Minister for Energy (): On Monday 30 June, I made
a Written Ministerial Statement and gave an Oral Statement
regarding the deeply disappointing news that Prax Lindsey Oil
Refinery had entered insolvency. Today, I am updating the House
on the urgent work undertaken by the Official Receiver to manage
the situation on the Prax Lindsey site and determine next steps.
Since the refinery entered insolvency, we have worked urgently to
ensure the safety of the refinery site, security of fuel supplies
and protect workers. This has also allowed time for bidders to
express an interest in the site.
The Official Receiver has rigorously assessed all the bids
received and concluded that sale of the business as a whole is
not a credible option. Having visited some of the workers on site
on 17 July, I know this will be hugely disappointing news for
them, their families and the local community.
A package has been offered to all those directly employed at the
refinery which guarantees jobs and pay over the coming months.
The government will also immediately fund a comprehensive
Training Guarantee for these refinery workers to ensure they have
the skills they need and are supported to find jobs, for example
in the growing clean energy workforce.
Furthermore, we understand the Official Receiver continues to
explore various proposals for assets. I therefore remain hopeful
that a solution will be found that creates future employment
opportunities at the Immingham site.
The refinery will continue to process crude for the rest of the
month and the Official Receiver will continue selling refined
products for a number of weeks, giving buyers time to adjust
their supply chains.
The former owners left the company in a poor state and gave the
government very little time to act. That's why the Energy
Secretary immediately demanded the Insolvency Service launch an
investigation into their conduct and the circumstances
surrounding insolvency, which is now underway and I have
repeatedly called on the owners do the right thing and provide
financial support to the workforce.
