Workers vote for strike action at Sullom Voe Brent export terminal

Quantum Commodity Intelligence – Port workers at the Sullom Voe oil terminal in the North Sea have voted for strike action, according to the Unite union, representing members working for Worley Services.

It said the strike action received 100% support on a turnout of 95%, with around 40 port workers voting over pay and conditions.

Sullom Voe, located on the Shetland Islands north of Scotland, is the loading point for Brent/Ninian crude, the original two grades underpinning the Dated benchmark. However, it is unclear if and when loadings with a date for the start of industrial action still to be determined.

However, Sullom Voe is long past its glory days as the operational hub underpinning the Dated Brent assessment, where traders would keep tabs on every loading, including those involving ship-to-ship transfers at the sheltered harbour.

Traders said that Brent Blend is typically only two cargoes per month these days and barely registers on the radar of crude traders with the Dated Brent assessment typically set by the much larger Forties and Ekofisk grades, along with WTI Midland, which was added to the North Sea' basket' in June 2023.

Dispute

The union said in a statement Thursday that the dispute centres on Unite members demanding a "significant uplift in pay", along with improvements to other terms and conditions.

"This includes the establishment of a trade union recognition agreement with Worley Services at the oil terminal in order to formally bargain on jobs, pay and conditions."

Unite announced a union recognition agreement with Equinor earlier this week, having previously agreed deals with Repsol, TotalEnergies, and CNOOC.

John Clark, Unite regional industrial officer, said: "The workers are rightly furious at the way they are being treated by Worley Services at Sullom Voe. Not only has the company failed to make a fair pay offer to the members but they are also refusing to enter a site agreement with Unite to formally discuss pay and conditions."

Brent reached peak production of 500,000 bpd in 1982 but, after going into decline, was co-mingled with Ninian, where combined production reached 900,000 bpd in the early 1990s before terminal decline set in.

Brent Blend (Brent/Ninian) production dropped to around 400,000 bpd in the early 2000s, and following a number of price disconnects, Forties and Oseberg were added as alternative-delivery grades for the Dated Brent benchmark. Subsequently, Ekofisk, Troll and WTI Midland have been added to the 'Dated basket'.

Sullom Voe also receives crude from the Clair field, west of Shetlands.