Total has decided to place its Lindsey Oil Refinery on the market in response to an over-capacity issue in the industry, according to reports.
Chief executive Christophe de Margerie said of the move: "We need to sell it, yes, one can put it like that."
The North Lincolnshire refinery opened in the summer of 1968 and has been well-maintained and updated ever since. It is considered to be a productive plant that would be an attractive potential purchase for global competitors. It is thought Russia's Gazprom could be among interested parties.
The move is part of the French parent company's aim to reduce its production by 500,000 barrels per day by 2011, due to the recession and lessened demand for its services.
The Lindsey refinery, the third largest in Britain, produces over 200,000 barrels of oil a day, and supplies the UK, Western Europe and the US.
Total is also looking into closing down its Dunkirk plant to meet the production targets.
Dr Ian Kelly of Hull and Humber Chamber of Commerce said: "So long as the work of the oil refinery - an essential part of our energy infrastructure - continues, we hope it will not be too disruptive."
"I am sure both public and private stakeholders will be keen to work with any potential buyer for the benefit of the area."
