2nd UPDATE: Contract Workers Walk Out At UK Lindsey Refinery

Approximately 200 construction workers walked out of Total SA's (TOT) 200,000-barrel-a-day Lindsey oil refinery in the U.K. Thursday morning in a protest over job cuts, Total said.

The workers downed tools inside the refinery, while a group of about 50 set up a protest line inside with the refinery perimeters, a company spokesman added.

"They are protesting over planned redundancies which are happening as part of the demobilization plan for the HDS-3 (Hydro-desulfurization) project," the spokesman said.

"The mechanical stage of the project is nearing completion and as a result, as is standard industry practice on any construction project, some of the work force have been served with 'at risk of redundancy' letters."

In an emailed statement earlier Thursday, Total confirmed that the Lindsey refinery continues to "operate normally," adding the company was working with contractors and union representatives to resolve the situation as soon as possible.

Workers at Lindsey were among hundreds of contract workers at U.K. energy facilities who went on a two-day strike in May, protesting the use of foreign labor at the South Hook liquefied natural gas terminal at Milford Haven in Wales.

-By Reza Amanat, Dow Jones Newswires; 4420-7842-9487; [e-mail]