The lockout in what is also the world's second largest gas exporter came after talks between employers and unions failed to end a prolonged strike over pensions.
"As the situation stands now, the lockout will be enforced from midnight (2200 GMT)," petroleum and energy ministry spokesman Haakon Smith-Isaksen said Monday.
"The consequence of the lockout is a controlled close-down of all Norwegian petroleum production and exports" when stocks are exhausted, he said.
World oil prices recovered from recent losses ahead of the lockout, which was announced by Norway's state oil giant Statoil on Friday pending last-ditch talks.
Brent North Sea crude for delivery in August increased by 81 cents to $99.00 per barrel in late morning deals in London.
New York's main contract, light sweet crude for August rose 66 cents to $85.11 a barrel.
"A factor providing particular upside support for oil prices (on Monday) is the failed negotiations between the Norwegian oil industry association and employees of the industry," said analysts at the Vienna-based JBC Energy consultancy.
The strike was launched on June 24 by more than 700 North Sea oil workers -- members of the unions Industri Energi and SAFE -- over pensions.
On Monday the unions reiterated their commitment to their pension fight in a strike that employers group OLF says has cost the industry tens of millions of euros a day.
"We are ready to continue as long as necessary," Industri Energi spokesman Martin Steen told AFP.
He added that unless the government intervenes, the strike will continue as long as OLF "has not accepted" the union's demands.
The oil workers want employers to reconsider their decision not to grant special benefits to employees who wish to retire at the age of 62, three years before the legal retirement age in the field and five years before the country-wide age.
According to Industri Energi, the halt to production in Norway is unlikely to cause a crisis in the supply of hydrocarbons in Europe, particularly in the first "several weeks."
The lockout will affect all production on Norway's continental shelf, where about 50 companies operate, including Statoil, BP and Royal Dutch Shell.
Source: http://economictimes.feedsportal.com/fy/8av2Fvy0beNQn2ib/story01.htm
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