Petrobras: 45,000 Workers Face Risk of Job Loss

Petrobras Spending Cuts Due to Oil Crisis from Coronavirus May Lead to Mass Layoffs in Oil and Gas Sector

Petrobras contracts with large, medium, and small companies in the oil and gas sector have been affected by the spending cuts the state-owned company adopted to face the oil crisis caused by the coronavirus. Saudi Arabia will Cut Oil Production by More than 1 Million Barrels Per Day

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About 45,000 oil and gas workers providing services to the state-owned company are at risk of losing their jobs. Due to the crisis, Petrobras intends to review its contracts totaling 6 billion reais with 300 outsourced companies.

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The number could increase to 50,000 if we consider the employment of workers involved in new projects, such as the Comperj works in Itaboraí, in the Metropolitan Region of Rio.

Due to the crisis, Petrobras has already reduced oil production by 200,000 barrels per day, shut down platforms and onshore fields, postponed investments, and reduced refinery operations nationwide to less than 60 percent.

“So far, Petrobras has only formalized for each contractor that the pandemic is a fortuitous case of force majeure, and that these financial impacts must be borne by each party. Companies do not know what to do. We face the imminent risk of mass layoffs,” says Eduardo Aragon, director of BrainMarket.

“No public agency has signaled any assistance to the sector, which is seeking dialogue with Petrobras. Layoffs have already begun. Each company is laying off in those contracts it believes will not be renewed. This uncertainty is what kills businesses,” concludes the executive.

Negotiation Between Petrobras and Outsourced Companies

In a statement, the state-owned company said, “Given the complexity and diversity of goods and services contracts, any impact of these conditions on contractual terms is being addressed individually with each company.”