Stoppage hits output and revenues

Fifteen per cent of Norwegian oil production has been removed from the market as a result of strike action. The companies and the government are losing more than NOK 200 million per day.

The latest overview of the financial impact of this labour dispute shows that the striking offshore workers soon will have caused a loss of more than NOK 1 billion in company and state revenues.

“What the unions call a moderate stoppage has halted 15 per cent of Norwegian oil production and seven per cent of its gas output,” says Jan Hodneland, director of employee policy at the Norwegian Oil Industry Association (OLF).

“Apart from its major financial consequences, downing tools in this way is damaging Norway’s reputation as a stable supplier of oil and gas.”

The new calculation of the strike’s impact is based on updated figures from the companies.

These show that shutting down the Oseberg field centre, affiliated fields and Heimdal is losing about 240 000 barrels of oil and 11.9 million standard cubic metres of gas per day.

This lost production is worth some NOK 148 million daily. In addition comes NOK 24 million per day in revenue loss as a result of the delayed production start.

The strike is also costing NOK 29 million per day in extra project outlays and day from shutting Statoil-operated fields and the land-based plants as Tjeldbergodden and Sture.

That brings the overall daily cost to NOK 201 million.

Industry Energy, the Norwegian Union of Energy Workers (Safe) and the Norwegian Organisation of Managers and Executives have taken 708 of their members out on strike.

They want the right to a discretionary pension from the age of 62 to be enshrined in the offshore agreements on pay and conditions, which are up for re-negotiation.

However, the OLF has made it clear that such an arrangement has no place in a pay deal, since pension provision is a matter for each individual company.

Further information from:
Eli Ane Nedreskår, communications manager, working life, OLF, mobile: +47 99 45 01 01

Kjetil Hjertvik, communications manager, HSE and operations, OLF, mobile: +47 92 23 70 69

 

 

 

Related news

Latest news

ABB and Parat Halvorsen Work together

ABB and Parat Halvorsen have signed a technology agreement to develop an energy recovery solution for offshore and marine applications that uses regenerative brake systems. This agreement will reduce emissions and ...

Norways key note speeach at the 66th World Health Assembly (WHA66)

Norway's key note speech at the 66th World Health Assembly in Geneva.

SAAB meeting Geneva industry

Skeldar V-200 successfully completes flight test milestones

Defence and security company Saab acquires TIKAB

Take a Photo or Make a Video

Aker Solutions with new Canadian contract award

Aker Solutions has received notification about a contract award for offshore engineering services to support Husky Energy’s activities.

Five Years of Challenging Power

Minister of Foreign Affairs Espen Barth Eide addresses the Oslo Freedom Forum.

Kebony Collaborates

in+ex profiles striking exterior installations and products that blend cutting-edge design with practicality. This month celebrates Kebony's collaboration with architecture and design students.