Oil Workers Go on Strike at Statoil ASA and BP Plc's Fields-Reuters

Reuters reported that oil workers in Norway went on strike from June 24, 2012, impacting Statoil ASA's and BP Plc's fields, shutting down oil and gas production at two fields offshore Norway after negotiations between unions and the industry association broke down during the night. The parties failed to agree on a pension issue, causing 708 oil workers to go on strike initially, affecting a handful of projects and gradually ramping up over time. However, a full shutdown of the oil and gas industry is unlikely, as the government has the authority to force a settlement and it has not hesitated in the past to use this power if a dispute threatens the oil industry. The strike will initially shut down two Statoil ASA's operated fields, Heidrun and Oseberg, which together account for approximately 9% or 150,000 barrels per day of Norwegian oil production, and 4% of total gas output. The strike will also affect Bp Plc's Skarv field, although it has not started producing yet. Work there will be postponed.