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Mediation launched with Lederne

The Norwegian Oil and Gas Association and the Norwegian Organisation of Managers and Executives (Lederne) began mediation at 10.00 today, 3 June 2019. Production from a number of Norway’s offshore fields will be hit if no deal is reached by the deadl

This process follows the decision by Lederne to break off negotiations on 7-8 May with Norwegian Oil and Gas over the offshore agreement on pay and conditions. This year’s talks concern an intermediate settlement with adjustments to pay rates.

Lederne thereby rejected an offer within the framework for the lead sectors set by the Confederation of Norwegian Enterprise (NHO), the Confederation of Vocational Unions (YS) and the Norwegian Confederation of Trade Unions (LO) earlier this year.

“It’s crucial that we avoid excessive pay growth in the time to come,” says Jan Hodneland, lead negotiator for Norwegian Oil and Gas. “Increased costs will make jobs more uncertain instead of secure and long-term. So it’s important that this and future settlements are brought in within a responsible framework.”

Lederne has about 1 000 members of the 7 500 unionised workers covered by the offshore agreements. It has given officially notice that 198 personnel will down tools on the following installations:

Gjøa (Neptune Energy): 75 members

Ekofisk 2/4 K og 2/4 B (ConocoPhillips): 28 members

Kristin (Equinor): 24 members

Draugen (Okea): 23 members

Ivar Aasen (Aker BP): 17 members

Oseberg East (Equinor): 16 members

Gudrun (Equinor): 15 members.

A possible conflict would mean that Gjøa, Kristin, Draugen, Ivar Aasen, Oseberg East and Gudrun would have to shut down.  As a consequence, output would also cease from associated fields such as Tyrihans, Maria and Vega. This would mean a daily production loss of roughly 440 000 barrels of oil equivalent.

”Production from a number of Norwegian fields would be affected by a possible conflict, which is serious,” notes Hodneland. ”We therefore hope agreement can be reached with Lederne through mediation.”

Production from fields in the Ekofisk area has been shut down from Monday 3 June in connection with planned maintenance, and will therefore not be affected by a possible conflict in the short term.

A possible strike may not be initiated until 24.00 on 3 June 2019 at the earliest.


Kolbjørn Andreassen, information manager, Norwegian Oil and Gas, mobile +47 952 82 808