Updated about 1 hour ago
All oil and gas production in Norway will be shut down on Tuesday because of a dispute over pensions.
Norway's three main unions have been on strike for 15 days and energy companies have announced they would lock out all workers from midnight on Monday.
The BBC reports the dispute is over a demand by offshore workers for the right to retire early, at 62, with a full pension.
Oil and gas workers are paid an average $US180,000 per year.
Norway provides 20% of Europe's gas needs.
The industry had hoped the move would force the government to use its emergency powers to end the strikes.
About 50 companies operate on Norway's continental shelf.
Oil prices rose on the news. In London, Brent crude were back above $US99 per barrel after rising more than $US1.
Norway is the world's fifth largest oil exporter. Oil output has been cut by 13% and gas output by 4% since the strikes began on 24 June.
A complete shutdown would take about 1.6 million barrels of oil out of world markets each day.
The Norwegian Oil Industry Association estimates this has cost Norway 2.9 billion (?300 million) kroner in lost production.
Energy accounts for about half of Norway's total exports.
The last lockout in the offshore sector occurred in 1986, and lasted for three weeks before the government intervened.
Copyright ? 2012, Radio New Zealand
Source: http://www.radionz.co.nz/news/business/110295/oil-and-gas-shutdown-looming-in-norway
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