Equinor shuts NCS fields as strike threatens large portion of gas exports

July 5, 2022
Equinor ASA initiated shutdown of Gudrun, Oseberg South, and Oseberg East fields on the Norwegian continental shelf after members of the Norwegian Organization of Managers and Executives trade union went on strike at midnight.

Equinor ASA initiated a safe shutdown of Gudrun, Oseberg South, and Oseberg East fields on the Norwegian continental shelf (NCS) after members of the Norwegian Organization of Managers and Executives (Lederne) trade union went on strike at midnight.

Members of Lederne, in a referendum, voted against the mediator’s proposal during wage negotiations for offshore personnel between the labor organizations and the Norwegian Oil and Gas Association (Norog), representing the employers.

An extension of the strike has been notified for Heidrun, Kristin, and Aasta Hansteen fields, taking effect the night of July 5. The installations will perform a controlled shutdown of production, including Tyrihans field, which is tied to the Kristin platform.

Total production from Gudrun, Oseberg South, and Oseberg East is about 89,000 boe/d, of which 27,500 boe/d is natural gas. Total production from Heidrun, Kristin-Tyrihans, and Aasta Hansteen is about 333,000 boe/d, of which 264,000 boe/d is natural gas.

Equinor said consequences of a strike extension, which comes into effect July 9 at Sleipner, Gullfaks A, and Gullfaks C, are unclear. Separately, however, the Norwegian Oil and Gas Association said shutting down Gullfaks A and Gullfaks C means that Gullfaks B, Snorre A, and Visund must also cease production. In a release July 5, the association said “shutting down Sleipner A means that export pipelines from Kollsnes and Nyhamna must cease operating and that production at Kollsnes and Nyhamna has to be reduced. That also means Kvitebjørn must shut down. So must Gina Krog, Sleipner West, Gugne, Sigyn and Utgard when Sleipner A closes down.”

According to the association, almost 60% of gas exports from the NCS will be affected when the strike action is stepped up July 9.