Planned redundancies related to a Hydro-desulfurization project at Total SA's (TOT) 200,000-barrel-a-day Lindsey oil refinery in Lincolnshire, eastern England, have led to the walkout of 1,200 contractors, the company said in a statement Friday.

The walkout, now in its second day, was triggered after "some of the workforce workers" were served with 'at risk of redundancy' letters, a Total spokesman told Dow Jones Newswires Thursday.

"Approximately 1200 contractors are not working today, around 600 have currently gathered outside the project entrances whilst their union representatives continue discussions with the contractor management team," the statement said.

"We are extremely disappointed the contractors have decided to walkout, and want them to return to work and end this illegal action immediately. We are in urgent discussions with contract companies and local Union officials to resolve the situation." Operations at the Lindsey refinery haven't been effected by the industrial action, Total added. "This redundancy process is normal on any contract as and when different phases of the project are completed."

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; reza.amanat@dowjones.com