Image courtesy of Petrobras/Flickr.

The largest oil worker’s union in Brazil is threatening to start an open ended strike on Friday to protest recent Petrobras investment cuts.

According to Reuters, the union, known as FUP, is protesting a Petrobras plan to cut investment spending  by around 40 percent and sell about $15.1 billion in assets.

The strike is expected to begin on midnight Friday.

The union has not made any work condition or salary demands, Reuters added.

State owned Petrobras is the most indebted oil company in the world and has been embroiled in an ongoing corruption scandal that has  landed several former executives in jail.

The company announced in June that it will cut spending by 37 percent through the next four years in an effort to tame its enormous $110 billion debt.

The company now plans to spend $130 billion from 2015 to 2019, with exploration and production accounting for $108.6 billion of the budget plan.

The cost cuts were accompanied by a downward revision in the company’s domestic oil production target.

Petrobras now expects to pump an average of 2.8 million barrels a day by 2020, a huge slide from the company’s previous 4.2 million barrel per day target.

The FUP opposes the sale of Petrobras assets and said it wants to company to be wholly owned by the Brazilian government, the Mecro Press said.

The union is also opposed to allowing other firms into Brazil’s oil and gas plays.

The Brazilian government told AFP it has received a notice about the strike and plans to meet with union representatives on Thursday.


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