Crisis at Lindsey Oil Refinery: Workers Fear Job Losses Amid Insolvency

A shocking turn of events has left staff at the Lindsey Oil Refinery in Immingham reeling, as the refinery’s owner, Prax Lindsey Oil Refinery Limited, filed for administration, putting approximately 420 jobs at risk. An anonymous employee expressed his distress, stating he is “worried sick” about the uncertainty surrounding his wages and the future of his job. The government’s commitment to provide short-term funding aims to cover essential operational costs, but concerns remain high as union representatives indicate that as many as 1,000 jobs could ultimately be affected, given the impact on contractors and the broader supply chain.

The refinery, acquired from Total in 2021, has suffered significant financial losses, tallying around £75 million between the takeover and early 2024. Members of the Community Union have voiced their need for prompt updates on the ramifications of the Prax Group’s instability, with the union seeking urgent discussions to clarify the situation for affected workers.

Local community members are similarly concerned about the refinery’s fate. Residents like Pam Clark, 85, and Andrew Smith from the Ashbourne Hotel voiced their apprehensions over the potential loss of such a critical local employer.

Operating since 1968, the Lindsey refinery plays a vital role in processing up to 113,000 barrels of oil daily, contributing notably to both the local and national economy by supplying fuel to various sectors including petrol stations and airports. Current developments have sparked governmental action, with Energy Minister Michael Shanks announcing active searches for potential buyers, and emphasized the necessity for investigations into the conduct of the company’s directors prior to the insolvency.

Management consultancy Teneo has been appointed as the administrator and is exploring all options, including the sale of the upstream business and retail operations that remain unaffected by the insolvency. Amidst this turmoil, the focus on the well-being of the workers and the community’s dependency on the refinery remains a critical concern.