Strike leads to North Sea shutdown

Nexen has shut in production from its Buzzard, Scott, Telford, and Farragon fields in the UK central North Sea.

Offshore staff

ABERDEEN, UK --Nexen has shut in production from its Buzzard, Scott, Telford, and Farragon fields in the UK central North Sea.

This follows BP's decision to suspend operations through the Forties pipeline system as a result of a two-day strike at the Grangemouth refinery in eastern Scotland. Grangemouth provides essential utilities services for the Forties line at BP's Kinneil plant.

Nexen says the timing of the re-start will depend on the condition of various offshore and onshore systems after the shutdown.

The operators/contractors association Oil & Gas UK claims that 70 producing fields have been affected by the industrial action, and that the strike is costing the UK £50 million daily in lost production.

Chief executive Malcolm Webb said that the extra power, water and steam needed to keep the Forties pipeline flowing could be provided relatively easily, without compromising the positions of Grangemouth owner Ineos or the Unite union.

He also urged the UK government to intervene to broker an agreement without delay.

04/28/2008

More in Production