Almost 60 per cent of gas exports from the Norwegian continental shelf (NCS) will be affected when the strike action is stepped up further from Saturday 9 July. That will mean lost revenues of NOK 1.8 billion per day according to details posted today by The Norwegian Oil and Gas Association.

The scope of the latest notice from the Norwegian Organisation of Managers and Executives (Lederne) of an extension to its strike, which comes into effect on Saturday 9 July, will be very damaging and serious for both Europe and Norway. Norwegian deliveries account for a quarter of European energy supplies, and Europe is entirely dependent on Norway delivering as a nation at a time when Russian supply cuts have created a very tight market for natural gas. A strike on this scale poses huge problems for countries which are wholly dependent on filling up their gas stores ahead of the autumn and winter.

Norway has been begged by other countries over the past year to find ways of increasing its natural gas production for export to Europe. A great deal of work has been done to achieve this by both government and industry. A strike would be very destructive for the reputation of Norway and the industry as a reliable and stable supplier of natural gas.

Norwegian Oil and Gas has already signed collective pay agreements for operator employees with the Norwegian Union of Industry and Energy Workers (IE) and the Norwegian Union of Energy Workers (Safe). They account for 85 per cent of the union members covered by the offshore agreements. The association has a parallel agreement with Lederne, and the union is fully aware that Norwegian Oil and Gas is unable to make any changes to the agreement with it.

Lederne’s members already receive the highest pay on the NCS. Norwegian Oil and Gas has agreed with IE and Safe on a settlement of NOK 32 200 in centrally negotiated increases in addition to adjustments to a number of rates. As with Safe and IE, Lederne’s members have the right to negotiate locally after the national settlement. This means they are guaranteed at least NOK 32 200 regardless.