The Lindsey Oil Refinery in North East Lincolnshire is set to cease operations after a failed attempt to secure a buyer, putting up to 625 jobs in jeopardy. The refinery, owned by the Prax Group, entered administration last month due to significant financial difficulties, including a £250 million debt to HM Revenue and Customs.

Government Response and Worker Support

Energy Minister Michael Shanks expressed his disappointment over the closure, stating, "We are deeply disappointed with the untenable position in which the owners left Prax Lindsey Oil Refinery." In response, the government has pledged to fund a comprehensive Training Guarantee to help affected workers transition into the growing clean energy sector. Shanks emphasized the importance of supporting the local community during this challenging time.

Legal and Financial Challenges

The Prax Group, led by Sanjeev Kumar Soosaipillai and his wife, Arani, has faced scrutiny over its financial management. The couple reportedly withdrew £11.5 million in pay and dividends from the group before its collapse. Legal proceedings are underway, with allegations of breach of fiduciary duty against Soosaipillai. The government has called for an investigation into the couple's stewardship of the company.

Community and Union Concerns

Local Conservative MP Martin Vickers described the closure as "very bad news" for the area, urging the government to extend support while exploring potential offers. The Unite union highlighted the broader impact on up to 1,000 jobs, including contractors and supply chain workers. Mick Simpson from Unite noted the anxiety among workers about their future, stating, "People are going to be worried for their livelihoods."

Future Prospects for the Refinery

Despite the closure, discussions continue regarding the sale of individual assets, including storage and distribution facilities. Special managers from FTI Consulting are overseeing these efforts, hoping to preserve some operations and jobs at the Immingham site.