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Strike set to halt oil refining in south France

SOUTHERN France may face a shutdown of four oil refineries from this weekend, the country's oil lobby said today, as workers at a key oil port voted to continue a strike for a 12th day.

A port spokeswoman said strikers at Fos-Lavera had decided to continue their action and there were no plans to resume talks with the management before the weekend.

The strikers want job guarantees as part of a port reform and are also protesting against President Nicolas Sarkozy's pension reform to raise the retirement age to 62 from 60, which has already sparked waves of nationwide protests.

"No meetings are planned today... the contact has not been broken off," the spokeswoman said.

France's oil sector lobby UFIP said four out of six French refineries dependent on Fos-Lavera could halt output from this weekend and two other plants could continue processing crude for a limited number of weeks.

It said fuel supplies to motorists could continue uninterrupted for one or two weeks, if next week's refinery strikes are limited.

Dozens of vessels with oil and oil products remained blocked at Fos Lavera and refinery employees plan to join the strike on Oct. 12 together with railway, electricity and underground workers, as part of protests against the pension reform.

The port strike has already trimmed fuel output at the six refineries, pushing gasoline and gas oil prices in Europe to a five-month high and creating concern that the idling of plants could lead to an oversupply of unwanted feedstock crude oil.

The port serves eight plants -- including one in Germany and one in Switzerland -- which can process more than 1 million barrels per day, around 7 percent of Europe's total capacity. The German plant can be supplied by alternative routes.



 

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