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| Photo: Harald Pettersen / Statoil |
The Norwegian government has stepped in to prevent a lockout that would have shut down production along the Norwegian Continental Shelf.
Norway's minister of labor Hanne Bjurstrøm asked union and employer representatives to her office at 11:30 p.m. local time, only 30 minutes before a lockout went into effect, to inform them that the conflict between them will now be settled by compulsory arbitration.
After the declaration, companies including Statoil have announced that they will resume production at installations previously closed by the strike, such as Oseberg Field Centre, Oseberg South, Oseberg East, Oseberg C, Heidrun, Huldra, Veslefrikk and Brage.
Chief negotiator for the Norwegian Oil Industry Association Jan Hodneland welcomed government intervention.
'It is a responsible choice made by the government tonight,' Hodneland said. 'We are now relieved that we do not have to shut down the production on the Norwegian continental shelf, however, we were ready to initiate a lockout if the government did not intervene.'
Leif Sande and Hilde-Marit Rysst, union representatives from Industri Energi and the Norwegian Organisation of Energy Personnel (SAFE), said in a joint statement that they were disappointed; calling the intervention unnecessary and the lockout threat ordered by OLF an escalation.
'We had hoped and believed that Bjurstrom had enough guts to resist OLF's game,' Sande and Rysst said. 'This confirms that the oil industry once again can order compulsory arbitration by threatening to shut off the (Norwegian Continental) Shelf.'
The strike, which lasted 16 days, has cost an estimated NOK 3.1 billion (US $509 million), OLF said.
By: Audrey Leon,aleon@oilonline.com
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