The Norwegian government said it will impose mediation to end an oil sector dispute
The Norwegian government said it will impose mediation to end an oil sector dispute to avoid a possible suspension of crude production next month.
Minister of Labour and Social Affairs Dagfinn Hoeybraaten said on the governnment website: "I have met the parties in the rig conflict and informed them that the government will put forward a bill to the Storting (parliament) proposing compulsory arbitration to end the dispute between the Federation of Oil Workers' Trade Unions and the Norwegian Shipowners' Association."
Today the shipowners' association gave notice of a secondary lockout affecting staff on 94 offshore service vessels and shuttle tankers on the Norwegian continental shelf from midnight on Nov 8.
The government said on its website escalation of the dispute would result in a stoppage of oil and gas production on the Norwegian shelf and "entail huge consequences to society. It would also have a negative impact on the oil and gas deliveries to the continent and on Norway's credibility as a reliable gas supplier."
The stoppage notice could in itself have a negative impact on the international oil market and cause a considerable rise in prices, the government added.
