Statoil ASA, ConocoPhillips And Other Companies Threatens To Shut Norway Output-WSJ

The Wall Street Journal reported that Statoil ASA and other companies represented by Norway's Oil Industry Association have threatened to lock out workers and shut down production on the Norwegian continental shelf starting Tuesday in hopes of forcing an end to a 12-day strike that has put upward pressure on oil prices and crimped revenue. The threat of a lockout is prompting speculation the Norwegian government, whose $600 billion sovereign-wealth fund is entirely dependent on oil revenue, will be lured to step in. Oil companies and three unions representing offshore workers have been negotiating on wages but are clashing over employee demands for better pension terms. While Statoil is the biggest oil player in Norway, the lockout, which is slated to begin at midnight on Monday would affect all of the 50 or so companies with production on the Norwegian continental shelf, including ConocoPhillips, Royal Dutch Shell Plc and BP Plc. Total production of oil and gas on the Norwegian continental shelf is 3.8 million barrels of oil equivalent a day, according to OIA, and the value of the daily production is estimated at 1.8 billion kroner.