Committee publication · Correspondence · 14 January 2026
Correspondence from the Minister for Energy relating to the sale of the Prax Lindsey Oil Refinery site and its assets, dated 5 January 2026
Summary
Michael Shanks, Minister of State for Energy, updates Parliament on the sale of Prax Lindsey Oil Refinery following its June 2025 insolvency. Phillips 66 Limited has been selected as the buyer and will integrate key assets into its neighbouring Humber Refinery, expected to complete in H1 2026. The remaining 250 staff are guaranteed employment until end-March 2026, while 124 previously redundant workers receive government-funded training support.
Key findings
- Phillips 66 Limited identified as the credible buyer; sale expected to complete in first half of 2026
- 250 directly employed workers guaranteed employment until 31 March 2026; further retention numbers to be confirmed by Phillips 66
- 124 workers made redundant on 31 October 2025; Government funding a Training Guarantee to support redeployment
- Phillips 66 plans to integrate PLOR assets into Humber Refinery operations to expand UK fuel supply capacity and create hundreds of new construction jobs over five years
- Official Receiver determined no viable offers for returning to refining operations within foreseeable timeframe that would retain all employees
Tone
ProceduralTopics
energy-securityoil-refiningemploymentinsolvency
Key actors
Michael Shanks, Bill Esterson, Phillips 66 Limited, Official Receiver, Department for Energy Security & Net Zero
Notable line
“Phillips 66 is an experienced and credible operator, and this sale allows them to quickly expand operations at its neighbouring Humber Refinery …”
Key Quotes
“The insolvency process at PLOR is led by the court-appointed Official Receiver, who must act in accordance with his statutory duties and independently of Government.”
“Phillips 66 plans to integrate key assets into its Humber Refinery operations. This will expand Phillips 66's ability to supply fuel to UK customers from the Humber Refinery, boosting domestic energy security …”
“The Government continues to support the 124 workers affected by redundancy (effective on 31 October 2025) following the Official Receiver 's confirmation that none OFFICIAL OFFICIAL of the offers were credibly put forward that would see a return to refining operations in the next few years and …”
Source · parliament.uk record ↗