Production in Norway will lose 330,000 barrels per day due to the strike

Norwegian Oil and Gas Association (NOG) reported that trade unions of Norway went on strike on October 4. As a result production of about 330 thousand barrels of oil equivalent per day will be stopped. This is 8% of all oil and gas production in Norway.

For several weeks, NOG had been negotiating with trade unions representing offshore platform employees. Disputes arose between the association and trade unions over the annual salary of such employees. They failed to come to an agreement and the case was handed over to the intermediaries.

The Norwegian Union of Industry and Energy Workers, Industry Energy and Norwegian Union of Energy Workers, which represent 85% of all offshore workforce, concluded a deal with NOG.

However, the smaller Lederne union refused to accept the new terms. On September 30 it interrupted negotiations and its members went on strike at the giant oil field Johan Sverdrup.

Now the situation looks like this. Equinor-owned oil and gas fields Kvitebjorn, Valemon, as well as Gudrun and Gina Krog stop working. The Neptune Gjoa field will also be shut down as a result of the strike, as will Vega, operated by Wintershall Dea Norge.

Oil production in the country has already been reduced.
Total production from all six fields is 330 thousand barrels of oil equivalent per day. The total production from the Norwegian continental shelf is about 4 million barrels of oil equivalent per day.

At present, Norway has already reduced its oil production due to falling oil prices. In an effort to support global efforts to maintain prices for raw materials, in June this Scandinavian country has reduced production of crude oil by 250 thousand barrels per day. And by the end of the year Norway intends to keep production 134 thousand barrels per day lower than usual.