By Deal struck on sale of Lindsey Oil Refinery
Hundreds of jobs look set to have been secured after a deal has been agreed over the sale of Lindsey Oil Refinery.
Total has signed an agreement to sell the Lindsey refinery in North Killingholme to the Prax Group.
The deal is expected to be finalised by the end of the year and promises to bring new investment to the refinery, which has been in operation since 1968 and has an annual production capacity of 5.4 million tons.
Prax specialises in the trade and sale of oil products, with a network of 150 service stations and numerous supply chain assets.
“The Prax Group’s long-term strategy is to be fully integrated across the oil value chain from upstream to downstream,” said Sanjeev Kumar, CEO of the Prax Group.
“Acquiring Lindsey Oil Refinery is a natural progression for the Prax Group, providing the opportunity to integrate the refinery and associated product flows into the company’s UK distribution and retail footprint, which operates under the Harvest Energy brand.
“We look forward to continuing to provide a secure supply of energy to new and existing customers.”
The sale will place the refinery at the heart of the Prax Group’s strategic network.
Mr Kumar continued: “We are committed to all Lindsey Oil Refinery employees, who are a key element for the future success of the refinery.”
Lindsey Oil Refinery saw a major investment from Total in 2015, which modernised and streamlined the refinery.
“Since selling our British retail network in 2011, the Lindsey Oil Refinery has not been part of Total’s downstream system.
“With this agreement to sell, the refinery will be at the heart of the Prax Group’s UK network and it will be able to add value more easily,” said Thomas Behrends, General Manager of Lindsey Oil Refinery. “We are proud of the team and the work we have accomplished together.”
The agreement includes all the activities of Total Downstream UK Limited, which is composed of Lindsey Oil Refinery, the Finaline pipeline and the Killingholme loading terminal.
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