Statoil said it is planning to shutdown production on the Norwegian continental shelf (NCS), following a notice of lockout by the Norwegian Oil Industry Association (OLF).
OLF said a lockout will be effective from Monday 9th July at 24:00hrs and is expected to halt all production on the NCS.
The lockout will be imposed on all members of Industri Energi, the Organisation of Energy Personnel (SAFE) and the Norwegian Organisation of Managers and Executives who are covered by the offshore pay agreements.
The notice follows strike action taken by workers form Industri Energi, SAFE and Lederne on 24th June.
According to OLF's calculations, the strike has resulted in a loss of revenue from production amounting to around NOK two billion so far.
Statoil will lose NOK520m ($85.8m) each day from the production stoppage, amounting to 1.2 million barrels of oil equivalent a day.
The company is planning a controlled shutdown of production which will take one to four days, as it establishes safety staffing on each installation.
Image: A lockout would mean a complete shutdown of oil and gas production in Norway, the world's eighth-biggest crude exporter. Photo courtesy of: Harald Pettersen / Statoil.