Oil Producers Examine Offers for Prax Group’s Operations

Introduction to the Situation

Some of the largest independent oil producers in the North Sea are examining offers for the operations upstream of the Prax Group, an energy conglomerate. The breakdown of the Prax Group triggered the closure of one of the few British oil refineries.

Companies Involved in Discussions

Enquest and Serica Energy have been in discussions with the administrators working on the bankruptcy of the group about submitting offers for the exploration and production assets before a deadline on Thursday evening. Ithaca Energy, another independent player, has also had discussions about an offer but did not submit one according to a source near the company.

Details of the Assets

The E&P arm of Prax largely consists of the assets it acquired when it won a deal of £250 million for Hurricane Energy in 2023. The assets upstream are not part of the bankruptcy proceedings, although the money generated from their sale is to be used to repay creditors.

Impact of the Closure

The bid period ends in the same week the official receiver said that the Prax Lindsey refinery in Lincolnshire would close after no buyer was found for it. Hundreds of jobs are lost as a result of the closure.

Ongoing Sales Process

A sales process is also pending for its downstream business with petrol stations.

Response from Administrators and Companies

A spokesman for Teneo, the administrators of the state oil and other assets in the Prax Group, stated that the ongoing administration and operation of Prax E&P and its subsidiaries are a matter for the directors of these companies. Enquest, Ithaca, and Serica refused to comment.