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About Commodity Insights
03 Apr 2023 | 14:01 UTC
By Nick Coleman
Highlights
150 employees to walk out with numbers to spiral
Warning operations to 'grind to a halt,' but sources skeptical
Employer 'contingency planning' to maintain services
UK trade union Unite on April 3 announced the first in a series of strikes by North Sea contract workers starting April 5, warning that the initial walkout by 150 workers would turn into a "tsunami" of industrial action.
In a statement, Unite said the 150 workers due to stop work were employees of service company Sparrows Offshore Services normally deployed across 20 offshore oil and gas facilities, often moving between sites. The first stoppage will last 24 hours, with a second due April 21, a third on April 28 and further strikes continuing into June. Pay and conditions are the focus of employees' complaints and other strikes are expected in the coming weeks involving as many as 1,500 employees of various service providers.
Operators to be affected by the initial strike include Shell, London-based Harbour Energy and the US' APA Corp, formerly Apache, Unite said.
Workers involved include crane operatives and maintainers, lifting personnel, deck crew and a "flying squad" of maintenance personnel who move between platforms, it added.
"Contractors and operators who rely on the specialized roles that our members carry out to deliver their bonanza record profits will soon discover that their platforms and production will grind to a halt without them," Unite regional officer Viv Fraser said.
The Sparrows workers will "lead the fight for a decent deal in what is going to be a tsunami of industrial action to challenge the profiteering of North Sea operators and contractors," General Secretary Sharon Graham added.
In a statement, Sparrows Offshore Services defended the company against claims of a deterioration in pay and said overall remuneration was in line with industry standards.
"We are working with our clients on contingency planning for periods of industrial action, to deliver our operational services and ensure the ongoing safety of personnel and operations. We remain committed to engaging with the union officials and employee representatives to bring this dispute to an end," Sparrows said.
Industry sources have indicated they expect limited or no effect on production volumes from the North Sea, while stressing safety standards will not be compromised for the sake of maintaining activity.
A Shell spokesperson said: "We continue to support constructive dialog between Unite and contracting companies to reach a mutually agreed outcome."
The UK North Sea continues to meet around half the country's energy needs: in 2021, North Sea production amounted to 38% of UK gas demand and the equivalent of 75% of the country's oil demand, according to industry group Offshore Energies UK.
Global oil prices rallied April 3 following a surprise production cut announcement by OPEC+ producers, with June ICE Brent in Asian hours trading around 8% higher than the March 31 Asian market close.