Norwegian offshore strike costing the industry more than $50m a week
Union action has halted drilling on several rigs and installations
A strike by an energy workers' union on the Norwegian Continental Shelf is costing the offshore industry more than NOK 500m ($51.2m) a week, according to the industry body representing operators on the shelf. The action is affecting a substantial share of drilling operations and causing delays, reduced activity and planned shutdowns at several locations.
Five mobile drilling rigs, five fixed installations and one well intervention vessel have suspended drilling and well operations, with four inspection, maintenance and repair vessels also affected. Production losses are mounting and are expected to reach around 120,000 barrels of oil equivalent a day by the end of week 30. The combined historical and future production loss for operators this year is put at 2.4m barrels of oil equivalent, corresponding to an estimated value of about NOK 1.6bn ($164m).
The industry body argues that the union is attempting to use the strike to bring local issues into central collective bargaining, which it says runs counter to the principle that central negotiations must conclude before company-level matters are addressed. It also warned that the dispute is affecting employees not directly involved, with more than 400 people furloughed and uncertainty over whether all will qualify for unemployment benefits.
Its chief negotiator said the union was effectively seeking to introduce a local right to strike, a move she argued would threaten the balance of the entire collective bargaining system rather than just this dispute.
