Update: Prax Lindsey Oil Refinery Limited (and associated companies)

The assets of Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, Prax Terminals Killingholme Limited, Prax Terminals Jarrow Limited and Prax Downstream UK Limited will be sold to Phillips 66 Limited. 

An agreement was reached to sell the assets on 5 January 2026. 

The companies were wound up from June last year, requiring the Official Receiver to oversee the liquidations and the running of the refinery. 

The Official Receiver, Gareth Allen, and special managers from FTI Consulting LLP (Matthew Callaghan, Jo Hewitt, Andrew Johnson and Sam Ballinger) confirmed that Phillips 66 Limited has been successful in its bid for the sale of the site and the assets, with the completion of the sale to take place following satisfaction of closing conditions, including customary regulatory approvals.

All employees have been informed.  

The Official Receiver, Gareth Allen, said:  

Over the past six months, every effort has been made to secure a buyer and ensure a future for the site at Prax Lindsey Oil Refinery.  

As Official Receiver, my legal responsibility is to seek the best possible outcome for creditors when companies go into liquidation and this has been achieved. 

My thanks to the team at the Insolvency Service, the special managers at FTI Consulting LLP, and the leadership team and employees at the site for their work. 

We will now oversee the completion of the sale and the transfer of the companies' assets to Phillips 66 Limited.

The conduct of the companies' former directors, following the liquidation, remains the subject of an ongoing Insolvency Service investigation. 

Information regarding the companies in liquidation can be found here: Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, Prax Terminals Killingholme Limited and Prax Terminals Jarrow Limited in Liquidation: information for customers, suppliers, creditors and sub-contractors - GOV.UK

Energy Minister Michael Shanks said:    

“This agreement marks the next step in securing an industrial future for the Lindsey site and the workers, who were badly let down by their former owners.  

“After a thorough process to identify a buyer for the site, the Official Receiver has determined Phillips 66 is the most credible bidder which can provide a viable future for this site. 

"Phillips 66 is an experienced and credible operator, and today's sale agreement allows them to quickly expand operations at its neighbouring refinery, with all remaining staff guaranteed employment until the end of March. This will expand the company's ability to supply fuel to UK customers, boosting domestic energy security and securing jobs – including hundreds of new construction jobs over the next five years.” 

Background:   

• Since Prax's acquisition in 2021 the refinery has recorded around £75m of losses. The former owners left the company in a poor state and gave the government very little time to act. That's why the Energy Secretary immediately demanded the Insolvency Service launch an investigation into their conduct and the circumstances surrounding insolvency which is ongoing. 

• Since the refinery entered insolvency on 30 June 2025, we have worked urgently with the Official Receiver to ensure the safety of the refinery site, security of fuel supplies and protect workers. This has also allowed time for bidders to express an interest in the site and its assets. 

• The Official Receiver confirmed in November that the remaining 250 directly employed staff are guaranteed employment until the end of March 2026. 

• This sale will protect more jobs than if no sale had been agreed. 

• Phillips 66's Humber refinery, next door to Prax Lindsey, is one of the biggest refineries in the UK, which already supplies fuel to the region and has consistently turned a profit in recent years. The sale is expected to complete in the first half of 2026. 

• Humber refinery is Europe's largest producer of anode grade coke used in the aluminium industry and Europe's only producer of specialty grade graphite coke used in battery production. It is already producing sustainable aviation fuel at a commercial scale. 

• Following a thorough assessment of offers, the Official Receiver confirmed none were credibly put forward that would see a return to refining operations in the next few years and that would allow for all employees to be retained. 

• It was therefore necessary for the Official Receiver to announce 124 redundancies on the 30 September, providing affected workers with as much notice as possible up to the 31 October 2025. This would have been the case no matter which bidder had been successful in the bidding process.  

• Our first priority is supporting the workforce. That's why we took immediate action to fund a Training Guarantee for refinery workers affected by the closure, to ensure they have the skills they need and are supported to find long-term jobs, including in the growing clean energy workforce. This goes above and beyond the usual level of support offered in insolvency situations. 

• Workers will also be able to access the government's broad range of support. This includes the Department for Work and Pensions' Rapid Response Service and the National Careers Service.