Fuel tanker drivers linked to Prax in North Lincolnshire made redundant
A logistics arm of Prax Group has now also entered administration and is to close down
Fuel tanker drivers linked to Prax Group’s North Killingholme oil refinery have been made redundant with immediate effect.
Last week, the LDRS reported on the owners of the Lindsey Oil Refinery entering administration. A logistics arm of Prax Group has now also entered administration and is to close down.
Teneo Financial Advisory Limited was appointed as the administrator for Axis Logistics on July 7th. Axis provides logistics and distribution services to Prax Group, including to petrol station forecourts and airports. It has been confirmed the majority of its 137 staff have been made redundant with immediate effect.
The 137 staff are separate from the headcount of approximately 400 staff who work at the oil refinery itself.
In a statement by administrators Teneo, it is stated Axis “has suffered operational challenges as a result of the wider group insolvencies”, resulting in its administration. “Unfortunately, after carefully assessing all available options, the administrators concluded it is not possible to continue to trade the Axis business.
“Regrettably, the majority of the company’s 137 employees have been made redundant immediately upon appointment, with a small number of employees being retained for a limited period to support the orderly closure of the business.” Teneo’s specialist employee team are supporting employees in making relevant claims to the Redundancy Payments Service. The company’s transport fleet will be sold off by the administrators.
On June 30th, the UK’s Official Receiver was appointed as liquidator for Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited.
Teneo was appointed as administrators for State Oil Ltd, the parent company of Prax Group, and Prax Treasury Limited. FTI Consulting LLP personnel were appointed as special managers of the Prax Lindsey, Terminal and Storage companies, to assist with their liquidations. It is understood workers at the refinery, who number approximately 400, will be retained while options are considered for its future.
The Government is funding the Official Receiver to ensure the refinery’s continued safe operation. This includes taxpayer spend on crude oil supplies to the site.
As well as tanker distribution, fuel is exportable from Lindsey Oil Refinery via two pipelines. This includes the Fina pipeline, which goes to Hertfordshire, and has been used to supply fuel to London Heathrow. It is widely reported the refinery accounts for about ten per cent of the UK’s fuel refining capacity.
Prax Group acquired Lindsey oil refinery from Total in 2021. Financial reports between Prax’s purchase of Lindsey Oil Refinery in 2021 and February 2024 show the refinery recorded losses of approximately £75m.