Equinor field at risk of shutdown over possible strike at Mongstad

Norwegian oil and gas company Equinor has warned that possible strike action at the Mongstad refinery could affect offshore fields on the Norwegian Continental Shelf (NCS), with Johan Sverdrup field at risk of temporary shutdown.

Equinor said lats Friday that mediation would take place on Monday 15 February between the union SAFE and Norwegian Oil and Gas Association.

This can potentially lead to a strike which could affect activity at the terminal at Mongstad, Equinor said.

The tariff agreement in scope for mediation is the Oil Agreement – Oljeoverenskomsten 224. The agreement is between YS/Safe, Negotia and Norwegian Oil and Gas Association/Norsk Industri.

In the event of this mediation not being successful, SAFE has announced that 12 of their members at the Mongstad terminal could be on strike from midnight 15 February.

According to Equinor, the effect of a potential strike could reduce crude storage and harbour capacity at the terminal at Equinor Mongstad refinery, which could affect the production at several Equinor-operated fields on the NCS, including Johan Sverdrup and Troll and it could be necessary to shut down production there until further notice.

A possible strike could also impact gas exports from the Troll area, and could also impact the Kvitebjørn, Visund, Byrding, Fram and Valemon fields, Equinor added.

The SAFE union said in a statement last week the strike is important to show the seriousness of the situation.

Lundin Energy, one of Equinor’s partners in the field, said on Friday it was hoped that the Norwegian Oil and Gas Association (NOROG) and SAFE, in the intervening period, would reach a settlement and avert a temporary shutdown of Johan Sverdrup.

None of Lundin Energy’s other producing fields would be impacted by the potential SAFE strike action.

It is worth reminding that Equinor was last October also forced to shut down four of its fields in the North Sea following an escalation in strike action by offshore oil and gas workers.

Members of the Lederne union went on strike following a breach of mediation in the negotiations between the employer organisation Norwegian Oil and Gas Association and the trade union Lederne.

The 10-day strike was ended after a wage bargain was negotiated with officials of labour union Lederne.