Exxon about to shut down French Fos refinery due to strike (updated)

North Atlantic Energies SA

01/07/2022 13:25

(Adds details)
    PARIS, July 1 (Reuters) - Exxon Mobil  XOM.N  said on Friday
it had started preparations to gradually shut down operations at
its Fos refinery plant in southern France because of a strike
launched by unions.
    Workers, who had warned their action would lead to shutting
down the refining units, are demanding wage hikes to cover
inflation. Wage negotiations are scheduled for September but the
CGT wants management to also commit to a bonus.  urn:newsml:reuters.com:*:nL8N2YG4N3
    "We have started preparations to gradually shut down the
plant in the coming days. This situation may impact our
customers, contractors, suppliers and employees in a challenging
energy market environment," Esso France, a unit of the U.S.
firm, said, adding that strike action started on June 28.
    "We remain hopeful that the situation will be resolved
through dialogue and efforts to seek a fair resolution," it
said.
    Exxon's Fos site has a refining capacity of 7 million tonnes
a year, or about 10% of French capacity, the company says.
    The walkouts were part of wider union efforts in recent days
that have hit other energy firms, such as state-owned power
utility EDF  EDF.PA  and Engie  ENGIE.PA .
    The CFDT and CGT general trade unions told Reuters that
France's second largest gas storage facility, operated by Engie,
was not receiving gas on Thursday and would not do so until
Monday, because of strike action.  urn:newsml:reuters.com:*:nL1N2YH35R
    At EDF, strikes have halted production of up to three
gigawatts last week at a time when supply is already tight
because several nuclear plants are under maintenance.

 (Reporting by Benjamin Mallet; Writing by Benoit Van
Overstraeten; Editing by Dominique Vidalon and Edmund Blair)
 ((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;))