The UK government has reached an agreement to restart fuel deliveries at the Lindsey Oil Refinery in Immingham after its owner filed for insolvency, placing hundreds of jobs in jeopardy.

Prax Lindsey Oil Refinery Limited went into administration last Sunday, prompting concerns over the future of the site and the 420 employees who work there. Including contractors and suppliers, up to 1,000 jobs could be affected.

According to the Department for Energy Security and Net Zero, crude oil deliveries to and from the site will now resume under a new arrangement. The government has reportedly used taxpayer funds to purchase existing crude oil stored at the site, allowing operations to continue for the time being.

Talks were also held with Glencore, a major commodity trader, to review the terms of its supply contract with the refinery. Officials said the site will now be run under the supervision of the official receiver to ensure safe operations.

Energy Minister Michael Shanks criticized the handling of the situation by the company’s directors and called for an immediate investigation. He said efforts are underway to find a new buyer for the site, or explore other future uses if a sale isn’t possible.

Lindsey is the UK’s smallest oil refinery and has been losing money since it was bought from Total by Prax Group in 2021, with reported losses nearing £75 million. Despite the financial troubles at Lindsey, the nearby Phillips 66 Humber refinery continues to operate successfully.

Authorities say fuel supply across the UK remains stable, and national stock levels are unaffected by the refinery’s troubles.