Latest news with #StateOil
Leader Live
13 hours ago
- Business
- Leader Live
Government demands investigation after Lindsey oil refinery owner collapses
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 420 work at the Lindsey refinery. Energy minister Michael Shanks called on the company's owner to 'put his hands in his pockets and deliver proper compensation for the workers'. He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure. 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. Mr Shanks vowed to 'ensure supplies are maintained, protect our energy security' and said Energy Secretary Ed Miliband 'is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency'. He later told the Commons: 'The Government believes the business's leadership have a responsibility to the workers and the local community, and we are calling on them to do the right thing and provide support to the workers through this difficult period. 'The wealthy owner cannot wash his hands of his obligations to the workers and their families, and that's why we are calling on him to put his hands in his pockets and deliver proper compensation for the workers.' Mr Shanks added the Government was told about commercial difficulties 'at the end of April', with the refinery having 'recorded a total of around £75 million worth of losses between its acquisition in 2021 and the financial year ending in February 2024'. He said: 'The Secretary of State was reassured by the company that there was no immediate closure risk to the refinery. A week ago, the business changed their position and said they feared it could no longer be a going concern. 'We repeatedly asked them at official and ministerial level what the financial gap was, to work out whether the Government could help bridge that gap, but the company were unable to share that basic information.' Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs. 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.' Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day. 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 in the UK 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.
Rhyl Journal
13 hours ago
- Business
- Rhyl Journal
Government demands investigation after Lindsey oil refinery owner collapses
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 420 work at the Lindsey refinery. Energy minister Michael Shanks called on the company's owner to 'put his hands in his pockets and deliver proper compensation for the workers'. He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure. 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. Mr Shanks vowed to 'ensure supplies are maintained, protect our energy security' and said Energy Secretary Ed Miliband 'is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency'. He later told the Commons: 'The Government believes the business's leadership have a responsibility to the workers and the local community, and we are calling on them to do the right thing and provide support to the workers through this difficult period. 'The wealthy owner cannot wash his hands of his obligations to the workers and their families, and that's why we are calling on him to put his hands in his pockets and deliver proper compensation for the workers.' Mr Shanks added the Government was told about commercial difficulties 'at the end of April', with the refinery having 'recorded a total of around £75 million worth of losses between its acquisition in 2021 and the financial year ending in February 2024'. He said: 'The Secretary of State was reassured by the company that there was no immediate closure risk to the refinery. A week ago, the business changed their position and said they feared it could no longer be a going concern. 'We repeatedly asked them at official and ministerial level what the financial gap was, to work out whether the Government could help bridge that gap, but the company were unable to share that basic information.' Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs. 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.' Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day. 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 in the UK 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.
The Sun
17 hours ago
- Business
- The Sun
Critics have slammed Ed Miliband's net zero policies after major UK oil refinery went bust
CRITICS have slammed Ed Miliband's net zero policies for pushing Britain's oil industry to the brink after Lindsey Oil Refinery collapsed into insolvency. State Oil, which owns Prax Group and Lindsey refinery in North Lincolnshire, appointed administrators on Monday, with a winding-up order also issued against the refinery and related businesses. More than 180 people work for State Oil, while Lindsey employs around 440 staff. The site, built in 1968, processes 113,000 barrels of oil a day and is one of just five major refineries left in the UK after Scotland's Grangemouth refinery shut down weeks ago. Industry insiders say Miliband's push to ban new North Sea oil licences has left the UK increasingly reliant on imported fuel, as renewables fail to meet demand. Imported fuel doesn't require refining, leaving Britain's refineries struggling to survive. Trade union Unite has demanded urgent government action to protect workers and fuel supplies, warning that the collapse leaves the UK on a 'cliff edge.' General secretary Sharon Graham said: '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.' However, Energy Minister Michael Shanks called the collapse 'deeply concerning' and pledged to investigate the directors' conduct. He said: 'There have been longstanding issues with this company and workers have been badly let down.' Keir Starmer's deranged drive for Net Zero with eco-zealot Ed Miliband is a threat to UK's national security- here's why Miliband is reportedly considering electricity bill discounts for refineries to boost production. Prax, led by Sanjeev Kumar Soosaipillai, bought Lindsey from TotalEnergies in 2021 for around $168million, Teneo's joint administrators confirmed that Lindsey staff are still employed and receiving their wages. Administrators said they are looking at all options, including selling Prax Group's upstream business and petrol stations, which remain unaffected by the insolvency. 1
Powys County Times
18 hours ago
- Business
- Powys County Times
Government demands investigation after Lindsey oil refinery owner collapses
The Government has called for an urgent investigation after the group behind one of Britain's largest oil refineries collapsed into administration, putting hundreds of jobs at risk. 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 420 work at the Lindsey refinery. Energy minister Michael Shanks called on the company's owner to 'put his hands in his pockets and deliver proper compensation for the workers'. He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure. 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. Mr Shanks vowed to 'ensure supplies are maintained, protect our energy security' and said Energy Secretary Ed Miliband 'is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency'. He later told the Commons: 'The Government believes the business's leadership have a responsibility to the workers and the local community, and we are calling on them to do the right thing and provide support to the workers through this difficult period. 'The wealthy owner cannot wash his hands of his obligations to the workers and their families, and that's why we are calling on him to put his hands in his pockets and deliver proper compensation for the workers.' Mr Shanks added the Government was told about commercial difficulties 'at the end of April', with the refinery having 'recorded a total of around £75 million worth of losses between its acquisition in 2021 and the financial year ending in February 2024'. He said: 'The Secretary of State was reassured by the company that there was no immediate closure risk to the refinery. A week ago, the business changed their position and said they feared it could no longer be a going concern. 'We repeatedly asked them at official and ministerial level what the financial gap was, to work out whether the Government could help bridge that gap, but the company were unable to share that basic information.' Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs. 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.' Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day. 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 in the UK and Europe, all of which remain outside of insolvency. 'We thank the group's team members and other stakeholders for their continued support.'
North Wales Chronicle
19 hours ago
- Business
- North Wales Chronicle
Government demands investigation after Lindsey oil refinery owner collapses
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 420 work at the Lindsey refinery. Energy minister Michael Shanks called on the company's owner to 'put his hands in his pockets and deliver proper compensation for the workers'. He said the Government is demanding an investigation into the conduct of the company's directors and the circumstances surrounding its failure. 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. Mr Shanks vowed to 'ensure supplies are maintained, protect our energy security' and said Energy Secretary Ed Miliband 'is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency'. He later told the Commons: 'The Government believes the business's leadership have a responsibility to the workers and the local community, and we are calling on them to do the right thing and provide support to the workers through this difficult period. 'The wealthy owner cannot wash his hands of his obligations to the workers and their families, and that's why we are calling on him to put his hands in his pockets and deliver proper compensation for the workers.' Mr Shanks added the Government was told about commercial difficulties 'at the end of April', with the refinery having 'recorded a total of around £75 million worth of losses between its acquisition in 2021 and the financial year ending in February 2024'. He said: 'The Secretary of State was reassured by the company that there was no immediate closure risk to the refinery. A week ago, the business changed their position and said they feared it could no longer be a going concern. 'We repeatedly asked them at official and ministerial level what the financial gap was, to work out whether the Government could help bridge that gap, but the company were unable to share that basic information.' Trade union Unite said the Government needed to urgently intervene to help protect UK fuel supplies and jobs. 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.' Built in 1968, the Lindsey refinery can process around 113,000 barrels of oil a day. 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 in the UK 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.
