UPDATE 2-Petroplus proposes to buy Total's Lindsey refinery

* Talks not yet binding, but could be soon

* Petroplus "in the mood" for other purchases

(Writes through with background)

By Muriel Boselli and Emma Farge

PARIS, April 22 (Reuters) - Swiss-based oil refiner Petroplus PPHN.VX said it has proposed to buy Total's (TOTF.PA) Lindsey refinery in the UK.

Reuters broke the news in February that French oil major Total planned to sell its 223,000 barrels-per-day Lindsey refinery as part of its goal to cut back production capacity. [ID:nWEB1703].

Jean-Paul Vettier, Petroplus' chief executive officer said at a conference on Thursday talks were not yet binding, but would enter a binding phase in a few weeks' time provided its proposal was accepted.

"This is a refinery that will be among the survivors," he told a group of reporters, referring to the Lindsey refinery.

"I went along with the seller's timetable. That's to say I sent a letter to the bank for the seller...to make a proposal."

A spokesman for Total said the company had no immediate comment.

Vettier also said the company was "in the mood" to make further acquisitions.

Petroplus has a history of buying up refining assets, which integrated oil companies have a tendency to sell when poor refining margins erode profitability.

Petroplus' acquisition strategy was driven by chairman Tom O'Malley, who since joining the company in 2006, has built it up to become Europe's largest independent refiner.

For major oil companies, there are fewer and fewer incentives to refine oil in Europe, where environmental standards are costly and exacting and fuel demand is considered by industry players to have peaked.

Globally, roughly 1.4 million barrels per day of refining capacity has been shut since last year, according to a Reuters survey. [ID:nREFINERY]

Specialist refiners such as Petroplus have also sold off some refining capacity as they focus on the most profitable units.

The company closed its Teesside plant in the UK last year and Vettier also said it might dispose of a French refinery.

"We do not rule out disposing of Reichstett. All options are open," he said.

(For related factbox, please click on [ID:nLDE61P18R] [ID:nLDE6282F9])

(Editing by Ikuko Kurahone and Barbara Lewis)