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Brazil oil workers begin strike Brazil oil workers begin strike
(about 3 hours later)
The Brazilian state-run oil producer, Petrobras, says a strike which started on Monday has cut its production by 7%.The Brazilian state-run oil producer, Petrobras, says a strike which started on Monday has cut its production by 7%.
The union which called the five-day walkout says the cut in production was more like 22% - about 400,000 barrels.The union which called the five-day walkout says the cut in production was more like 22% - about 400,000 barrels.
Employees at 42 oilfields off the state of Sao Paolo coast, are striking over working conditions. Employees at 42 oilfields off the coast near Rio de Janeiro, are striking over working conditions.
Petrobras says there is a contingency plan to maintain output. However, a union spokesman said workers would do their best to disrupt production.Petrobras says there is a contingency plan to maintain output. However, a union spokesman said workers would do their best to disrupt production.
At the heart of the dispute is a union demand that a day spent travelling from oil platforms in the Campos basin to the mainland should be counted as work.At the heart of the dispute is a union demand that a day spent travelling from oil platforms in the Campos basin to the mainland should be counted as work.
At the moment employees are paid for a shift of 14 days followed by 21 days of rest.At the moment employees are paid for a shift of 14 days followed by 21 days of rest.
Bigger sliceBigger slice
The Campos basin accounts for 80% of Petrobras' daily production of 1.8 million barrels of oil.The Campos basin accounts for 80% of Petrobras' daily production of 1.8 million barrels of oil.
But the Petrobras president, Jose Sergio Gabrielli, has been playing down the impact of the dispute saying that daily variations in oil prices do not have a great significance.But the Petrobras president, Jose Sergio Gabrielli, has been playing down the impact of the dispute saying that daily variations in oil prices do not have a great significance.
World oil prices on Friday hit a new record high, rising above $147 a barrel because of a range of factors, such as tensions over supplies from Iran and Nigeria.World oil prices on Friday hit a new record high, rising above $147 a barrel because of a range of factors, such as tensions over supplies from Iran and Nigeria.
But analysts said the potential strike at Petrobras was also having an impact.But analysts said the potential strike at Petrobras was also having an impact.
The BBC's Gary Duffy in Sao Paulo says the situation has the potential to escalate, as further disruption is being discussed at all Petrobras facilities, including refineries and terminals, as part of union demands for a bigger share of profits for employees.The BBC's Gary Duffy in Sao Paulo says the situation has the potential to escalate, as further disruption is being discussed at all Petrobras facilities, including refineries and terminals, as part of union demands for a bigger share of profits for employees.
The company has recently announced a number of major oil finds offshore, which have attracted huge international attention.The company has recently announced a number of major oil finds offshore, which have attracted huge international attention.
But these are deep beneath the seabed and the costs of production, which is still several years away, are expected to be high.But these are deep beneath the seabed and the costs of production, which is still several years away, are expected to be high.


Have you been affected by the strike? Do you work for Petrobras? Send your comments using the form below:Have you been affected by the strike? Do you work for Petrobras? Send your comments using the form below:
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