House of Commons · Written Ministerial Statement
Prax Lindsey Oil Refinery and contingent liabilities
01 July 2025 · Department for Energy Security and Net Zero
Proposed by Michael Shanks Lab Rutherglen
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The Government has appointed an Official Receiver and Administrator to manage the insolvency of Prax Lindsey Oil Refinery and its parent company, State Oil Ltd.
- The Government will provide short-term funding to cover essential operating costs of the refinery to ensure energy security.
- The Energy Secretary has notified Parliament of contingent liabilities including legal indemnities and support for operating costs.
Issue summary
The statement addresses the insolvency of Prax Lindsey Oil Refinery and its parent company, State Oil Ltd, and the government's response to ensure energy security and support affected workers.
Action requested
The Government has appointed an Official Receiver and Administrator to manage the situation, will provide short-term funding for essential operating costs, and is demanding an investigation into the directors' conduct. The Energy Secretary has also notified Parliament of contingent liabilities related to legal indemnities and operating cost support.
Key facts
- Prax Lindsey Oil Refinery recorded around £75m losses since its acquisition in 2021.
- An Official Receiver and Administrator have been appointed due to the company's insolvency as of April end.
- The government will provide short-term funding for essential operating costs to maintain safe site operations and energy security during liquidation.
- Contingent liabilities include a legal indemnity for the Official Receiver and funding for operational costs, totalling under £50m crystallised.