Workers at Brazil’s Oil & Gas giant Petróleo Brasileiro S.A. (NYSE:PBR), aka Petrobras, have announced a nationwide strike starting December 15, terming the company’s latest counteroffer for a labor agreement as “disrespectful”. Petrobras workers have been pushing for changes to the employee compensation structure, claiming there’s a deficit in the retirement fund. However, Reuters cited an unnamed source as saying that contingencies have been put in place, with the strike unlikely to affect operations or production.
Petrobras has enjoyed a strong year in 2025, with production climbing throughout the year. The company’s output hit a record 3.14 million barrels of oil equivalent per day (boed) in the third quarter (3Q25), driven by new pre-salt platforms like FPSO Almirante Tamandaré and Alexandre de Gusmão.
The company posted third quarter adjusted EBITDA just shy of $12 billion and net income of around $6 billion, driven by record oil and gas production of 3.14 million boe/day (+17% YoY). The company has recorded robust operational performance despite weak oil prices, and accelerated CapEx execution thanks to strong free cash flow.
Last year, Petrobras lowered capital expenditure (capex) for 2025 to $17 billion from an earlier estimate of $21 billion, saying the lower capex is more realistic and in-line with its financial wherewithal. In its latest strategic plan, Petrobras plans to invest $102 billion in the 2024-2028 period, good for a 31% increase over the previous plan amid pressure from Brazil’s President Luiz Inacio Lula da Silva for the firm to ramp up investments in a bid to prop the country’s economy and generate local jobs.
Previously, global research and consultancy group Wood Mackenzie predicted that Brazil’s private oil companies will increase oil production by 75% from 1.221Mb/d to 2.123Mb/d by 2030.
According to WoodMac, international oil companies such as Shell Plc (NYSE:SHEL), Equinor ASA, (NYSE:EQNR), TotalEnergies SE (NYSE:TTE), Repsol Sinopec Brasil S.A. and Petrogal will be among the top producers thanks to their partnership with Petrobras in the pre-salt and fields under development.
By Alex Kimani for Oilprice.com
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