Fears Of Norwegian Strike Quashed As Accord Agreed

Norwegian oil worker unions and companies including Statoil reached an accord over a 4.7 percent pay increase, ending weeks of deadlock and averting a strike that would have hurt the nation's oil and gas output.

About seven thousand workers are covered by the agreement, which was reached after the two sides met with a mediator. Unions and the employers also agreed to decide on a company level on workers' demands for changes to their schedules, the companies said.

“It's positive that they resolved this conflict,” said Kyrre Aamdal, an analyst at DnB Markets. “Strikes would have added risk to the companies' ability to uphold output.”

A strike would have affected BP, ExxonMobil and Royal Dutch Shell Group units in addition to Statoil, which is Norway's biggest oil company. Gas output would have fallen by some 50 million standard cubic meters a day, while crude production would have been cut by 150,000 barrels a day, or 5 percent of output.

Visit to

&to=http://www.bp.kz/index.asp' target=_blank>BP

&to=http://www.statoil.com/' target=_blank>STATOIL

&to=http://www2.shell.com/home/Framework' target=_blank>SHELL

&to=http://www2.exxonmobil.com/corporate/' target=_blank>ExxonMobil

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