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ExxonMobil: shutdown of several sites in France, 677 jobs lost

ExxonMobil announces major restructuring in Normandy with job cuts and the sale of its assets in the south of France. An uncertain period for employees and the local economy.

energynews
Le 12 April 2024

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On Thursday, ExxonMobil and its subsidiary Esso France announced a restructuring plan in France that includes the loss of 677 jobs at Port-Jérôme-sur-Seine, near Le Havre. This site, which includes petrochemical units such as a steam cracker, is deemed economically unviable (higher operating and energy costs in Europe make it uncompetitive). At the same time, Esso France is considering selling its Fos-sur-Mer refinery to Rhône Energies, a Swiss consortium made up of Trafigura and American refinery operator Entara.

Local reactions and consequences

The Seine-Maritime prefecture deplored the announcement, which has a serious impact on the region’s employment and economy. The French Minister for Industry, Roland Lescure, expressed his concern, insisting that the Group must offer job placement opportunities. Pierre-Antoine Auger, the FO representative on the Port-Jérôme works council, expressed his sadness and anger, underlining a significant loss for employees and their families.

The future of petrochemicals and refining

Despite the announced closures, the Port-Jérôme refinery will continue to operate. The future of the Fos-sur-Mer facilities looks more promising, with commitments to maintain jobs for the site’s 310 employees. Dereck Becht, Entara’s Chief Operating Officer, has stated his intention to continue investing in reducing the refinery’s energy consumption and carbon intensity.

Economic context and energy issues

France’s high energy costs, particularly for gas and electricity, pose a major challenge, as explained by Ufip Chairman Olivier Gantois. These high costs, which have doubled since before Covid-19, make the sector less competitive than North America.

The French oil industry is at a turning point. Although some refineries, such as Fos-sur-Mer, are considered competitive and destined for a long life, the future of the sector in France is marked by uncertainty. Olivier Gantois estimates that by 2050, some refineries could be processing a mixture of oil and biomass.

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