Petrobras to shut down 62 offshore platforms in Brazil

Brazilian oil and gas major Petrobras has decided to halt operations at 62 platforms located offshore Brazil due to the effects of the coronavirus and the low oil price. Employees will be transferred to other units.

A Petrobras platform; Source: Petrobras

In an update on Wednesday, Petrobras said it would shut down 62 platforms in shallow water fields in the Campos, Sergipe, Potiguar, and Ceará basins.

These measures are part of Petrobras plan communicated to the market on 26 March and is part of a series of actions to preserve jobs and the company’s sustainability in what is the worst crisis in the oil industry in a hundred years.

According to Petrobras, these platforms do not have the economic conditions to operate with low oil prices and are active in sales processes. Also, the shutdown of these units corresponds to Petrobras’ plan to reduce its production.

Petrobras noted that, 80 per cent of these platforms are not manned, and employees who work on other units will not be dismissed because they will all be relocated to other Petrobras organizational units.

In case of interest, workers may join Petrobras’ recently announced Voluntary Severance Programs.

To face this unprecedented crisis that combines an abrupt fall in demand and oil prices, Petrobras also disbursed lines of credit, cut and postponed investments, and reduced operating expenses and personnel expenses.