Norway Oil firms seek mediation to avoid a labour strike that could affect output

Offshore Norge, an industry group, said that wage talks between Norwegian oil companies?and labour unions?broke down on Wednesday. The state will now take over mediation to try and?prevent workers from going on strike.

If the government-appointed mediator in Norway is unable broker a deal at the time of negotiations that resume later this summer, union members will be eligible to strike and disrupt?the output from Western Europe's biggest oil and gas producer.

Offshore Norge reported that unions Styrke Safe and Lederne were unable to reach an agreement with companies.

Although no date has been set yet, oil companies expect to have mediation in June.

Norway produces approximately 4 million barrels per day of oil-equivalent, which is almost evenly split between oil and natural gas. Any production cuts would have a negative impact on the markets, especially at a moment when Middle East output has been severely reduced.

Since Tuesday, the unions have been negotiating with Offshore Norway (which represents petroleum companies) in order to reach an agreement on offshore wages for about 8,000 employees.

The talks will cover wages, benefits and working conditions of staff employed by oil 'firms such as Equinor Aker BP ConocoPhillips Vaar Energi.

(source: Reuters)