Total seen eyeing UK plant sale as Sarkozy steps in

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.

There were no demonstrators or police at Total's headquarters building, located in the Paris financial district of La Defence, reporters there said.

France has over 12,500 petrol stations and Total supplies half of the country with petrol.

Oil prices were supported near $80 per barrel by the ongoing strikes by French oil workers.

Environment Minister Jean-Louis Borloo told Europe 1 radio France was not at risk of running out of fuel and had around 10 days of stocks. "At this point in time, there is no risk of shortage," he said.

But analysts expect shortages to worsen rapidly as the strike spreads and French families take to the roads for school holidays.

Petroleum industry body UFIP said on Monday there were around 7 days of fuel supply left.

UFIP head Jean-Louis Schilansky told BFM radio on Tuesday the Total strike, which is also due to spread to Exxon's two French refineries on Tuesday, did not threaten to paralyse the country in the short term.

"But it's true that if this situation continues, this tense situation will lead more or less to problems towards the end of next week," Schilansky said.

(Writing by Marie Maitre and Jo Winterbottom; editing by Marcel Michelson)