Norwegian oil firms struck a wage bargain with labor union officials on Oct. 9, ending a strike that had threatened to cut the country's oil and gas output by close to 25% next week, negotiators for each side told Reuters.
Brent oil prices fell by more than 1% on the news to $42.74.
Six offshore fields shut on Oct. 5 and a further seven had been scheduled to follow in the coming days, with the oil and gas outage set to grow to 966,000 boe/d by Oct. 14, the industry had said.
"We have a deal, there will be no [more] strike [action]," negotiator Jan Hodneland of the Norwegian Oil and Gas Association (NOG) said after the talks ended.
The Lederne trade union confirmed the news.
"The strike is over," union chief Audun Ingvartsen said.
Oil firms and union officials met on Oct. 9 with a state-appointed mediator to try to end the 10-day strike in western Europe's biggest oil and gas producing nation.
The Oct. 9 meeting was the first with the state mediator since the strike was announced on Sept. 30, although informal talks had been taking place.
Crucially, the union said its new bargain for offshore workers included provisions for land-based workers at the onshore control rooms of Aker BP ASA and Equinor ASA, a key demand in Lederne's strike.
The settlement also included a commitment from oil firms to sign a broader, long-term agreement later, the union said.
Wages will also increase, according to Lederne, although this was in line with what other workers in the industry had obtained, the union said.
The NOG was not immediately comment on the agreement.
The strike's first production outage began on Oct. 5, amounting to 330,000 boe/d, with an additional shutdowns due this weekend at six fields operated by Equinor, ConocoPhillips Co. and Wintershall Dea.
Equinor's Johan Sverdrup oil field, the North Sea's largest with oil output capacity of up to 470,000 bbl/d, had been scheduled to close on Oct. 14 as a result of the strike.
Norwegian oil workers are among the highest paid in Europe but earn less than those in Australia or North America, a review of the latest available data shows.
Recommended Reading
Oklahoma E&P Canvas Energy Explores Midcon Sale, Sources Say
2025-04-04 - Canvas Energy, formerly Chaparral Energy, holds 223,000 net acres in the Anadarko Basin, where M&A has been gathering momentum.
‘Trump Effect’ Stalls Hydrogen FIDs, Already Killing Projects
2025-04-03 - Billions of dollars in capex have been dedicated to hydrogen projects. But some projects have yet to reach final investment decisions amid continued uncertainty surrounding the Inflation Reduction Act and hydrogen production tax credits.
Appalachia, Haynesville Minerals M&A Heats Up as NatGas Prices Rise
2025-04-03 - Several large Appalachia and Haynesville minerals and royalties packages are expected to hit the market as buyer interest grows for U.S. natural gas.
RPC Acquires Pintail Completions to Expand Permian OFS Operations
2025-04-03 - RPC Inc. paid $245 million in cash and other considerations for the wireline service provider.
Pennsylvania City to Turn Coal-Powered Plant into Gas-Fired Data Center Campus
2025-04-03 - Construction on the Homer City Generating Station is expected to start in 2026.