The company says full production will resume “within a week” after the Norwegian government averted what could have been crippling lockout by ordering warring factions to seek a resolution in arbitration.
Labour minister Hanne Bjurstrom intervened in the final hour of a lengthy standoff involving dozens of firms tied to the Norwegian Continental Shelf and three unions representing more than 6,000 workers.
While the move was widely expected given Norway’s dependence on oil and gas revenue, the shipping industry had been on edge as the situation resonated with those following the EU ban on Iranian crude and the recent closure of Libyan export terminals, which have since reopened.
Michael Webber, an equity analyst at Wells Fargo Securities, says an extended shutdown of Norwegian production would initially have been limited to the regional aframax tanker market, which handles exports to Europe.
“As usual vessels on long-term contracts would continue to receive [charter] payments, however, the utilisation of vessels servicing COA contracts, such as Teekay Corp’s, could be negatively impacted [if we saw] an elongated shutdown,” he added.
Brent crude, Europe’s oil benchmark, climbed 2.2% Monday before topping out at $100.32 a barrel on ICE futures in London but slipped 0.8% to $99.53 a day later as lockout fears eased, brokers and analysts said Tuesday.
In the spot market, aframaxes fixed for cross-Mediterranean voyages saw day rates slip 6.00% to around $22,000 on average while tankers working routes that link the Caribbean to the US Gulf were fetching approximately $11,600, which represents a daily gain of more than 2.00%.
