Apache Workers Set to Strike
More than 160 offshore oil and gas workers at Apache will strike for 24 hours starting at 6 a.m. on Wednesday, October 21. This action could disrupt UK fuel supplies. The Unite union announced the strike due to a pay dispute. They claim the company's offer is a real-terms wage cut for many employees. The strike will impact seven offshore installations, including the important Forties Charlie platform. This platform is part of the Forties Pipeline System (FPS), which is responsible for about 30% of the UK’s oil production.
The strike follows a planned 48-hour walkout by workers at Wood Group, who are contracted to Harbour Energy. That strike will start on Tuesday. Unite has warned that shutting down the Charlie platform could greatly reduce pressure in the FPS. This could lead to a complete shutdown of the pipeline system. Such a shutdown would affect Apache's production and output from other North Sea operators. This situation raises concerns over energy supplies as the UK approaches winter.
Apache, a subsidiary of U.S.-based APA Corporation, is facing rising tensions with trade unions. The company plans to exit North Sea operations by the end of 2029. They cite the UK’s windfall tax, which imposes a total tax rate of 78% on profits, as a key reason for reducing investments. The industrial action comes ahead of the UK budget set for October 28. It also occurs amid rising geopolitical tensions that impact global fuel markets. According to OilPrice.com, a second strike is planned for November 4 if the dispute is not resolved.
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A shutdown of the Forties Pipeline System could lead to higher oil prices and increased volatility in the UK energy market. The pipeline is critical for both oil and gas supplies. Any disruption would add more pressure to an already strained European energy landscape. Watch for updates from the ongoing negotiations through the Acas mediation service scheduled for Wednesday morning.