Total's French Refineries Resuming Activities After Seven-Day Strike

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Researched by Industrial Info Resources (Sugar Land, Texas)--Total SA (NYSE:TOT) (Paris, France) is resuming activities at five French refineries after a union strike that began February 17 slowed production rates and forced the refineries to shut down on Friday, February 19.

The strikes occurred at the following refineries:

• the 143,000-barrel-per-day (BBL/d) Feyzin refinery
• the 100,000-BBL/d Grandpuit refinery
• the 160,000-BBL/d Provence refinery
• the 331,000-BBL/d Gonfreville refinery
• the 230,000-BBL/d Donges refinery

On February 17, a 48-hour union strike began at the five refineries to support employees at Total's Flandres refinery, which Total has threatened to close in the near future. The refinery has been shut down since September 12, 2009, because of market conditions. For additional details, see January 8, 2010, article - Market Conditions Keep Total's Flandres Refinery Offline.

On February 19, the refineries began shutting down units, causing a direct impact in the distribution of fuels.

On February 23, the French government demanded that Total continue operating the five refineries at normal rates. As a result, Total proposed union representatives to meet for negotiations in which the company commited not to sell or close these five refineries.

On February 24, workers voted at each refinery in local assemblies and decided to return to normal production and distribution levels.

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