Oil workers’ strike curtails Brazil’s output

Petrobras has announced that the strike coordinated by the oil workers’ unions is affecting its operations.

Brazil’s largest oil workers’ union, FUP, started the strike on Sunday, November 1, 2015, protesting against attempts by the government to shrink the state-run Petrobras.

According to Petrobras, on November 2, 2015, oil production fell by 273,000 barrels, equivalent to 13% of daily output in Brazil. There was also a shortfall of 7.3 million cubic meters of natural gas, corresponding to 14% of the volume supplied to the Brazilian market every day.

Petrobras estimated that on Tuesday, November 3, 2015, the country’s oil output had fallen by 8.5% and gas availability by 13% over pre-strike levels.

According to FUP’s survey, the impact on production is at least 450,000 daily barrels of oil.

Petrobras said that with the production loss, collection of taxes on behalf of the Federal Government, states and municipalities, such as royalties and special participation, was directly impacted.

“Petrobras is taking all the necessary measures to ensure the maintenance of its operations, the preservation of its installations and the safety of its workers,” the state-run oil company said.

Petrobras reiterated that, despite the impact of the strike on the country’s oil and gas output, distribution was functioning normally and there are no market shortages.

Petrobras also announced that Clovis Torres Junior resigned from both his positions as a board member of Petrobras and as a chairman of Petrobras Distribuidora S.A (BR), after only two months at the post.

The company said Torres Junior resigned for personal reasons. He was appointed in September as an alternate of Murilo Pinto de Oliveira Ferreira in Petrobras Board of Directors who took a leave of absence until November 30, 2015.

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