Macaé, The Oil Capital, Reports First Confirmed Covid-19 Case | Offshore Contractors Are Laying Off Workers in The Campos Basin

With The Distribution And Logistics System Of Oil Supplies Interrupted In Macaé Due To Covid-19, The Shadow Of Recession Returns To Hover Over The City

Macaé has already been immediately suffering the impacts of the epidemic caused by Covid-19 on its economy, which is almost entirely based on the oil industry and now intensified with the first case officially confirmed yesterday (27) by the municipal government authorities.

There May Be Mass Layoffs In Macaé

Third-party companies providing services to Petrobras and other oil companies have already begun to lay off employees. Not only residents of Macaé but also those from other oil-producing cities like Maricá, Niterói, and neighboring areas.

As most of the workforce is now required by service demand and employers are opting for temporary contracts, contractors are laying off instead of retaining employees, generating costs without being able to produce due to the pandemic recession.

Petrobras had increased the work scale for its own and outsourced oil workers from Macaé and other cities to prevent contagion, even placing them in quarantine inside their cabins ( check the photos here).

We are receiving reports from companies such as Elfe Engenharia, Lift Group, Estrutural Engenharia, among others, being forced to discontinue non-essential services and lay off.

Oil Service Providers Are Facing Difficulties

The mayor of Macaé ordered through a decree that sanitary barriers be installed at all entry and exit points, with only essential services and city residents allowed to pass. As a result, shipments of supplies to offshore units are having difficulties crossing. Food, equipment, and hygiene products used on platforms are at risk, jeopardizing operations already reduced due to Covid-19.

Petrobras issued a new statement and will suspend all activities indefinitely, only maintaining production services, as without oil, neither Macaé nor Brazil will be able to maintain any other essential services without fuel.