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Murco deal collapses

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Dead Failed: Murco Milford Haven (IMAGE: MIKE HILLEN/HERALD)

Dead Failed: Murco Milford Haven (IMAGE: MIKE HILLEN/HERALD)

THE DEAL between Klesch Refining Limited and Murco Petroleum Limited has failed it has emerged tonight (Nov 4)

In a statement Murphy oil has said:

“Murco Petroleum Limited a subsidiary of Murphy Petroleum Limited regrets to announce that its agreement to sell the Milford Haven Refinery and terminal assets to Klesch Refining Limited is no longer in effect. Despite every effort by Murphy to complete this sale process, conditions necessary for the sale were not able to be met. The parties are not engaged in further discussions.”

“Murco has run this sale process for over four years, and has engaged with a large number of potential buyers of these assets. The Company has now exhausted all options available for the sale of the site as a refinery, and is therefore left with no choice but to operate the site solely as a petroleum storage and distribution terminal.”

“The refinery is currently in a period of shut-down and will be decommissioned while the company seeks a buyer for the terminal facility along with the three inland terminals. While the terminal facility will continue to employ personnel in Pembrokeshire, this will unfortunately still mean a significant number of redundancies.”

LIVE UPDATES AND REACTION

21.50 HRS

Incredibly disappointed: Stephen Crabb

Incredibly disappointed: Stephen Crabb

Stephen Crabb said tonight “This is an incredibly disappointing outcome. I feel desperately sorry for the workforce and their families who have endured months of uncertainty only for the sale to collapse once again. Right up until late last week everything looked on track. When it became clear that last Friday’s deadline was not going to be met we worked through the night to persuade Murphy to keep talking to the buyer. They showed a lot of good will by once again extending their deadlines but clearly now have taken a view that there is no chance of completion within an acceptable timeframe.

“I am grateful for the enormous efforts made by the Energy Secretary and the First Minister over the weekend in trying to keep the deal moving forward. I genuinely don’t believe there is anything more that could have been done from the UK or Welsh government side to hold this together.

“We all now need to focus on how we minimise the significant economic impact the closure will have on our County. Both the UK and Welsh government will shortly outline a package of measures to help those affected. I am committed to working closely with them to ensure that those losing their jobs get the right support at this time.

I will be holding an open surgery from 12.30pm this Friday at Cedar Court, Milford Haven for Murco employees and families affected to discuss the situation. For further information: Contact my office on 01437 767555.

22.29 HRS

Labour’s Paull Miller has said “Tonight’s announcement is a hammer blow for those working at Murco and for their families. My father and both my brothers have worked on the site over the last 30 years, one brother still does. I know first hand just how devastating this news is for my family and it will be exactly the same for countless families from right across Pembrokeshire.”

22.32 HRS

Economy Minster Edwina Hart has told The Herald: “This is a devastating blow to staff at the Murco refinery and companies within the refinery’s supply chain, as well as the local communities around Milford Haven.”

22.36 HRS

Stephen Crabb MP just tweeted: “Incredibly disappointing news about Murco refinery tonight. Desperately sorry for workforce & their families – endured months of uncertainty”

22.42 HRS

Wales Office minister Baroness Randerson said: “This is extremely disappointing news for the workforce at Murco and their families.

22.45 HRS

Cllr Jon Nutting from the Pembrokeshire Alliance Group contacted The Herald saying: “This is a very sad day for Pembrokeshire and the people who will be directly affected.”

“I hope we are not going to find out down the line that eyes were not taken off the ball. I find it hard to understand that a deal supposedly done and dusted could fall through at such a late hour.”

“This is not the time for those with political power to sit on their hands. We have to try our best to see this as an opportunity, a time to invest not just money in our economy but time and effort. Time for Westminster and Cardiff bay to walk the walk and sort this out. Let’s see if PCC can do anything positive. The worst thing for Pembrokeshire will be if they all wait for someone else to get things moving. Let’s see who is capable of taking up the batten.”

22.52 HRS

Economy Minster Edwina Hart has said in a further statement to the press: “This news is especially disappointing as the Welsh Government did everything we could to support the success of this deal. Working with close co-operation from UK Government departments Welsh Government officials have been fully engaged with both parties at the highest levels for many months to try to secure the ongoing operation of the refinery and protect the jobs at the Milford Haven site.

“Our support for the Murco plant and its staff will not stop here. We have been working with the management at Murco since 2010 to try to maximise the opportunities for the sale of the refinery. In April, I established a task force to marshal support from high level stakeholders for the maintenance of refinery operations at the site for the future. The work of this task force will carry on to maximise the opportunities for employment at the site.

“We will of course all continue to work tirelessly with Murco management to maximise the opportunities for employment at the site, ensure the ongoing viability of the terminal and assist to find a new owner. Workers seeking retraining and employment will receive support through React and we will assist supply chain companies to create and explore new markets and opportunities through Business Wales.”

22.52 HRS 

Stephen Crabb MP tweeting: “Grateful to UK & Welsh Govs for all their efforts to keep Murco refinery deal alive.The closure will be a huge blow to West Wales economy.”

23.01 HRS 

Full statement from Wales Office minister Baroness Randerson: “This is extremely disappointing news for the workforce at Murco and their families. Both the UK and Welsh Government have worked tirelessly throughout this process to try to secure the future of the refinery and it is regrettable that ultimately a buyer has not been able to reach a deal with Murphy Oil. Supporting the staff at Murco is now our immediate concern and we stand ready to assist in any way we can.”

10.10 HRS Wednesday

Delyth Evans, Labour Parliamentary Candidate for South Pembrokeshire told The Herald: “This is a very severe blow to the Murco workforce and their families as well as to the supply chain and the wider community.  I welcome the statement by Welsh Government Minister Edwina Hart that the support provided up till now will not stop here.  Firstly it is essential that every effort is made by Murco, the Welsh and UK Governments to retain as many jobs as possible within the facility and to minimise redundancies.  Secondly, a comprehensive package of support must be provided to those who lose their jobs, and I expect to see the UK and Welsh Governments working together on this.  And thirdly, everything possible must be done to promote and develop the Haven Enterprise Zone as a fantastic place for energy-related businesses to invest with its natural deep water, excellent facilities and the availability of a highly skilled workforce.  There is huge potential in the area to develop the energy technologies we will need for the future, and we must take every opportunity to tell companies in the UK and across the world what Pembrokeshire has to offer.”

 10.22 HRS Wednesday

Alan Card, Union Convener, said: “We are already in talks with both Westminster and the Welsh Assembly Government. Our Regional Secretary is meeting later today with Edwina Hart to look at reforming the task-force. This is a massive blow, not only for Pembrokeshire but also for the whole Welsh economy as the refinery contributes 17% of Wales’ domestic product. I am travelling to Milford Haven today to meet with members and to try and clarify the situation.”

10.26 HRS Wednesday

Commenting on the collapse of a deal to save the Murco oil refinery in Milford Haven, William Graham AM, Shadow Minister for Business, said:  “My thoughts are with workers at Murco and their families as well as all those businesses who are involved in the oil refinery supply chain.

“This terrible news is a body blow for the West Wales economy and will leave thousands of highly skilled workers facing uncertainty as we approach Christmas. I’m sure that both the UK and Welsh Governments will wish to provide as much support as possible to the local community to support families who have lost their source of income.”

Paul Davies, Assembly Member for Preseli Pembrokeshire, said, “I am very upset to hear that this deal has fallen through, with devastating implications for so many Pembrokeshire families. This dire news will leave many Pembrokeshire businesses which were involved in the supply chain with significantly reduced orders and could result in many further job losses.

“I will be doing everything I can to ensure that Pembrokeshire workers affected by this oil refinery closure will receive every possible support to enable them to find new employment.”

10.35 HRS Wednesday

Following the failure of the sale of the Murco oil refinery in Milford Haven, Pembrokeshire County Council has this morning been in contact with the Welsh Government to help reconvene the Murco Task Force, the Authority said in a statement

The high-level body was originally set up by the Welsh Government to support the refinery’s parent company, Murphy Oil, to find a buyer.

The Council is also liaising with other agencies, such as Job Centre Plus and Pembrokeshire College, as well as its own Futureworks/Workways teams in order to offer as much assistance as possible to the refinery employees and the supply chain companies.

Council Leader, Council Jamie Adams, said the announcement by Murphy Oil was “devastating news” for the workforce and their families, especially as the sale of the refinery seemed to have been agreed earlier this summer.

“We will be doing everything we can to soften the blow for the individuals affected,” he added.

11.21 HRS Wednesday

Local Assembly Member Paul Davies has expressed his disappointment that a deal to sell Murco oil refinery in Milford Haven has fallen through.

Mr Davies said, “This is a very sad day for the people of Pembrokeshire and my heart goes out to the workers at the refinery and their families. This is bitterly disappointing news. The refinery employs 400 people, all of whom will need support to find alternative employment. The collapse of this sale is a huge blow to the Pembrokeshire economy and sadly, this may take years for the County to recover.”

He added, “I understand that both the UK and Welsh Governments worked together on this matter and unfortunately, in the end they were not successful. However, both Governments must continue to work collaboratively to secure the refinery’s future. In the meantime, support must be made available to the workers and their families, who now face a bleak period of uncertainty in the run up to Christmas.”

11.24 HRS Wednesday

Pembrokeshire Councillor Ken Rowlands said: “This is devastating news for our communities. My heart goes out to all the families who will be affected. It is a huge disappointment to everyone , when we believed  that a solution had been found at last. Both the Westminster Government and the Welsh Government must do their utmost to alleviate the problems in any way they can during these times of austerity.  This collapse of the negotiations couldn’t have happened at a worse time.”

 11.26 HRS Wednesday

Plaid Cymru AM for Mid and West Wales, Simon Thomas has reacted to the news that hundreds of jobs are under threat in Pembrokeshire as a proposed deal to buy an oil refinery has collapsed. Simon Thomas AM described the news as devastating for employees, their families and the local community.

The Party of Wales Mid and West AM Simon Thomas said: “This is devastating news for employees of the Murco refinery and for their families and I send my deepest sympathies to them. The future looks uncertain for them and I expect the Welsh Government to offer them every support as they move forward.

“The impact of the closure will also be felt in the wider Welsh economy. Milford Haven is an important economic hub and we need to work to make it an attractive location for new businesses to invest with new technologies. Wales is an energy-rich country and can be a world leader again. Milford Haven already has a highly skilled workforce, and the Welsh Government now needs to work to ensure that these skills can unlock new employment opportunities for the workforce at Murco.”

12.04 HRS Wednesday

Local AM, Rebecca Evans said: “This is extremely sad news for workforce at the Murco refinery, and for the local businesses which rely on the refinery for their viability. I know that the Welsh Government pulled out all the stops to try and secure a sale and protect jobs at the site, and I pay tribute to everyone who has worked so hard over many months to try and find a good outcome. I have already asked the Minister to explore what help can be offered to affected workers – for example, via the Welsh Government’s React scheme.”

12.17 HRS Wednesday

Simon Hart MP said: “This is very sad news for everyone involved, especially given that a deal was so close to being signed. To be let down at the 11th hour must be particularly painful.  I know that our County will make every effort to help those affected by this news”

14.25 HRS Wednesday

Edwina Hart MBE CStJ AM, Minister for Economy, Science and Transport has made an Oral Statement at the Welsh Assembly:

Edwina Hart said: “Members will wish to note that efforts by Murphy Oil Corporation to sell the Milford Haven refinery, as a going concern to a third party, have unfortunately proved unsuccessful, following the collapse of negotiations with the Klesch Group, late last night.”

 
“This is a deeply unsettling time for the company, its employees, their families and the wider community in Pembrokeshire.  The Milford Haven refinery has been integral to the fabric of the oil and gas infrastructure in Wales and the Welsh economy for many years, providing for a significant number of high value, high skilled employment  opportunities.
Since 2010, we have been working with Murphy Oil Corporation to maximise the chance of a sale of the refinery as a going concern to a potential third party investor, following a decision by the Board to exit the refining sector in the UK.”
 
“We have been working with the UK Government to support this deal between Murphy oil and the Klesch Group. While the detail of that support is obviously commercially confidential, I can assure Members that every possible route has been explored to make this deal happen.”
 
“I understand that Murphy Oil Corporation will now proceed to convert the site into an oil import terminal and which is likely to result in a number of redundancies at the site. We will all continue to work tirelessly with the company management to maximise the opportunities for employment at the site, ensure the ongoing viability of the terminal and assist to find a new owner for the operation.”
 
“We will of course be assisting any of the workforce in Wales facing redundancy with ReAct support and advice and, continue to work with the company and third party partners to explore all options for maintaining the high value highly skilled jobs in the area.”
 
“In April,  I established the MURCO task force to marshal support from high level stakeholders to support the company and I have therefore asked the MURCO refinery Taskforce to continue that work to maximise the opportunities for employment at the site.”
 
“As a Government, we are determined to do all that we can to support the employer, its workforce and those in the local supply chain, I am therefore strengthening the presence of  Business Wales  in the area to ensure that we provide support and advice for those local businesses that are affected by the closure  to explore new markets and those wishing to set up in business.”
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Health

Pembrokeshire residents suffer severe health decline ‘due to landfill gases’

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A PEMBROKESHIRE couple, Mr Richard and Revd Patricia Rogers of Crud yr Awel, are experiencing severe health issues attributed to emissions from the Withyhedge Landfill, resulting in drastic lifestyle changes and severe symptoms.

Revd Rogers, who has managed asthma since childhood, reported a significant deterioration in her condition following exposure to landfill gases. Despite having controlled her asthma with minimal medication for years, she now requires intensive treatment including increased doses of Symbicort and Salbutamol Sulfate inhalers, alongside courses of steroids and antibiotics. Her symptoms have escalated to include extreme breathlessness, a hacking cough, frequent nosebleeds, continual headaches, and vertigo, culminating in a severe impact on her ability to perform daily tasks and care for her disabled daughter.

The couple’s health is closely monitored through their doctor’s surgery, and they attend the asthma clinic regularly. However, feeling powerless to directly change the situation, they have taken a stand by cancelling their council tax payments, a decision they plan to maintain until the landfill issue is resolved.

Revd Rogers has also prepared a letter to the Coroner, outlining the severity of her health issues as potentially life-threatening due to the landfill’s impact. This dramatic step underlines the gravity of their situation and their desperation for a resolution.

The Rogers’ story is not just a personal tragedy but a stark example of the broader environmental and health challenges faced by the community surrounding the Withyhedge Landfill.

They are calling for punitive measures against those responsible, including compensation for the financial impacts of their ordeal.

Their story has surfaced on the same day we reported that Natural Resources Wales is taking further enforcement action against the firm running the site.

NRW has issued site operators Resources Management UK Ltd (RML) with a further Regulation 36 Enforcement Notice which requires the operator to deliver a series of actions by specified deadlines to address ongoing smells from the landfill.

You can read more about the Enforcement Notice on the NRW website.

Outgoing Council Leader, Cllr David Simpson, said in a statement this week: “The smell from Withyhedge is having a major impact on residents and visitors. This situation has gone on too long and it is unacceptable.

“We now need to see RML act on the demands of the Notice and within the deadlines.

“The Council fully backs NRW’s stance that nothing is off the table in terms of further enforcement, including suspending the site’s environmental permit if appropriate, and we remain committed to working with NRW to ensure a long term solution to these issues.”

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Entertainment

Fishguard Festival of Music launches at the Senedd in Cardiff

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  • Paul Davies MS for Preseli Pembrokeshire hosts event to promote major programme of summer concerts.

THIS year’s Fishguard Festival of Music/Gwyl Gerdd Abergwaun was officially launched at the Senedd in Cardiff Bay this week (Wednesday) in an event hosted by Paul Davies MS Preseli Pembrokeshire.  Guests attending heard from the festival’s artistic director Gillian Green MBE about the 18 events extending over three weeks that will be staged at venues across Pembrokeshire from 18 to 31 July, including a concert by the Welsh National Opera Orchestra at St David’s Cathedral.

Paul Davies MS, said: “I’m truly honoured once again to sponsor the launch of the Fishguard Festival of Music. Over the summer, Fishguard will host world-famous musicians like harpist Catrin Finch and fiddle player Aoife Ní Bhriain, and the festival also includes performances from the National Youth Orchestra of Wales, the National Youth Choir of Wales and the Welsh National Opera Orchestra – so there really is something for everyone! Tickets to these performances sell out quickly and so make sure to head over to the Festival’s website and secure your tickets before it’s too late.”   

Gillian Green MBE, Artistic Director of the Fishguard Festival of Music, added: “The Fishguard Festival plays a significant role on the cultural map of Wales and our mission to bring world-class music to Pembrokeshire is as strong as ever. This year we will have a real feast of music awaiting audiences in West Wales.  The local community’s work in producing this fantastic festival is nothing short of a small miracle.”

Artists performing at this year’s festival include Peter Donohoe, Catrin Finch and the Marmen String Quartet.  The full programme is available to view on the festival’s website www.fishguardmusicfestival.com

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Climate

NRW to reduce mowing in May to help pollinators

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NATURAL Resources Wales (NRW) will reduce mowing as much as possible on the land in its care during May to help tackle the nature emergency and in support of Plantlife’s ‘No Mow May’ campaign.

The scale and rate of biodiversity loss across Wales is accelerating. Every third mouthful of food we eat has been created by pollination, and without pollinators our food supply would collapse.

Half of the UK’s 27 bumblebee species are in decline, and of the 43 species of butterfly seen in Wales, 10 are in severe decline and 17 are declining.

There are several reasons for the decline in pollinators, such as climate change, pollution and pesticides, and change in how land is managed.

Throughout the growing season, NRW cuts grass and vegetation in areas such as forests, nature reserves, river banks, flood defences and reservoir embankments.

Reducing mowing in May will help biodiversity by allowing spring plants to set seed and grow to provide nectar and pollen for pollinators, such as bees and butterflies.

NRW will reduce its mowing activities in May as much as possible, but essential grass cutting will continue in some areas across Wales.

There are several reasons for this, for example:

  • to manage access to forests and nature reserves to make sure people are safe when they visit.
  • to easily inspect flood defences and repair them if needed, helping to reduce flood risk to communities.
  • for nature conservation, for example to manage an invasive species or to benefit species in a certain area by cutting the vegetation.

David Letellier, NRW’s Head of Operations South Wales Central, said: “We’re committed to tackling the climate and nature emergencies and helping nature and people thrive together.

“We will reduce our mowing activities in May as much as possible to support pollinators, but we want people to understand that we may carry out essential grass cutting to benefit certain communities or species.

“For example, we may continue mowing flood defences to make sure they are in good working order, or if mowing some sites in May would leave wildflowers to recover and bloom throughout the late summer to benefit certain pollinators.

“We need to act now to protect our pollinators. This is why we manage all of our sites to make them as pollinator friendly as possible and to provide food and shelter for other species.

“There are things we can all do to make it easier for pollinators to survive. These can be relatively simple, such as managing grass verges in a more sensitive way, or leaving wild areas around our offices, homes and public buildings.

“We can all help by making our gardens pollinator-friendly by not using pesticides, not mowing the lawn as often, and growing pollinator-friendly plants.”

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