REFINERY NEWS: France's Fos-sur-Mer starts preparations for shutdown

Refinery: Fos-sur-Mer, southern France

Owner: ExxonMobil

Overall capacity: 6.7 million mt/year (136,000 b/d)

Notes: ExxonMobil said that it has started "preparations to gradually shut down" its Fos-sur-Mer refinery in southern France "in the coming days" following a strike that started June 28.

"This situation may impact our customers, contractors, suppliers, and employees in a challenging energy market environment," the company said July 1, adding that "loading operations are totally blocked at Fos refinery."

"Based on current inventories, we have declared force majeure for some products," the company also said.

It has previously said that the strike at the refinery near Marseille was resulting in reduced throughput.

ExxonMobil confirmed a strike by the CGT union had begun on the evening of June 28. The dispute centers on pay, with the management having offered to bring forward annual salary negotiations, ExxonMobil said in an emailed comment.

"Our employees have recently raised concerns about purchasing power. Leveraging our sound and robust salary program, the management team proposed to anticipate our yearly salary negotiation cycle by a few months," ExxonMobil said.

The company's larger, 240,000 b/d Gravenchon refinery in northern France, together with its terminals, are not affected, ExxonMobil added.

There has been a growing level of industrial action in France over pay. On June 24, staff at TotalEnergies' refineries in France carried out a 24-hour strike.

Source: Company