LINDSEY OIL REFINERY BUY-OUT COMPLETES
NEW GENERAL MANAGER APPOINTED
A NEW era on the Humber bank is underway with new owner and new manager for Lindsey Oil Refinery. Prax Group’s purchase of the huge North Killingholme plant is complete, with Luc Smets installed to head up the 5.4 million tonne site. Announced last summer, the close will come as a huge relief to many as it was conducted through the seismic shift in industry expectations. Coronavirus dramatically slowed demand, with cars and planes parked up for much of the pandemic.
Sanjeev Kumar, chief executive at Prax, said: “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.” Covering a 500-acre site, it is one of Europe’s most advanced refineries, processing more than 20 different types of crude including, petrol, diesel, bitumen, fuel oil and aviation fuels, which are transported across the UK and abroad by sea, road, rail and pipeline.
Prax has been a long-standing partner of Total, where 400 people are employed with a strong contractor workforce also relied upon. Mr Kumar said the undiscolosed acquisition will bring about new investment, and underlines the Prax Group’s determination to support the local economy and the wider community, while continuing to explore new business opportunities as part of its longterm growth strategy. The deal includes the finaline pipeline that runs down to Hertforshire, before connecting to Heathrow, as well as shares in the joint venture operations Hertfordshire Oil Storage Ltd (60 per cent), Associated Petroleum Terminals Ltd (50 per cent), Crude Oil Terminals Ltd (50 per cent), Humber Oil Terminals Trustee Ltd (50 per cent) and Warwickshire Oil Storage Ltd (50 per cent). Headquartered in the UK, Prax has principal offices in London, Houston and Singapore, and additional satellite offices around the world.
Mr Smets was previously refinery manager for the Gunvor Group, where he also sat as chairman of the refinery’s board of directors. He joined the team in November as transition manager. With over 30 years’ extensive operational experience across the oil and refining industries, he is described as having contributed to the successful business growth and development of a number of organisations, including ExxonMobil Europe, Exxon Chemicals, Esso Belgium and Esso Luxembourg. Mr Kumar said: “We are delighted to welcome Luc to the Prax Group, and more specifically to Prax Lindsey Oil Refinery. With Luc’s extensive knowledge of all aspects of both the oil and the refinery industries, I look forward to the Prax Group continuing to provide a secure supply of energy to new and existing customers.”
Mr Smets takes over from Thomas Behrends, who has been at the helm for just over a year, having succeeded Jean-Marc Durand in January 2020 after a two-and-a-half year spell. He reverts back to a Total group role.
Mr Smets is a member of the board of the Belgian Petroleum Federation and the Mineralöl Wirtschafts Verband - a German industry association.
A spokesperson for Total said: “With this sale, the refinery will be at the heart of the Prax Group’s UK network. We are proud of the team and the work we have accomplished together.”
We are delighted to welcome Luc to the Prax Group, and more specifically to Prax Lindsey Oil Refinery. Sanjeev Kumar