The Prax Group recently agreed to purchase the Lindsey Oil Refinery and associated assets from Total, with the deal subject to meeting sale conditions.
The companies said Prax Group’s success in integrating acquisitions and managing assets in the oil value chain make it a “long-standing and trusted partner” of Total. The acquisition will deliver new investment to the refinery, and increase the Prax Group’s ability to support the local economy and wider community.
“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.”
Prax Group said the sale will place the refinery, which Total modernized and streamlined through a “major” investment in 2015, at the heart of its strategic network.
“We are committed to all Lindsey Oil Refinery employees, who are a key element for the future success of the refinery,” Kumar added.
The deal is expected to close by the end of the year, the companies said.
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. Operated by Total Downstream UK since it was constructed in 1968, Lindsey Oil Refinery has the capacity to process up to 5.4 million tonnes of crude oil per year (109,000 barrels a day). The refinery employs around 400 people, with approximately 350 contractors currently working on site.
“Since selling our British retail network in 2011, the Lindsey Oil Refinery has not been part of Total’s downstream system,” said Thomas Behrends, general manager of Lindsey Oil Refinery. “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.
“We are proud of the team and the work we have accomplished together.”