MURCO has denied reports that the Murco Milford Haven refinery could be closed after failing to find a buyer.

A report in the Sunday Times led to widespread speculation over the future of one of the county’s big employers.

The refinery employs around 400 people and has been up for sale for around three years.

The Sunday Times said it was "understood" the refinery's owners, Murphy Oil, was looking to close the facility.

Last year it was revealed that, in the absence of an offer for the refinery, the company would consider turning it into a storage facility.

A statement released by the company on Monday (November 4) evening stated: “Murco Petroleum Limited can confirm that the sales process by Murphy Oil Corporation of Murco’s UK Downstream business continues and it is actively progressing the divestiture of those assets.

“The Milford Haven refinery continues with safe reliable operations in a difficult market environment.

“The UK marketing business continues to contribute solid results for the quarter and delivered one of its best months on record in September.”

A company spokesman confirmed Murco was not in discussions with the Welsh Government over a possible closure.

He added: “We are in discussions with the Welsh Government over other things but not this. Someone has added two and two, and come up with five.

“We are constantly in discussions with the Welsh and UK governments, keeping them up to date with our operations.”

Preseli Pembrokeshire MP Stephen Crabb told the Western Telegraph that he was extremely concerned by the reports but remained optimistic for the refinery's future.

"There are incredibly tough operating conditions for oil refineries in Europe right now," he said.

"But the team at Murco worked incredibly hard in the last three years to make the refinery one of the most efficient around and I remain optimistic that a buyer will be found."

Pembrokeshire County Council cabinet member for economy Cllr David Pugh said: “Obviously we have been aware of the potential sale of Murco refinery for some time and there have been a number of interested parties, but as far as we know, there has been no agreement on the future of the plant.

“We continue to work with the company and Welsh Government to secure jobs - we don’t want to see the closure of the plant and we will do everything to make sure it stays open.”

He added: “But we are not immune to changes in the economy. This is a very difficult environment.

“We are monitoring the situation at all times.”