US Oil Giant Phillips 66 Acquires Prax Lindsey Refinery Assets

Phillips 66, a Texas-based petroleum company, has secured the assets of Prax Lindsey, one of Britain’s last operational oil refineries, following a structured sales process managed by FTI Consulting. The acquisition concludes six months of administration that began when the Lincolnshire refinery collapsed in June 2025 under substantial financial pressure.

The American operator intends to integrate the Prax facility’s storage and infrastructure capabilities into its neighbouring refinery operations without resuming full-scale crude oil processing at the acquired site. This strategic approach allows Phillips 66 to expand its operational footprint whilst maintaining streamlined production across its UK operations.

The Prax refinery’s descent into insolvency traces to mounting losses sustained following its acquisition from Total Energies by husband-and-wife entrepreneurs Winston and Arani Soosaipillai in 2021 for $167 million. The couple, who had built an energy conglomerate from a single petrol station in St Albans, encountered severe financial difficulties within years of completing the transaction. Glencore, a major supplier to the facility, initiated proceedings to recover $53.6 million in outstanding debt owed by State Oil, the refinery’s parent company, triggering formal administration in June 2025.

Michael Shanks, the energy minister, characterised the sale as instrumental in preserving industrial activity at the site. He noted that Phillips 66 had demonstrated superior credentials compared to alternative bidders and possessed genuine capacity to establish a sustainable operational future for the Lincolnshire facility.

Employment implications remain contentious within the industry. The refinery previously employed approximately 420 staff before administrative closure necessitated widespread redundancies. Shanks confirmed that all remaining personnel would retain guaranteed employment until 31 March, with construction projects anticipated to generate hundreds of additional positions over the subsequent five years. Unite, the trade union representing the workforce, has demanded assurance that the sale preserves existing roles and creates new opportunities whilst criticising government energy policy for disadvantaging workers.

Gareth Allen, the official receiver overseeing the administration, confirmed that comprehensive efforts had been undertaken to identify a suitable purchaser during the six-month sales process. He stated that the transaction achieved optimal outcomes for creditors whilst fulfilling his statutory obligations as official receiver, with completion and asset transfer to Phillips 66 scheduled to proceed under his supervision.