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North Sea rivals weigh bids for exploration assets of ailing Prax Group
Some of the North Sea’s biggest independent oil producers are examining bids for the upstream operations of Prax Group, the energy conglomerate whose collapse has triggered the closure of one of Britain's few remaining oil refineries.
Sky News has learnt that Enquest and Serica Energy have been in talks with administrators handling the insolvency of parts of the group about submitting offers for its exploration and production arm ahead of a deadline on Thursday evening. Ithaca Energy, another independent player, has also held discussions about an offer but has decided not to lodge one, according to a source close to the company.
Money latest: The world's most powerful passports Prax's E&P arm largely consists of the assets it acquired when it swooped for Hurricane Energy in a £250m deal in 2023. The upstream assets are not themselves in insolvency proceedings, although the money generated from their sale will be used to repay creditors of the wider group.
The bid deadline comes in the same week that the Official Receiver said the Prax Lindsey refinery in Lincolnshire would shut after no buyer was found for it. Hundreds of jobs will be lost as a consequence of the closure.
A sale process is also pending for its downstream petrol forecourts business. A spokesperson for Teneo, the administrators of State Oil and other assets in the Prax Group, said: "The ongoing management and operation of Prax E&P and its subsidiaries is a matter for the directors of those companies." Enquest, Ithaca and Serica all declined to comment..
Amir Nisi
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