“The parties have submitted their demands today and, given the position facing the industry, we believe the talks will be demanding,” says Jan Hodneland, chief negotiator at the Norwegian Oil and Gas Association.
Norwegian Oil and Gas represents the employers in the negotiations, with the Norwegian Union of Industry and Energy Workers (Industry Energy) and the Norwegian Union of Energy Workers (Safe) negotiating for the employees.
The latest figures from the Central Bureau of Statistics show that investment on the NCS is falling, and will continue to decline because of persistently low oil prices, high costs and the need for cost reductions. From a peak of NOK 214 billion in 2014, capital spending in the Norwegian petroleum industry is expected to fall by almost 30 per cent to NOK 153 billion in 2007.
“Unfortunately, this has led to many people losing their jobs and presents big challenges for suppliers and local communities,” observes Hodneland. “In these circumstances, employers and employees have a shared responsibility to safeguard jobs and valuable expertise in an industry which Norway will need for a long time to come.”
Unemployment is serious for those affected. At the same time, a number of examples show that declining costs make more fields economic to develop – even with a lower oil price.
“A prudent pay settlement will accordingly contribute to strengthening the competitive terms for Norway’s supplier companies,” says Hodneland.
“That’ll help to ensure we can preserve the largest possible number of jobs.”
Jan Hodneland, lead negotiator, Norwegian Oil and Gas, mobile +47 913 41 301
Kolbjørn Andreassen, communication manager, Norwegian Oil and Gas, mobile +47 952 82 808
Facts about the oil service agreements
About 6 000 employees in various oil service companies (which deliver to the oil companies) are covered by this settlement. These collective agreements are identical for Industry Energy and Safe. They cover the following companies: KCA Deutag Drilling Norge AS, Altus Intervention AS, Aker Solutions AS Subsea Ågotnes, Baker Hughes Norge, Halliburton AS, Oceaneering AS, Schlumberger Norge AS, Subsea 7 Norway, Weatherford Norge AS, Vetco Gray Scandinavia, Benor, Cameron, Enhanced Drilling, Expro Group Norway AS, Falck Nutec AS, Franks International, Harris Norge, Intertek West Lab, IOS Tubular Management, INC Support AS, Landmark Graphics, NUI AS, Nosefo Tau AS, Petrotech AS, PSW Technology, Ramco Norway AS, ResQ, Subsea 7 I-Tech AS, Technip Norge AS, TWMA Norge, Viking SeaTech Norge AS, Weatherford Laboratories and Welltec.