Norwegian energy giant Equinor said on Wednesday that production at three oil and gas fields had resumed after the government intervened to stop a strike that threatened to cut gas exports by more than half.

"Last night, the government proposed a compulsory arbitration to resolve the labour dispute," Equinor said in a statement. "Shortly afterwards, work began to restart production safely on the strike-affected facilities. All fields are expected to be back in full operation within a couple of days," the company added.

Norway's government intervened on Tuesday evening after workers walked out on three fields on the Norwegian Continental Shelf. 

An industry group warned that the announced escalation of the strike could cut Norway's gas exports by 56 per cent by the end of the week.

The Norwegian Oil and Gas Association said Norwegian deliveries account for a quarter of European energy supplies. 

The strike came amid skyrocketing energy prices following Russia's invasion of Ukraine and associated sanctions. 

"The announced escalation is critical in today's situation, both with regards to the energy crisis and the geopolitical situation we are in with a war in Europe," Labour Minister Marte Mjos Persen said in a statement.

The announced escalation is critical in today's situation, both with regards to the energy crisis and the geopolitical situation we are in with a war in Europe- Labour Minister Marte Mjos Persen

Under Norwegian legislation, the government can force parties in a labour dispute to a wage board which will decide on the matter.

Lederne union leader Audun Ingvartsen said he was surprised the government intervened in the strike so quickly, adding that the union would respect the decision.