Striking Norwegian oil workers affect Norne field production

June 23, 2004
Production from Statoil SA's Norne field in the Norwegian Sea will be affected by an escalation of a strike by two of Norway's oil worker unions, Statoil said Wednesday.

By OGJ editors

HOUSTON, June 23 -- Production from Statoil SA's Norne field in the Norwegian Sea will be affected by an escalation of a strike by two of Norway's oil worker unions, Statoil said Wednesday.

Huldra field also could be affected, Statoil said. Production from Statoil's Snorre and Vigdis fields already was affected by the strike.

The Federation of Oil Workers Trade Unions (OFS) and the Norwegian Association for Supervisors said that 56 OFS members on the Norne production ship and 11 from the Supervisors union are expected to join the strike on Sunday.

That will reduce production from Norne by 130,000 b/d of oil and 2.5-3 million cu m of gas, Statoil said.

Norsk Hydro AS's Heimdal development, where Statoil has a 20% holding, also is being affected by the strike, which could halt all gas treatment and transport via the North Sea field. This could in turn have consequences for Statoil's Huldra field because Heimdal facilities process Huldra's gas, Statoil said.

A halt in Heimdal's processing would cause the loss of 2 million cu m/d for the group. In addition, 20,000 b/d of condensate would be lost from Huldra, Statoil said.

If processing and transport on Heimdal stop, Norsk Hydro has said that gas exports from the Oseberg field center also must be halted. The group's commitments to gas buyers will be met from other sources, Statoil said.