Norway stepped in to avert a crisis at its oil fields this week after a strike threatened to engulf all of its offshore rigs on the Norwegian continental shelf.

The Norwegian Government intervened on Sunday just half an hour before trade unions had agreed to a “lock out” of workers on all rigs at midnight in a row over pensions and pay packets.

Norway’s Minister of Labour, Hanne Bjurstrøm declared the conflict over. She said trade bodies and firms must cut a deal on new pay levels.

Jan Hodneland, chief negotiator for Norwegian trade union OLF said the government made the “responsible choice” in bringing the conflict to an end.

The strike lasted for 16 days and is said to have cost firms involved 3.1 billion Norwegian krone (£327m). Global oil prices dropped on Tuesday as the threat to production faded.