“Many of the supplies companies are experiencing very demanding times because of the reduction in activity,” observes Jan Hodneland, lead negotiator for Norwegian Oil and Gas. “Their earnings have declined substantially as a result of both new and renegotiated contracts.
“This means that a growth in costs would add to their burden. It would worsen the position not only for the companies but also for their employees, who have seen many of their colleagues being made redundant.”
The position of the suppliers is not comparable to that of the operator companies, who reached agreement over the offshore settlement last Saturday. They have been through a major restructuring over the past couple of years, with big cost cuts and extensive downsizing.
“A prudent pay settlement would make a significant contribution to improving the competitive terms for Norway’s supplies companies,” says Hodneland. “It will help to preserve the largest number of jobs, which needs the contribution of both sides.”
Safe has notified a stoppage by all 663 of its members in the following companies: Baker Hughes AS (79), Halliburton AS (35), Oceaneering AS (17), Schlumberger Norge AS (228), Subsea 7 AS (78), Vetco Gray Scandinavia AS (184) and Weatherford Norge AS (42).
A possible conflict would mean a halt to or delays with various services, such as cementing of wells, exploration drilling and well completion. However, it would have no immediate consequences for production on the Norwegian continental shelf (NCS).
Norwegian Oil and Gas negotiated with the Norwegian Union of Industry and Energy Workers (Industry Energy) over the oil service agreement (OSA) on Tuesday. These talks are temporarily put on pause.
Jan Hodneland, lead negotiator, Norwegian Oil and Gas, mobile +47 913 41 301
Kolbjørn Andreassen, communication manager, pay negotiations, Norwegian Oil and Gas, mobile +47 952 82 808