The winning bidder for one of the country’s last remaining oil refineries has stated that it does not intend to resume fuel production at the site and cannot assure how many jobs will be retained. Phillips 66, which already owns the Humber Refinery in north-east Lincolnshire, announced on Monday that it had reached an agreement to purchase the nearby Prax Lindsey refinery assets.
The Prax Lindsey refinery ceased operations in June last year, resulting in the loss of 125 jobs after its parent company went into administration. Government support ensured that 250 other workers were retained until at least the end of March to facilitate the completion of a sale process.
Although Phillips 66 mentioned that its investment would support hundreds of jobs, it did not make a direct commitment to retaining the workforce beyond March. In a statement, the company explained that after a comprehensive assessment during the bidding process, it had decided not to restart standalone refinery operations at the Lindsey Oil Refinery due to limitations in scale, facilities, and capabilities. The acquisition and strategic investment will enhance the company’s ability to supply the UK market from the Humber Refinery, bolster UK energy security, and support numerous well-paid, high-quality jobs through site operations and future investment.
Paul Fursey, Phillips 66 UK lead executive, expressed empathy for the challenges faced by the workforce and local community due to the closure of the site. He emphasized that the sale was the best way forward to secure jobs, strengthen the local economy, and promote investment in the region. With the closure of the Lindsey refinery last year, the UK was left with only four fuel refineries, increasing the country’s dependence on fuel imports to secure supply, especially in Scotland.
Energy minister Michael Shanks praised Phillips 66 as the most credible bidder in the sale process, highlighting that the agreement marked a significant step towards securing an industrial future for the Lindsey site and its workers. He acknowledged that the former owners had let down the workforce and expressed confidence in Phillips 66 as an experienced and reputable operator. The sale agreement ensures that all remaining staff will have guaranteed employment until the end of March, expanding the company’s capacity to supply fuel to UK customers, enhancing domestic energy security, and creating jobs, including hundreds of new construction roles over the next five years.
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