UPDATE 1-Brazil union recommends strikers accept Petrobras contract
(Adds proposed contract details, strike history, production impact)
RIO DE JANEIRO Nov 13 (Reuters) - Leaders of Brazil's largest oil workers' union said on Friday they had proposed ending a 13-day strike, the most disruptive in 20 years, at state-run oil firm Petroleo Brasileiro SA, or Petrobras.
The union, known as FUP, said on its website that it had made progress on its main goal of reversing investment cuts and blocking asset sales that the company says are necessary to reduce its crippling debt of nearly $130 billion, the largest in the global oil industry.
Petrobras on Thursday reported a $1.01 billion third-quarter loss, the third loss in five quarters.
If approved by members in assemblies over the coming days, the contract will give workers a 9.53 percent wage increase and set up a worker-management committee to explore ways to restore investments.
Petrobras senior executives said in a conference call on Friday that they have set aside funds to pay for the cost of the contract.
The committee will have 60 days to draft a report to senior management, the board of directors and Brazil's federal government, the company's controlling shareholder.
Petrobras this year cut about $100 billion from its five-year investment target following a plunge in oil prices, soaring debt and a crippling corruption scandal.
The strike, which began Nov. 1, was cutting around 115,000 barrels a day of oil output in Brazil, about 5 percent of pre-strike output, in recent days, Petrobras said. The union has said output cuts were as high as 400,000 barrels a day, or nearly a fifth of output. Continuación...