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(Bloomberg) — The parent company of the Prax Group — which owns the UK’s Lindsey oil refinery — has been put into administration.
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Joint administrators have been appointed by the High Court for State Oil Ltd, which has 182 employees and is the parent of the Prax conglomerate that includes the refinery as well as wholesale and retail operations, according to a statement from Teneo Financial Advisory Ltd., which is involved in the administration process.
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Options will be considered “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,” Clare Boardman, a joint administrator, said in the statement.
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The Prax Lindsey Oil Refinery Ltd., Prax Storage Lindsey Ltd., and Prax Terminals Killingholme Ltd. are subject to a winding-up order, according to a separate government statement. A liquidator has been appointed.
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Prax Group declined to comment.
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The Lindsey facility, in northeast England, is one of only five large oil refineries left in the UK, following the recent closure of Scotland’s Grangemouth plant. Built in 1968, it has a processing capacity of 113,000 barrels a day, according to the Prax website. UK oil demand was 1.4 million barrels a day in 2023, according to figures from the International Energy Agency.
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“Lindsey oil refinery is vital UK infrastructure,” said Andy Groves, a regional organizer at GMB Union. “The plant sustains thousands of jobs locally.”
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A high pressure fuel pipeline is used to transport gasoline, diesel and jet products from the refinery to the Hertfordshire Oil Storage Terminal, according to Prax’s website. From there, jet fuel is supplied to Heathrow airport via the West London pipeline system.
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Last year, Prax completed an agreement with Glencore Energy UK Ltd, a subsidiary of Glencore Plc, for crude oil supply at the Lindsey refinery.
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“We will ensure supplies are maintained to protect our energy security and do everything we can to support its workers and the local community,” a spokesman for UK Prime Minister Keir Starmer told reporters on Monday.
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—With assistance from Joe Mayes.
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(Updates from sixth paragraph.)
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