27 rigs on Norwegian continental shelf without contract in 2017

gas fieldsOil fields.Photo: Pixabay

Up to 11,400 jobs are at risk after three out of four rigs on the Norwegian shelf being without contract after summer 2017.

Stavanger Aftenblad newspaper reported that 27 of 44 rigs on the Norwegian shelf will be without a contract as of January 1, 2017. On the 1st August, another five rigs will join them, according to figures from the Norwegian Ship-owners Association (Norges Rederiforbund).

A rig normally has between 350 and 380 direct employees. In addition, several vendors will be indirectly affected. 32 rigs being without a contract at the beginning of next year will possibly affect between 10,500 and 11,400 jobs.

‘2016 has been difficult, in 2017 it will getting worse; it is difficult to say anything about when it may start picking up again. As of today, there isn’t enough activity globally to meet demand for oil and gas, so the market needs to recover over time’, said Sturla Henriksen, CEO of the Norwegian Ship-owners Association (NSA), to Stavanger Aftenblad.

Rig Analyst in Rystad Energy, Lars Eirik Nicolaisen, doesn’t think activity will pick up again until 2018. But even that will depend on a rising oil price.

‘And then, it will increase at a relatively fast pace beyond that. But it won’t reach the high level of activity, equal to that we had in 2014, until well after 2020’, said Nicolaisen


Source: NTB scanpix / Norway Today