The Wall Street Journal: French Protests Hobble Refineries: "Shell, Exxon and Total, which operate the other three refineries in the Mediterranean hub, are relying on stockpiles of crude to continue operations...": Wednesday 5 October 2005

PARIS -- Around a third of France's oil-refining capacity of two million barrels a day was shut or under threat yesterday as a one-day nationwide labor protest compounded a series of prolonged, local strikes.

Oil companies warned that more capacity may come offline in coming days if a port blockade in Marseille that has starved the country's Mediterranean energy hub of crude for a week continues.

Marseille dockworkers are blocking the port and the oil terminal to protest the planned privatization of ferry company SNCM.

"Wednesday will be crunch time," said Jean-Louis Schilansky, director of UFIP, a lobby for major oil companies in France. Either Finance Minister Thierry Breton "succeeds in solving the SNCM case or we will start plunging into deep trouble."

Mr. Breton is expected to meet with SNCM labor unions today to discuss a revised rescue plan for the unprofitable ferry company that links Corsica to France.

Total SA, BP PLC, Royal Dutch Shell PLC and Exxon Mobil Corp. operate four refineries in the Fos-Lavera complex, which can process a combined 570,000 barrels a day -- over a quarter of France's capacity.

BP said its Lavera refinery had already been running at reduced capacity since Saturday because of the port strike.

Shell, Exxon and Total, which operate the other three refineries in the Mediterranean hub, are relying on stockpiles of crude to continue operations, UFIP's Mr. Schilansky said.

Total's output in France was reduced further yesterday as workers at two company refineries joined a wider show of protest at the government's economic and labor policies.

Write to David Gauthier-Villars at David.Gauthier-Villars@dowjones.com