ExxonMobil warns French refinery could halt operations if strike persists
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ExxonMobil Faces Potential Production Halt at French Refinery Amid Ongoing Strike
ExxonMobil has issued a warning that it may be compelled to halt production at its Gravenchon refinery in northern France due to persistent blockades by striking workers. The refinery, which contributes a significant 20% to France’s refining capacity, has been embroiled in labor unrest since last Friday. This disruption has prevented the delivery of essential goods and materials needed for its operations.
Escalation of Strikes
The situation began last month when a small group of workers initiated a strike following Exxon’s announcement that they would shut down the refinery's steam cracker and cease chemical production within the year. This decision was influenced by the site's ongoing financial losses, which have exceeded 500 million euros (approximately $535.55 million) since 2018, rendering the operations commercially unviable.
Last Friday, the confrontation escalated as another strike was called, leading to the shutdown of several chemical manufacturing units, including the critical steam cracker. Despite the scale of the shutdowns, ExxonMobil noted that a “limited number of strikers” are continuing to blockade the site.
Threat of Production Suspension
The blockade has raised alarms within the company as it threatens the continuation of production activities at one of France’s key refining locations. In an emailed statement, ExxonMobil emphasized the potential necessity to suspend production entirely if the blockades do not cease. "If this continues, we may have no choice but to suspend production from the refinery," the statement read.
The disruption comes amid broader challenges for the energy sector, highlighting the vulnerability of logistical and supply chains to labor disputes. As the situation develops, significant attention will be focused on whether ExxonMobil and the striking workers can reach a resolution to avoid further operational and economic fallout.
