Three Norwegian unions representing rig workers have successfully negotiated a 6.5 percent increase in minimum pay with the Norwegian Shipowners' Association, preventing a strike that would have halted well activity on Norway's continental shelf.

Industri Energi, which represents nearly 4,000 workers, announced the interim deal reached with the industry group, effectively calling off the strike. The strike would have impacted companies such as 4Service Offshore AS, Archer Ltd, Dolphin Drilling ASA, ESS, KCA Deutag Group, Noble Drilling AS, Odfjell Drilling Ltd, Saipem SPA, Seadrill Ltd, Sodexo, Teekay Tankers Ltd, Transocean Ltd, and Valaris Ltd, according to Industri Energi's press release.

Industri Energi, with a membership of 56,000 in the oil and gas and agricultural sectors, stated that the agreement ensures the industry's competitiveness in the labor market, making it an attractive career choice for young people. Frode Alfheim, the leader of Industri Energi, noted the growing demand in the industry.

Under the settlement, minimum wage rates for all groups will increase by 6.5 percent, including holiday pay. The night supplement will be raised by NOK 5.50 [$0.5] to NOK 102.50 [$9.5] per hour, and the public holiday allowance will increase by NOK 75 [$7] to NOK 2,275 [$212] per day, as stated by Industri Energi.

The SAFE union also announced that it had reached an agreement with the shipping association on the same wage terms, averting a strike targeting floating rigs. The DSO union, planning a strike on movable facilities, received the same terms.

The new wage terms came into effect on June 1.

The Norwegian Petroleum Directorate (NPD) reported sustained "high" activity in Norway's oil and gas sector this year. The NPD stated that 18 exploration wells have been drilled, resulting in seven discoveries, totaling between 9 and 32 million Sm3 [standard cubic meters] of oil equivalent.

Between January and May 2023, production in Norway reached over 1.78 trillion cubic feet (Tcf) of gas, nearly 1.52 Tcf of oil, and 194.23 million cubic feet of gas liquids, according to the NPD. The NPD emphasized that high activity levels contribute to Norway's role as a secure and stable energy supplier to Europe.

In terms of natural gas, Norway has strengthened its position as a reliable and long-term supplier to Europe, particularly in light of trade sanctions against Russia following its invasion of Ukraine. In 2022, Norway surpassed Russia as the European Union's top natural gas exporter, accounting for 24.4 percent of the region's imports compared to Russia's 15.3 percent, according to Eurostat, the official statistics agency.