Brazil's Petrobras hit by 5-day strike
Workers in Brazil's main oil-producing region began a five-day strike.
By Agencies |
RIO DE JANEIRO: Workers in Brazil's main oil-producing region began a five-day strike on Monday, but the state-run oil company Petrobras said output was only moderately diminished.
Petrobras said production in the important Campos basin off the coast from Rio de Janeiro was down around 300,000 barrels because of measures to limit the effects of the stoppage.
The United Oil Workers Federation (FUP) which called the strike, however, contested that evaluation.
Twelve of the 42 platforms in the basin were completely paralyzed and the other 30 platforms were operating at reduced capacity, it said, putting the output cut at 400,000 barrels.
Petrobras normally pumps out a total 1.8 million barrels of oil a day, 80 percent of it sourced from the Campos basin.
The strike was contributing to upwards pressure on world oil prices. Although Brazil is technically self-sufficient in oil production and consumption, it is forced to import some light crude to mix with its sludgier domestic variety, off-setting that inflow with its own meager oil exports.
Oil prices Monday were just under 146 dollars a barrel Monday, down from a record high of over 147 dollars hit last Friday.
FUP has warned that any attempt by Petrobras to circumvent the strike would result in the platform workers demanding to immediately return to the mainland.
The union has also threatened to bring other Petrobras unions into the dispute, which would widen the labor conflict to also include demands of greater profit participation.
The company has recently announced major new oil finds offshore, but these are so deep and costly to get at that any production is several years away. If they turn out to be as vast as thought, the country could rival OPEC member Venezuela in its output.
Petrobras said production in the important Campos basin off the coast from Rio de Janeiro was down around 300,000 barrels because of measures to limit the effects of the stoppage.
The United Oil Workers Federation (FUP) which called the strike, however, contested that evaluation.
Twelve of the 42 platforms in the basin were completely paralyzed and the other 30 platforms were operating at reduced capacity, it said, putting the output cut at 400,000 barrels.
Petrobras normally pumps out a total 1.8 million barrels of oil a day, 80 percent of it sourced from the Campos basin.
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The Petrobras workers on the platforms are demanding that the travel day back to the mainland from the platforms after each 14-day stint working be counted as a paid workday, instead of a rest day as is currently the case. The strike was contributing to upwards pressure on world oil prices. Although Brazil is technically self-sufficient in oil production and consumption, it is forced to import some light crude to mix with its sludgier domestic variety, off-setting that inflow with its own meager oil exports.
Oil prices Monday were just under 146 dollars a barrel Monday, down from a record high of over 147 dollars hit last Friday.
FUP has warned that any attempt by Petrobras to circumvent the strike would result in the platform workers demanding to immediately return to the mainland.
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"Otherwise, we will sue the company for illegal detention," FUP spokesman Jose Maria Rangel said. The union has also threatened to bring other Petrobras unions into the dispute, which would widen the labor conflict to also include demands of greater profit participation.
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Petrobras is Brazil's biggest company. According to Fortune magazine, it is the 63rd-biggest enterprise in the world with 87.7 billion dollars in revenues last year and profits of 13.1 billion dollars. The company has recently announced major new oil finds offshore, but these are so deep and costly to get at that any production is several years away. If they turn out to be as vast as thought, the country could rival OPEC member Venezuela in its output.
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