North Sea strike action threatens UK fuel supply risks

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North Sea strike risks UK fuel

Highlights

More than 160 offshore rig workers will join a 24-hour strike from Wednesday, risking severe disruption to UK fuel supplies, according to Unite.
The strike affects five Apache platforms linked to the Forties Pipeline System, which handles about 30% of UK oil production, raising concerns of a sharp production drop.
Apache plans to exit North Sea operations by end-2029 due to the UK windfall tax that lifts the total tax rate on oil company profits to 78%.

Strike plans and pipeline exposure

As reported by The Guardian, citing Unite, more than 160 offshore rig workers are due to join a 24-hour strike from Wednesday, a move the union says could severely disrupt UK fuel supplies.

A separate 48-hour strike is already set to begin on Tuesday by workers at Wood Group contracted to Harbour Energy’s Britannia, Jasmine, Judy, Lomond and North Everest platforms. Trade union leaders are scheduled to continue pay talks with Apache through the Acas mediation service on Wednesday, but Unite says the 24-hour stoppage is still expected to start at 6am because the company has shown no willingness to resolve the dispute.

The action includes workers on five Apache platforms linked to the Forties Pipeline System, which accounts for about 30% of the UK’s oil production. Unite says a production halt could cause a sharp drop in pressure across the system and disrupt fuel supplies.

Apache says it plans to use experienced contractors to maintain production during the strike. The company adds that even if all five platforms are unable to operate, it does not expect an impact on other oil companies using the Forties pipeline.

Industry tensions and policy backdrop

North Sea oil producers and trade unions have been in conflict in recent years as companies cut investment in UK assets, citing energy policy and taxation. The latest action comes as the sector awaits the government’s budget on 28 October and a decision on the Jackdaw gas project, while the UK faces renewed concern over winter energy supplies linked to the conflicts in the Middle East and Ukraine.

Texas-based Apache plans to exit all North Sea operations by the end of 2029, blaming what it calls the onerous financial impact of the government’s windfall tax, which brings the total tax rate on oil company profits to 78%. Apache says its current offer includes a 4% pay increase for employees in the bargaining unit, whose earnings it says already rank among the highest in the UK and whose offshore rota averages 153 working days a year.

Harbour Energy, the UK’s largest North Sea oil producer, has also linked reduced UK investment to the tax regime. The company says late last year that it would cut 100 offshore jobs after reducing its workforce by about 600 since 2023. Wood Group says only eight of the 150 employees contracted to the affected Harbour platforms joined strike action earlier this month and that operations were not disrupted, while Unite and RMT say a third 48-hour strike is planned for 3 November.

In our earlier coverage of Chancellor John Healey’s pre-Budget stance, we explained that the government is sticking with an IMF-backed deficit-reduction path ahead of the 28 October fiscal statement. That piece also highlighted the latest GDP reading showing modest UK growth and the rising political pressure around potential tax and reform decisions that could shape the investment climate.

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