UK oil refining, trading and logistics group Prax has completed its acquisition of the 5.4 million tpa Lindsey oil refinery in Lincolnshire, UK, from French energy company Total.
The refinery processes more than 20 types of crude into petrol and diesel, primarily, alongside speciality oil products such as fuel oil, bitumen, kerosene and aviation fuel. The site covers more than 200 ha and includes storage, rail loading facilities, and the Killingholme road loading terminal.
Prax’s acquisition also includes the high capacity Finaline pipeline which carries refined products to the Greater London area, and shares in various storage and terminal joint ventures – Hertfordshire Oil Storage Ltd (60%), Associated Petroleum Terminals Ltd (50%), Crude Oil Terminals Ltd (50%), Humber Oil Terminals Trustee Ltd (50%) and Warwickshire Oil Storage Ltd (50%).
Luc Smets will take up the position as general manager of the refinery. Smets was formerly the refinery manager for the Gunvor Group, where he was also chairman of the board. He has more than 30 years’ experience in the oil and refining industries.
Prax has also announced the signing of an exclusive crude oil and feedstocks supply deal with Trafigura for the refinery.
Prax plans future investment in the refinery and will explore new business opportunities, as well as supporting the local economy and wider community.
‘Our long-term strategy is to be fully integrated across the oil value chain from upstream to downstream, and today marks the beginning of a new chapter for the Prax Group. The acquisition of Lindsey oil refinery is a natural progression for the group, providing the opportunity to integrate the refinery and its associated product flows into the company’s UK distribution and retail footprint, which operates under the Harvest Energy brand. This will create unique opportunities for synergies with existing Prax-owned assets, as well as demonstrating our ongoing commitment to building a reliable supply chain to meet the needs of our customers for many years to come,’ says Sanjeev Kumar, CEO of the Prax Group.