Latest news with #PraxGroup
BBC News
4 days ago
- Business
- BBC News
Potential buyer for Lindsey Oil Refinery as deadline looms
A potential buyer has been found for an oil refinery as the window for expressions of interest in buying all or part of the site closes on Wednesday, the BBC Oil Refinery was taken over by liquidators in June after the owner Prax Group went into administration, putting 420 jobs at risk. Energy Minister Michael Shanks previously said "no credible offers" had been made to buy the entire refinery and it would be "winding down operations".However, two local politicians claimed there was a prospective bid to buy the whole site and continue the operation, with "a number of parties interested in parts of the business".The Insolvency Service said the sales process was ongoing. Martin Vickers, MP for Brigg and Immingham, and North Lincolnshire Council leader Rob Waltham said there was a potential buyer to retain the site and continue running the refinery, but added they could not disclose details of the interested party. Waltham said: "To have people who are interested in protecting jobs at this stage of the game is very heartening. "We're urging the government to keep advocating and supporting someone to buy the site as a whole."The last two units of petrol and kerosene came off the production line on Fred Brown, a process operator at the refinery and a branch secretary for Unite the union, said fuel had been put into storage and it is likely deliveries would continue until September."Over the weekend, the last of the units that actually create the finished product has come offline."The next phase is that we'll run down all of the products through the tanks - the petrol, the diesel, the kerosene, everything. That will go out of the refinery until it runs out, which should be around a month from now." Mr Brown said he expected petrol station forecourts across the midlands to be affected once supply had ceased from the refinery on a scale similar to that seen last month when garages reportedly run out of a fuel as a result of the refinery's owners filing for said there was concern that fuel would be restricted to parts of the country."This site may only provide 10% of the UK fuel supply, but that fuel supply to the west and east midlands, into Lincolnshire and probably even beyond that, is still a significant proportion of their supply. "If supply gets restricted, and it might be that the government's got a great spreadsheet that's managing all this, ... people who work in the NHS, shops and businesses throughout the country will be paying more at the pump."The Department for Energy Security and Net Zero (DESNZ) said it was confident there "is no risk to the UK's fuel supply" and refined products would continue to be sold "for a number of weeks, giving buyers time to adjust their supply chains".It added Lindsey's closure "will not make us significantly more dependent on imports".DESNZ also said interest from potential buyers remained "in some assets at the site and the Official Receiver would continue to pursue such interest".The refinery's owner went into administration after recording losses of about £75m over the course of three years. Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices
BBC News
02-08-2025
- Business
- BBC News
Prax Lindsey Oil Refinery has ended production, officials says
Production has ended at a Lincolnshire oil refinery, the government has confirmed. Lindsey Oil Refinery, near Immingham, was taken over by the Official Receiver in June after its owner Prax Group went into administration, putting 420 jobs at Eisner, a Unite regional co-ordinator, said supplies of crude oil ran out on Minister Michael Shanks previously said "no credible offers" had been made to purchase the entire refinery and it would be "winding down operations". The government said the Official Receiver would continue selling refined products for a number of weeks, giving buyers time to adjust their supply this week, the leader of North Lincolnshire Council urged the government to keep the refinery open for longer to allow a potential buyer to come leader Rob Waltham said its closure would be a "devastating blow" and "thousands of jobs" were at risk at the refinery and in the supply called on ministers to provide immediate financial support for supply chain businesses, as well as protection for workers' pensions and a government-backed remediation and redevelopment plan for the refinery's owner went into administration after recording losses of about £75m over the course of three years. Shanks said the government was "deeply disappointed with the untenable position in which the owners left Prax Lindsey Oil Refinery".The Official Receiver was continuing to "pursue interest" from potential buyers for "individual assets"."Our sympathies are with the workers, their families and the local community," he added. "All those directly employed at the refinery are guaranteed jobs over the coming months." Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Download the BBC News app from the App Store for iPhone and iPad or Google Play for Android devices
Powys County Times
28-07-2025
- Business
- Powys County Times
Minister insists fuel supplies not under threat despite oil refinery closure
An energy minister has insisted fuel supplies will not be under threat after no buyer was found for one of Britain's largest oil refineries. State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
North Wales Chronicle
28-07-2025
- Business
- North Wales Chronicle
Minister insists fuel supplies not under threat despite oil refinery closure
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
Leader Live
28-07-2025
- Business
- Leader Live
Minister insists fuel supplies not under threat despite oil refinery closure
State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
