Latest news with #LindseyRefinery
Telegraph
9 hours ago
- Business
- Telegraph
Refinery behind 10pc of UK fuel risks shutdown within days
An oil refinery that supplies 10pc of British fuel is at risk of shutdown within days, raising the prospect of disruption to national supplies. The Lindsey Oil Refinery in Lincolnshire, previously part of the Prax Group, has been plunged into chaos following the collapse of its owner. It has been in the hands of the Insolvency Service since Monday, when administrators were called in. Ed Miliband, the Energy Secretary, has been racing to secure the future of the site, which supplies Heathrow Airport. However, The Telegraph understands that deliveries of crude have stopped and refined fuels are not leaving the site either. If the situation continues, the plant will be forced to shut down by the end of this week. The hold-up is because of a lack of agreement between the Insolvency Service and commodities giant Glencore, which owns the oil and therefore any refined products until it is paid, sources told The Telegraph. Standstill leads to stockpiling So far the refinery has been able to continue operations by drawing down oil stockpiled on site and then putting the refined products into storage tanks. But there is concern that the site's available tanks will be full by the end of the week without a breakthrough in the talks with Glencore – a situation that would force the plant to shut down. Lindsey produces around one tenth of Britain's fuel supplies, including jet fuel destined for Heathrow Airport and petrol and diesel sent to hundreds of petrol stations. On Wednesday, a source close to Glencore said the company was working urgently with the Insolvency Service to resolve the impasse. A spokesman for FTI Consulting, which is managing the plant on behalf of the Insolvency Service, declined to comment. The Government insisted the UK was 'well supplied with fuel'.
The Sun
2 days 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
Bloomberg
2 days ago
- Business
- Bloomberg
Parent of UK Lindsey Oil Refinery Owner Put Into Administration
The parent company of the Prax Group — which owns the UK's Lindsey oil refinery — has been put into administration. Joint administrators have been appointed by the High Court for State Oil Ltd, which has 182 employees and is the parent of the Prax conglomerate that includes the refinery as well as wholesale and retail operations, according to a statement from Teneo Financial Advisory Ltd., which is involved in the administration process.
Telegraph
3 days ago
- Business
- Telegraph
One of Britain's last oil refineries at risk of closure
One of Britain's last remaining oil refineries is at risk of closure after the collapse of its parent company. State Oil has called in administrators after coming under pressure from mounting losses at the Lindsey Oil Refinery, in Lincolnshire, kickstarting a process that could trigger hundreds of job losses. State Oil is the parent of Prax Group, which owns the refinery along with around 200 petrol stations and some oil and gas assets near the Shetland Islands. Lindsey is one of only five major refineries left in Britain, following the closure of the Grangemouth refinery by Petroineos in Scotland this year, and accounts for about one tenth of the country's capacity. The site, which employs around 440 workers, produces a range of fuels including petrol, diesel, fuel oil, kerosene, aviation fuel and bitumen. The potential closure of the Lindsey plant reflects growing concerns over the health of Britain's oil and gas industry, particularly after the Labour Government banned all new drilling in the North Sea. On Monday, the Official Receiver was brought in to take control of the refinery business and ensure 'the continued safe operation of the site', while City firm Teneo was appointed to manage the rest of the group. A spokesman for the Insolvency Service said the Government would issue a statement later on Monday. It is normal practice for the state to take control of potentially hazardous industrial sites when the owner has declared insolvency. The union Unite, which represents hundreds of workers at the Lindsey refinery, demanded that ministers step in to save the business, which looks set for liquidation. The refinery saw its losses nearly double to about £53m in the year to the end of February last year, accounts show. In comparison, Prax's petrol stations business and the oil and gas operations are thought to be profitable, with administrators racing to find buyers, as first reported by Sky News. But Sharon Graham, Unite's general secretary, 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 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.' 'Considering all options' Meanwhile, Teneo said administrators were urgently assessing State Oil's financial position and the prospect of selling other parts of the business. Prax operates petrol stations under the Harvest Energy, Total Energies and Breeze brands. It licences the Total name from the French oil giant. Clare Boardman, joint administrator, 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.'
Reuters
3 days ago
- Business
- Reuters
UK's Prax Group files for insolvency, Sky News reports
June 30 (Reuters) - British energy firm Prax Group has filed for insolvency amid mounting losses at its Lindsey oil refinery, Sky News reported on Monday, citing oil industry sources. Prax Group's parent company, State Oil Ltd, was forced to call in administrators, putting hundreds of jobs at its struggling Lindsey refinery at risk, the report added. Reuters could not immediately verify the report. An officer of the UK court appointed FTI Consulting to act as special manager for the Lindsey facility, with Teneo hired as administrator for the rest of the group, a source told Sky News. Prax Group, FTI Consulting and Teneo did not immediately respond to a Reuters request for comment. Prax owns and operates various assets and businesses across the oil and energy sector and is owned by its founders - CEO Sanjeev Kumar Soosaipillai and executive board member Arani Kumar Soosaipillai - and their family trusts. It agreed to buy Shell's (SHEL.L), opens new tab 37.5% stake in the PCK Schwedt oil refinery in December 2023.
