Norway labor strike threatens Johan Sverdrup oil production: industry group

London — Strike action by a Norwegian trade union risks causing a production shutdown at the country's highest-producing oil field, Johan Sverdrup, industry group Norwegian Oil & Gas said Sept. 30 after talks failed to fully resolve a pay dispute.

In a statement, Norwegian Oil & Gas said arbitration talks with two unions overnight had been successful, but one, the Lederne union, representing management staff, was holding out for an improved pay offer, with the impact being a risk to Johan Sverdrup production.

State-controlled Equinor, which operates the 470,000 b/d field, said, however, no shutdown activity had been initiated and "effects of the strike in one union at Johan Sverdrup is being assessed."

"So far, we have normal production at the field," a company spokesman said.

Johan Sverdrup came on stream a year ago, with production in July slightly exceeding the official capacity of the first-phase facilities, at nearly 480,000 b/d, and shipments finding customers as far afield as East Asia.

The field's recent production levels mean it accounts for around a quarter of total Norwegian oil production, and approaching 20% of all oil produced in the North Sea.