Styrke, the largest of the unions, said 305 members could go on strike, including 165 at field operators Equinor, Aker BP and Okea, 112 at drilling company Helmerich & Payne and 28 at facility management firms Coor Service Management and Ess Support Service.
Oil Fields and Platforms at Risk
The fields and platforms that would be affected by Styrke's strike action are Statfjord A, Ula and Draugen as well as Oseberg B, C and East.
Those fields last year produced a combined 266,400 barrels of oil equivalent per day, including from adjacent fields that use the same production facilities, according to a Reuters calculation.
A spokesperson for Styrke declined to comment on whether a strike would impact production. Safe and Lederne did not immediately respond to requests for comment.
Broader Market Implications
Norway's Role in Global Oil and Gas Supply
Norway produces more than 4 million barrels of oil equivalent per day, almost equally divided between crude and natural gas, and any reduction could impact markets at a time when Middle East output is curtailed by the Iran war.
Norway is Europe's largest supplier of natural gas, delivering about one-third of the continent's annual consumption, and meets around 15% of the region's demand for oil.
Global Energy Price Context
Global energy prices have risen sharply this year following the U.S.-Israeli war against Iran and the latter's attacks on neighbouring countries and a blockade of the Strait of Hormuz, a key export route for oil and LNG from the Middle East.
(Reporting by Nerijus Adomaitis and Terje Solsvik, editing by Essi Lehto, Anna Ringstrom, Louise Heavens and Alex Richardson)
