Wage talks involving some 7,000 oil drilling workers in Norway broke down early on Wednesday, two labour unions said, raising the risk of strike action later this year that could disrupt exploration.

The talks between the Norwegian Shipowners’ Association (NSA) and the Safe and Styrke labour unions will resume at a later date under the leadership of a state-appointed mediator, the unions said.

Under Norway’s tightly regulated collective bargaining system, workers are only eligible to go on strike if the mediation also fails.

“We failed to reach agreement and will proceed with mediation,” Styrke said in a statement.

Companies affected by the talks include Transocean RIG, Saipem SPM, Odfjell Drilling ODL, Archer, Seadrill SDRL and others, and were represented in the talks by the NSA.

The NSA did not immediately respond to a request for comment.

Strikes by drilling workers could delay expansion projects and the start-up of new fields but typically have only a minor impact on daily oil and gas output.

A separate group of Norwegian petroleum production workers, who are directly employed by companies such as Equinor and Aker BP, reached a wage agreement earlier this month.
Source: Reuters