---
title: "Lindsey Oil Refinery to Close After Collapse of Owner Prax Group – 625 Jobs Lost"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-07-26T12:04:16+00:00"
modified: "2025-07-26T12:04:16+00:00"
date: 2025-07-26
canonical: "https://www.share-talk.com/lindsey-oil-refinery-to-close-after-collapse-of-owner-prax-group-625-jobs-lost/"
category: "Blogs"
categories: ["Blogs", "Energy"]
tags: ["dividend", "HMRC", "Lindsey oil refinery", "Prax Group", "Sharon Graham", "State Oil"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/07/dreamstime_l_2534017-scaled.webp?fit=1200%2C800&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Lindsey Oil Refinery to Close After Collapse of Owner Prax Group – 625 Jobs Lost

**Published:** July 26, 2025
**Author:** sharetalk
**Categories:** Blogs, Energy
**Tags:** dividend, HMRC, Lindsey oil refinery, Prax Group, Sharon Graham, State Oil
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2025/07/dreamstime_l_2534017-scaled.webp?fit=1200%2C800&quality=80&ssl=1)

---

The **Lindsey oil refinery** in Lincolnshire is set to shut down after efforts to secure a buyer failed, following the sudden collapse of its owner, **Prax Group**, and the disappearance of its millionaire owners, **Sanjeev and Arani Soosaipillai**.

Around **625 workers** have been told that **redundancies are now inevitable**, as the **Official Receiver** begins winding down operations. The closure will also affect Prax’s parent company, **State Oil**, leaving local communities and regional fuel supply chains under strain.

The situation escalated last month when the refinery fell into administration with **£250 million owed to HMRC**. Officials have been unable to locate the Soosaipillais, who reportedly **paid themselves a £3.7 million dividend** the year before the collapse, despite the company posting **$30 million in losses**.

Energy Minister **Michael Shanks** condemned the owners, saying:

> “We are deeply disappointed with the untenable position in which the owners left Prax Lindsey oil refinery,”and urged them to “do the decent thing” and support displaced workers financially.

**Unite’s general secretary Sharon Graham** called the refinery “**critical national infrastructure**” and demanded urgent government intervention to delay closure and secure a long-term future for the site.

The plant, which **supplied 10% of the UK’s fuel**, also provided jet fuel to Heathrow. While the airport is reportedly unaffected, **local fuel shortages** have hit forecourts in Lincolnshire.

The collapse follows broader pressures on UK refining, including the **shutdown of Grangemouth** in Scotland earlier this year due to high energy costs and uncertainty around North Sea oil policies.

**Energy Secretary Ed Miliband** has called for a **full investigation** into Prax’s collapse and the conduct of its directors.

---

**Original URL:** https://www.share-talk.com/lindsey-oil-refinery-to-close-after-collapse-of-owner-prax-group-625-jobs-lost/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*