HispanicBusiness

Norway has averted an impending labor issue related-lockout of oil production on the country's Norwegian continental shelf, Statoil announced late Monday.

The government has called for arbitration in the labor dispute over offshore pay agreements.

"Norwegian Minister of Labor Hanne Bjurstrom has informed the parties in the offshore pay settlement that the government will propose to Parliament that the conflict be resolved by compulsory arbitration," the Norwegian oil company said in a statement. "At the request of the minister the parties are to resume work as soon as possible."

Statoil said it is preparing to resume production at installations that have been affected by a strike.

The Norwegian Oil Industry Association last week announced an impending lockout for all members of the unions included in the offshore agreement. The lockout had been to due to come into force at midnight.

Statoil said it expects to have the oil fields back in full production within a week.