Government supporting Lindsay Oil Refinery as 420 jobs at risk

Priti Mistry and David McKaina

BBC News

A union says that about 1,000 jobs including contractors and supply chains are at risk

A drone view of the BBC Practi Lindsay Oil Refinery. A group of metal structures grow to the blue sky. — A union says that about 1,000 jobs including contractors and supply chains are at risk

A minister said that the government is funding the official receiver to ensure the safe operation of an oil refinery, after his owner’s administration, a minister said.

Practi Lindsay Oil Refinery Limited, who owns the plant at Emigham, North East Lincolnshire, was filed for insolvency on Sunday, with hundreds of jobs at risk.

The refinery has 420 employees, although the unit stated that 1,000 jobs could be affected keeping in mind the contractors and the supply chain.

Speaking in the Commons, the Energy Minister, Michael Sanks said that the owner of the Prax Group should “put hands in his pocket and give appropriate compensation for the workers”.

He said that the workers were “badly disappointed” and the government “was demanding an immediate investigation into the conduct of the directors and the circumstances of this bankruptcy”, he said.

The Prax Group, headed by Chairman and Chief Executive Officer Sanjeev Kumar Susapilai, purchased Lindsay Oil Refinery from French Company Kul in 2021.

The Department of Energy Safety said that the company’s financial reports indicated that the plant had a loss of about £ 75M between 2021 and in February 2024.

Shanx said: “The Secretary of State (Ed Milliband) was assured by the company that there was no risk of immediate closure for the refinery. A week ago, the business changed its position and said that he is afraid that it could not be a matter of concern now.

“We repeatedly asked him at the official and ministerial level, what was the financial difference, to find out if the government could help to bridge that difference, but the company was unable to share that basic information.”

Prax Group bought refinery from total in 2021

Getty images with a board on reading a metal structure in the background: 'Prax. Lindsay Oil Refinery. Main entrance '. There is a union jack flag on the left between the two green flags with the written Prax. — Prax Group bought refinery from total in 2021

He said that the company had left the government with a very short time.

“The government will ensure that the supply is maintained, our energy security is protected, and we can do everything to support workers and local communities, including connecting with trade unions and industry bodies,” Sanks said.

“The government believes that there is a responsibility for the workers and the local community led by the business.

“We ask them to do the right thing and support the workers through this difficult period.”

Shanx stated that the government was actively looking for a buyer for business and if it failed, other possible use for the site.

Unite General Secretary Sharon Graham said: “Lindsay oil refinery is strategically important and the government should interfere immediately to protect workers and fuel supply.

“The government requires a short -term strategy to operate Lindsay and a permanent long -term plan to protect all oil and gas workers completely.”

Michael Shanx told the Commons that the owners of the prax cannot “wash hands” to the workers.

The BBC Parliament addresses Michael Shanx, Energy Minister, Commons. He is wearing a blue suit, shirt and tie and his left arm is raised slightly with standing in front of green benches. — Michael Shanx told the Commons that the owners of the prax cannot “wash hands” to the workers.

Mick Simpson, a regional officer of Unite, said the members were “extremely concerned about their immediate future”.

“This is one of the biggest employers in the Eminingham region. So you know, immediate damage will be for the welfare of the people. You will have a lot of people.

“I am hoping that action can be taken to protect jobs and to protect the industry,” he said.

Mr. Simpson attracted similarities with the British Steel Plant in Scanthorpe, Where the government controlled early this year To protect its future.

He said that he hoped that “similar measures” can be kept “to support oil and gas workers”.

Insolvency Service announced FTI consultation was appointed as a “Special Manager” to assist the official receiver during the liquidation process.

This confirmed that there were 420 employees in the refinery, but would not comment further.

Teneo has been appointed as Administrator for State Oil, the original company of Prax Group, who appoints 182 employees and UK owns 190 petrol stationsAlong with 325 others in Europe.

Tenaneo’s Claire Boardman stated that the administrators would “be considering all options for the group, including the possibility of sales for the group’s upstream business and retail operations in the UK and Europe, which all live outside the insolvency”.

According to the government, Lindsay is the smallest among the UK oil refineries that produce fuel. It is located next to the Philips 66 Hamber Refinery, which is a major fuel supplier in the region and continues to work on profit.