National oil workers strike cripples crude production in Brazil

Oct. 25, 2001
A national oil workers' strike has dropped Brazil's oil production by 60.2% from the normal 1.4 million b/d, Petrobras admitted Thursday.

By an OGJ Online Correspondent

RIO DE JANEIRO, Oct. 25 -- A national oil workers' strike has dropped Brazil's oil production by 60.2% from the normal 1.4 million b/d, admitted Petroleo Brasileiro SA (Petrobras) Thursday.

Nationally, natural gas production has dropped to 25 million cu m/day (MMcmd) from the normal 38 MMcmd.

The National Oil Workers Union claims 80% of the 34,000 oil workers in the country have joined the strike, which is intended to force Petrobras to grant an 8.3% salary increase instead of its proposed 6%. Negotiations are ongoing.

The lower oil production alone represents a loss of $16.6 million/day to Petrobras.

The strike is expected to last until Sunday; Petrobras said it has sufficient stocks to maintain supply until then.

The area most affected by the strike is the Campos basin, the country's most prolific oil province, where oil production has dropped 76.2% from the normal 1.05 million b/d and gas output is 5 MMcmd, down from the normal production of 18 MMcmd.

Petrobras said that of the 34 platforms operating in Campos basin, only 4 were producing normally.