The platforms and operations hibernation policy of Petrobras has affected not only its offshore maritime activities but also its portfolio of land assets in its Bahia Operations Unit (UO-BA), which will result in mass layoffs, where about 5,000 workers, both direct and outsourced, are employed. Information is from Sindipetro Bahia.

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They received a communication from Petrobras regarding the hibernation on April 8, consequently, the interruption of activities in the state will last for the duration of the pandemic. The union also states that it was not detailed which assets will be affected by the measure, but according to internal information, the fields of Miranga, Santiago, Candeias, and Taquipe located in the cities of Pojuca, Catu, São Sebastião do Passé, Candeias, and São Francisco do Conde will be chosen, due to technical criteria.

Petrobras Investments Canceled in 2020 in UO-BA

The remaining oil fields on the list, located in the cities of Mata de São João, Cardeal da Silva, Esplanada, Entre Rios, Alagoinhas, and Araças, are also expected to have their 2020 investments frozen, hindering the productivity of these assets and the maintenance of the 5,000 jobs, both direct and outsourced, resulting from these activities.

Petrobras Voluntary Dismissal Plan or Reassignment

Currently, there are around 900 direct employees of the state-owned company at UO-BA, which presented two distinct proposals for them: to accept reassignment to refineries in the northeast (Abreu e Lima, Potiguar Clara Camarão, Landulpho Alves [RLAM], Lubnor), which are the most likely, or to accept the Voluntary Dismissal Program. For outsourced workers, who are about 4,000, most will also be impacted by the threat of dismissal.

The states of Espírito Santo, Ceará, Rio Grande do Norte, Alagoas, and Sergipe will also be affected by this new measure, both in land and maritime assets.

Exacerbated by the coronavirus crisis and the oil war waged between Saudi Arabia and Russia, the union accuses the state company of using this event to accelerate its privatization plans.

The Reduction of Petrobras Activities in UO-BA Is Expected to Start in May

The state-owned company is expected to begin interrupting operations as early as May 2020, with about 50% cuts in Bahia. Currently, 32,000 barrels of oil, in addition to gas, are processed in UO-BA, generating over 2 billion annually.

The municipalities that rely on revenue from royalties, ISS, and job creation may find themselves in a difficult situation during this crisis.