Redundancies announced at Lindsey Oil Refinery
The Insolvency Service has confirmed 125 redundancies have been announced
Last updated 30th Sep 2025
The special managers overseeing Lindsey Oil Refinery have announced redundancies, though several bids to buy and run the site continue to be considered. Unite has said FTI Consulting, which is overseeing the management of the refinery on behalf of the Official Receiver, has announced redundancies.
The Insolvency Service has confirmed 125 redundancies have been announced. The refinery, located near North Killingholme, supports approximately 420 jobs directly, as well as a further 500 contract jobs, and potentially thousands more in the supply chain.
An Insolvency Service spokesperson said: “We can confirm that 125 Prax Lindsey Oil Refinery employees have been informed that their positions will be made redundant at the end of October. A further 255 employees will remain at the site.
“This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency. We understand that this a very difficult time for all those affected by this decision, and the Insolvency Service will fully support employees subject to redundancy via the Redundancy Payments Service.
“The site remains safe, and the Official Receiver continues to prioritise health and safety at the site alongside the ongoing process to secure the sale of the refinery. The conduct of the company and its directors, following the liquidation of Prax Oil Refinery, remains the subject of an ongoing Insolvency Service investigation.”
Unite believes the insolvency firm’s preferred bidder wishes to mothball the site and use it as a storage terminal for oil tankers. Unite’s general secretary, Sharon Graham, has also criticised the Government.
“The government has been tin eared to the plight of workers at the second oil refinery facing closure in less than a year. This makes a mockery of government promises to protect workers and its plan for net zero.
“The government had promised to ensure that job focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices.
“Unless Labour start to back workers and British industry it will continue to haemorrhage support.”
The Insolvency Service spokesperson has confirmed talks continue with possible buyers for the refinery. “There are ongoing discussions with a number of parties to progress bids with the objective of achieving a sale of the business.
“The Official Receiver remains committed to exploring the best possible outcome. To do so, each bid is being considered with care, due diligence and on an equal footing.”
Unite has stated the refinery’s biggest creditor is HMRC, alongside oil company Glencore. It has argued both can wait for the more complicated but far less damaging process of maintaining the site as an oil refinery.
Energy Minister Michael Shanks said: “Our thoughts are with the workers, their families and the community who have been badly let down by Prax Lindsey Oil Refinery’s owners.
“The Official Receiver has made this independent decision now in order to provide employees with as much notice as possible, while concluding the sales process in the coming weeks. The majority of the workforce will be retained beyond the end of October and we remain hopeful that a solution will be found that supports jobs on the site long-term.
“The Official Receiver is independently assessing potential bids for the future of the refinery and its assets and has made clear he will continue to work with all bidders with credible and deliverable proposals.
“We have taken immediate action to fund a Training Guarantee for refinery workers to support them to find new, secure, long-term jobs, including in the growing clean energy workforce. Employees affected by redundancy will have the opportunity to enrol in this scheme from October.”
It is understood the redundancies announcement follows a thorough assessment of offers for the refinery. It was deemed necessary to announce redundancies that will be effective from October 31, 2025. This reflects the fact that offers put forward did not provide a deliverable transaction that would see a return to refining operations in the near term, which would require all employees to be retained.