Around 200 oil sector workers began strike action today, in a move expected to cut output by the world's third largest producer by up to 300,000-400,000 b/d, unions and officials said. The strike, called overnight by the minority OFS union after arbitration talks over a pension dispute broke down, is expected to lead to a complete production stoppage on the offshore Snorre field.
News of the stoppage came after oil prices rose sharply overnight following more bloodshed in Iraq and sabotage attempts against the country's oil installations. In New York, West Texas crude for July delivery closed up $1.14 at $38.46.
The Snorre and the adjacent Vigdis field have joint output of around 300,000 b/d. Production from the Ringhorn and Ekofisk fields is also expected to be affected by the stoppage, officials said. "These fields (including Snorre) normally produce a combined 455,000 b/d. If their production is halted, the economic impact will be significant," said oil sector employers' association OLF. ConocoPhilips and ExxonMobil operate Ekofisk and Ringhorn, respectively.
Statoil ASA, which operates the Snorre field, said it expects a "controlled shutdown" of the two platforms in operation on the field to last for about two days. Norway normally produces around 3 MMb/d of oil.
06-21-04
