An oil refinery based in North East Lincolnshire , which was on the brink of collapse after falling into administration, has been saved in a much-needed win for the UK economy.
Phillips 66 has agreed to buy the Prax Lindsey oil refinery in an agreement signed today by the two firms, the Insolvency Service has revealed in a statement.
Both companies were wound up from June last year, which resulted in the Official Receiver having to oversee the liquidations and the running of the refinery.
The Official Receiver, Gareth Allen, and special managers from FTI Consulting LLP, including Matthew Callaghan, Jo Hewitt, Andrew Johnson and Sam Ballinger, confirmed that Phillips 66 Limited has been successful in its bid for the sale of the site and the assets.
The oil refinery has been saved in a new deal with Phillips 66
|GETTY
It should be noted that the completion of the sale will only take place following satisfaction of closing conditions, including customary regulatory approvals.
Mr Allen said: "Over the past six months, every effort has been made to secure a buyer and ensure a future for the site at Prax Lindsey Oil Refinery.
"As Official Receiver, my legal responsibility is to seek the best possible outcome for creditors when companies go into liquidation and this has been achieved.
"My thanks to the team at the Insolvency Service, the special managers at FTI Consulting LLP, and the leadership team and employees at the site for their work.
Rachel Reeves is attempting to bolster the UK economy
| PA"We will now oversee the completion of the sale and the transfer of the companies’ assets to Phillips 66 Limited."
The Insolvency Service confirmed that around 250 staff employed at the refinery in North Killingholme will have their jobs guaranteed until the end of March.
In a statement, Phillips 66 asserted it had decided not to restart standalone refinery operations at the Lindsey site because it was not "viable in current form".
Instead, the firm is preparing to integrate key assets into the neighbouring Humber Refinery operations, which the company already owns.
LATEST DEVELOPMENTS
Paul Fursey, Phillips 66 UK lead executive, said: "We recognise and deeply sympathise with how difficult the closure of the site has been for the workforce and the local community.
"This sale is the best way forward to secure jobs, bolster the local economy and encourage investment in the region."
In reaction to the agreement, Labour Energy Minister Michael Shanks said: “This agreement marks the next step in securing an industrial future for the Lindsey site and the workers, who were badly let down by their former owners.
"After a thorough process to identify a buyer for the site, the Official Receiver has determined Phillips 66 is the most credible bidder which can provide a viable future for this site.
"Phillips 66 is an experienced and credible operator, and today’s sale agreement allows them to quickly expand operations at its neighbouring refinery, with all remaining staff guaranteed employment until the end of March.
"This will expand the company’s ability to supply fuel to UK customers, boosting domestic energy security and securing jobs – including hundreds of new construction jobs over the next five years."
Oil prices have held firm in the wake of President Donald Trump's military intervention in Venezuela, which saw the abduction of former President Nicholas Maduro.
Analysts from Capital Economics shared: "Venezuelan supply accounts for about one per cent of the global oil market, and even if production returned to its glory days of a decade ago it would only be about two per cent of it. So, it’s not surprising that so far the effect on oil prices has been limited."
More From GB News