Statoil is preparing to shut down production on the Norwegian continental shelf (NCS) following a notice of lockout.

The Norwegian Oil Industry Association (OLF) announced today that a lockout will be imposed on all members of Industry Energy (Industri Energi), the Organisation of Energy Personnel (SAFE) and the Norwegian Organisation of Managers and Executives (Lederne) who are covered by the offshore pay agreements. The announced lockout will take effect on Monday 9 July at 24:00 hrs., and will halt all production on the NCS.

For Statoil, the shortfall in production will be around 1.2 million barrels of oil equivalent per day. The group’s lost revenue resulting from the production stoppage will amount to around NOK 520 million per day.

Tags: Statoil