Oil service strike makes three Songa rigs idle

  • Exploration & Production

Due to a conflict between the workers’ union and the employers’ organization in Norway, where various groups of oil service workers are on strike, Songa Offshore informed on Friday that three of its rigs are out of operations. 

To remind, the oil service workers’ strike started on Wednesday last week when the Industri Energi union and the employers’ organization, the Norwegian Oil and Gas Association, failed to agree over the collective oil service agreement.

Around 350 oil service workers at Baker Hughes, Schlumberger, and Halliburton were laid off in Norway as a result of the strike action with further layoffs expected in the following days in various companies.

The Norwegian Shipowners’ Association (NSA) said on Wednesday that the conflict would result in ten out of service rigs during this week as well as 1,700 layoffs.

The drilling contractor noted on Friday that while the company is not represented by the Norwegian Oil and Gas Association, it is still impacted because a number of its rigs have been taken out of operations when Statoil’s operations have been affected by the strike.

The status for the operating Songa Offshore rigs is currently:

– Songa Endurance is out of operations and on Force Majeure rate since September 22;

– Songa Equinox is out of operations and on Force Majeure rate since September 26;

– Songa Enabler is out of operations and on Force Majeure rate since September 27;

– Songa Encourage is in operation but expected to be impacted by the conflict in the first half of October;

– Songa Delta is currently not expected to be impacted by the conflict.

As a consequence of the rigs going out of operations, Songa Offshore said it was reducing offshore manning to the Safety Crew Level and 65 offshore employees have to date received notice of temporary dismissal, with another 365 planned, in total 430 employees. This excludes any potential effects from Songa Encourage operation.

Offshore Energy Today Staff

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