A Shocking Closure: Lindsey Oil Refinery Stops Production, Leaving Jobs in Jeopardy

Lindsey Oil Refinery, located in Lincolnshire, has officially halted production, as confirmed by government officials. The refinery, near Immingham, was taken over by the Official Receiver in June after its owner, Prax Group, fell into administration, raising concerns for the 420 jobs at risk. Harriet Eisner, a regional co-ordinator for Unite, noted that the supplies of crude oil ran out recently, signaling the end of operations.

Energy Minister Michael Shanks remarked that there were ’no credible offers’ made to purchase the entire refinery, resulting in the decision to wind down its activities. Despite this, the Official Receiver is set to continue selling refined products for several weeks to facilitate buyers’ adjustments to their supply chains.

Earlier in the week, Rob Waltham, the North Lincolnshire Council leader, appealed for the government to keep the refinery operational longer to attract potential buyers for its assets. Waltham characterized the closure as a ’devastating blow’, alerting that it could put thousands of jobs in jeopardy within the refinery and its supply network. He urged for immediate financial support for businesses within the supply chain and protections for workers’ pensions, as well as a government-backed plan for remediation and redevelopment of the site.

The company faced substantial troubles, having recorded losses amounting to £75 million over the last three years. Minister Shanks expressed dissatisfaction over the situation created by Prax, emphasizing their disappointment with the circumstances leading to the refinery’s administration. Moving forward, the Official Receiver is actively seeking interest from buyers for individual assets, while ensuring that jobs for direct employees at the refinery are safeguarded for the upcoming months.