en.Wedoany.com Reported - Norwegian Oil Company announced that it has reached a wage agreement with three labor unions, averting a strike that could have disrupted oil and gas production.

Industry estimates indicate that the strike would have initially reduced daily production by 45,500 barrels of oil equivalent. Union officials had previously warned that the strike could expand at any time and have a significant impact on production.

Norway produces over 4 million barrels of oil equivalent per day, with crude oil and natural gas accounting for roughly half each. Any production cuts could impact the market against the backdrop of reduced output in the Middle East due to the war in Iran.

The agreement includes a general annual wage increase of 42,000 Norwegian kroner (approximately $4,493), covering holiday allowances and offshore compensation. In addition to separate increases in shift and night shift allowances, each allowance will increase by 5 Norwegian kroner. Offshore Norway stated that variable allowances have been adjusted, and some modifications have been made to the agreement.

According to Offshore Norway, the initial production reductions involve operators Equinor, Aker BP, Okea, and ConocoPhillips. Norwegian Oil Company negotiated with union representatives for the majority of production workers at Norwegian oil and gas facilities, but negotiations for some oil service and exploration drilling employees will take place later.

The mediator appointed by the state to lead the negotiations confirmed that an agreement has been reached.

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