Strikes Shut Most French Refineries

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Widespread strikes by workers at French refineries owned by Total SA (NYSE:TOT), ExxonMobil Corporation (NYSE:XOM) (Irving, Texas) and INEOS (London, England) have resulted in refinery closures and production halts that are threatening diesel shortages in France and neighbouring countries.

The strikes by the CGT trade union have led to six of France's seven refineries being impacted along with two oil depots. They follow failed talks with the French oil sector employers federation UFIP over pay and bonuses. Industrial Info is tracking the refineries hit by industrial action, including all four of Total's French facilities: the 253,000 barrel-per-day (BBL/d) Gonfreville refinery, the 220,000-BBL/d Donges refinery, the 102,000-BBL/d Grandpuits facility and the 109,000-BBL/d Feyzin refinery. The 218,000-BBL/d INEOS refinery in Lavera and Exxon Mobil's 140,000-BBL/d Fos-sur-Mer refinery have also been targeted. The 240,000-BBL/d Port-Jerome-Gravenchon refinery, owned by Exxon Mobil, is the only one unaffected by the strikes.

The strikes come as France witnesses massive public protests and violent clashes with police in Paris against a proposed government hike in fuel taxes.

The impact on diesel supplies for some European countries is exacerbated by a decision by Shell (NYSE:RDS.A) (The Hague, Netherlands) last month to cut production at its Rhineland refinery complex in Germany due to low water levels on the Rhine river, a key delivery route to Switzerland and the Netherlands. The company said that it could not supply diesel to some unmanned fuel stations in the Netherlands.

In August, Total E&P U.K.'s (Aberdeen, Scotland) operations were hit by strikes when oil workers carried out a second 24-hour strike at three platforms in the North Sea. The platforms--Alwyn, Elgin, and Dunbar--produce about 50,000 BBL/d of oil to the Forties and Brent Blend crude streams and were subjected to alternating 12- and 24-hour strikes over wages and working hours. For additional information, see August 13, 2018, article - Strike Action Hits U.K. Oil Production.

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