OSLO, July 5 (Reuters) – Norwegian workers began a strike on Tuesday that will reduce oil and gas output, the union leading industrial activity told Reuters.
The strike, in which workers are demanding higher wages to offset rising inflation, comes amid high oil and gas prices, with natural gas supplies to Europe particularly tight after Russia cut exports.
“The strike has started,” Audun Ingvartsen, Lederne union leader, said in an interview.
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Operational service provider (EQNR.OL)The company said Tuesday it has begun closing three mines in the North Sea due to a strike. read more
The Norwegian Labor Ministry reiterated that it is monitoring the conflict “closely”. It can intervene to stop the strike if there are exceptions.
On Tuesday, oil and gas production will fall by 89,000 barrels of oil equivalent per day (boepd), of which gas production accounts for 27,500 boepd, Equinor reiterated Tuesday.
On Wednesday, the strike will deepen the country’s gas output cuts to a total of 292,000 barrels of oil equivalent per day, or 13% of output, NOG said on Sunday, in line with the Equinor estimates. read more
Equinor said oil production from Wednesday will be cut by 130,000 bpd, in line with the lobby’s previous estimate.
According to Reuters calculations, this corresponds to about 6.5% of Norwegian production.
A further escalation planned for Saturday could shut down nearly a quarter of Norway’s gas output, as well as about 15% of the country’s oil production, according to Reuters calculations. Reuters math.
“The consequences of this escalation are still unclear,” said Equinor.
Finally, the operator – Equinor – decides to close the output.
THREE STEP TEST
Industrial activity started at midnight local time (2200 GMT) in three fields – Gudrun, Oseberg South and Oseberg East – and will expand to three other fields – Kristin, Heidrun and Aasta Hansteen – from midnight Wednesday night.
A seventh field, Tyrihans, will also have to close on Wednesday as its output is processed from Kristin.
By July 9, Sleipner, Gullfaks A and Gullfaks C are likely to cease production as Lederne members are considered critical to the operation, with potential impacts across other areas of product pumping. them across those areas.
If they do, it could reduce output of crude oil and other oil liquids by 160,000 boepd and natural gas output by nearly 230,000 boepd, according to Reuters calculations.
Members of Lederne’s union on Thursday voted to reject a proposed salary deal negotiated by the companies and union leaders. read more
Norway’s other oil and gas labor unions have accepted the wage deal and will not go on strike.
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Additional reporting by Victoria Klesty, edited by Kim Coghill and Jason Neely
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