Prax Lindsey Oil Refinery

On Monday 30 June, I made a Written Ministerial Statement and gave an Oral Statement regarding the deeply disappointing news that Prax Lindsey Oil Refinery had entered insolvency. Today, I am updating the House on the urgent work undertaken by the Official Receiver to manage the situation on the Prax Lindsey site and determine next steps.

Since the refinery entered insolvency, we have worked urgently to ensure the safety of the refinery site, security of fuel supplies and protect workers. This has also allowed time for bidders to express an interest in the site.

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. Having visited some of the workers on site on 17 July, I know this will be hugely disappointing news for them, their families and the local community.

A package has been offered to all those directly employed at the refinery which guarantees jobs and pay over the coming months.

The government will also immediately fund a comprehensive Training Guarantee for these refinery workers to ensure they have the skills they need and are supported to find jobs, for example in the growing clean energy workforce.

Furthermore, we understand the Official Receiver continues to explore various proposals for assets. I therefore remain hopeful that a solution will be found that creates future employment opportunities at the Immingham site.

The refinery will continue to process crude for the rest of the month and the Official Receiver will continue selling refined products for a number of weeks, giving buyers time to adjust their supply chains.

The former owners left the company in a poor state and gave the government very little time to act. That’s why the Energy Secretary immediately demanded the Insolvency Service launch an investigation into their conduct and the circumstances surrounding insolvency, which is now underway and I have repeatedly called on the owners do the right thing and provide financial support to the workforce.