Following the collapse into administration of Petroplus earlier this year the Coryton oil refinery is likely to close as the necessary finance to keep it open has not been forthcoming. No buyer has come forward either. The refinery needed £625m to keep it open and the closure is likely to lead to 500 job losses. The refinery provides some 20% of the fuel in London and South East. However, BP one of its main customers said that there was not going to be any disruption to supply as there were alternative distributors.
The administrators at PwC entered into an arrangement in February which allowed operations to continue at the Coryton refinery while various restructuring and sale options were explored.
However, the administrator said today that due to an “over-supplied” European refinery market any sale or restructure was not going to be possible.
Close to the M25, the 586-acre Coryton refinery was bought by Petroplus from BP for 1.4 billion US dollars (£714.6 million) in June 2007.
The refining market has come under pressure in recent years as operating expenses and the cost of crude oil surge at a greater rate than the value of the products. This is a big blow for Essex as there are many businesses involved in the supply chain and a loss of many skilled jobs.
If you work at Coryton then read our help for employees page.
If you supply the business and it looks like this is going to put your business under pressure then give us a call.