Refinery is £1.5billion in debt

Swiss firm Petroplus owns the site, but filed for bankruptcy in January when banks withdrew £675million of credit.

Administrator Pricewater-housecoopers took over the running of the site and has now revealed the extent of the refinery’s debt.

It said a new finance deal of £632.6million was needed to keep the refinery running in the medium term.

The administrator has said if a new deal can’t be reached, it will either sell the Stanford-le-Hope refinery or close it down.

Administrator Steven Pearson said “significant progress” had been made to create short-term stability.

An agreement with a consortium of financiers reached last month ensured Coryton will be able to refine oil until May.

The refinery has about 540 direct employees and a further 600 contractors.

Its book value – its total assets minus intangible assets and liabilities, such as debt – is estimated to be £822million.

The administrator believes Petroplus suffered because the economic downturn in Europe hit demand for transport fuel.

It has also faced growing competition from refineries in Asia, which have lower costs.

Mr Pearson added: “At the upcoming meetings, Petroplus Refining and Marketing’s creditors will get the opportunity to understand the challenges associated with refinancing and restructuring the company, together with the other options being explored.”

East Thurrock MP Stephen Metcalfe, whose constituency covers Coryton, said: “I welcome that the short-term future of the plant has been secured and progress is being made in terms of securing its long term future.

“I recognise there are still many hurdles to overcome, but with the Coryton Refinery being a profitable business, I see no reason why a long-term solution cannot be found.”

Labour Euro MP Richard Howitt said: “The situation is far from solved. Closure still remains a real possibility and that should firm our resolve to do everything possible to keep the refinery open.”