“Vital breathing space” has been bought for the Coryton refinery after a cargo of oil was secured for the site.
The administrators of Petroplus Refining and Marketing (PRML) confirmed the delivery will allow refining to continue while they continue their hunt for a buyer.
According to joint administrator Steven Pearson, partner at PwC, a “number of parties” have expressed an interest in the site and they will “work through the day and night” to complete a sale.
He said: “It has required extensive discussions and intense negotiations to acquire this cargo of oil.
“The support of the management, employees and unions at Coryton has been outstanding and a critical factor in getting to this stage.”
The Essex-based refinery went into administration last week after Swiss oil refiner Petroplus – which ran the former BP site – filed for insolvency.
And Pearson warned that, due to the site’s “significant” operating costs, the refinery is currently living on a “hand-to-mouth” basis.
He added: “We cannot guarantee anything at this stage, but at least with have extended the period which the site can operate for by a number of days.
“This extra time is critical in maximising our options.”
The refinery employs some 950 people and Stephen Metcalfe, MP for South Basildon and East Thurrock, welcomed the administrators’ announcement.
He confirmed the delivery will be made either this afternoon or tomorrow morning, depending on the weather.
He said: “This is excellent news. I have been in regular contact with the company throughout this difficult period and have been working with them and government to do what is necessary to secure a supply of crude to ensure the refinery keeps running.
“I can also confirm that the refinery is operating and producing fuel and that no interruption to processing is anticipated.”
He added that, although there are “still difficult times ahead for the business” this is “another welcome step along the road to securing the long-term future of the refinery”.
By Andy Pearce
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