Norwegian unions warn Statoil’s rig decision means 600 jobs will be lost

  • Exploration & Production

Norwegian workers’ unions demanded a meeting with the Norwegian Ministry of Petroleum and Energy over Statoil’s termination and suspension of COSLInnovator and COSLPromoter contracts, respectively, warning that 600 jobs could be lost. 

To remind, Norwegian oil company Statoil terminated a contract with COSL Drilling for the semi-sub COSLInnovator, and suspended the one it had for the COSLPromoter rig.

The drilling contractor, COSL Drilling, disagreed with Statoil’s decision and responded by considering legal action against Statoil if the duo fails to resolve the matter.

Norway’s Industri Energi, SAFE and DSO reacted to Statoil’s decision by stating that the company is in violation of the Petroleum Act’s objective for the Norwegian oil industry.

This is not the first time Statoil ended the contract with COSL rig as the company in June 2015 terminated its contract for the COSLPioneer rig. After the contract loss, the drilling contractor had to let go 229 offshore and onshore workers.

The unions said they found it baffling that the oil company would end the contract even though the rig’s performance was in accordance with Statoil’s own criteria in terms of operations, production and safety.

Further, the unions said it might look like Statoil is abusing the accident that occurred on the COSLInnovator rig in December 2015 when a huge wave hit the rig killing one offshore worker.

Statoil was also accused by the unions of trying to save money by terminating the contract even though the company had a good performance.

The unions added they would not tolerate such behavior and the issue would be discussed in a meeting with appropriate authorities, expected to be scheduled quickly.

According to the Norwegian workers’ unions, if the contract termination is completed and the contract suspension turns into termination, it means that 600 workers will lose their jobs with the company. In fact, it might mean the end of COSL’s operations on the Norwegian continental shelf.

In addition, the jobs of those in charge of maintenance, well services and catering on the rigs, as well as onshore subcontractors, are also in danger.

Offshore Energy Today Staff

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