Too reserved

13 December 2012 By Raul Gallegos

Petrobras can’t meet output targets. The fallout from Chevron’s spill is making it hard for companies to hire. And Eike Batista overhyped OGX, whose value has plummeted. The country’s once-promising oil bounty is going to waste. A revival may need fresh thinking from Brasilia.

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Oil companies in Brazil are struggling to hire foreign workers following the spill-related criminal and civil cases against employees of Chevron and Transocean, said Joao Carlos de Luca, president of the Brazilian Petroleum Institute, on Dec. 12.
Drill operators and other oil equipment specialists have been demanding guarantees in their employment contracts allowing them a way to leave the country in case of a spill, he said.
Chevron and Transocean face lawsuits related to a 36,000-barrel offshore oil spill in November 2011. A Brazilian federal prosecutor launched a civil lawsuit seeking nearly $20 billion in damages from the companies for alleged environmental damage.
Companies in Brazil’s oil business must also adhere to strict local rules that force them to buy goods and services from domestic suppliers. They also must hire local workers in exploration, development and production ventures.

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