Norway oil/gas production to stall due to strike

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Norway oil/gas production to stall due to strike

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Norway confirmed that oil and gas production would be halted from Tuesday.

09 July,2012 05:44 pm

The talks between employers and unions have failed to end a prolonged strike.As the situation stands now, the lockout will be enforced from midnight (2200 GMT Monday), petroleum and energy ministry spokesman Haakon Smith-Isaksen said Monday.The consequence of the lockout is a controlled close-down of all Norwegian petroleum production and exports when stocks are exhausted, he said.The lockout in Western Europes top producer was announced by Norways state oil giant Statoil on Friday in response to the strike launched on June 24 by more than 700 North Sea oil workers over pensions.Employers group OLF says the strike has cost the industry tens of millions of euros a day.The lockout will affect all production on Norways continental shelf, where about 50 companies operate, including Statoil, BP and Royal Dutch Shell.