A union representing Norway's petroleum sector stated on Monday that nearly 8% of the country's offshore oil and gas workers plan to go on strike starting June 5 if government-mediated wage talks fail this week.
A spokesperson for the Norwegian Oil and Gas Association, which represents employers in the negotiations, indicated it is currently unclear how a potential strike would impact production from oil and gas fields.
Approximately 8,100 members from the three involved unions work in petroleum production. Should negotiations break down, 617 workers would participate in the initial strike wave, with the right to escalate action over time.
Workers organized by the Styrke, Lederne, and Safe unions are demanding wage increases that outpace inflation and are seeking other contractual changes, though specific details of their demands have not been disclosed.
The negotiations between oil companies and these three unions cover the majority of workers on Norwegian offshore installations. A failure to reach an agreement could lead to reduced output.
The government has the authority to intervene and halt a strike if the Ministry of Labour deems there are special circumstances or a significant national interest is at risk.
The government is closely monitoring the progress of the talks.
In 2022, the government intervened to forcibly end an escalating strike. Energy companies had warned that strike threatened to cut more than half of Norway's daily natural gas exports and over 17% of its oil production.
State Secretary Line Eldring of Norway's Ministry of Labour and Social Inclusion stated on Monday that authorities are monitoring all ongoing labor disputes, but emphasized that reaching an agreement depends on employers and labor organizations.
"A strike is a legitimate tool in a labor dispute and can have societal impacts," Eldring said in a statement.
The largest union, Styrke, stated that 305 of its members could join the strike. This includes 165 workers at field operators Equinor, Aker BP, and Okea; 112 workers at drilling contractor Helmerich & Payne; and 28 workers at facility management companies Coor Service Management and Ess Support Service.
Oil fields and platforms that could be affected by Styrke's strike action include Statfjord A, Ula, Draugen, and Oseberg B, C, and East.
Calculations show these fields had a combined average daily production last year of 266,400 barrels of oil equivalent, including output from neighboring fields using the same processing facilities.
Norway's daily output exceeds 4 million barrels of oil equivalent, split almost evenly between crude oil and natural gas. Any production cuts could impact global markets, particularly as Middle Eastern output faces constraints due to the war involving Iran.
Norway is Europe's largest supplier of natural gas, providing roughly one-third of the continent's annual consumption and meeting about 15% of its oil demand.
Global energy prices have risen significantly this year amid the US-Israel coalition's war with Iran, Iran's attacks on neighboring countries, and its blockade of the Strait of Hormuz—a major export route for Middle Eastern oil and liquefied natural gas.
Comments