North Sea oil workers to strike, union warns of fuel supply disruption

Unite says 24-hour walkout involving five Apache platforms could affect 30% of UK oil production

By LineZotpaper
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More than 160 North Sea oil rig workers are set to walk out on Wednesday in a 24-hour strike that the Unite union warns could severely disrupt UK fuel supplies, as tensions escalate between trade unions and oil companies over pay and the sector's tax regime. The industrial action targets five Apache-operated platforms linked to the Forties Pipeline System, which handles about 30% of the UK's oil output.

Unite said Monday that the strike would begin at 6am Wednesday involving workers on the Forties Pipeline System (FPS), a vital artery for North Sea oil. The union claimed a halt in production could cause a sharp drop in pipeline pressure and disrupt supplies. The action follows a separate 48-hour strike already underway by Wood Group workers contracted to Harbour Energy on five other platforms. A third 48-hour strike is planned for 3 November, according to Unite and the RMT union.

Apache, the Texas-based operator of the targeted platforms, said it plans to use experienced contractors to maintain production during the strike. The company said even if all five platforms were unable to operate, it would not expect an impact on other oil companies using the Forties pipeline, which is owned by Ineos. Apache also stated it has offered a 4% pay increase for employees in the bargaining unit, noting that their earnings already place them among the highest in the UK and their offshore rota averages 153 working days a year.

Ahead of the strike, Unite and Apache were scheduled to continue pay talks through the Acas mediation service on Wednesday. Unite, however, said it expects the strike to go ahead because the company has shown no willingness to resolve the dispute.

The industrial action takes place against a backdrop of growing friction between North Sea operators and unions. Many companies have reduced investment in UK waters, blaming the government's windfall tax which pushes their total tax rate to 78%. Apache plans to exit the North Sea entirely by 2029, citing the 'onerous financial' impact of the tax. Harbour Energy, the UK's largest North Sea producer, has also cut jobs and scaled back investment. The strikes come ahead of the 28 October budget and a pending decision on the controversial Jackdaw gas project, as the UK faces fresh energy security concerns amid global fuel crises linked to wars in the Middle East and Ukraine.

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Analysis

Why This Matters

  • The strike threatens to disrupt fuel supplies from a pipeline system that carries roughly 30% of the UK's oil production, with potential knock-on effects for petrol, diesel and heating oil.
  • The dispute highlights deeper tensions over the UK's windfall tax on oil and gas profits, which companies say is driving investment away while unions argue workers deserve a fair share.
  • The outcome could influence government policy ahead of the October budget and set a precedent for other North Sea pay negotiations.

Background

Tensions between North Sea oil companies and trade unions have escalated in recent years as operators blame the UK's energy tax regime for forcing them to cut investment. The windfall tax, introduced in 2022 after record profits, currently gives oil and gas firms a combined tax rate of 78%. Companies including Apache and Harbour Energy have announced pullbacks, with Apache planning to exit the North Sea by 2029. The strikes come at a time of heightened concern about UK energy security due to global disruptions from the conflicts in Ukraine and the Middle East.

Key Perspectives

Unite union: Argues that Apache has shown 'no willingness' to resolve the pay dispute, and warns that shutting down the five platforms could cause a critical pressure drop in the Forties Pipeline System, disrupting UK fuel supplies. Apache: Says it has offered a 4% pay rise, that workers are already among the highest earners in the UK, and that it will use contractors to keep production running. It does not expect the strike to affect other Forties pipeline users even if its own platforms stop. Critics/Skeptics: Some may question whether a 24-hour strike can cause the severe disruption Unite predicts, especially given Apache's contingency plans. Wood Group reported that only eight of 150 workers on Harbour platforms took part in earlier strike action without disrupting operations. Others may point to the broader industry view that the windfall tax is driving away investment and long-term jobs.

What to Watch

  • Whether Wednesday's Acas-mediated talks produce a last-minute deal averting the strike.
  • Any official assessment from Ineos (the Forties pipeline owner) of the strike's actual impact on pipeline pressure.
  • The UK government's budget announcement on 28 October, which may clarify future tax policy for North Sea operators.
  • Whether further strike dates beyond 3 November are announced if the dispute remains unresolved.

Sources

Checked

12 claims in this story checked against 1 source: 12 supported.

Show each claim
  1. SupportedNorth Sea oil workers to strike, union warns of fuel supply disruptionUK news | The Guardian: “North Sea strikes could severely disrupt UK fuel supplies, union warns. ... The Unite union said on Monday that more than 160 offshore rig workers would take part in a 24-hour strike from Wednesday that could 'severely disrupt' UK fuel supplies.”
  2. SupportedUnite says 24-hour walkout involving five Apache platforms could affect 30% of UK oil productionUK news | The Guardian: “the Forties Pipeline System (FPS), which is responsible for about 30% of the UK’s oil production.”
  3. SupportedMore than 160 North Sea oil rig workers are set to walk out on Wednesday in a 24-hour strikeUK news | The Guardian: “more than 160 offshore rig workers would take part in a 24-hour strike from Wednesday”
  4. SupportedThe industrial action targets five Apache-operated platforms linked to the Forties Pipeline System, which handles about 30% of the UK's oil outputUK news | The Guardian: “The strike will include workers employed at five Apache oil platforms linked to the Forties Pipeline System (FPS), which is responsible for about 30% of the UK’s oil production.”
  5. SupportedUnite said Monday that the strike would begin at 6am Wednesday involving workers on the Forties Pipeline SystemUK news | The Guardian: “Unite expects the 24-hour strike to go ahead at 6am that morning ... The strike will include workers employed at five Apache oil platforms linked to the Forties Pipeline System”
  6. SupportedThe union claimed a halt in production could cause a sharp drop in pipeline pressure and disrupt suppliesUK news | The Guardian: “Unite has claimed that a halt in production could lead to a sharp drop in pressure across the pipeline system and disrupt UK fuel supplies”
  7. SupportedThe action follows a separate 48-hour strike already underway by Wood Group workers contracted to Harbour Energy on five other platformsUK news | The Guardian: “A 48-hour strike starting on Tuesday was already planned by workers at oil services company Wood Group contracted to Harbour Energy’s Britannia, Jasmine, Judy, Lomond and North Everest platforms.”
  8. SupportedA third 48-hour strike is planned for 3 November, according to Unite and the RMT unionUK news | The Guardian: “A third 48-hour strike is planned for 3 November, according to Unite and trade union RMT”
  9. SupportedApache said it plans to use experienced contractors to maintain production during the strike, and even if all five platforms unable to operate, it would not expect an impact on other oil companies using the Forties pipeline, owned by IneosUK news | The Guardian: “A spokesperson for Apache said it plans to use experienced contractors to continue production during the strike. It added that even if all five platforms were unable to operate, the company would not expect an impact on other oil companies using the Forties pipeline.”
  10. SupportedApache stated it has offered a 4% pay increase, noted earnings among highest in UK, offshore rota averages 153 working days a yearUK news | The Guardian: “Our offer provides a 4% pay increase for employees in the bargaining unit, whose earnings already place them among the highest earners in the UK and whose offshore rota averages 153 working days a year.”
  11. SupportedAhead of the strike, Unite and Apache scheduled for Acas talks on Wednesday; Unite expects strike as company shows no willingnessUK news | The Guardian: “Trade union leaders are scheduled to continue pay talks with the Apache energy company through the Acas mediation service on Wednesday. But Unite expects the 24-hour strike to go ahead at 6am that morning because, it says, the company has shown 'no willingness' to resolve the dispute.”
  12. SupportedMany companies have reduced investment in UK waters blaming windfall tax pushing total tax rate to 78%; Apache plans to exit by 2029 citing onerous financial impact; Harbour Energy cut jobs and scaled back investmentUK news | The Guardian: “Many cut investments in their UK assets, blaming the UK's energy policies and tax regime. ... blaming the 'onerous financial' impact of the government's windfall tax, which means oil companies pay a total tax rate of 78% on their profits. ... Texas-based Apache plans to end all its North Sea operations by the end of 2029. ... Harbour Energy ... has also blamed the UK's tax regime ... scale back investment ... would cut 100 offshore jobs.”

Zotpaper

Written by Harper Lane on the Business & markets desk. Claims checked by Ines Fairley, verification. Edited by Angus Burke, chief sub.

1 source12 of 12 claims matched to a sourcefirst published 20 Oct, 4:45 amupdated once
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