Norway oil companies and unions reach wage agreement, averting a strike

Negotiators from both sides said that the Norwegian oil companies had agreed to a wage deal with three unions. This agreement prevented any strike action which could have disrupted production.

The industry estimates that the strike would have reduced production by an initial 45.500 barrels equivalent per day.

Union officials had warned that a strike could have expanded at any moment, and would have had a significant impact on production.

Norway produces over 4 million barrels equivalent to oil per day. This is almost equally divided between crude oil and natural gas. Any?reduction in production could have an impact on markets at a time when Middle East production has been curtailed due to the Iran War.

Officials said that a general increase in annual pay of 42,000 Norwegian Crowns ($4,493), including holiday allowance and offshore compensation, was agreed.

"In addition to the shift and night supplement increases, they will be increased by NOK 5 each. Offshore Norway announced?that?variable supplements have been adjusted, as well as?some changes to agreements.

According to Offshore Norway, any output reduction initially would have included operators Equinor Aker BP Okea ConocoPhillips.

The Norwegian oil companies and the unions negotiated on behalf of most production workers at Norway's oil-and-gas installations. However, some oil service and exploration drilling employees will have separate talks later.

The mediator appointed by the state to lead the negotiations confirmed that an agreement was reached.

(source: Reuters)