Norwegian Offshore Workers' Strike To Hit Norway's Oil & Gas Output: Reuters

·1 min read
  • Norwegian offshore oil and gas workers went on strike over pay after the members of the Lederne trade union voted down a proposed wage agreement that companies and union leaders had negotiated, Reuters reported.

  • "The strike has begun," Audun Ingvartsen, the leader of the Lederne trade union, said in an interview, adding that the union would escalate the strike to pressure employers to address demands for the wage increase.

  • Equinor ASA (NYSE: EQNR) has started to shut down the Gudrun, Oseberg South, and Oseberg East fields in the North Sea due to a strike.

  • The company said that on Tuesday, oil & gas output would be reduced by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd.

  • On Wednesday, the strike will increase gas cuts to 292,000 boepd, or 13% of output, Equinor added.

  • They said oil output would be cut by 130,000 barrels daily from Wednesday. According to a Reuters calculation, that corresponds to about 6.5% of Norway's oil production.

  • A further planned escalation by Saturday could cut Norway's gas output by almost 25% by Saturday and about 15% of its oil production, according to a Reuters calculation.

  • Price Action: EQNR shares are up 3.52% at $35.02 during the premarket session on the last check Tuesday.

  • Photo by Charlie Hang via Pixabay

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