MOSCOW (MRC) -- Workers at three out of five French refineries operated by Total, the nation’s biggest oil company, voted to halt production amid industrial dispute over pay increase, reported Hydrocarbonprocessing with reference to a union official's statement.
The Feyzin refinery was in the process of shutting units after a vote yesterday, Christian Votte, a CGT union representative, said Tuesday by phone. Operations at La Mede have already stopped, while the Gonfreville site is still in the process of halting production, he said. Officials for Paris- based Total weren’t immediately available for comment after being contacted by phone and e-mail.
"If shutdowns at these French refineries do go ahead - it would take a couple more days for output to be halted completely - it could potentially provide regional margins with a boost," Vienna-based researcher JBC Energy GmbH said in an e-mailed report. "The issue has the potential to see more than 600,000 bpd of the country’s refining capacity idled."
Total’s five refineries in France, including the Donges and Granpuits facilities, have a capacity to process about 800,000 bpd of crude, or 60% of the nation’s output, according to data compiled by Bloomberg. Demand for oil products in France averaged 1.76 million bpd in the third quarter, according to data from the International Energy Agency published on 11 December.
Separately, the Donges refinery, where workers voted yesterday to end strike, was operating at a very low rate because of a "technical incident," CGT’s Votte said.
As MRC informed previously, French refinery losses may reach EUR500 million (USD689 million) this year as demand falls and profit margins are eroded by US imports, according to the country oil lobby. Workers at all five of Total’s French refineries have participated in a strike in recent days, demanding the explorer use profit from other parts of the business to pay bigger salary increases.
Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
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