A deal to sell a Pembrokeshire oil refinery has fallen through putting 400 jobs at risk.

As we were going to press yesterday (Thursday), Murphy Oil said it was entering into consultation with staff on the future of the Murco plant in Milford Haven.

The site has been up for sale for four years, but the firm had been in 'advanced' talks with London-based private equity fund Greybull Capital over a possible buyout.

Commenting on the news, local Assembly Member Paul Davies said: "I am extremely concerned about the statement regarding the Murco refinery at Milford Haven. Murco is a significant employer in Pembrokeshire and the refinery is of huge importance to the local economy. This news will be a bitter blow for Pembrokeshire and will undoubtedly leave hundreds of highly skilled jobs in our community at risk.

"I appreciate that the oil industry is facing difficult times and I very much hope that Murco are exploring all sale opportunities. However, this news is of great concern to the people of Pembrokeshire. I have now written to the First Minister of Wales, expressing my concern at this latest news and calling for support from the Welsh Government. It is crucial that we all work together to help secure the sustainability of this refinery for years to come."

Minister for Economy Edwina Hart said: "We are very disappointed by this announcement and fully recognise the impact this will have on the employees, contractors and businesses in the area. We have been working very closely with Murco over the past four years to try and secure the ongoing operation of the refinery and protect the jobs at the Milford Haven site.

"We have spoken to the senior management at Murco to offer our ongoing support. The First Minister will be visiting the site at the earliest opportunity to explore all possible options to retain these valuable jobs at Milford Haven.

"We are very keen to work collaboratively with all levels of government and I have already spoken with the UK Minister for Business and Energy to discuss how we can support the employees and the company through this difficult and worrying time."