Strike escalation sparks Norwegian oil and gas fields closure

Six offshore oil and gas fields have been forced to cease operations temporarily owing to escalating strikes in the country.

The strike will cut Norway's oil output by roughly 330,000 barrels, equating to 8% of the country's total production, according to the Norwegian Oil and Gas Association (NOG).

The strikes are a result of a dispute that began on September 30 between 43 workers associated with the workers' union Lederne and the NOG, who represent oil and gas companies in the country, after talks about wage increases fell through.

Monday's escalation added a further 126 union members to the strike, taking the total number to 169 out of the 1,0003 offshore workers Lederne represents.

Members from other trade unions specified they would not join Lederne in striking against the NOG.

Norway's daily throughput of oil equivalents comes to a little over 4 million barrels, half of which is crude and other liquids and the other half made up of natural gases, making it a world leader in global energy supplies. 

Norwegian oil company Equinor has reportedly closed four of its fields, while Lederne stated that two fields operated by Neptune Energy and Wintershell Dea were also shut.

A spokesman for the NOG said there was no resolution in sight.

Additionally, Lederne trade union chief Audun Ingvartsen said in a statement: "Employers are still showing no willingness to meet our demands, thus triggering the escalation.”

The shutdowns reportedly helped increase the price on Monday, with Brent rising by 4% by 12 pm GMT.

The strike hit Equinor’s Gudrun, Gina Krog, and Kvitebjoern fields, as well as Kvitebjoern’s satellite Valemon field, and also Neptune’s Gjoea field and its Vega satellite field, operated by Wintershall Dea.

Lederne has said it was seeking better financial terms for its workers and wanted the offshore wage agreement to also cover workers at onshore remote control rooms.

This comes as companies like Equinox have been theorising ways to remotely control offshore production to cut costs.

The NOG added that Lederne terms fell outside of the terms established in the offshore wage agreement.

No news yet on how the two sides will reach an accord.

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