Lindsey Oil Refinery workers ‘left in dark’ over job fears

Employees have been left “in the dark” after the owner of an oil refinery went into administration, a worker has said.

Prax Lindsey Oil Refinery Limited, which owns the plant in Immingham, North Lincolnshire, filed for insolvency on Sunday, putting at least 420 jobs at risk.

The worker, who asked to remain anonymous, said he was “worried sick” not knowing if he would be paid his wages.

On Monday, the government said it would “provide short-term funding to cover the essential operating costs of the refinery” after Unite the Union said 1,000 jobs could be affected when taking into account contractors and the supply chain.

The worker said: “I’m feeling let down and upset. We’ve heard nothing from the company and nothing from the unions – they’re just staying tight-lipped.

“I’m panicking because I’ve got a mortgage.

“At the moment, we don’t know if we’re going to be paid. So it’s playing on your mental health – it’s really stressful.”

He said the collapse of the company had come as a “shock”.

Prax Group purchased Lindsey Oil Refinery from French company Total in 2021.

According to the Department for Energy Security, the plant recorded losses of about £75m between the takeover in 2021 and February 2024.

The Community Union said its members were “increasingly concerned” and wanted “clarification on where they stand and how they will be impacted by the situation in the wider Prax Group”.

“We are pursuing an urgent meeting with the company to address our members’ concerns,” a spokesperson said.

People living close to the refinery also expressed their concerns.

Pam Clark, 85, from the nearby village of North Killingholme, said: “If it’s that important, then it’s got to be saved and the community will be backing that.”

Andrew Smith, the manager of the nearby Ashbourne Hotel, added: “I think it would be a big sad loss for everybody if it were to go. It will have a big impact on the community as there’s a lot of people locally that work at the refinery or the suppliers.”

Built in 1968, the Lindsey refinery can process about 113,000 barrels of oil a day.

Mick Simpson, a Unite regional officer, said the refinery was making “a significant contribution” to the local and national economy, supplying fuel to petrol stations and airports.

Speaking in the House of Commons on Monday, Michael Shanks, the energy minister, said the government was actively looking for a buyer for the business and, if that failed, other potential uses for the site.

He called on Prax Group’s leadership to “do the right thing and provide support to the workers through this difficult period”.

Earlier in the day, he called for an “an immediate investigation into the conduct of the directors and the circumstances surrounding this insolvency”.

The Insolvency Service said the official receiver would “wind up the companies in accordance with his statutory duties”.

“He also has a duty to investigate the cause of the companies’ failure and conduct of current and former directors,” it added.

Management consultancy firm Teneo said it had been appointed administrator of State Oil Limited, Prax’s parent group.

Clare Boardman, from Teneo, said administrators were “considering all options for the group, including the prospect of a sale for the group’s upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency”.

Prax Group has been contacted for comment.