CLOCK IS TICKING: Ailing Lindsey Oil Refinery Faces Two-Week Deadline as Race Begins to Find Buyer After Parent Company’s Collapse!
IMMINGHAM, LINCOLNSHIRE – A frantic two-week deadline has been slammed down for potential buyers to rescue the embattled Lindsey oil refinery, a critical component of the UK’s fuel supply, after its parent company, State Oil, plunged into insolvency proceedings last week. The dramatic race against time highlights mounting concerns over the future of hundreds of jobs and the stability of national fuel reserves.
Sky News has learned that FTI Consulting, the restructuring experts appointed as special managers by the Official Receiver, wasted no time in contacting interested parties on Monday. Sources indicate that while a two-week timeframe has been “pencilled in,” it remains subject to revision, underscoring the urgency and fluidity of the situation.
The Lindsey refinery, situated near Immingham, has been thrust into crisis following the collapse of State Oil, a key entity within the broader Prax Group. This development sent shockwaves through the UK’s energy sector, prompting immediate government concern over potential fuel supply disruptions. The refinery alone is responsible for processing approximately 10% of the UK’s fuel needs.
In a desperate bid to stabilize operations, the Official Receiver last Friday secured a short-term deal with commodities trading giant Glencore to ensure continued crude oil supplies to the Lincolnshire site. While this agreement provides a temporary lifeline, the long-term viability of the refinery hinges entirely on securing a new owner within this tight window.
Adding to the complexity, ministers have already ordered an Insolvency Service probe into the conduct of State Oil’s top brass, a husband-and-wife team, amidst allegations they misled officials about the company’s financial health leading up to its collapse. Reports suggest the Prax Group owes UK tax authorities in the region of £250 million.
The outcome of these frantic two weeks will be closely watched by industry stakeholders, regional supply chain partners, and hundreds of workers whose livelihoods depend on the refinery’s continued operation. Its fate will not only impact the local economy but could also have broader implications for the UK’s energy security.
