Norway refuses to pay compensation for occupational illnesses and disabilities to oil industry pioneers who, at the cost of their health, laid the foundations for the Scandinavian country’s high prosperity. Only 92 oil industry veterans remain alive, demanding compensation of 8 million kroner (800,000 kroner) each, a total of 1 million USD.
Sixty-five veterans, who worked for ALF Offshore died prematurely due to occupational illnesses without receiving compensation, saving one of the richest countries in Europe and the world 1 million USD.
Meanwhile, Norway has found over 1 USD billion to provide military and civilian support to Ukraine until 2030. In the autumn of 2024, all the parties in the Storting reached agreement on expanding and extending the Nansen Support Programme for Ukraine. A minimum allocation of NOK 15 billion per year was established.
For 2025, the parties in the Storting have agreed to increase support to Ukraine by NOK 50 billion (5 billion) for 2025. The overall funding framework was increased to NOK 205 billion.
The Door To Help Closed In 2010
In 2010, the state closed down a fund that was intended to cover damages and liability in the oil sector. This makes the oil pioneers even more desperate about the shock message in the state budget.
At the age of 32, Bjarne Kapstad began to have poorer memory and started to tremble and stutter after working out on an oil platform. Now he is demanding that the government increase the compensation for him and his former colleagues on the Norwegian continental shelf.
Oil Pioneers Outrage Over 2026 Budget
“The days after the state budget was presented have been tough.”
Oil pioneer Bjarne Kapstad tells of many phone calls from desperate oil pioneers and survivors.
In the state budget proposal for 2026, the government proposed to give the oil pioneers compensation of around one million kroner each (100 000 USD).
This was far less money than the 8 million kroner the oil pioneers themselves demanded, the amount the North Sea divers received in compensation.
“The level of compensation is outrageous,” says Frode Alfheim, leader of the Norwegian Confederation of Trade Unions.
The proposal has led to strong reactions from politicians, unions and the oil pioneers themselves. Ingrid Fiskaa called it “a disgraceful offer” and the leader of the Norwegian Confederation of Trade Unions Frode Alfheim “a mockery of the oil pioneers”.
“We feel like we have been stabbed in the back,” said Bjarne Kapstad.
The Money Is Available
Now a new discovery has created even more frustration. In 1986, a fund was established that was intended as a buffer account for accidents, injuries and liability in the oil sector. The name of the fund was the Petroleum Insurance Fund.
This fund was liquidated in 2010, and 19.8 billion kroner was transferred to the Oil Fund.
These 19.8 billion have grown to over 88 billion kroner, according to Minister of Finance Jens Stoltenberg (Labour Party).
Severe Health Problems
Several oil pioneers have been open about health problems and ailments resulting from the work they did.
Oil pioneer Øyvind Myrene suffers from the damage to the nervous system (polyneuropathy) and brain and cancer in the rectum.
Oil pioneer Jan Birger Årsland has problems with the skeleton, memory, nerve damage and is unable to move properly.
Oil pioneer Jan Terje Biktjørn has problems with the central nervous system. He has also had strokes and several infections.
Oil pioneer Hans Marwoll had fatal bone marrow cancer. Hans subsequently suffered severe side effects from medication and chemotherapy.
“My quality of life is nothing compared to what it was,” he says.
At the age of 32, oil pioneer Bjarne Kapstad began to have poorer memory and started to tremble and stutter after working out on an oil platform. He got worse and worse and finally collapsed.
“I think it is absolutely obvious that we should get some of this money,” says oil pioneer Kapstad.
Frode Alfheim points out that the money for fair compensation exists.
“The insurance fund that was intended to cover their losses was transferred to the oil fund, the world’s largest state fund, where the oil pioneers were crucial in creating the fund,” says Alfheim.
Storting representative Ingrid Fiskaa believes that the money in the liquidated petroleum insurance fund could be a solution to give the oil pioneers compensation.
“The most important thing for me and the Socialist Left Party is that we get a dignified conclusion to the case and that they get the compensation that a unanimous Storting expected in the decision in December,” she says.
Red Party leader Marie Sneve Martinussen believes that the petroleum insurance fund that the state established is a sign that they already knew then that accidents and illnesses for oil workers could end up in costs.
“That is why it is quite incredible that the fund was closed down in 2010. They were aware that the oil pioneers had suffered health injuries and lost income,” she says.
Martinussen, like Fiskaa, believes that one million kroner compensation is a disgraceful proposal from the government.
“We will present our proposal in the Red Party’s alternative budget, which will be released in a few weeks.”
The Ministry Of Finance Believes That The Fund Should Not Compensate
Senior advisor Mark Steffen Berger at the Ministry of Finance writes in an email to NRK that the petroleum insurance fund was discontinued in 2010 because the need for such a buffer was no longer present, according to the Ministry of Finance.
“Compensation for oil pioneers must in any case be prioritised above the state budget in the same way as other public expenditures,” says Berger.
With that, he says that there is no direct link between the fund’s assets and the state’s liability for damages.
He further writes that the discontinuation of the fund does not mean that the state escapes its responsibility.
Compensation For Oil Pioneers Is Constantly Being Postponed
In the beginning, around 400 oil pioneers were entitled to compensation. Now the number is even lower, because more have passed away, many have died in their 50s.
In December 2024, the government promised to provide this compensation.
Politicians pushed for it to come as soon as possible in 2025. It did not happen.
This spring, the government said that the money would probably come early in the new year.
In 2021, the Storting asked the government to set up a commission to investigate a compensation scheme for the oil pioneers.
On December 15, 2022 the commission recommended that the government provide compensation to the oil pioneers. This is due to the health damage they have suffered after working in the oil.
Several Storting politicians were critical of the government’s use of time. They therefore submitted a proposal. On December 17, 2024, the Storting decided that the government should come up with a special compensation scheme for the oil pioneers.
On May 14, 2025 the government set aside NOK 14 million in the revised national budget for the design of the compensation scheme. A system will be designed to process applications for compensation.
Finally, on October 15, 2025 in the state budget, the Labor Party proposed that the oil pioneers should receive compensation which is around one million kroner each. This is far below the demand for the oil pioneers of around 8 million kroner each.
In ALF Offshore, which oil pioneer Bjarne Kapstad is a part of, they have 157 people on the list who are entitled to compensation.
“Of these 157, 92 are alive now,” says Kapstad.
Because many have passed away, the former oil worker believes that the survivors should also receive compensation.
“It is important to us.”
Source: NRK (in Norwegian)
Independent Expert