A deal has been finalised to restore crude oil deliveries to the Prax Lindsey Oil Refinery in Immingham, North East Lincolnshire, after its owner entered administration. Prax Lindsey Oil Refinery Limited filed for insolvency on Sunday, putting hundreds of jobs at risk.
The Department for Energy Security and Net Zero (DESNZ) confirmed that operations at the site will resume with continued crude oil deliveries. It is understood that stockpiled crude oil has been purchased with government funds to maintain refinery operations.
Prax Group, which acquired the refinery from French company Total in 2021, faced significant financial losses, with reports indicating a £75 million shortfall between the acquisition and February 2024. The refinery employs 420 workers, though trade union Unite has warned that up to 1,000 jobs could be impacted, considering contractors and the wider supply chain.
Energy Minister Michael Shanks has called for an immediate investigation into the circumstances surrounding the insolvency and the actions of the directors. The government is seeking a buyer for the site or exploring other potential uses for it. Despite this setback, the UK’s fuel supply remains stable, with the nearby Phillips 66 Humber refinery continuing to operate profitably.
