Strikes begin at Petrobras assets

BRASILIA, November 2, 2015 – Brazil’s Oil Workers Federation, the largest union in the country, began a strike against state-owned Petrobras on Sunday. The strike is a response to Petrobras’ plans to sell assets worth $15.1 billion in 2015 and 2016 in an effort to weather low oil prices and a large corruption scandal.

Union workers are calling for a stop to the sale of the company’s assets, as well as an increase in investment in Brazil’s refining sector. The union, which had been negotiating with Petrobras for more than 100 days, also demands the company adhere to local content regulations and continue to be the sole operator in sub-salt offshore plays. Petrobras has said it will offer union workers an 8.1-percent wage adjustment.

Despite work stoppages at several of Petrobras’ assets, including refineries, terminals and fields, the company has said that its production and market deliveries would not be impacted.

Petrobras holds more debt than any other oil company, totalling about $120 billion.

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