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UPDATE 1-Norwegian union in pay talks to avert strike that could hit oil, gas output

Mon, 15th Feb 2021 13:56

(Adds oil price, background)

By Terje Solsvik and Nerijus Adomaitis

OSLO, Feb 15 (Reuters) - Union officials and energy firms
were in talks on Monday to avert a strike this week at Norway's
largest oil terminal that could disrupt production at fields
responsible for a third of the country's crude output and more
than 40% of 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).

Operator Equinor said on Friday a potential strike
over pay by the Safe union would reduce storage and harbour
capacity at Mongstad terminal, forcing a shutdown of offshore
oilfields which pipe crude to the facility.

This could affect oil and gas output from seven fields,
which produced 680,000 bpd of crude and gas output corresponding
to about 850,000 boed in November, according to data from the
Norwegian Petroleum Directorate (NPD).

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

Safe said last week that wage talks at Mongstad and other
plants had failed to result in satisfactory pay increases, with
workers at some sites offered no raise.

Details about worker demands made at the talks, which have
been held with workers at specific sites and are now being held
across the sector, have not been publicised.

The Norwegian Oil and Gas Association (NOG), negotiating on
behalf of Equinor and its partners, said it was difficult to see
how centralised negotiations would help resolve differences.

"But we hope to find a solution through mediation," NOG
chief negotiator Elisabeth Bratteboe Fenne said in a statement.

Although only a dozen workers are due to 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 spread to
other onshore facilities, with as many as 800 oil and gas
workers potentially involved, Safe has said.

Brent crude rose to a 13-month high on Monday.

The government can intervene in strikes if they are seen to
harm the national interest but does not normally do so.
(Editing by Edmund Blair)

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