Norway Oil and Gas Service Workers Strike Reduces Output by 2.4 Million Barrels of Oil Equivalent

en.Wedoany.com Reported - The Norwegian Offshore Industry Association (Offshore Norway) recently stated that this year, oil and gas production in Norway has been reduced by 2.4 million barrels of oil equivalent due to strikes. The strike, stemming from the breakdown of wage negotiations on June 15, involves oil and gas service workers and has so far caused production losses of approximately 1.6 billion Norwegian kroner (USD 163.6 million).

In 2025, production from Norwegian offshore oil fields is expected to be around 1.5 billion barrels of oil equivalent, or over 4 million barrels of oil equivalent per day. The association stated that daily production losses are still increasing and are expected to reach approximately 120,000 barrels of oil equivalent per day by mid-July. After the union SAFE escalated the strike on June 18, employers took countermeasures at the end of June by locking out about 1,000 additional workers in an attempt to force an end to the dispute, warning that production disruptions could intensify.

The Norwegian Offshore Industry Association stated that to date, five mobile drilling rigs, five fixed offshore facilities, and one workover vessel have completely ceased operations, while four inspection, maintenance, and repair (IMR) vessels have also been affected. Safe union leader Raymond Midtgaard said the responsibility for the production losses lies with the employer's lockout, not the strike itself. In a text message to Reuters, he said: "Safe has only had a few hundred workers on strike from the total workforce."

The Norwegian Ministry of Labour has the authority to intervene when a strike threatens vital national interests but has not done so so far. The ministry did not immediately respond to a request for comment.