A labor strike that began on Sunday has reduced oil production from Brazil’s state-run oil producer Petroleo Brasileiro SA by 273,000 barrels on Monday, or 13 percent of its output, the company said in a Tuesday security filing.
Petrobras said it estimated oil production would show a 8.5 percent drop on Tuesday and natural gas output would fall by 13 percent compared with the production level of the day before the strike began. It said fuel distribution has not been affected by the stoppage and does not expect supply shortages in Brazil.
The country’s largest oil workers union FUP said earlier that the strike slowed daily oil output by around 25 percent.
FUP’s general coordinator José Maria Rangel said in a video published online that in the first 24 hours since the union’s members joined the strike, they had prevented around 450,000 barrels of oil from being extracted in the offshore Campos Basin, and nationwide around 500,000 barrels.
Petrobras, as the company is known, produced around 2 million barrels of oil per day in September.
Read More
Brazil Energy Insight 
Leave a comment