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Norwegian offshore strike ends

NORWAY NORWEGIAN offshore workers’ union Led- committed to signing a long-term and broader
erne ended its strike on October 9 after securing agreement by April 1, 2021. Leading producers
a better deal with employers in a meeting with a Equinor and Aker BP have also agreed to make
state-appointed mediator. extra provisions for staff at their onshore control
The strike led to the closure of the rooms.
Equinor-operated Gudrun, Gina Krog and Norwegian oil workers are among the high-
Kvitebjorn fields, along with Neptune Energy’s est paid in Europe but earn less than those in
Gjoa and Wintershall Dea’s Vega fields. The fields Australia and North America. A threat of indus-
flow around 330,000 barrels of oil equivalent per trial actions is an almost annual occurrence in
day (boepd), equal to around 8% of national the Nordic country, where unions are large and
output. influential.
Production was also at risk at Equinor’s Johan Lederne represents around 15% of offshore
Sverdrup project, the biggest oilfield in Western workers in Norway, whereas the larger Industri
Europe that flows at a rate of 470,000 barrels per Energi and Safe unions account for the remain-
day (bpd). But the strike was ended before oper- der. Serious industrial action in 2012 knocked
ations were affected by workers downing tools. out some 13% of Norwegian oil production in
Lederne has reached a settlement deal 2012, pushing oil prices above $100 per barrel.
with the Norwegian Oil and Gas Association The government had to step in and order an end
(NOGA), which represents employers. Its work- to the strike after unions were unable reach a set-
ers will be paid more, and oil companies have tlement with companies. ™

Galp takes refinery offline amid

unstable fuel demand

PORTUGAL PORTUGAL’S Galp has temporarily halted fuel confirmed coronavirus cases and 2,110 deaths,
production at its smallest oil refinery at Mato- which is far less than Spain and many other
The refinery was taken sinhos because of unstable national and inter- European countries. Still, its economy has been
offline temporarily in national demand because of the coronavirus hit hard by the crisis, with the government fore-
April as well. (COVID-19) pandemic, the company told Reu- casting an 8.5% contraction in GDP this year.
ters on October 12. Higher rates of infection have prompted the
“Supply of the national market is guaranteed government to begin re-imposing some lock-
to remain, with an adequate level of products to down measures this month and urging citizens
Turkey’s Tupras cuts 2020 forecasts satisfy the needs of the Portuguese companies to avoid unnecessary travel, putting pressure on
and industrial units,” Galp said. The company is fuel demand. ™
yet to decide on an end-date for the suspension,
but said no workers would be laid off.
In statements to local press, Galp said the pro-
duction of base oils and aromatics at the plant
would be unaffected. It said it was monitoring
market conditions daily, and would adapt its
plans to meet customer demand and ensure its
activities are sustainable.
Refineries across Europe were temporar-
ily shut down at the height of the coronavirus
pandemic in April, and operators have consid-
ered closing some plants permanently given the
economic fallout from the crisis. Galp closed
the Matosinhos refinery in April along with its
larger plant in Sines. The pair have a combined
throughput capacity of 330,000 barrels per day
(bpd), equivalent to 20% of national output.
They resumed operations in June, a month after
Portugal began easing lockdown measures.
Portugal has reported around 91,000

Week 41 15•October•2020 www. NEWSBASE .com P19