“Vital stability” has been secured for the Coryton refinery after its administrators confirmed a deal has been struck to supply crude oil for three months.
The Essex-based site – which collapsed into administration last month – has agreed a ‘tolling agreement’ which guarantees crucial short-term supplies.
The arrangement was reached with Morgan Stanley Capital Group, KKR Asset Management LLC and AtlasInvest.
Administrator PricewaterhouseCoopers (PwC) explained the deal ‘will allow the refinery to continue to operate as usual whilst the feasibility of a permanent solution for the refinery is explored’.
It said the options being explored include a sale of the business and re-financing.
PwC was called in to handle the administration of site operator Petroplus Refining & Marketing (PRML) in January.
It came after Swiss oil refiner Petroplus – which ran the former BP site – filed for insolvency putting some 950 jobs at the site at risk.
Joint administrator Steven Pearson added: “It is the culmination of constructive negotiations over many days and it creates vital stability at the refinery whilst we find a restructuring solution.
“We now look forward to working with MSCGI, KKR and Atlas over the coming weeks and months to jointly ensure all long-term options are examined.
“This collaborative approach has been central to ensuring this arrangement could be concluded so quickly in very difficult circumstances.”
The collapse of the Coryton refinery in January sparked long queues outside petrol station forecourts as fears grew over the supply of fuel in the UK.
The refinery provides a reported 10% of the UK’s fuel and 20% of all fuel used in the south east.
By Andy Pearce
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