Petrobras Brazil Offshore Explosion Kills 3, 6 Missing

While the platform accounts for less than 3 percent of gas production at Petrobras, and less than 1 percent of oil output, it comes as the company struggles through its worst crisis in history.

Security concerns had been mounting at Petrobras before the accident. Last month, three workers were seriously burned in a refinery explosion, one of several that has beset the company in the last two years.

Huge investments, money-losing fuel subsidies on imports and the largest debt of an oil company in the world have crimped cash and forced Petrobras to operate many facilities at full capacity for long periods without maintenance.

The company has also been dogged by a massive corruption scandal that has led to the arrest of three former Petrobras officials as well as the resignation of its CEO and five other top executives. Dozens of executives from major Petrobras contractors have also been arrested, leading to the cancellation of construction and repair contracts.

Such strains on operations have come as the company suffers from a series of accidents and forced maintenance orders at refineries and offshore oil platforms. Union officials also allege that the company's increasing reliance on non-union contract workers has put installations and people at risk.

"It's our position that Petrobras is using too many contract workers who are not always qualified to operate equipment safely," Lomba said.

The latest accident is also likely to damage a giant advertising campaign to promote the company's off-shore achievements in the face of months of corruption-scandal news.


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