Norwegian oil and gas strikes could escalate: Update

Includes information from the security union and details on a potential Schlumberger strike

Industrial action could close more Norwegian oil and gas fields, with the country's security personnel union preparing to ramp up strikes at heliports used for transportation to offshore platforms.

The heliport strikes from midnight local time tonight could begin to constrain Norwegian gas production "in one or two weeks", the Norwegian Oil and Gas Association (Noga) told Argus.

Industrial action is already planned at the Nyhamna gas processing plant from tomorrow.

The shutdown at Nyhamna — which processes supply from the Aasta Hansteen and Ormen Lange fields — is expected to have a "volume impact" of 50mn m³ tomorrow, offshore system operator Gassco said this morning. The duration of the action is unknown.

Two heliports — Bronnoysund and Floro — are already closed, while Flesland and Kristiansund are working at reduced capacity, the Norwegian Confederation of Trade Unions (LO) told Argus. And Stavanger will have reduced capacity from tomorrow, while Kristiansund's capacity will be cut further, LO said.

No strikes are planned at the remaining heliport at the 4.2mn t/yr Hammerfest LNG export facility. This heliport services the Snohvit gas field and the Goliat oil field. Snohvit exclusively supplies Hammerfest, which has been off line since 28 September following a fire. The outage is expected to last for up to 12 months.

Industrial action at heliports could result in a "tsunami of closures at Norway's oil and gas fields", Noga told Argus. It is unclear how many fields could be affected.

Helicopter is the preferred mode of transport to Norway's offshore platforms during winter as harsh storms can cause inclement sailing conditions, Noga told Argus. And platform workers are currently exclusively using helicopters because of Covid-19 social-distancing requirements, with boats only being used for supplies, Noga said.

It is also possible that some rig workers will not be able to return to land if strikes ramp up further, Noga said.

Union strikes are also planned at supply bases for offshore platforms, which could impact transportation of food and supplies to workers, Noga said.

The security union strikes have been under way for about 10 weeks, but up to this point have primarily affected commercial retail businesses.

In addition, Norwegian platform workers employed by US oil service firm Schlumberger plan to strike from 3 December if salary negotiations are not resolved, with 262 workers expected to walk out. But this is only expected to affect drilling operations, rather than production.

By Elaine Atwood