Dame Andrea Jenkyns makes plea over Lindsey Oil sale
The Mayor of Greater Lincolnshire has urged buyers Phillips 66 to save jobs
Dame Andrea Jenkyns has issued a plea to Phillips 66 to ‘please save these jobs’ at Lindsey Oil Refinery. It comes as Phillips 66 has been announced as the new owners of the refinery’s assets.
The refinery will not resume operations, Phillips 66, has said. Instead, it will integrate key assets into their existing Humber Refinery set-up. All remaining directly employed refinery workers are guaranteed their jobs until March 31.
Phillips 66 has told the LDRS it cannot guarantee how many new roles will be created as it will require a different workforce structure to operate the assets it integrates.
The Mayor of Greater Lincolnshire, Dame Andrea Jenkyns (Reform UK) put out a video statement, stating she had spoken to a few of the affected workers, who told her their jobs are not guaranteed.
Dame Andrea said Phillips 66 is a “great business here in Lincolnshire” but made a plea: “I say to Phillips 66 please save these jobs, please continue supporting the wider community. I know you already do support them, but they’re going to need a lot of support going forward, and let’s think of these workers.”
She added there was “some great mental health stress at the moment” for individuals affected, “so my heart goes out to them. As Mayor, I’m going to ensure that I work closely with you.”
The announced sale involves Phillips 66 acquiring the refinery’s assets owned by Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, Prax Terminals Killingholme Limited, Prax Terminals Jarrow Limited and Prax Downstream UK Limited. As noted by Mr Vickers, because the actual companies have not been bought, there will be no resumption of refinery production.
Phillips 66 has said it ruled out looking to restart operations after evaluations found limitations of scale, facilities and capabilities. “What it actually means is the uncertainty continues,” said Mr Vickers of the sale announcement. He reiterated his preference would have been for someone to take on and continue production.
Mr Vickers said the administrators had concluded there was no viable option that would allow production to continue. “Although I’ve spoken to at least two potential investors who’ve argued the opposite,” he claimed.
He said he felt the Government could “have taken it on themselves” to say the refinery’s production was needed “so that we’re less reliant on imports, but they’ve chosen not to”.
“On the positive side, if there is a good one, at least we know that Phillips 66 is a good employer.” Mr Vickers added he expected whatever they took on would be for the medium to long-term.
“But there are job losses, of that there is no doubt, and that’s extremely regrettable.” A Phillips 66 spokesperson stated the transaction is subject to satisfaction of certain conditions, including customary regulatory clearance.
In coming months, it will deepen its understanding of the new assets and develop strategic plans for their integration after the purchase’s completion. The refinery’s assets include storage facilities and it has a pipeline link to Heathrow Airport.
On the workforce, the spokesperson reiterated it is buying the assets of the Prax Group companies in liquidation and not the companies. While the company understands the impact on Prax employees, it cannot at this stage guarantee how many new roles will be created.
This is because it will require a different structure of workforce to operate the assets that are integrated. Once its plans are finalised, Phillips 66 will communicate appropriately.
Mr Vickers plans to try to raise Lindsey Oil Refinery in Parliament at questions to the Energy and Net Zero Secretary, Ed Miliband, on January 6. He contended, “Had the Government taken on a more positive role, the job losses could at least be mitigated.”
Unite’s general secretary, Sharon Graham, said: “Lindsey Oil Refinery is a critical piece of UK energy infrastructure. Phillips 66 should not be allowed to just mothball the site and turn it into a glorified storage tank.”
She called on the Government to work with Phillips 66 “to ensure this sale retains and creates jobs and helps safeguard the nation’s energy security”.
North Lincolnshire Council’s leader, Cllr Rob Waltham, has cautiously welcomed the sale announcement but wants greater reassurance for workers.