French refinery, port strikes raise costs

Oct. 11, 2005
The workers' strike at Total SA's Gonfreville L'Orcher refinery, now in its 18th day, will be extended until tomorrow, at which time strikers will decide whether to pursue further action. Total has confirmed the strike is costing the group €1.5-2 million/day.

Doris Leblond
OGJ Correspondent

PARIS, Oct. 11 -- The workers' strike at Total SA's Gonfreville L'Orcher refinery, now in its 18th day, will be extended until tomorrow, at which time strikers will decide whether to pursue further action. Total has confirmed the strike is costing the group €1.5-2 million/day.

The strike, which was started by 70 workers in the key transfer, mix, and delivery units, caused a full halt of the site.

Meanwhile, the cost of the separate CGT union port strike to France's refining industry has been estimated by trade group Union Française des Industries Pétrolières (UFIP) at €6 million/day for the blockaded tankers and €2 million/day for the refineries (OGJ Online, Oct. 5, 2005). Production had to be reduced, and preparations for shutdown had started, UFIP spokeswoman Christine Gastinel told OGJ.

On Oct. 10 the strike was suspended for 2 weeks. Discussions between the CGT and port authorities will take place on the basis of a protocol of agreement over the demands of the strikers for more pay and better working conditions as well as the assurance that the services in both ports would not be privatized.

Because of the port strike, the following facilities face logistical problems: Berre (Shell), La Mède (Total), Lavéra (BP/Innovene), Fos (Esso), as well as refineries supplied by pipeline, including Total's Feyzin plant in the Rhône Valley, Petroplus's facility in Switzerland, and other facilities in southern Germany. The industry was preparing to call on France's emergency oil stocks just before the strike ended, UFIP said.

Petrochemical production also was affected. Total Petrochemicals had to declare force majeure on some of its products as it was unable to export them from the Lavéra site, where it shares a steam cracker with BP/Innovene.

On Oct. 10 there were some 45 oil and chemical tankers waiting to enter the two ports and four unable to leave harbor.