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Strike cuts a fifth of Petrobras oil flow: union

  • Mercados: Crude oil, Fertilizers, Oil products
  • 03/11/15

An indefinite labor strike across much of Brazil´s oil sector entered its third day with more than a fifth of state-controlled Petrobras´ crude production shut in, the federation of oil workers FUP said.

The FUP says 44 offshore platforms in the Campos basin are now adhering to the strike, up from an initial 21.

The labor federation estimates 450,000 b/d, or around 22pc of the 2.06mn b/d that Petrobras produced in Brazil in September, has been lost as a result of the strike.

Some of the Campos basin's top-producing platforms have been affected, including 141,000 b/d P-52 and 81,000 b/d P-55 in the giant Roncador field, 77,000 b/d P-53 in the Marlim Leste field, and 61,000 b/d P-50 in the Albacore Leste field.

According to the FUP, 27 of the 44 affected platforms are shut down, eight are partially operating, and the remaining nine are operating in the hands of strikebreakers contracted by Petrobras.

Petrobras says there are a total of 49 platforms in Campos, which accounts for around 70pc of its production. The Santos basin, where most big foreign companies operate, has apparently not been directly affected by the strike.

Foreign companies that operate in Brazil, such as the UK´s BG, Norway´s Statoil and US firm Chevron, have not commented on the labor action or its impact on their operations.

Oil workers are seeking wage hikes and a halt to Petrobras' plans to sell assets.

The heavily indebted company aims to generate around $58bn in asset sales and corporate restructurings through 2018. Union leaders say the plan will result in massive layoffs.

Petobras says it is monitoring the strike and will take measures to mitigate any impact on market supply.

Workers at Petrobras´ 13 domestic refineries are also participating in the strike, but Brazilian labor law requires that a minimum number of workers maintain activity in high risk operations, including refineries, during strikes.

Brazilian oil regulator ANP said at the moment there is no risk of a fuel supply shortage in Brazil, but should the situation arise the agency will take appropriate measures.

Petrobras' Fafen-PR nitrogen fertilizer plan in the southern state of Parana is also completely shut down, the Sindipetro-PR/SC union said.

Labor leaders say the ongoing work action could be a repeat of a crippling 32-day strike in 1995.

The impasse between union leaders and Petrobras management deepened overnight after influential union representative and Petrobras board director Deyvid Bacelar was temporarily detained by police while organizing striking workers at the 323,000 b/d São Francisco do Conde refinery (RLAM) in the northeastern state of Bahia.

The arrest was an arbitrary and an abuse of power, the union says.

The complete list of the affected platforms is as follows, according to the FUP: PCE-1, PGP-1, PPM-1, PPG-1, PNA-1, PNA-2, PCH-1, PCH-2, PVM-1, PVM-2, PVM-3, P-07, P-08, P-09, P-12, P-15, P-17, P-18, P-19, P-20, P-25, P-26, P-31, P-32, P-33, P-35, P-37, P-38, P-40, P-47, P-48, P-50, P-51, P-52, P-53, P-54, P-55, P-56, P-61, P-62, P-63, P-65 and UMS Cidade de Cabo Frio and São João da Barra.

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