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Strike: DOF Offshore workers begin strike and paralyze 16 vessels serving Brazil's oil and gas sector

Written by Caio Aviz
Published 12/10/2024 às 01:19
Offshore support vessel anchored in mid-sea with chains extended
Image of a large offshore support vessel anchored in the middle of the sea, with its anchors and chains stretched out. Source: AI-generated

24-hour strike at DOF Offshore begins with wage and benefit demands – what’s at stake?

Starting at midnight last Thursday, October 11, 2024, workers at DOF Offshore, one of the largest vessel operators in the oil and gas sector, have started a 24 hour strike which caused significant impacts. The strike involved several categories of essential workforce in the company's offshore operations, and could be extended if the demands are not met.

Below, you will learn what motivated the strike, what the workers' main demands are and which vessels are affected. We will also see the impact on the sector and what may happen in the coming days if the situation is not resolved.

DOF Offshore Strike Summary: Motivations and Consequences

The strike was called promptly at 00:00 on 11/10/2024 and continued until 23:59 of the same day, according to the time established by the laws governing the categories of maritime workers in Brazil. The strike involves Sailors, Deckhands and Enginemen, Cooks and Stewards, who work on several vessels in the DOF Offshore fleet.

Main Workers' Demands:

  • Salary Gap: Workers claim that their salaries are out of date, with no adjustments proportional to inflation.
  • Pumping Bonus: Bonus required for professionals who operate loading and unloading pumps, a critical task on offshore vessels.
  • Extra Dish for Chamber Staff: A specific request from the vessel's internal support and services sector, which aims to improve food conditions on board.
  • Anchor Drop Bonus: Additional financial support requested for workers responsible for launching and operating anchors, a task that involves great responsibility and technical skills.

This strike is the first measure taken by the workers. If the demands are not met by the company, a new strike period is already planned, this time with 48 hours duration, which will bring even more challenges for the DOF and the oil and gas sector.

Which vessels are idle? The impact on the offshore sector

The strike directly affected 16 vessels of the DOF fleet, some of which were already in scheduled downtime for maintenance. Below is the complete list of impacted vessels, highlighting those that were already partially or totally out of operation:

  1. Skd Rio
  2. Skd Angra (stopped at downtime)
  3. Skd Iguacu
  4. Skd Botafogo
  5. Skd Amazonas (stopped at downtime)
  6. Skd Urca
  7. Skd Paraty
  8. Skd Buzios
  9. Skd Recife
  10. Skd Olinda
  11. Skd Niteroi
  12. Skd Achiever
  13. Skd Strill Explorer
  14. Skd Geoholm
  15. Skd Ipanema
  16. Skd Chieftain

The partial shutdown of these vessels could directly affect essential drilling operations, platform maintenance and transportation of inputs, harming the production chain of the oil and gas sector, especially in Campos Basin e Santos Basin, where DOF Offshore operates.

Scheduled downtime and operational effects

O downtime refers to a planned period in which vessels are out of operation for maintenance or technical adjustments. Although some of these vessels are already in downtime, the shutdown makes it even more difficult to resume activities. In strike situations, minimum operations are maintained to ensure vessel safety, but productivity is severely reduced.

The power of the strike: demands that will change the game

The strike's main objective was to draw attention to the wage gap that has affected workers for years, without adjustments compatible with inflation and current economic conditions. In addition, there are specific demands related to working conditions, such as bonuses for essential operations and improvements to the on-board environment.

Wage gap: a matter of urgency

The main complaint of workers is wage gap. According to the unions, sailors, stewards, cooks and deckhands are facing an erosion of their wages, which reduces their purchasing power and affects the quality of life of families.

This mismatch with inflation generates dissatisfaction not only at DOF, but throughout the shipping and offshore sector. According to union representatives, without an adequate adjustment, employee turnover is likely to increase, directly impacting the efficiency of offshore operations.

Special bonuses: a fair demand?

Workers are also looking for specific rewards for critical tasks, such as pumping and the anchor dropping. These operations involve high responsibility and operational risks. Therefore, the categories require additional financial compensation for these activities, in addition to a extra dish for chamber workers, improving working conditions and food on board.

What happens if the strike continues?

If negotiations between DOF Offshore and the workers do not progress by the end of the 24-hour strike, a new strike period is already planned. This new movement will last for 48 hours and, according to a statement from the unions, it will be launched within the next few days if there is no agreement.

This new period of shutdown would bring even more severe impacts to the DOF, which is already facing difficulties with the significant number of partially stopped vessels. In addition, the oil and gas production in Brazil, especially in areas operated by the company, could be affected.

Possible solutions and future scenario

The resolution of the strike depends directly on the willingness of DOF Offshore to negotiate with the workers and at least partially meet their demands. To date, the company has not made an official statement about the strike movement, which raises even more doubts about the future of the negotiations.

On the other hand, the unions have already shown themselves to be open to dialogue, but they reinforce that the lack of a solution could generate new strikes, leading to significant losses both for the company and for the country's economy, especially in the strategic energy sector.

Impact on the oil and gas market

The strike at DOF Offshore is not an isolated event; it comes at a time of rising tensions in the oil and gas sector. With volatile international oil prices and high demand for fuel, any disruption in the production chain could affect the Brazilian economy, especially with regard to offshore production.

Brazil, being one of the largest offshore oil producers in the world, could suffer significant impacts from prolonged shutdowns, such as reduced exports and even the need to import derivatives to meet domestic demand.

The offshore sector on alert

The 24-hour strike initiated by DOF Offshore workers highlights the urgent need for a salary review and improvements in working conditions for professionals operating on vessels. The strike of 16 vessels is already causing concern in the sector, and the risk of an even larger strike worsens the situation.

It remains to be seen how the company will deal with these demands and whether it will be able to avoid a new shutdown, which could cause even more losses. Follow the next chapters of this story that could impact the oil and gas sector throughout Brazil.

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Caio Aviz

I write about the offshore market, focusing on oil and gas, job vacancies, renewable energy, mining and the economy. Always seeking daily updates and relevant topics, I present rich, considerable and meaningful content.

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