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Credit: Neptune Energy/Jan Inge Haga

Strike to cut output from six fields in the North Sea

Notice given by the Norwegian Organisation of Managers and Executives (Lederne) on extending its offshore walkout will hit production from the Gjøa platform in the North Sea and its Vega satellite.

Kvitebjørn, Gina Krog, Gudrun and Valemon will also be affected.

Lederne broke off mediation efforts on the morning of 30 September, with 43 of its members on Johan Sverdrup consequently downing tools. Production from this North Sea field is continuing as normal for the present.

As early as the afternoon of the same day, the union announced that it would step up strike action from midnight on 4 October by taking out members on the following installations:

  • Gudrun, operated by Equinor, 18 members
  • Gina Krog, operated by Equinor, 18 members
  • Kvitebjørn, operated by Equinor, 18 members
  • Gjøa, operated by Neptune Energy, 72 members.

As things look now, Kvitebjørn and its Valemon satellite, as well as Gudrun and Gina Krog, will have to shut down. All these fields are operated by Equinor.

Neptune’s Gjøa field will have to shut down as a result of the walkout. The same applies to its Vega satellite, which is operated by Wintershall Dea Norge.

These fields collectively produce 330 000 barrels of oil equivalent per day (boed). Total oil and gas output from the Norwegian continental shelf (NCS) is about four million boed. The risk therefore exists that about eight per cent of total petroleum production from the NCS could be lost through extending the strike.

“We presented a financial offer which was accepted by the Norwegian Union of Industry and Energy Workers (Industry Energy) and the Norwegian Union of Energy Workers (Safe). These represent 85 per cent of the offshore workforce,” says Jan Hodneland, chief negotiator at Norwegian Oil and Gas.

“The smallest union, Lederne, rejected the offer and opted to strike. It has also demanded that the area covered by the collective pay settlement is expanded – which falls outside the scope of the negotiation over the offshore agreements.”

Falling within the framework agreed in the lead sector settlement, the offer from Norwegian Oil and Gas represents a growth in real pay and was made in identical terms to Lederne, Industry Energy and Safe.

Under the settlement, offshore workers are set to receive:

-        an overall pay rise of NOK 4 700

-        an increase of NOK 3.50 per hour in the shift and night-work supplement, to NOK 80 per hour

-        a rise in the conference supplement to NOK 100

-        an increase in the allowance for working on public holidays from NOK 2 025 to NOK 2 060 per day.

 

Further information from

Kolbjørn Andreassen, information manager, Norwegian Oil and Gas, mobile: +47 95 28 28 08