Strike averted on Norway’s oil rigs

Labour unions representing Norwegian rig workers have reached a wage agreement with employers, averting a strike that could have cut oil production and stalled exploration efforts in the country’s offshore.

The Norwegian Shipowners’ Association agreed to a 1-percent wage hike for all rig workers, with a minimum raise of around $700 per year.

A total of 574 employees had threatened to strike, including 189 working at Repsol’s Varg and BG Group’s Knarr oilfields.

International shipping company Teekay Corporation owns the vessels operating at the two fields. Other owners who faced the strike threat include Norway’s Odfjell Drilling, Scotland’s Stena Drilling, China Oilfield Services and Danish conglomerate Maersk.

Unions had said the strike could expand to include 4,900 employees working on rigs for both exploration and production projects.

Norway is a key oil and gas producer for the European market, with a 2014 output of around 1.9 million barrels of oil per day and 109 bcm (3.85 tcf) of gas for the year.

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