A total of 125 jobs are to be made redundant after administrators were appointed at one of Britain’s few remaining oil refineries.

The losses come despite attempts to find a buyer for the business following the collapse of its owner, energy conglomerate Prax Group, which triggered the receivership process at the Lincolnshire site.

A further 255 employees will remain at the site out of 420 directly employed staff and 500 contract workers.

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At least two bids to buy and operate the location with a full workforce were received, union Unite said.

“We understand that this is 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 government-run Insolvency Service said.

“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.

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Government support for the refinery could be provided, which could keep it running, Unite said.

Politicians had called for an examination of the activity and finances of Prax’s owner, State Oil, in the run-up to its collapse.

The conduct of the company and its directors is currently the subject of an ongoing Insolvency Service investigation.

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