Norwegian oil strike threat rises as union breaks off wage talks

|By:, SA News Editor

Norwegian onshore oil workers break off pay negotiations with employers, increasing the risk of a strike, as the industry fails to achieve full or partial deals in three separate discussions with workers on offshore platforms, supply bases and at oil service companies.

The Industry Energy union, which represents more than 75% of 5K onshore workers at companies like Statoil (STO) and BP, ended talks yesterday; negotiations now move to public mediation, where failure may result in a strike.

A strike would cut off ~50K bbl/day of oil at Exxon's (XOM) Ringhorne, Jotun and Baler fields, 28K bbl/day of oil and 11M cm/day of gas at GDF Suez’s (GDFZY) Gjoea field, and 22K bbl/day of oil from STO’s Vega field that goes through Gjoea.