Earlier this week, the Reuters news agency reported the government was in talks with commodities trader Glencore over the status of its supply and offtake contract with the refinery.
In a statement on Friday, a spokesperson for DESNZ said: “An agreement has been reached to resume deliveries in and out of the Prax Lindsey Oil Refinery. The official receiver is ensuring continued safe operations at the site.
“The UK is well supplied with fuel – the site is right next door to one of the biggest and most efficient refineries in the country, and stock levels are normal across the UK.”
Prax Group, which is led by chairman and chief executive Sanjeev Kumar Soosaipillai, purchased Lindsey Oil Refinery from French company Total in 2021. The company’s financial reports indicated the plant recorded losses of about £75m between the takeover and February 2024.
There are 420 employees at the refinery, though Unite the Union said 1,000 jobs could be affected when taking into account contractors and the supply chain.