Oil refinery owners urged to support workers

The Energy Minister has written to the owners of the ill-fated Prax Lindsey Oil Refinery calling on them to "do the decent thing" and financially support affected workers after the company filed for insolvency.

In a letter to Prax Group owners Sanjeev and Arani Soosaipillai, Michael Shanks said they had a responsibility to staff and the government was "urgently exploring what support can be offered to the workforce at this difficult time".

At least 420 jobs are at risk at the refinery in North East Lincolnshire, with 120 HGV drivers made redundant from the company's main delivery firm on Monday.

Shanks said the liquidator was "urgently assessing whether a sale of the refinery is possible".

According to Unite the Union, 1,000 jobs could be affected when taking into account contractors and the supply chain, after Prax Group fell into administration at the end of June.

On Monday, administrator Teneo said a few of the 137 employees who had been made redundant at delivery firm Axis Logistics would be kept on "for a limited period to support the orderly closure of the business" after it "suffered" as a result of the wider group insolvencies.

In the letter, Shanks said the official receiver's assessment would be "difficult given the state the business had been left in".

"Rightly, urgent questions are now being raised about what support will be offered to them by yourselves, as the owners," he said.

The minister revealed that in a letter from the owners on 30 June workers were told they were "the lifeblood of Prax, sustaining the business through its many successes" and their "loyalty, resilience and hard work" had helped build their business.

Shanks wrote: "We strongly encourage you to do the decent thing and publicly commit to make a voluntary financial contribution to support workers at PLOR [Prax Lindsey Oil Refinery].

"This could be through direct financial support to them or funding for retraining schemes to ensure that they can pursue new job opportunities if the refinery cannot be sold."

He told the couple to engage with the workforce in considering options.

"A public show of support for the workers from yourselves would go some way to demonstrate your regret over the insolvency of PLOR and the core values of responsible business ownership.

"It is the very least they deserve," he added.

Prax Group bought the refinery from French company Total in 2021.

The company's financial reports indicated the plant recorded losses of about £75m between the takeover and February 2024.

The Official Receiver is ensuring continued safe operations at the site, the government previously said.

Prax Group and its administrators have been contacted for comment.

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