Petrobras Oil Workers Begin Strike, Seek to Block Asset Sales
(Bloomberg) -- Brazil’s main oil union began a nationwide strike Sunday to halt asset sales by state-controlled Petroleo Brasileiro SA at a time the company is slashing investments to reduce the biggest debt load in the oil industry.
The Oil Workers Federation, known as FUP, said the nationwide strike started on Nov. 1. Some of the FUP’s regional member unions began work stoppages on Oct. 29. FUP also wants Petrobras to resume investments in the refining network and maintain Buy in Brazil policies to protect jobs, it said in the statement in its website.
Petrobras said in an e-mailed statement sent to Bloomberg News that a work stoppage from some units won’t affect its production or deliveries to the market.
The strike is the latest in a series of setbacks for the Brazilian producer, which had its debt downgraded to non- investment grade in September as it tries to deal with a collapse in commodity prices and a widening graft scandal that has resulted in some of its suppliers seeking bankruptcy protection.
Petrobras plans to continue holding talks with the union and it has offered an 8.1 percent wage adjustment, the company said in the statement. The union has been negotiating with Petrobras for more than 100 days, it said on its website.
Petrobras plans to sell $15.1 billion in assets this year and in 2016 to raise cash for investments and debt reduction. On Oct. 24, Petrobras’s board approved the sale of a 49 percent stake in its gas pipeline unit Gaspetro to Mitsui & Co Ltd. for 1.9 billion reais ($490 million).
To contact the reporters on this story: Peter Millard in Rio de Janeiro at email@example.com; Filipe Pacheco in Sao Paulo at firstname.lastname@example.org. To contact the editors responsible for this story: David Marino at email@example.com Paul Cox, Laurie Asseo.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Chevron Becomes Texas Refiner (May 02)
- Petrobras Hires Transocean Drillships (Mar 11)
- 8-Year Petrobras Contract Starts for TechnipFMC-DOF (Feb 19)