Phillips 66 Limited wins bid for North Killingholme refinery assets from Official Receiver, with integration into Humber Refinery operations and no restart planned
Lindsey Oil Refinery is set to be acquired by Phillips 66, with confirmation that refining operations will cease permanently. The Official Receiver and FTI Consulting special managers have announced that Phillips 66 Limited emerged victorious in the bidding process for the site and its refinery assets.
Phillips 66 has indicated it will incorporate essential assets into its current Humber Refinery operations. The company has dismissed any possibility of restarting Lindsey Oil Refinery, citing constraints related to scale, facilities and capabilities.
The facility, located near North Killingholme, was placed into receivership following the liquidation of Prax Group companies on June 30, reports Grimsby Live. The refinery directly employed 420 staff, with hundreds more relying on it through contractual arrangements.
During the autumn, 124 employees were made redundant after it was determined that the refinery would not realistically resume operations within the coming years, given the nature of site bids received. Remaining direct employees have been assured of work until the end of March.
A Government minister has stated the deal will generate hundreds of construction positions over the next five years.
Official Receiver Gareth Allen commented: “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.”
In response, Energy Minister Michael Shanks commented: “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.”
Completion of the site’s acquisition is anticipated during the first half of 2026, with all workers having been notified of developments.
Paul Fursey, Phillips 66 UK lead executive, stated: “Agreeing to acquire Lindsey Oil Refinery assets and associated infrastructure marks an important step for Phillips 66 Limited as we continue to invest in the UK’s energy security.
“We recognise and deeply sympathise with how difficult the closure of the site has been for the workforce and the local community. This sale is the best way forward to secure jobs, bolster the local economy, and encourage investment in the region.”
The Government has already established a Training Guarantee for directly employed refinery workers. This ensures they possess the necessary skills and receive support to secure long-term employment, including opportunities within the expanding clean energy sector.
Employees will also have access to the government’s comprehensive range of assistance programmes. This encompasses the Department for Work and Pensions’ Rapid Response Service and the National Careers Service.
Phillips 66’s purchase of the facility coincides with its investment in a multi-year initiative at its Humber location to facilitate production of superior-grade petrol. The behaviour of the Prax Group companies’ former directors remains subject to ongoing investigation.
