LABOR STRIKE DELAYS NORTH SEA FIELD PROJECT

Aug. 27, 1990
A continuing threat of unofficial strikes by contractors' workers in the U.K. North Sea has forced Chevron U.K. Ltd. to postpone a 20 million ($$38.2 million) program to install subsea isolation valves on oil and gas pipelines in Ninian field. First side effect of the Chevron action is a decision by a unit of British Petroleum Co. plc, operator of a 36 in. pipeline from Ninian to Sullom Voe terminal, to postpone a 10 million ($19.1 million) program to install a subsea valve on the trunkline

A continuing threat of unofficial strikes by contractors' workers in the U.K. North Sea has forced Chevron U.K. Ltd. to postpone a 20 million ($$38.2 million) program to install subsea isolation valves on oil and gas pipelines in Ninian field.

First side effect of the Chevron action is a decision by a unit of British Petroleum Co. plc, operator of a 36 in. pipeline from Ninian to Sullom Voe terminal, to postpone a 10 million ($19.1 million) program to install a subsea valve on the trunkline while Ninian is shut down.

Shell U.K. Exploration & Production also has delayed a shutdown of the main Brent oil pipeline for several weeks. The line was scheduled to shut down at the beginning of October.

Shell gave no reason for its decision.

Shell has borne the brunt of the action by the unofficial Oil Industry Liaison Committee (OILC), which has resumed its series of 1 day strikes among contractors' personnel (OGJ, Aug. 20, p. 42).

Shell also has gone to court in an attempt to end a sit-in by OILC supporters in Brent field. OILC has been told by the official unions they cannot support the current round of strikes.

NINIAN PROJECT

Chevron had planned to install eight subsea valves on Ninian field lines during the first 3 weeks of September. That would require a shutdown of production and closure of the trunk pipeline to Sullom Voe terminal in the Shetland Islands.

Chevron said after consideration, it had decided the risk of disruption to installation and commissioning of the valves was unacceptable. Such a disruption would threaten to put at risk the safety of all personnel involved.

Greg Matiuk, Chevron U.K. general manager of operations, said, "Retrofitting facilities, as in the case of the subsea emergency safety valve installation and commissioning, clearly carries inherent risks and requires care, diligence, and a commitment on the part of the entire workforce.

"Chevron is not prepared to confront these risks without the full commitment and continuity of labor necessary to conduct a safe operation.

"This is a major safety project and it is in everyone's interest, but we have no confidence that the work will be able to go ahead uninterrupted during the present period of uncertain industrial relations."

Ninian's three platforms normally produce about 130,000 b/d.

The Ninian pipeline, which also carries oil from Magnus, North Alywn, and Heather fields, has an average throughput of more than 400,000 b/d.

OILC Chairman Ronnie McDonald claimed Chevron has commercial rather than safety reasons for the shutdown.

The company wants to maintain production while oil prices are high, he said.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.