UK union votes for mid-May strike at Brent loading terminal Sullom Voe

London — Members of the Unite trade union have voted to go on strike in mid-May at the UK's Sullom Voe terminal, the loading point for the Brent crude grade that underpins the Dated Brent benchmark, as well as Clair crude, the union said April 27.

In a statement, Unite said there had been overwhelming support among its members at the terminal, who are in a dispute with the Shetland Islands Council over long-service awards.

The union did not specify the exact date of the strike or its duration, but it could come in the run-up to a major maintenance shutdown planned for the UK's other main crude oil grade, Forties, which starts May 27.

Brent, though the original basis for the Platts Dated Brent benchmark used to price oil around the world, now typically accounts for the smallest share of crude in the basket of grades that make up the benchmark.

Loadings in May are set to amount to about 58,000 b/d, according to a schedule seen by S&P Global Platts, likely also reflecting heightened levels of maintenance in the early summer.

UK oil industry strikes in the past have typically not involved indefinite stoppage periods, but individual dates spaced out over time.

"Industrial action is planned for the middle of May, which could result in a significant shock to oil processing and supplies," Unite said. "The tug and towage workers have been told by Shetland Islands Council that they will not receive the long-service award for 25 years' service, which is the equivalent of one month's salary like other council workers, but instead a flat rate of GBP250 ($348)."

Unite industrial officer John Boland added: "Our members in the Shetland Islands Council towage service just want to be treated fairly and the same as any other council employee, and that means they be given the long-service award for the same dedication to their jobs. We will now prepare to serve strike action notice, but hope that Shetland Island Council will come to their senses and resolve this dispute."

The Shetland Islands Council was not immediately available to comment.