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Exxon workers end French strike, Total staff continue

  • Market: Crude oil, Oil products, Petrochemicals
  • 17/10/22

Workers at ExxonMobil's 133,000 b/d Fos and 236,000 b/d Port Jerome refineries in France are returning to work after spending more than three weeks on strike in a dispute over pay. But staff at TotalEnergies' downstream sites in the country are continuing their industrial action, a move described by France's finance minister as "unacceptable".

ExxonMobil workers belonging to the CGT and Force Ouvriere unions started returning to work on Saturday. The two unions said refinery operations will return "at our pace", adding that workers are "demotivated". The GCT told Argus today that it will take "10-15 days to first restart the units, and then to produce finished gasoline, diesel".

Relations between ExxonMobil employees and management appear fractious at the end of the 24-day walkout. "The staff no longer trust management. We advise local management not to rejoice too much as this was only the start of a rebellion you will now suffer daily," the unions said.

The industrial action has caused significant delays to crude unloading operations at the Fos refinery. The Delta Blue arrived at Fos on 29 September with around 1mn bl of Doba crude from Chad on board, and it is still waiting outside the port. It has been since been joined by the Maran Solon which is carrying around 600,000 bl of US WTI and is also at anchor at the mouth of the port.

Meanwhile, CGT members at TotalEnergies' French refineries, fuel depots, biofuels and petrochemical plants remain on strike. This is "illegitimate and unacceptable", French finance minister Bruno Le Maire said today. "It is necessary to free the fuel depots, free the refineries which are blocked. The time for negotiations is over," he said.

Le Maire pointed to the fact that other unions, including the CFE and CFDT, have agreed deals with TotalEnergies. In response, the CGT said the strike at TotalEnergies' 246,900 b/d Gonreville, 219,000 b/d Donges and 109,300 b/d Feyzin refineries will continue until at least Tuesday evening, and possibly beyond.

Staff at TotalEnergies' fuel depots are being requisitioned by local government officials to open tanks belonging to the firm. It is unclear how successful this has been in enabling supplies to be delivered. Service stations across France remain short of fuel. The French energy ministry said today that 30pc of service stations are still either closed or are running short. The proportion affected in the region around Paris is higher.

The wave of industrial action in France has tightened supply of middle distillates in Europe at a time when Europe is trying to wean itself off Russian diesel ahead of the EU's ban on Russian refined product imports in February.


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