Petrobras forced to halt ops on two platforms due to coronavirus cases

Brazil state oil firm Petrobras interrupted production at the FPSOs Capixaba and Cidade de Santos due to coronavirus cases among workers, the company’s E&P director, Carlos Alberto Pereira, said at an online press conference on Friday.    

A total of 170 workers were infected, of which half are direct Petrobras’ employees and the rest is outsourced. The expectation is the Cidade de Santos unit will resume activities in the coming two days, while the Capixaba platforms should restart operations within ten days.   

The company reduced the number of workers aboard on all of its units and is making health tests before they embark. It is also considering starting testing all employees for the coronavirus, a subject being discussed with Brazil’s health authorities.   

“When we identify any evidence of the virus we take the measures needed on our operations. In this case, we decided to stop both platforms,” Pereira said.   

According to the director, due to the reduced number of workers onboard, the company also decided to postpone maintenance works that were due to take place during the first half of 2020. The expectation is that those activities will start in the second half.

The FPSO Capixaba, with a capacity to deliver 100,000b/d of oil and 3.5Mm3/d of natural gas, is operated by SBM Offshore and works on the Jubarte field, on Campos basin. Meanwhile, the FPSO Cidade de Santos, deployed on the Uruguá field on Santos basin, is operated by Modec and has a capacity of delivering 35,000b/d oil and 10Mm3/d.   

IMPORT TAXES  

During the press conference, Petrobras’ CEO Roberto Castello Branco said Brazil could undergo LPG supply problems if it decides to implement an additional tax on gasoline. The executive explained the reduction in gasoline consumption would make Petrobras need to reduce its production in the refineries, but gasoline is cracked together with LPG.  

The rise in the gasoline Cide tax is being asked by biofuels producers since ethanol became less competitive in the internal market after oil barrel prices fell. The CEO, however, explained the outcome of such a measure would be deeply harmful for the Brazilian population. Petrobras is already importing additional LPG bottles since residential consumption increased amid the mobility restriction measures to fight the virus.   

“By reducing gasoline production we would also have a fall in LPG output, leading us to higher imports. However, since there is a limited import capacity, Brazil could undergo LPG shortages. In the current scenario, there is not scarcity risk, but with the additional gasoline tax, there would be,” Castello Branco said.