Lindsey Oil Refinery: Official Receiver pursuing partial sale of site assets only
Lindsey Oil Refinery, near North Killingholme, is in the process of winding down
The independent UK Official Receiver is only seeking the part sale of Lindsey Oil Refinery site and its assets, a Government spokesperson has said. The reiteration has come amid reports by local politicians that there remains a potential bidder for the refinery as a going concern.
Lindsey Oil Refinery, near North Killingholme, is in the process of winding down. An initial bid period of three weeks in July saw the Official Receiver conclude there was no viable option to sell the site as a going concern.
It has continued to pursue sale of parts of the site and its assets, the deadline was Wednesday, August 13, for those interested.
North Lincolnshire Council leader, Cllr Rob Waltham (Conservative – Brigg and Wolds Ward), and Martin Vickers MP (Conservative – Brigg and Immingham) have said, though, there remains a potential bidder for the whole site.
“I’m aware one of the parties is interested in a total buyout of the site,” Mr Vickers told the LDRS.
Mr Vickers did state there was some doubt as to “whether the receiver is open to the offer”, noting the stated view that selloff of the whole site was not deemed credible by the receiver. A Department for Energy Security and Net Zero spokesperson has reiterated the receiver is seeking only the part sale of the site and its assets.
“Our thoughts are with the workers at Lindsey oil refinery, who have been let down by the owners. The Official Receiver has welcomed bids since taking over safe running of the site six weeks ago, and will consider if any bids for a partial sale of the site or its assets are credible.
“We will also fund a Training Guarantee for refinery workers, to ensure they have the skills they need and are supported to find jobs in the growing clean energy workforce.” The Government has previously stated the previous Prax Group owners left the company in a poor state and with little time to act.
The Official Receiver is understood to have not only been open to bids for the whole site in the first weeks of taking over, but also urgently assessed whether there was a credible route to sell it as a going concern. It was concluded there was not.
The decision was subsequently made to wind it down, with the Official Receiver independently judging an orderly wind down as the necessary course of action. The last crude oil feed ran out on August 1.
But there are still blending processes taking place with this last stock, meaning refinement production is expected to last until September. Multiple workers spoken to have stated they have been guaranteed employment until October 31.