Latest news with #StateOil
Yahoo
a day ago
- Business
- Yahoo
Minister insists fuel supplies not under threat despite oil refinery closure
An energy minister has insisted fuel supplies will not be under threat after no buyer was found for one of Britain's largest oil refineries. State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
The Independent
a day ago
- Business
- The Independent
Minister insists fuel supplies not under threat despite oil refinery closure
An energy minister has insisted fuel supplies will not be under threat after no buyer was found for one of Britain's largest oil refineries. State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – collapsed into administration last month, putting hundreds of jobs at risk. Michael Shanks pledged to support the workers who are facing redundancy, but said there is little action the Government can take to improve the statutory redundancy offer. Speaking in the Commons, he said: 'We have worked urgently to ensure the safety of the refinery site, the security of fuel supplies and to protect workers. 'This has also allowed time for bidders to express an interest in the site. 'Following a thorough process, the official receiver has rigorously assessed all the bids received and concluded that sale of the business as a whole is not a credible option.' He added: 'A package has been offered to all those directly employed at the refinery, which guarantees their jobs and pay over the coming months. 'And alongside the usual support that is offered to workforces in insolvency situations, the Government will also immediately fund a comprehensive training guarantee for those refinery workers to ensure they have the skills needed and the support to find jobs, for example, in the growing clean energy workforce.' The Lindsey site is one of only five large oil refineries remaining in the UK after the recent closure of the Grangemouth plant in Scotland. Prax Group is led by majority owner and chairman and chief executive Sanjeev Kumar Soosaipillai, who bought the Lindsey oil refinery from French firm Total in 2021. Shadow energy minister Andrew Bowie, who tabled the urgent question, claimed 625 jobs are at risk as he pressed the minister for an update on its investigation into the collapse of the company. He also asked: 'What, if any, assessment has been made into the UK's resilience given the steep reduction in our refining capacity over the past six months? 'What, if any, assessment has been made on the increased reliance on imports that will be necessary as a result of the reduction in British refining capacity?' Mr Shanks said fuel supplies had 'adjusted' in the past few weeks, adding: 'Our assessment suggests there isn't an immediate risk to fuel supplies locally or in the wider area, but we'll continue to monitor that.' On the investigation, he said: 'There is not much I can update the House on at the moment, because the insolvency service is carrying out that investigation.' Conservative MP Martin Vickers, whose Brigg and Immingham constituency includes the oil refinery, said he wanted to see 'the maximum support given to those workers'. Mr Shanks replied: 'We have looked and pushed and pushed to see if there is more action Government can take to change or to give any additional payments. 'It's not possible for Government to do that, not least because the insolvency service has to follow very specific rules in terms of creditors and what their parameters are to operate in the event of an insolvency. 'But I do think the owners of this company have profited from this business, and they should do the right thing by the workforce that delivered that for them.'
ITV News
a day ago
- Business
- ITV News
Hundreds of jobs at risk as Lindsey Oil Refinery set to close
Hundreds of jobs are at risk after the government announced an oil refinery would close following an unsuccessful search for a buyer. Lindsey Oil Refinery will be wound down less than a month after it was announced that State Oil – the parent company of the refinery's owners Prax Group – had gone into administration. It is thought about 440 people are employed at the Lincolnshire refinery, along with more than 180 staff at State Oil. The site supports hundreds of other roles with contractors and in the supply chain. Unions have said the refinery is "critical" to national infrastructure and called for the government to step in. Energy Minister Michael Shanks said: 'We are deeply disappointed with the untenable position in which the owners left Prax Lindsey Oil Refinery. 'As a result, after a thorough process to determine whether a sale was possible, no credible offers have been made to purchase the entire refinery and it will be winding down operations, while the Official Receiver continues to pursue interest in individual assets." He added the government would fund training for staff who lose their jobs to find work elsewhere. Mr Shanks added: 'Our sympathies are with the workers, their families and the local community. While we continue to strongly encourage the owners to do the decent thing and publicly commit to making a voluntary financial contribution to support workers, all those directly employed at the refinery are guaranteed jobs over the coming months." Prax Group, which is led by chairman and chief executive Sanjeev Kumar Soosaipillai, bought the refinery from French company Total in 2021. The administrators wrote to the workforce informing them that no buyer had been found and the site was being wound down, with no more crude oil being purchased. Unite general secretary Sharon Grham said: 'The government can't sit on the sidelines any longer. The Lindsey refinery is critical national infrastructure and is essential for the UK's fuel supply and the health of the regional economy. 'The government needs to reverse the premature decision to stop buying crude oil and to extend the time to find a viable long-term solution for the site."
Telegraph
a day ago
- Business
- Telegraph
Oil refinery to shut after runaway owners leave it in ‘untenable' position
A major British oil refinery is to shut after being left in an 'untenable' position by its runaway millionaire owners. Lindsey refinery, near Grimsby in Lincolnshire, is to be wound down after the Official Receiver was unable to find a suitable buyer. Workers have been told that redundancies are now 'inevitable'. Around 625 jobs will be lost from Prax and its parent company, State Oil. The future of the plant was thrown into doubt last month when it fell into administration and its owners vanished. Officials have been unable to trace the whereabouts of Sanjeev Soosaipillai or his wife, Arani Soosaipillai, who jointly owned the business until its collapse. Michael Shanks, the energy minister, said on Monday: 'We are deeply disappointed with the untenable position in which the owners left Prax Lindsey oil refinery.' He added that ministers 'strongly encourage the owners to do the decent thing and publicly commit to making a voluntary financial contribution to support workers'. The Soosaipillais paid themselves a £3.7m dividend in the year before the collapse, despite the company incurring $30m (£22m) of losses. Prax, which bought the refinery from French energy giant Total four years ago, owed £250m in taxes to HM Revenue & Customs when it became insolvent. Ed Miliband, the Energy Secretary, has demanded a full investigation into the collapse of Prax and the actions of its directors. The Lindsey refinery was responsible for supplying 10pc of British fuel, including some propellant bound for Heathrow Airport. Local petrol stations in the Lincolnshire area that rely on the Lindsey plant have been struggling to source alternative fuel, leaving some forecourts dry, the Telegraph has reported. Heathrow is understood to be unaffected. The refinery's collapse came months after Scotland's only oil refinery, Grangemouth, stopped processing crude oil amid surging energy costs and fears that a Labour crackdown on the North Sea would make it unviable. Sharon Graham, the general secretary of Unite, said: 'The Lindsey refinery is critical national infrastructure and is essential for the UK's fuel supply and the health of the regional economy. 'The Government needs to reverse the premature decision to stop buying crude oil and to extend the time to find a viable long-term solution for the site. 'Over a thousand workers rely on the future of the oil refinery, their jobs are now at immediate risk, through no fault of their own. If the Government fails to act then workers at Lindsey and much further afield will rightly, feel abandoned by it.'
Telegraph
6 days ago
- Business
- Telegraph
Missing oil tycoon sued over collapse of British refinery business
The former owner of a British oil refinery is being sued following the chaotic collapse of his business empire and amid fears he has fled the country. Winston Sanjeevkumar Soosaipillai faces allegations that he breached his financial duties to the Prax group before it declared insolvency earlier this month. If he loses, the tycoon could potentially be forced to pay damages or hand over assets such as the mansion he owns in Surrey. Prax's parent, State Oil Ltd – which owned the Lindsey oil refinery in Lincolnshire, a string of petrol stations and oil and gas operations near the Shetland islands – declared insolvency earlier this month and was forced to call in administrators. The collapse of the business has disrupted fuel supplies, put hundreds of jobs at risk and left tax officials chasing large unpaid bills. Ed Miliband, the Energy Secretary, has also complained that Prax's rapid demise blindsided the Government, with an investigation now under way into the events that preceded it. The Official Receiver has taken control of the Lindsey oil refinery, given the site's important role in the nation's fuel supply. Calls and emails go unanswered Amid the chaos, neither government officials nor administrators looking after what is left of Prax have been able to trace the whereabouts of Mr Soosaipillai or his wife, Arani Soosaipillai, who co-owned the business with him. Mr Soosaipillai has been uncontactable since the business collapsed, with calls and emails going unanswered. Insiders at his former business believe he has left the country. He and his wife founded Prax in 1999 after studying accountancy and have done well out of the business, which reportedly made them billionaires. The couple own a £4.5m mansion in the gated St George's Hill estate in Weybridge, which in the past has been home to Russian oligarchs and football star Gary Lineker. In the year before Prax collapsed, the Soosaipillais paid themselves a £3.7m dividend despite Prax posting $30m (£22m) worth of losses. Prax is also understood to have owed about £250m in taxes to HM Revenue & Customs at the time it collapsed. Mr Soosaipillai could soon face claims on his assets after six of his former companies, including State Oil Ltd, Prax Petroleum and Harvest Energy, took legal action against him in the High Court. Allegations not yet clear The claim, filed last Friday, is for 'breach of fiduciary duty', records show. Before the collapse of the Prax group, Mr Soosaipillai was the sole director of five of the companies now bringing the lawsuit. The only exception was State Oil Ltd, where he was one of three directors. Under company law, directors have a fiduciary duty – a legal responsibility – to act in the best interests of their business and not for their own personal gain. The specific allegations against Mr Soosaipillai are not yet clear because the claim documents have not yet been published. Neither he or his wife could not be reached for comment. Teneo, the City firm responsible for the administration of the Prax group, declined to comment on Wednesday.
