UK Oil Refinery to Shut After No Buyer Found, 420 Jobs at Risk

The Lindsey Oil Refinery in North East Lincolnshire will shut after the government failed to find a buyer. The refinery was taken over by the Official Receiver in January after its owner, Prax, went into administration. Energy Minister Michael Shanks said the refinery will wind down operations and all 420 workers will receive job guarantees and training. The government will also fund a training guarantee for the workers to find jobs in the clean energy workforce.

The Lindsey Oil Refinery in North East Lincolnshire will close down after the government's unsuccessful attempt to find a buyer for the site. The refinery, which was taken over by the Official Receiver in January following Prax's administration, will wind down operations as no credible offers were made to purchase the entire refinery [2].

Energy Minister Michael Shanks announced the closure, stating that "no credible offers have been made to purchase the entire refinery, and it will be winding down operations" [2]. The refinery's owner, Prax, went into administration in January, leaving 420 jobs at risk. The government has guaranteed jobs and provided training for these workers to transition into the clean energy workforce [3].

The closure of the Lindsey Oil Refinery has significant implications for the local economy and the broader energy sector. The refinery is the smallest in the UK, located near the larger Phillips 66 Humber refinery, which continues to operate [2]. Local MP Martin Vickers has called for government support to keep the plant running while more potential buyers are sought [3].

The refinery's owners, the Prax Group, purchased it from French company Total in 2021. Since then, the plant has recorded losses of approximately £75 million [3]. The government has expressed disappointment with the situation but has pledged to support the workers and the local community [3].

The closure of the Lindsey Oil Refinery highlights the challenges faced by the UK's energy sector in finding buyers for troubled assets. The government's efforts to provide job guarantees and training for the affected workers indicate a commitment to supporting the transition to a cleaner energy future.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TJ054:0-british-business-july-22/
[2] https://www.reuters.com/business/energy/britains-lindsey-oil-refinery-close-after-no-buyer-found-2025-07-21/
[3] https://www.aol.com/oil-refinery-shut-no-buyer-163424945.html