Business

Lindsey Oil Refinery bid process pause called for by council leader amid redundancies

By Ivan Morris Poxton

Copyright grimsbytelegraph

Lindsey Oil Refinery bid process pause called for by council leader amid redundancies

The leader of North Lincolnshire Council has called for Government intervention to protect Lindsey Oil Refinery , and a pause in the bid process to sell it. The North Killingholme refinery has been run by the Official Receiver with special managers from FTI Consulting since June 30, after Prax Group companies in charge entered administration. 125 workers have been issued redundancy notices to terminate their employment from October 31. However, the Official Receiver continues to engage with multiple parties to progress to buy the site. Council leader Cllr Rob Waltham (Conservative – Brigg and Wolds Ward) criticised the issuing of the redundancies. “It is nothing short of extraordinary that, with serious offers on the table to buy and preserve the site, letters have still been sent to workers telling them there is nothing that can be done. “This feels rushed – the process risks destroying livelihoods and throwing away opportunities before they’ve even been properly explored.” He called for greater Government intervention and a pause in the bid process. “Our demand is clear: Government must step in, pause this process, and bring all parties back to the table – the Official Receiver, potential buyers, unions, and local leadership. Every viable offer must be given proper consideration and every effort made to protect the refinery’s future.” An Insolvency Service spokesperson reiterated: “There are ongoing discussions with a number of parties to progress bids with the objective of achieving a sale of the business. “The Official Receiver remains committed to exploring the best possible outcome. To do so, each bid is being considered with care, due diligence and on an equal footing.” The council leader has also re-raised fuel security concerns, should the refinery shut for good. “The loss of high-quality, skilled manufacturing roles would be a hammer blow to families and communities here in Lincolnshire, and it also raises real concerns for the nation’s fuel security. “Losing this site means losing capacity for fuel which is vital to the country. It will hit households every time they fill up their car, it will affect businesses that rely on fuel to move goods, it will put pressure on farms that depend on diesel, and it will make hospitals and schools more vulnerable to energy shocks. Relying on imports leaves the country exposed to global markets, driving up costs and reducing resilience when we need it most,” said Cllr Waltham. He said allowing it to fall without exhausting every option “is reckless and short-sighted”. When the fuel security concern has been raised before, the Government has maintained the UK has a diverse and resilient fuel supply. A Department for Energy Security and Net Zero spokesperson even called it “deliberately misleading” when local politicians, including Cllr Waltham, wrote to Government about the refinery in late July and raised energy security concerns. UK refineries are said to import 80-90 per cent of crude oil already. Neighbouring Phillips 66 Humber Refinery is also the dominant supplier regionally. Yet there are only a handful of refineries left in the UK, and the sector has already suffered the loss of Grangemouth in Scotland, earlier this year. “The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term,” said Energy Minister Michael Shanks. “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 also emphasised the Government’s Training Guarantee, funding free training courses for affected refinery workers. Cllr Waltham said the council stood with workers and families affected. “We will stand shoulder to shoulder with workers and families. This community will not be cast aside – and we will fight for a secure future for the refinery and for the country.”