Strike threatens UK North Sea oil and gas output

A sizeable chunk of North Sea oil and gas production could be disrupted next month after 300 offshore workers voted in favour of industrial action in a dispute over changes to terms, conditions and pay.

The workers, employed by service firms Ponticelli and Semco Maritime, were balloted on strike action by UK trade union Unite last month.

The two companies are part of the PBS consortium which last year was awarded the general maintenance and operations contract for several of TotalEnergies' assets in the UK North Sea — namely the Alisa floating, storage and offloading (FSO) unit, the Gryphon floating production, storage and offloading (FPSO) vessel, the Culzean, Dunbar, Elgin-Franklin and North Alwyn fields, as well as the Shetland Gas Plant on the Shetland Islands. Combined production from the assets averaged around 230,000 b/d of oil equivalent (boe/d) in the 12 months to mid-August this year, according to figures from the UK's Oil and Gas Authority.

The industrial action, which will include an overtime ban, is set to take place from early December to late February 2022, Unite said. "At present we are still finalising any strike action that will be taken, but this will include stoppages. As for impact on production, if 300 workers take strike action it will impact production," said Unite regional officer John Boland.

TotalEnergies said it cannot comment on the potential impact on operations until further details on the nature of the industrial action are revealed. Unite blames the situation on the inexperience of the two service companies and said the strike could still be avoided. "They need to rethink their proposals and come back with an improved offer. Otherwise they are going to face determined industrial action which will be supported all the way by the union," Unite general secretary Sharon Graham said.

By Lizzy Lancaster, Hannah Adler and Matt Neason.