125 jobs to go at Lindsey oil refinery | Money News

A total of 125 jobs are to be made redundant after administrators were appointed at one of Britain’s few remaining oil refineries.

The losses come despite attempts to find a buyer for the business following the collapse of its owner, energy conglomerate Prax Group, which triggered the receivership process at the Lincolnshire site.

A further 255 employees will remain at the site out of 420 directly employed staff and 500 contract workers.

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At least two bids to buy and operate the location with a full workforce were received, union Unite said.

“We understand that this is a very difficult time for all those affected by this decision, and the Insolvency Service will fully support employees subject to redundancy via the redundancy payments service,” the government-run Insolvency Service said.

“The site remains safe, and the official receiver continues to prioritise health and safety at the site alongside the ongoing process to secure the sale of the refinery.

Government support for the refinery could be provided, which could keep it running, Unite said.

As a result, the government is “responsible for the redundancies”, it said.

Unite general secretary Sharon Graham said: “The government has been tin eared to the plight of workers at the second oil refinery facing closure in less than a year.

“This makes a mockery of government promises to protect workers and its plan for net zero.”

The refinery’s biggest creditors are His Majesty’s Revenue and Customs (HMRC) and oil company Glencore, which Unite said “can wait for the more complicated but far less damaging process of maintaining the site as an oil refinery”.

Political response

Politicians had called for an examination of the activity and finances of Prax’s owner, State Oil, in the run-up to its collapse.

The conduct of the company and its directors is currently the subject of an ongoing Insolvency Service investigation.

Responding to the redundancy news, energy minister Michael Shanks said:

“Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery’s owners.

“The official receiver has made this independent decision now in order to provide employees with as much notice as possible, while concluding the sales process in the coming weeks.”

“The Official Receiver is independently assessing potential bids for the future of the refinery and its assets and has made clear he will continue to work with all bidders with credible and deliverable proposals,” Mr Shanks added.

“We have taken immediate action to fund a training guarantee for refinery workers to support them to find new, secure, long-term jobs, including in the growing clean energy workforce.”

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