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Notification of order to StatoilHydro and Dong Energy

The Petroleum Safety Authority Norway (PSA) has issued a notification of order to StatoilHydro and Dong Energy (Dong) in connection with failure to provide documentation regarding terms and conditions for contractor employees at Mongstad.


StatoilHydro is the responsible operator of the Mongstad facility, while Dong is the principal for the energy plant being constructed at the site. Both StatoilHydro and Dong have a supervisory responsibility for ensuring that the suppliers carry out their activities in accordance with the regulations.

During the PSA's visit in connection with the audit at Mongstad from 6-8 October 2008, it emerged that the Dutch contracting company NEM utilised workers hired from various staffing agencies. As the company was unable to document the terms and conditions for the employees, the PSA ordered NEM to provide documentation regarding said conditions for contractor employees at Mongstad. The deadline for complying with the order was set at 11 October 2008.

Link: NEM receives order

During our audit visit to Mongstad, we could not verify that StatoilHydro ASA and Dong Energy Norge AS have exercised their duty to ensure that the contracting company NEM had the following documentation available:

  • Written employment contracts with its employees and contractor employees, cf. Sections 14-5 and 14-6 of the Act relating to working environment, working hours and employment protection, etc. of 17 June 2005 No. 62.
  • Wage disbursements/pay slips for wages paid, cf. Section 8 of the Act relating to general application of wage agreements, etc. of 4 June 1993 No. 58 (the General Application Act).
  • Agreement regarding covering expenses for travel, board and accommodations, cf. Section 6 of the Regulations relating to general application of wage agreements for construction sites in Norway of 21 November 2006 No. 1291 and Section 14 of the Regulations relating to general application of wage agreements for certain petroleum facilities on land of 26 June 2006 No. 703.

Based on the above, we have issued the following notification of order to StatoilHydro and Dong:

StatoilHydro ASA and Dong Energy Norge AS are ordered to submit:

  1. an account of the management systems established to safeguard the supervisory duty under Section 6 of the Regulations relating to information, supervision and inspection duties of 22 February 2008, No. 166
  2. an account of the steps taken vis-à-vis the contracting company NEM to ensure compliance with the General Application Act, cf. Regulations relating to general application of wage agreements for construction sites in Norway of 21 November 2006 No. 1291 and the Regulations relating to general application of wage agreements for certain petroleum facilities on land of 26 June 2006 No. 703
  3. an account of measures that will be implemented vis-à-vis future contracting companies that have foreign employees to ensure compliance with the General Application Act, cf. Regulations relating to general application of wage agreements for construction sites in Norway of 21 November 2006 No. 1291 and the Regulations relating to general application of wage agreements for certain petroleum facilities on land of 26 June 2006 No. 703.

The deadline for submission is set at 17 October 2008.

We have asked that the companies submit any comments regarding our notification by 14 October 2008.