Sale of Petrobras fields is 'yet another misguided measure,' says union leader.
José Maria Rangel, general coordinator of the Unified Federation of Oil Workers (FUP), states that the unbridled sale of Petrobras assets promoted by the state-owned company's president, Pedro Parente, will "bring chaos" to cities in Rio Grande do Norte and Bahia that depend on oil revenue.
Da Current Brazil Network - Petrobras announced on Monday (28) that it will sell its exploration, development and production rights in three sets of onshore fields, totaling 50 concessions, in the states of Rio Grande do Norte and Bahia. The company will cede 100% of its exploration, development and production rights.
According to the general coordinator of the Unified Federation of Oil Workers (FUP), José Maria Rangel, the company's initiative will affect the local economy, as there will be no investment in the fields. "The claim that the private sector will invest in these areas is false. Petrobras is the one that invests in the oil and gas sector. This sale will bring chaos to these cities that depend on oil revenue. It's yet another misguided measure," he warns.
The fields are located in the Riacho da Forquilha area, in Rio Grande do Norte, and in Buracica and Miranga, both in Bahia.
According to Rangel, there is no need for divestment on the part of the company. "If it were aiming for a debt ratio (ratio between net debt and earnings before interest, taxes, depreciation and amortization - EBITDA) of around 3,1 by 2021, it wouldn't need this. By setting the target at 2,5 for 2018, it can only achieve it by divesting assets," he explains.
The coordinator also warns of other drawbacks that the measure will bring. "The private sector worker who is there will be laid off. We've seen this lately, the private sector worker is laid off, and when the company wins the bid, he is rehired with a lower salary and fewer rights," he laments.