Phillips 66 has acquired the Prax Lindsey oil refinery from administration, with plans to merge it into operations at its nearby Humber facility. The US energy company stated that restarting independent refinery operations at the North Killingholme site would not be economically feasible in its present condition. The acquisition marks a significant development following the facility’s collapse last summer, when it ceased production immediately.
Prax Lindsey represented one of only five remaining oil refineries operating in the United Kingdom before its administrative failure. When the company fell into crisis, it was generating approximately ten percent of the nation’s fuel supply. The refinery sits within the Humber estuary region and had previously functioned as a critical component of national energy infrastructure.
The refinery’s previous owners, Winston Soosaipillai and his wife Arani, had purchased the operation in 2021 with ambitions to construct a broad energy business. Financial irregularities connected to the group’s substantial debts triggered the eventual collapse of Prax companies the following year. Soosaipillai, who operates under his middle names Sanjeev Kumar, currently faces legal action from administrators regarding alleged directorial misconduct, and his current whereabouts remain unknown.
Following the administrative takeover by the government’s official receiver, a competitive bidding process ensued. No alternative proposals emerged that could preserve all positions or facilitate a return to refining within the foreseeable future. The official receiver confirmed that Phillips 66 represented the most credible option available to creditors. Deal terms were not made public.
At the moment of Prax’s financial collapse, the company possessed only £203 in cash reserves. The commodities trader Glencore, which supplied crude oil to the facility, demanded repayment of $53.6 million in outstanding debts, precipitating the final crisis. The broader Prax organization encompassed North Sea petroleum assets, numerous fuel stations, and the Lindsey refinery.
Employment conditions remain uncertain for remaining staff members. Two hundred fifty workers retained their positions after one hundred twenty-five redundancies in October. The official receiver guaranteed employment through the end of March, though prospects beyond that date lack clarity. No assurances exist regarding permanent job preservation at the site.
Energy Minister Michael Shanks characterized the sale as enabling Phillips 66 to expand adjacent refinery operations while enhancing domestic fuel supply capacity. The transaction is expected to generate hundreds of construction positions across the subsequent five years. Government officials view the arrangement as strengthening national energy independence and supporting regional economic development.
Union representatives expressed reservations about the arrangement. Sharon Graham from Unite emphasized that Lindsey constitutes critical national energy infrastructure and cautioned against allowing the site to become merely a storage installation. The refinery ordinarily supplies roughly one quarter of the country’s diesel when operational, and union leadership urged government collaboration to ensure job creation and protection of national energy security through the transaction.
