Petrobras suffers under workers strike

SAO PAULO, November 4, 2015 – The output of Brazil’s Petrobas is down by around 500,000 barrels of oil per day (bopd) since Sunday, when a strike led by the Oil Workers Federation (FUP) began, the FUP said on Tuesday.

According to the FUP, production at the Campos Basin has dropped around 400,000 bopd, with 25 offshore platforms shut down and another eight pumping at reduced levels. Other areas affected include Espirito Santo and Bahia.

The FUP’s figures contrast with Petrobras’ official estimates, which put the loss on Monday at around 273,000 bopd and 7.3 mcm (278 mcf) of gas per day, according to a regulatory filing made on Tuesday. The filing predicted losses to affect 8.5 percent and 13 percent of oil and gas output, respectively, on Tuesday.

Some analysts project the losses will cost Petrobras around $25 million per day. As of September 2015, Petrobras’ total output was estimated to be more than 2 million bopd.

The strike came after three months of unsuccessful negotiations between the FUP, Brazil’s largest oil workers union, and other small unions with the state-run integrated energy company over the affect a series of planned asset sales and cost cutting measures will have on jobs. A spokesperson for the FUP said the union has no immediate plans to return to the negotiating table.

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