Owner of Northern Lincolnshire oil refinery has entered liquidation
Unite is calling for urgent government intervention
The owner of a northern Lincolnshire oil refinery has entered liquidation, potentially putting hundreds of jobs at risk.
A winding-up order has been made today against Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited. A court appointed the UK’s Official Receiver as liquidator.
Trade union Unite has called for Government intervention.
“The Lindsey oil refinery is strategically important, and the government must intervene immediately to protect workers and fuel supplies,” said Unite general secretary Sharon Graham.
“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.”
Administrators have also been called in for State Oil Ltd, the parent company of Prax Group, and Prax Treasury Limited. The High Court appointed Teneo as the administrators for these. The Lindsey Oil Refinery near North Killingholme occupies a 500 hectare area and was bought by Prax from Total in 2021.
It has an annual production capacity of 5.4m tonnes and produces products including petrol, diesel and aviation fuels, according to Prax’s website.
After an application made by the Official Receiver, the court also appointed Matthew Callaghan, Andrew Johnson, Joanne Hewitt-Schembri and Samuel Ballinger of FTI Consulting LLP as special managers of the Prax Lindsey, Terminal and Storage companies. They will assist with the liquidations.
Energy Minister Michael Shanks says it's "deeply concerning".