The UK government has written to the owners of the insolvent Prax Lindsey oil refinery in Lincolnshire, urging them to provide financial support to affected workers. In a letter seen by the Guardian, junior energy minister Michael Shanks asked Arani and Sanjeev Kumar Soosaipillai to 'do the decent thing' and make a voluntary contribution to workers or fund retraining schemes.
More than 100 fuel tanker drivers lost their jobs on Monday, with further redundancies expected at the Prax Group, which employed 625 people. The Soosaipillais have taken approximately £11.5m in pay and dividends since buying the refinery in 2021, and reportedly left the UK for Dubai last week as the plant entered insolvency.
Minister Shanks expressed doubt about finding a buyer, stating in the letter: 'While the official receiver is urgently assessing whether a sale of the refinery is possible, this will be difficult given the state the business has been left in.' The refinery reportedly owed £250m to HM Revenue and Customs when it failed.
The official receiver has set a two-week deadline to find a white knight investor, according to Sky News. The Prax Group, which also owns oilfield investments in Shetland and petrol stations, accumulated debts to fund acquisitions, including the $167m purchase of Lindsey from Total in 2021.
The refinery continues to operate after the government agreed to buy fuel from Glencore. A Department for Energy Security and Net Zero spokesperson downplayed fuel supply concerns, noting that deliveries have resumed and the UK is well supplied. 'Our sympathies are with workers... These workers are in high demand and we will work to ensure their onward employment,' the spokesperson said.
