UK union says North Sea strike having 'significant impact'

Newly launched strikes by contract workers in the UK's North Sea oil and gas sector have had a "significant impact," with "at least a couple" of installations forced to shut down and work delayed at some others, trade union leader John Boland told S&P Global Commodity Insights April 25.

The first in a series of strikes across a range of UK oil and gas platforms got underway April 24, with a 48-hour action involving some 1,300 members of the Unite trade union, employed mainly by contract companies in the North Sea supply chain.

Around 10,000 workers are estimated to be stationed offshore at any one time maintaining UK oil and gas operations, working on new projects, or decommissioning defunct facilities, with core workers generally offshore for several weeks at a time and others carrying out short-duration work.

Industry group Offshore Energies UK has said operators are focused on maintaining "continuity of production" amid the strike action, while some operators, such has TotalEnergies, have denied any impact on their production.

"Our assessment of the first strike day is that it has gone very well. All members took part in the action, and it has had a significant impact, although the companies are unlikely to admit this," Boland, regional officer for Unite, said in emailed comments. "We know of at least a couple installations where operations had to be completely shutdown, and others where planned work has been delayed," he said, without specifying the installations.

"This has already led to some companies reaching out to us to have fresh discussions. [We] will continue to apply the pressure required to resolve these disputes," Boland added.

The North Sea remains a vital energy source for the UK. The industry estimates UK oil and gas fields met 38% of the country's gas needs and the equivalent of 75% of domestic oil demand in 2021. UK oil output, including natural gas liquids, fell 7% in 2022 to 811,000 b/d.

Platts, part of S&P Global Commodity Insights, assessed North Sea benchmark Dated Brent at $84.26/b on April 24, up 87 cents day on day.