Brazil Environmental Worker Strike Deepens Hit to Oil Output, Now at 200,000 bpd Brazil's state-run oil company Petrobras has acknowledged the labor stoppage is impacting operations in three offshore oil fields that need authorization from Ibama to increase production.

RIO DE JANEIRO: The impact on operations from a strike by workers at Brazil’s environmental regulator has cut oil production by around 200,000 barrels per day (bpd), said Julio Moreira, a director at oil lobby group IBP, on Friday.

The hit to oil output represents a significant increase compared with the estimated loss of about 80,000 bpd reported by IBP on June 17.

Since January, environmental agency Ibama has delayed issuing licenses due to an ongoing dispute with the government over wages and working conditions. Earlier this month, Ibama workers launched a strike in at least 14 of the South American country’s 26 states.

Brazil’s state-run oil company Petrobras has acknowledged the labor stoppage is impacting operations in three offshore oil fields that need authorization from Ibama to increase production.

Earlier this week, Petrobras said the strike could reduce the firm’s expected production curve this year by up to 2%.

-Rodrigo Viga Gaier

Shahid Siddiqui

Accredited Journalist & Development Analyst, humanitarian, author, and activist. Special focus Rural, Refugee & Foreign Affairs)

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