Officials from Norway oil firms and the Lederne labour union have agreed to meet with state-appointed mediators on Friday in an attempt to end an ongoing strike which cut about 25% of the country’s oil and gas production. Both parties have held informal talk since the strike over pay and conditions was launched on September 30. However, those talks did not involve state mediators. The strike would put offline about 966,000 boepd of Norway’s output if it continued through October 14.
An official with the Norwegian Oil and Gas Association (NOG) said the group hoped to find a solution in the Friday meeting. The strike has contributed to an increase in Brent prices to above $43/barrel this week. Six oil and gas fields were shut due to the strike, cutting about 330,000 boepd or 8% of the country’s total oil and gas output capacities.
Equinor said production was halted at its Kvitebjorn, Gudrun, Gina Krog, and Valemon fields. Neptune and Wintershall DEA also said they shut the Gjoea and Vega fields, respectively. Equinor also noted that the strike would cause a shutdown at its Johan Sverdrup oilfield, the largest field in the North Sea with an output capacity of up to 470,000 bpd. Analysts estimated that the strike is reducing the country’s gas exports by 35 Mcmd.
