Phillips 66 Limited has been named the successful bidder for the Prax Lindsey Oil Refinery site and associated assets in Lincolnshire. The Insolvency Service confirmed an agreement was reached on 5 January 2026, with completion to follow once closing conditions are met, including customary regulatory approvals. All employees have been informed, and the conduct of former directors remains under investigation.
Five Prax entities are in compulsory liquidation: Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, Prax Terminals Killingholme Limited, Prax Terminals Jarrow Limited and Prax Downstream UK Limited. Winding‑up orders were made on 30 June 2025 (for three companies) and 22 July 2025 (for Prax Terminals Jarrow). The High Court appointed the Official Receiver, Gareth Jonathan Allen, as liquidator and, on his application, appointed FTI Consulting as special managers to assist the liquidations.
The use of special managers is provided for in UK insolvency law. Under section 177 of the Insolvency Act 1986, the court may appoint a special manager of a company’s business or property in liquidation where the nature of the business or the interests of creditors require it. This mechanism enables oversight of trading and asset disposals under the Official Receiver’s control.
Regulatory sign‑off is expected to centre on UK merger control. The Competition and Markets Authority (CMA) operates a voluntary, non‑suspensory regime-businesses are not required to obtain approval before completing, though the CMA can ‘call in’ unnotified deals. From 1 January 2025 the CMA’s jurisdictional thresholds include a £100 million target‑turnover test, a 25% share‑of‑supply test with a £10 million turnover floor for one party, and a new acquirer‑focused test (≥33% share of supply and ≥£350 million UK turnover). The statutory Phase 1 window is 40 working days once a Merger Notice is accepted.
The National Security and Investment Act 2021 may also apply. Mandatory notification covers acquisitions of qualifying entities in 17 defined areas, including ‘downstream oil’ above specified capacity thresholds; asset purchases are not subject to mandatory notification but can be submitted on a voluntary basis and may be called in where national security risks are suspected.
Phillips 66 has stated it will integrate key infrastructure from Lindsey into the nearby Humber Refinery rather than restart standalone refining at Lindsey, following viability assessments undertaken during the bid process. The company says the transaction will strengthen UK supply resilience and support future investment at Humber.
Refining capacity has tightened. Following the cessation of refining at Grangemouth in spring 2025 and the shutdown at Lindsey later that year, the House of Commons Library notes four operational UK refineries remain: Fawley (ExxonMobil), Humber (Phillips 66), Pembroke (Valero) and Stanlow (Essar). DESNZ’s 2025 Statutory Security of Supply report states that, despite these changes, the UK remains relatively well‑positioned on oil supply, with strong self‑sufficiency in petrol and imports meeting demand for other products.
Any CMA assessment would typically consider wholesale markets for road and aviation fuels, access to storage and terminals, and any vertical links into retail or distribution. The CMA’s published Merger Assessment Guidelines set out its approach to market definition, theories of harm and efficiencies when assessing whether a merger may result in a substantial lessening of competition.
Operationally, the Official Receiver will now oversee completion and the transfer of the companies’ assets to Phillips 66 Limited. For customers, suppliers, creditors and sub‑contractors, the Insolvency Service has published contact points and instructions for submitting proofs of debt in these liquidations.
Director accountability processes continue alongside the sale. The Insolvency Service has confirmed that the conduct of former directors remains under investigation; office‑holders must submit conduct reports on directors of insolvent companies, and the Secretary of State may apply for court‑ordered disqualification where conduct renders a person unfit to manage a company.