Norwegian offshore shutdown averted

Statoil (OSE:STL;NYSE:STO) is preparing to restart production at its Norwegian installations that were affected by a strike arising from a proposed offshore pay settlement.

Offshore staff

STAVANGER, Norway – Statoil (OSE:STL;NYSE:STO) is preparing to restart production at its Norwegian installations that were affected by a strike arising from a proposed offshore pay settlement.

The Norwegian government has informed the parties concerned that it will propose a resolution of the conflict by compulsory arbitration.

On July 5, the Norwegian Oil Industry Association (OLF) announced an impending lockout for all members of the unions – Industry Energy (Industri Energi), the Organization of Energy Personnel (SAFE), and the Norwegian Organization of Managers and Executives (Lederne) – affected by the offshore agreement.

It was due to come into force at midnight on July 9, but the parties will now meet in the national wage arbitration tribunal that will make a binding decision in the ongoing dispute.

Statoil’s affected offshore complexes are the Oseberg Field Center, Oseberg South, Oseberg East, Oseberg C, Heidrun, Huldra, Veslefrikk, and Brage. Production from these installations will be restored as quickly as possible, with full production expected to resume within a week.

7/10/2012

More in Production