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Murco refinery deal saves 400 jobs

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MURPHY OIL has agreed to sell its Milford Haven refinery in Wales to oil entrepreneur Gary Klesch, who vowed to maintain operations at the struggling plant.

The sale, which follows several failed attempts to sell the 135,000 barrels per day refinery over the past two years, will see Arkansas-based Murphy Oil exit most of its British operations.

The price of the deal was not disclosed.

“We look forward to using our considerable industry expertise to return the site to profitable growth,” a Klesch Group spokesman told The Herald.

“By taking a long-term investment view we aim to secure the future of this refinery for its employees and the broader community.”

Bryan Kelly of Murphy Oil Corporation said: “Murphy Oil is pleased to announce that a deal has been agreed for the sale of the Milford Haven Refinery. We have worked tirelessly to find a workable solution that would see the refinery remain open, and are delighted that a positive outcome has been reached. The company is extremely grateful for the patience and professionalism of Murco employees, without whom a deal would not have been possible.”

Murphy halted production at the ailing plant in May after failing to strike a deal with London-based private equity fund Grey Bull. The Klesch Group is a global industrial commodities business, with three divisions specialising in the production and trading of chemicals, metals and oil.

Stephen Crabb MP said on twitter: “Excellent news for Murco refinery employees as sale moves forward. It’s so important to maintain UK oil refining.”

Stephen Crabb later told The Herald: “I am delighted that Klesch Group have today formally agreed to purchase the Murco oil refinery in Milford Haven, following an agreement in principle reached last month. Gary Klesch has a strong track record of reviving businesses in loss making industries and I was pleased to be able to bring him into the negotiations seven months ago. There is still more work to be done but today’s announcement is very encouraging news for the refinery staff and their families.”

Pembrokeshire County Council has welcomed the announcement: “This is good news for Pembrokeshire, Wales and indeed the whole of the United Kingdom” said the Council’s Cabinet Member for Economy, Councillor David Pugh.

He went on: “The refinery is a key component of the UK energy supply system and its retention supports and strengthens the role of the Milford Haven waterway as a global energy centre – a position recognised in terms of its Enterprise Zone status.

“The refinery supports hundreds of quality jobs in the local and regional economy, both directly and indirectly.

“Safeguarding this skill-set – and the local supply chain – has been an important focus of the Task and Finish Group which the County Council has contributed to.

“We look forward to working with the Klesch Group and take this opportunity to congratulate all partners involved in bringing these negotiations to a successful conclusion.”

The refinery has been a major employer since it opened in 1973.

According to Murco, the deal is still pending regulatory approval and subject to other material conditions.
“This transaction is scheduled to close no later than October 31, 2014”, a spokesman told The Herald.
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Charity

Women take on Three Peaks Challenge to support mental health services

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TEN inspirational women are set to tackle the iconic National Three Peaks Challenge on June 7, 2025, to raise vital funds for PATH – Pembrokeshire Action for the Homeless.

Motivated by the support they received through free counselling provided by Pathway Counselling, these women are embarking on this ambitious challenge to help fund mental health services offered by the charity.

The gruelling challenge, organised by Lucy Brazier with the support of Aspire Fitness and Charlotte Neill, will see the group climb the three highest peaks in the UK – Ben Nevis in Scotland (1,345m), Scafell Pike in England (978m), and Snowdon in Wales (1,085m) – all within a 24-hour timeframe. In total, the event involves 23 miles of walking and 450 miles of driving between the mountains.

Lucy Brazier, the organiser, expressed the group’s determination to succeed in this challenge, stating: “We are doing this to give back to the services that helped us through difficult times. Mental health support is crucial, and we hope our efforts will make a difference to others who need help.”

The challenge is not just a test of physical endurance but also a significant fundraising effort. Donations can be made through the group’s JustGiving page at www.justgiving.com/page/nationalthreepeaks.

PATH has been instrumental in supporting individuals struggling with homelessness and mental health issues across Pembrokeshire. The funds raised will ensure the continuation of essential services that positively impact lives.

The team is calling on the community to rally behind them and support their mission. Every donation, no matter how small, will help them reach their goal and make a difference.

For more updates on the challenge and to show your support, visit the JustGiving page and follow PATH’s social media channels.

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Senedd debates UK Government’s ‘disastrous’ first six months

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THE CONSERVATIVES criticised the UK Government’s record six months on from the general election, accusing Labour of doing “not a dickie bird” to stand up for Wales.

Darren Millar, leader of the Tories in the Senedd, said people were told Labour governments at both ends of the M4 would be great for Wales in the run up to July’s election.

But he warned: “What we’ve actually ended up with is a double whammy: broken promises and failing policies … alongside a passive, silent Labour Welsh Government unwilling to offer a squeak of criticism or lift a finger to defend the interests of the people of Wales.”

Leading a Tory debate, he said the new UK Government has hit farmers with inheritance tax, taken winter fuel allowance from pensioners and hiked national insurance for businesses. 

Mr Millar told the Senedd that Welsh railways remain underfunded as he accused Labour of settling for “scraps” despite previously calling for billions of pounds from HS2.

Peter Fox, the Tory shadow rural affairs secretary, warned farmers have to deal with Labour governments “who either do not care or do not understand the needs of rural communities”. 

Mr Fox, a farmer and former council leader who represented Monmouth since 2021, criticised changes to agricultural property relief by the UK Government.

“It’s not a loophole,” he said. “It’s a carefully designed policy … to protect Britain’s family farms from being broken up.”

His colleague Natasha Asghar, who represents South Wales East, described a -45% approval rating for Keir Starmer’s government as “a tad generous”.

She said: “If this is just what the first six months of Sir Keir’s premiership look like, I sincerely dread to imagine what the next six months have in store for all of us.”

Mark Drakeford said the Conservative motion in front of the Senedd concentrated entirely on matters outside the Welsh Parliament’s responsibility.

Following the debate on January 15, Senedd members voted 26-24 against the motion with Labour’s amended version agreed by the same margin.

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Welsh Government ‘in the dark’ on £109m tax rise cash

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THE WELSH GOVERNMENT remains in the dark about how much Wales will receive to cover the estimated £109m cost of tax rises in the public sector, a committee heard.

Jayne Bryant said the UK Government has confirmed it will provide funding to public-sector employers towards the increased cost of national insurance contributions from April.

But Wales’ local government secretary said ministers expect to receive additional funding in ‘late spring’ and have not yet received confirmation of how much Wales will receive.

Plaid Cymru’s Siân Gwenllian raised concerns about the impact of tax hikes as the Senedd’s local government committee scrutinised Welsh ministers’ 2025/26 spending plans.

Judith Cole, deputy director of council finance policy, said the Welsh Government estimates the cost of the tax hike to the public sector in Wales at £109m.

Asked how funding will be divided between councils, Ms Cole said the standard funding formula could be used or it may be based on a proportion of spending as in England.

But she stressed that other factors need to be taken into account because, for example, some councils will provide more services by directly employed staff.

Reg Kilpatrick, director of local government, added: “We’re entirely dependent on the negotiations between the cabinet secretary for finance and the UK treasury.”

Ms Gwenllian warned of the impact of tax hikes on the voluntary sector and outsourced services, piling more pressure on council budgets.

She said: “I’ve spoken with three councils … but one said that this will cost an additional £2m in terms of internal salaries but £2.5m in terms of the work that is commissioned.

“Another council said £5.4m on the internal, £2.8m on the work that is outsourced – another said £8m internal and £3m on the outsourced work. There is a lot of work commissioned beyond the local authorities themselves and there is no mention of any support.”

Giving evidence on January 15, Ms Bryant said the UK Government has confirmed it will use the Office for National Statistics definition of a public sector worker.

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