Setback for oil giants in Humber jetty battle

French “supermajor” Total and American energy giant ConocoPhilips have been embroiled in a long-running legal dispute with the owner of the Immingham Oil Terminal, where a quarter of the UK’s entire oil supply is brought into the country.

The Government said it has received assurances there will be no disruption to the nation’s oil supply “whatever happens”.

But the two firms have suggested they could remove their equipment and cease working if they are not successful, potentially rendering the terminal useless for at least two years and threatening 1,000 jobs at the nearby Humber and Lindsey oil refineries.

And after months of deliberation, the Court of Appeal has upheld the right of their landlord, port operator Associated British Ports (ABP), to end tenancy agreements which have been in place for decades and have allowed the two oil giants exclusive use of the terminal for £4.2m per year.

The 40-year deal expired in 2009 and the oil firms have been trying to force ABP to renew its terms through the courts.

The ruling by Lord Justices Rimer, Kay and Tomlinson paves the way for ABP to take back control of the terminal and either open it up to other oil firms, or negotiate a significantly higher fee with Total and ConocoPhilips.

A separate ruling has set a new interim fee level of £14.8m – more than treble the current price – and backdates it to 2010.

The oil firms are now pinning their hopes on a separate court case, heard at the High Court in Leeds, where they have requested permission to forcibly purchase the terminal from ABP.

The two firms – which operate jointly as the Humber Oil Terminals Trustees – said in a statement: “Humber Oil Terminals Trustee Limited is reviewing the decision and considering its response whilst pursuing other options.”