Norwegian oil and gas workers go on strike, cutting production

Norwegian offshore workers began a strike on Tuesday (July 5th) that will cut oil and gas production, Lederne, the union leading the industrial action, told Reuters.

The strike, in which workers are demanding higher wages to offset rising inflation, comes amid high oil and gas prices, with supplies of natural gas to Europe particularly tight after the reduction of Russian exports.

The operator Equinor has initiated the closure of three deposits in the North Sea following a strike, the company announced on Tuesday.

The Norwegian Ministry of Labor reiterated that it was following the dispute “closely”. It can intervene to stop a strike if there are exceptional circumstances.

On Tuesday, oil and gas production will be cut by 89,000 barrels of oil equivalent per day (boepd), of which gas production is 27,500 boepd, Equinor reiterated on Tuesday.

The strike on Wednesday July 6 will further reduce the country’s gas production to a total of 292,000 barrels of oil equivalent per day, or 13% of production, the Norwegian Oil and Gas Association announced on Sunday ( NOG). 4), in line with Equinor’s estimate.

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 Norwegian production, according to a calculation by Reuters.

A further escalation predicted by Saturday (July 9) could shut down almost a quarter of Norway’s gas production, as well as around 15% of its oil output, according to a Reuters calculation.

It is ultimately the operator – Equinor – who decides to close production.

The other Norwegian oil and gas unions have accepted the wage agreement and will not go on strike.

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Post expires at 6:52pm on Friday July 15th, 2022