The group behind the Prax oil refinery on the Humber has gone into administration, sparking concerns over both oil supplies and jobs.
State Oil - the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire - appointed administrators on Monday. A separate winding-up order has also been made against the Lindsey oil refinery and related businesses and a liquidator has been appointed.
More than 180 staff are employed by State Oil, while it is thought that around another 440 work at the Lindsey refinery. Trade union Unite called on the Government for urgent intervention as it raised concerns that the failure of the firm could impact 海角视频 oil supplies, leaving the 海角视频 on a “cliff edge”.
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The Lindsey site is one of only five large oil refineries remaining in the 海角视频 after the recent closure of the Grangemouth plant in Scotland.
Unite general secretary Sharon Graham said: “The Lindsey oil refinery is strategically important and the Government must intervene immediately to protect workers and fuel supplies. Unite has constantly warned the Government that its policies have placed the oil and gas industry on a cliff edge.
“It has failed to act and instead put its fingers in its ears. The Government needs a short-term strategy to keep Lindsey operating and a sustainable long-term plan to fully protect all oil and gas workers.”
Energy Minister Michael Shanks said the firm’s collapse was “deeply concerning” and said the company had left the Government with “little time to act”.
He said: “The Government is urgently acting in response to the deeply concerning news of today’s announcement of insolvency at Prax Lindsey Oil Refinery. There have been longstanding issues with this company and workers have been badly let down.
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“The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors, and the circumstances surrounding this insolvency. The Government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies.
“The company has left the Government with very little time to act. The Government is supporting the Official Receiver to carry out their statutory duties, including managing the situation on the site to determine next steps. This will include urgently reporting back on all potential uses of the site, prior to a wind-down of the refinery.
“The Government believes that the business’s leadership have a responsibility to the workers and the local community. We call on them to do the right thing and support the workers through this difficult period.”
Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day. It was acquired by Prax Group – led by chairman and CEO Sanjeev Kumar Soosaipillai - from Total in 2021 but has made significant losses since then.
Clare Boardman, joint administrator of State Oil and Prax, said: “We appreciate that this is a very difficult and uncertain time for the employees and everyone involved and we will be on site to support them during this challenging period.
“We will be considering all options for the group, including the prospect of a sale for the group’s upstream business and retail operations, such as petrol stations, in the 海角视频 and Europe, all of which remain outside of insolvency. We thank the group’s team members and other stakeholders for their continued support.”
Prax Group was not immediately available for comment.