Posted on 11/04/2015 8:47:54 AM PST by thackney
Turmoil at Brazil's state-run oil company Petroleo Brasileiro SA deepened late Tuesday, as the company said a strike by Brazil's biggest oil workers union stopped a significant amount of oil and gas production, and that the company’s alternate board chairman was stepping down just two months after his appointment.
Petrobras said that the strike affected 13% of the company's daily oil production and 14% of the company's daily natural gas production on Monday. The strike affected 273,000 barrels of oil production and 7.3 million cubic meters of natural gas production, the company said.
The Oil Workers Federation, or FUP, began the strike on Sunday to protest a series of asset sales by Petrobras after the union held more than three months of negotiations with the company. The FUP represents platform and refinery workers, among others.
The company said it is "taking the necessary measures" to maintain production, and said that "despite the effect on production of oil and gas in Brazil as a result of the strike, distribution is functioning within normal limits and there is no forecast of a market shortage."
Separately, Petrobras said Tuesday that its alternate board chairman, Clovis Torres Junior, was stepping down "for personal reasons," just two months after assuming the post. Mr. Torres Junior was appointed alternate chairman in September after the previous chairman, Murilo Ferreira, took a leave of absence.
Mr. Ferreira himself had only assumed the chairman post in April of this year during a major management shake-up in the wake of a massive corruption scandal. His leave of absence raised questions about possible boardroom turmoil, questions that are likely to resurface after Tuesday's announcement.
On top of all that, earlier this week a different board member was arrested during a protest by the striking workers and later released.
(Excerpt) Read more at wsj.com ...
Tough when socialism and fascism meet.
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