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UPDATE 1-Norway energy industry in wage bargain, averting oil, gas outages

Tue, 16th Feb 2021 04:20

(Adds industry association, background)

By Terje Solsvik

OSLO, Feb 16 (Reuters) - Norway's oil industry employers
struck a wage bargain with the Safe labour union on Tuesday,
preventing a strike at the Mongstad crude terminal and shutdowns
of major offshore oil and gas fields, Safe told Reuters.

The Norwegian Oil and Gas Association, which negotiated on
behalf of energy firms, confirmed the agreement.

Operator Equinor had said a strike could reduce
Mongstad's storage and harbour capacity and disrupt production
at fields responsible for a third of the country's crude output
and more than 40% of natural gas exports.

Norway, western Europe's largest oil and gas producer, pumps
about 2.1 million barrels per day (bpd) of crude, while gas
production amounts to 2 million barrels of oil equivalent per
day (boed).

State-controlled Equinor on Friday said a strike could
disrupt production at the major Johan Sverdrup and Troll fields,
as well from five smaller fields, namely Kvitebjoern, Visund,
Byrding, Fram and Valemon.

The fields produced 680,000 bpd of crude and had a gas
output corresponding to about 850,000 boed in November,
according to data from the Norwegian Petroleum Directorate
(NPD).

Although only a dozen workers would have gone on strike
initially, they are key to loading vessels and handling the
ships' arrivals and departures at the busy Mongstad terminal.

In case of a protracted conflict, a strike could also have
spread to other onshore facilities, with as many as 800 oil and
gas workers potentially involved, Safe had warned.
(Editing by Gwladys Fouche)

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