The Lindsey Oil Refinery is slated to cease operations after the government announced its inability to secure a buyer for the facility.
Last month, the Official Receiver assumed control of the North East Lincolnshire refinery following the administration of its owner, Prax, placing 420 jobs at risk.
Energy Minister Michael Shanks stated that “no credible offers have been made to purchase the entire refinery and it will be winding down operations.”
Prax Group, under the leadership of Chairman and Chief Executive Sanjeev Kumar Soosaipillai, acquired the refinery from French company Total in 2021.
In a statement, Minister Shanks expressed, “We are deeply disappointed with the untenable position in which the owners left Prax Lindsey Oil Refinery.”
“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.”
“The government will immediately fund a comprehensive Training Guarantee for these refinery workers to ensure they have the skills they need and are supported to find jobs in the growing clean energy workforce.”
He further noted that the Official Receiver “continues to pursue interest in individual assets.”
Local Conservative MP Martin Vickers characterized the impending closure as “very bad news” for the region.
He urged the government to provide extended support to the plant “while more possible offers came in.”
“Of course, it’s not the government’s fault that it’s got into difficulties,” he acknowledged.
“But I would have hoped they would recognise the importance of a piece of the national infrastructure.”
Vickers mentioned he had raised a question in the House of Commons regarding the refinery’s future.
The Unite union previously warned that the closure of the Immingham refinery could impact up to 1,000 jobs, including contractors and those in the supply chain.
Mick Simpson, representing Unite, stated that the insolvency team had assured the union that there would be no redundancies for core workers “before 31 October.”
“People are going to be worried for their livelihoods,” he said.
“Things like mortgages and their bills still need paying and it’s going to be very difficult to find alternative suitable employment for so many people all at one time.”
Worker Dan Wood described the atmosphere at the refinery as “very low,” adding that staff members were in a state of uncertainty.
“Why can’t the government do what they’ve done with British Steel?,” he questioned.
“They are funding the running cost of British Steel, I believe. Why can’t we do something similar?”
The Department for Energy Security indicated that Prax Group’s financial reports showed the plant had incurred losses of approximately £75m between the 2021 takeover and February 2024.
According to the government, Lindsey is the smallest of the UK’s oil refineries.
It is situated adjacent to the larger Phillips 66 Humber refinery, which remains operational.
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