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Norway oil and gas rig workers' strike looms if June 16 talks fail

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Norway oil and gas rig workers' strike looms if June 16 talks fail


Immediate production impact not expected

Mediation due between rig owners and unions

Norway production levels buoyant on new projects

Some 1,100 Norwegian oil and gas rig workers could go on strike from the night of June 16-17, trade unions and an employers' group told S&P Global Platts ahead of last-ditch mediation, however production was not expected to be immediately impacted.

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The Norwegian Shipowners' Association, which represents oil rig employers, said on its website it had received notice of strike action from three trade unions, Industri Energi, SAFE and DSO, representing workers at eight offshore facilities.

Ahead of the potential strike mediation talks would take place on June 16, it said.

The dispute mainly affects workers on floating rigs, who are subject to less favorable employment conditions, according to the SAFE union.

However, industry sources said the strike did not relate to immediate output of oil and gas, but drilling intended to support production over longer periods.

The Industri Energi union confirmed on its website it did not expect a production impact "in principle."

Norwegian upstream production has been relatively buoyant in the last couple of years, with oil output of around 2 million b/d supported by the Johan Sverdrup field, which came on stream in 2019, and further projects expected to provide an additional lift.

There have been a number of labor disputes in recent months, with production last impacted by a strike in early-October 2020.