In a move aimed at shoring up the UK’s energy security, the US energy giant Phillips 66 has acquired the Prax Lindsey oil refinery in Lincolnshire, which collapsed into administration last summer. The deal, the details of which were not disclosed, will see the Lindsey operations integrated with Phillips 66’s nearby Humber refinery.
The Prax Lindsey refinery, located in the Humber estuary, was one of only five refineries left in the UK when it ceased production in June 2025 amid the collapse of its parent company, Prax. The refinery had been purchased in 2021 by Sanjeev Kumar and his wife Arani in an attempt to build an energy empire, but alleged “irregularities” related to the group’s debts led to its downfall.
Under the new ownership, Phillips 66 plans to expand operations at the Humber site, which it already owns, in a move that the company says will “enhance operations” and “improve the supply of fuel to UK customers.” The official receiver, Gareth Allen, stated that the deal with Phillips 66 was the “best possible outcome for creditors.”
However, the long-term future of the 250 employees who remained at the Lindsey site after 125 were made redundant in October is still unclear. The government’s energy minister, Michael Shanks, has assured that all remaining staff will be guaranteed employment until the end of March, but their prospects beyond that point remain uncertain.
Sharon Graham, the general secretary of the Unite union, has expressed concerns about the acquisition, stating that Phillips 66 should not be allowed to “just mothball the site and turn it into a glorified storage tank.” She has called on the government to work with the company to ensure that the sale retains and creates jobs, and helps safeguard the nation’s energy security.
The collapse of the Prax Lindsey refinery was a significant blow to the UK’s energy infrastructure, as the facility was responsible for 10% of the country’s fuel production when it was operational. The acquisition by Phillips 66 is seen as a crucial step in maintaining domestic energy supply and securing the future of the site.