Norway’s government said on Tuesday it was referring a dispute between oil and gas workers and employers to an independent body after an industry group warned that strikes could cut Norway’s gas exports by more than half.
The move, which effectively ends the work stoppage, comes after workers quit their jobs on Tuesday, leading to the closure of three fields and the union announced more workers would go on strike later in the week.
“The announced escalation is critical in today’s situation, both in terms of the energy crisis and the geopolitical situation we find ourselves in with a war in Europe,” Labor Minister Marte Mjos Persen said in a statement.
Under Norwegian law, the government can force parties in an industrial dispute before a wage board, which decides the matter.
Earlier Tuesday, industry group the Norwegian Oil and Gas Association warned that with the announced escalation of the strike announced for Saturday, production would be cut.
It said 56 percent of total gas exports from the Norwegian Continental Shelf (NCS) would be cut, along with a loss of 341,000 barrels of oil per day.
– “A very tight market” –
“There is no justification for stopping gas production to such an extent that this strike is estimated to result in the next few days,” said Persen.
Norwegian energy giant Equinor said earlier Tuesday it had halted production at three oil and gas fields after oil workers left the country after failed wage negotiations, and warned more closures were expected.
The strike came at a time when energy prices were fluctuating as a result of the impact of the Russian invasion of Ukraine and associated sanctions.
“Norwegian supplies account for a quarter of Europe’s energy supply and Europe is entirely dependent on Norway as a nation at a time when Russian supply cuts have created a very tight market for natural gas,” according to the Norwegian Oil and Gas Association.
“A strike of this magnitude poses enormous problems for countries that are completely dependent on replenishing their gas supplies before autumn and winter,” she added.
The workers left after members of the Lederne union voted against a proposal made by mediators during collective bargaining.
According to the government, the parties had said “that they will end the strike so that everyone can get back to work as soon as possible”.
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