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Norway Oil Worker Strike Looms as Deadline Approaches

marinesalvage by marinesalvage
October 29, 2023
in News
0
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Norway Oil Worker Strike Looms as Deadline Approaches

 
By Stephen Treloar
 
(Bloomberg) — Norway is dealing with the primary oil employee strike since 2012 as government-mediated talks for platform employees strategy a Friday midnight deadline.Should the talks fail, greater than 700 employees will stroll off the job, affecting fields run by Exxon Mobil Corp., Engie SA and Wintershall in addition to drilling operations at Statoil ASA. About 6 % of the oil and gasoline output in western Europe’s largest producer will probably be halted, in line with the Norwegian Oil and Gas Association.

“Persistently low oil prices and a high level of costs are contributing to the reduction in offshore investment and activity,” the employers’ affiliation stated in an announcement Thursday after mediation started. “In these circumstances, employers and employees have a common responsibility to help safeguard jobs and valuable expertise in an industry which Norway will be needing for a long time to come.”

Should a strike materialize, output at fields akin to Balder, Gjoea and Vega will see manufacturing reduce, in line with the group. While the walkout will embody KCA Deutag Drilling Norway AS staff on Statoil ASA platforms, together with on Oseberg and Gullfaks, Statoil will preserve manufacturing whilst drilling operations halt, Morten Eek, a spokesman for Norway’s largest oil firm, stated on Wednesday.

The Safe, Industry Energy and Lederne unions gave discover that they stand prepared to start out industrial motion that can have an effect on about 229,000 barrels of oil equal a day of output if employers attempt to eat away at employees advantages.

“We naturally want mediation to succeed, so that conflict can be avoided,” Safe stated in an announcement on Monday. “However, if the national mediator is unable to get the parties to agree, the strike will be a fact from that point forward.”

The nation’s petroleum producers and oil service corporations have fired greater than 30,000 employees to deal with the worst crude droop in a technology. The central financial institution has reduce its benchmark rate of interest to a file low and signaled it’s ready to ease coverage additional to beat back a recession. That could properly see unions and employers be extra amenable to an settlement than in earlier years.

“The room for maneuver is narrower now than it was a few years ago,” Thina Saltvedt, an oil analyst for Nordea Bank AB stated on Thursday. “They’re trying to cut costs. It’s not an easy situation to be in to require more from the companies when they’re already pushed to the end.” 

© 2016 Bloomberg L.P

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Tags: NorwayNorway offshore strike
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