Sky News: Prax Group Enters Administration Amid Financial Crisis

The UK energy world has been rocked today by the shocking news that Prax Group, owner of the Lindsey Oil Refinery, has entered administration due to escalating financial pressures. This article explores the full picture, written in clear and simple language for everyone to follow.

What Is Happening?

State Oil Ltd, the parent company of Prax Group, has faced mounting losses at its Lindsey refinery. As a result, it was forced to seek help from administrators, putting its future in serious doubt.

Who Took Charge?

On 30 June 2025, the High Court appointed several key players:

• FTI Consulting as special manager for the Lindsey refinery
• Teneo as administrator for State Oil and the wider Prax Group.

These firms will handle daily operations, financial reviews, and look into options, including possible sales of key assets.

Why Did This Happen?

Why did Prax Group collapse into insolvency?

It all revolves around Lindsey Oil Refinery, located in North Lincolnshire, which has become a serious cash drain since Prax bought it from Total in 2020. Despite having an annual capacity of about 5.4 million tonnes and processing 20 types of crude products, the refinery has been a financial burden, tied to cross‑guarantees that pulled down the whole group.

Who Could Be Impacted?

Jobs at Risk

• Around 440 employees work at the Lindsey refinery
• A further 180 staff are at State Oil
• The wider Prax Group supports hundreds more across oilfields and petrol stations.

In total, up to 2,500 jobs may be affected, according to some estimates.

Assets Under Threat

Assets not yet under formal insolvency include:

• Retail sites under Harvest Energies, Total Energies, Breeze, and OIL! brand in Europe
• Axis Logistics, the group’s transport business
• Upstream projects such as the Hurricane Energy portfolio and the Lancaster oilfield in the North Sea.

Despite being outside the administration so far, their fate is uncertain as administrators work through options.

What Are the Next Steps?

Teneo’s joint administrator, Clare Boardman, stated that they are exploring all options. These include:

1. Sale of the upstream business
2. Sale of retail operations in the UK and Europe
3. Continued operation of the Lindsey refinery by FTI Consulting to maintain safety and business continuity.

At this stage, there are no planned redundancies, but that could change depending on the outcome of these reviews.

Will the Assets Be Saved?

Is there hope for rescue?

Experts believe certain parts of Prax Group, especially petrol stations and oilfields, could attract buyer interest. Even the refinery might find a buyer, given its large capacity and strategic location near the Humber Estuary. But the challenge lies in overcoming its financial issues and complex legal ties.

Why Should You Care?

• Local communities in Lincolnshire could feel a major impact if jobs vanish
• The UK refining sector is already shrinking, with fewer domestic refineries able to absorb shocks market-wide
• The administration process may create opportunities for new investors to enter the UK energy market

What Happens Now?

The administrators will work quickly to balance keeping operations safe and exploring potential sales. Will parts be saved? Can jobs be protected? That depends on who emerges as a buyer and what deals can be made. Watch this space in the coming weeks.

Prax Group has hit a major financial crisis, but the administration process might still offer a path forward. We’ll keep tracking developments and provide clear updates as they happen.