In a significant move for the UK's refining sector, Phillips 66 has agreed to purchase the collapsed Prax Lindsey oil refinery out of administration. The deal, confirmed on Monday 5th January 2026, brings an end to the site's future as a standalone operation but offers a lifeline for its workforce and the local economy in North Lincolnshire.
Sale Secures Immediate Future for Workforce
The Insolvency Service has confirmed that approximately 250 staff employed at the refinery in North Killingholme will have their jobs guaranteed until at least the end of March 2026. This provides crucial short-term stability following the collapse of owner Prax Group into insolvency in June, after which the Government's official receiver took control of the site.
Paul Fursey, Phillips 66 UK lead executive, acknowledged the difficulty of the situation, stating: "We recognise and deeply sympathise with how difficult the closure of the site has been for the workforce and the local community." He emphasised that the sale represented "the best way forward to secure jobs, bolster the local economy and encourage investment in the region."
Integration Over Restart for Lindsey Site
Phillips 66 revealed a decisive strategic shift for the Lindsey facility. The company stated it had decided not to restart standalone refinery operations at the Lindsey site, declaring it was not "viable in current form." Instead, the plan is to integrate key assets from the Lindsey operation into the neighbouring Humber Refinery, which Phillips 66 already owns.
This integration marks a consolidation of refining capacity in north-east Lincolnshire, moving away from operating two distinct sites. The Lindsey refinery was one of a dwindling number of oil refineries remaining in the United Kingdom, making its fate a notable event for the national energy landscape.
Administration and Acquisition Timeline
The path to this sale began when State Oil – the parent company of Prax Group, which owned the Lindsey refinery – appointed administrators on Monday 5th January. Phillips 66 moved swiftly to agree on a purchase out of administration, ensuring the valuable industrial assets did not face a prolonged period of uncertainty.
The acquisition underscores Phillips 66's commitment to its existing Humber Refinery operations while effectively managing the aftermath of a competitor's collapse. The focus now shifts to the complex process of asset integration and planning for the long-term future of the combined site and its workforce beyond the guaranteed March deadline.
