UPDATE 1-Petroplus shares surge on deal with creditors

By Martin de Sa'Pinto and Caroline Jacobs

ZURICH/PARIS Jan 12 (Reuters) - Shares in troubled Swiss-based oil refiner Petroplus jumped by as much as 49 percent on Thursday after the company reached a temporary agreement with creditors allowing it to keep some operations running and pay critical bills.

Petroplus was forced to cut production at plants in Switzerland, France, and Belgium, and halve output at plants in the United Kingdom and Germany, after its lenders cut credit lines in recent weeks, leaving investors to fear for the company's future.

The company has been hit by a downturn in the European refining sector and a hardening credit market,

On Wednesday, the company said in a statement that it had secured temporary credit facilities and repeated that was in talks with un-named third parties to supply crude and other feedstocks for two of its refineries at Coryton, northeast of London, England, and Ingolstadt, in the southeast of Germany.

The possible permanent closure of refineries in France has become a political issue with the country's Industry Minister saying on Thursday that he was "shocked" Petroplus was not providing more information about the future of its refineries.

"The statement of Petroplus keeps quiet about the future of the refineries in Petit-Couronne in France, Antwerp in Belgium and Cressier in Switzerland, which have been temporarily shut down," the ministry's statement said.

It said Industry Minister Eric Besson would meet with Petroplus head Jean-Paul Vettier this afternoon to discuss the group's responsibilities regarding the French refinery and its employers.

Analysts have also criticised the paucity of information Petroplus has provided investors with.

The company was unavailable for comment on Thursday.

Petroplus shares gave up some of their gains to trade up 27.5 percent at 1.53 Swiss francs at 1146 GMT, still far below their level a year ago of over 13 francs.