Miliband scrambles to keep key oil refinery running after collapse

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Oil called in administrators.Supplies of crude oil to the refinery were halted on Saturday as the facility’s owner teetered on the brink.But the Insolvency Service is now understood to be pushing for them to resume amid fears that a prolonged interruption could disrupt national fuel supplies.For now, the facility is continuing to produce using available stocks, people briefed on the situation said, with officials on-site to ensure operations are still running.A Glencore spokesman declined to comment on the supplies but said: “Glencore is continuing to work with key stakeholders in efforts to support a safe and responsible outcome for the refinery.”State Oil was placed in the hands of administrators at City firm Teneo on Monday morning, with the refinery put under the control of the Insolvency Service to ensure “the continued safe operation of the site”.The refinery, which employs more than 400 people, was previously part of the wider Prax Group, which includes some 200 petrol stations and oil and gas operations west of the Shetland Islands.It supplies more than one tenth of the country’s fuel supplies, including petrol, diesel, fuel oil, kerosene, aviation fuel and bitumen.Prax, which is owned by the businessman Sanjeev Kumar Soosaipillai, purchased the facility from French oil giant Total in 2021.The company had been in talks with the Government since April about its situation, but a Whitehall source said Prax had been unable to answer basic questions about its finances.Despite this, it is understood to have repeatedly assured officials that the refinery was not under immediate threat – a position that suddenly changed last week when bosses revealed they were rushing to declare insolvency.Ed Miliband, the Energy Secretary, has now ordered a full investigation into the circumstances behind Prax’s collapse, including “the conduct of the directors”.At the same time, the Insolvency Service is scrambling to find a private sector buyer for the refinery. If one cannot be found, the site’s future could be at risk.Lindsey is one of only five major refineries left in Britain, following the closure of the Grangemouth refinery by Petroineos in Scotland this year.Its potential closure of the Lindsey plant will fuel concerns about the health of Britain’s oil and gas industry, particularly after the Labour Government banned all new drilling in the North Sea.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,198.01 -6.94 (-0.11%)Dow 3044,494.94 +400.17 (+0.91%)Nasdaq20,202.89 -166.85 (-0.82%)Russell 20002,195.91 +20.87 (+0.96%)VIX16.67 -0.06 (-0.36%)Gold3,350.00 +42.30 (+1.28%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 45.38 +11.48 (+33.86%)IHS IHS Holding Limited 6.34 +0.78 (+13.94%)MLCO Melco Resorts & Entertainment Limited 8.06 +0.83 (+11.48%)RUN Sunrun Inc. 9.04 +0.86 (+10.51%)PII Polaris Inc. 44.88 +4.22 (+10.39%)Top losersPRGS Progress Software Corporation 55.52 -8.32 (-13.03%)AVAV AeroVironment, Inc. 252.40 -32.55 (-11.42%)PTGX Protagonist Therapeutics, Inc. 50.21 -5.06 (-9.16%)NBIS Nebius Group N.V. 50.31 -5.02 (-9.07%)ACHR Archer Aviation Inc. 9.88 -0.97 (-8.94%)Most activeLCID Lucid Group, Inc. 2.0300 -0.0800 (-3.79%)NVDA NVIDIA Corporation 153.30 -4.69 (-2.97%)TSLA Tesla, Inc. 300.71 -16.95 (-5.34%)F Ford Motor Company 11.35 +0.49 (+4.56%)HOOD Robinhood Markets, Inc. 92.33 -1.30 (-1.39%)Earnings eventsTrending tickersTSLA Tesla, Inc. 300.71 -16.95 (-5.34%)WOLF Wolfspeed, Inc. 0.8100 +0.4112 (+103.11%)BGLC BioNexus Gene Lab Corp. 11.14 +8.01 (+255.91%)UNH UnitedHealth Group Incorporated 326.02 +14.05 (+4.50%)TGT Target Corporation 103.88 +5.23 (+5.30%)Top economic events