Heartwarming story from Norway

A plot twist is a radical change in the expected direction or outcome of the plot of a novel, film, television series, comic, video game, or other work of narrative. That’s exactly what happened with one drilling contractor in Norway.

At the times when oil companies are cutting costs and scrapping projects, due to falling oil prices and pressure from shareholders, thus largely affecting the oilfield services providers, COSL Drilling Europe has opted for a rare option.

As previously reported, Statoil, the largest oil operator in Norway, has cancelled or frozen several rig contracts citing oversupply. Among the rigs in question is the COSL Pioneer, a semi-submersible drilling rig, delivered by CIMC Raffles back in 2010.

Statoil in September announced it would lay up the rig in the fourth quarter 2014, but early in December the oil company said that the COSL Pioneer would continue to be suspended for another seven and a half months.

Cuts and suspensions of contracts by oil companies usually lead to massive layoffs within the drilling and supply sectors, as seen in several examples in Norway this year.

Accordingly, this extended suspension of the COSL Pioneer was to force the drilling company to deem a hundred workers surplus to requirements, and let them go just before Christmas.

Twist

However, in a plot twist not seen before in the industry (at least not seen this year), those workers, almost certain of losing their jobs, got the chance to continue their adventure with COSL Drilling Europe. But how?

As told to Offshore Energy Today by the COSL Pioneer rig manager Arlid Stakkestad, all COSL employees, from roustabout to president, have voluntarily taken a salary cut to ensure no one in the company is laid off.

Offshore.no, a Norwegian language website covering offshore oil and gas industry, has more details on how the story unfolded.

According to the website, after several hectic weeks where the management and the union were digging to find a solution, a proposal that all employees take a 10 percent cut to their salary in order to save their COSL Pioneer colleagues’ jobs was put on the table.

However, it was just a proposal at the time. In order to make it effective, over 90 per cent of the 750-strong workforce had to say yes, and they did. To save their colleagues, 93 percent sacrificed their salaries.

Salary cut also means reduced hours for both the offshore and onshore workers. Those working offshore will get between 10 and 20 per cent reduction in working hours, while those on land will have two weeks’ extra holiday in 2015.

“I am quite impressed to be a leader in a company where together we can find solutions that many now can celebrate Christmas with the knowledge that they have a job to go to,” COSL CEO Jørgen Arnesen told Offshore.no last week, adding that the company will try to find work for the COSL Pioneer to keep it busy until mid-August 2015, when the suspension is expected to be lifted.

To end this humane and admirable story in a proper way, we will quote Goran Persson, former Prime Minister of Sweden: “Let our New Year’s resolution be this: we will be there for one another as fellow members of humanity, in the finest sense of the word.”

Happy Holidays!

Offshore Energy Today Staff