Shell Expresses Concern Over Strike at Brazil’s Environmental Agency Affecting Licensing.
Shell has voiced concerns regarding an ongoing strike by employees at Brazil’s environmental agency, Ibama, which has been impacting licensing procedures crucial for the oil industry. Cristiano Pinto da Costa, head of Shell’s local unit, shared these concerns during an event on Thursday.
While Shell has not yet faced direct repercussions from the strike, Pinto da Costa highlighted the company’s worries as a partner of the state-run oil firm Petrobras (PETR4.SA) in the Mero oilfield. The potential delays in obtaining necessary licenses could affect their operations.
Related Posts
Since January, Ibama has been deliberately slowing down the issuance of licenses due to an ongoing dispute with the government concerning wages and working conditions. The situation escalated last week when agency workers initiated a strike, which has now been approved in at least 14 states.
According to the Brazilian Petroleum Institute (IBP), an oil industry lobby group, the strike is currently reducing the nation’s oil output by approximately 80,000 barrels per day.
The strike poses a significant challenge for Brazil’s oil industry, as delays in environmental licensing can hinder production and development activities, affecting both domestic output and international partnerships.
