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Total seen eyeing UK plant sale as Sarkozy steps in



By Muriel Boselli and Mathilde Cru
23 February 2010 @ 12:26 pm BST

PARIS - Total plans to sell its UK refinery, industry sources said, as it faces rising pressure from French unions and government to avoid plant closures and job losses here ahead of regional elections in March.

President Nicholas Sarkozy met Total Chief Executive Christophe de Margerie on Tuesday morning and asked for pledges not to shut refineries in the next few years, a government spokesman said.

Total's management then met with refinery workers to try to end a seven-day strike that has hit petrol supply in France.

All six of Total's refineries have now halted output in protest at plans by Europe's biggest refiner to close its Dunkirk plant as it aims to cut production capacity by 500,000 barrels per day (bpd) by 2011.

The Lindsey refinery has capacity of about 223,000 bpd.

Sarkozy, whose ratings are close to all-time lows amid rising unemployment, faces regional elections next month while Britain's Labour government lags the Conservatives ahead of a general election which must be held by mid-year.

Sarkozy's centre-right government is seen as keen to avoid protests and panic buying at petrol pumps. Last month, Sarkozy tried to win assurances from car maker Renault to centre production of a new small car in France instead of Turkey.

European refiners are struggling to cope with low margins and poor demand and several refineries have been put up for sale or sold.

"What we expect from Total is to get some visibility on the company's strategy and commitments over the long term," CGT spokesman Charles Foulard told journalists before entering Total's headquarters for a meeting with company officials.

"We want an investment plan on top of a clear commitment that there will be no closure or sale (of refineries) over five years," Foulard added.

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