Phillips 66 has agreed to buy the demolished Prax Lindsey refinery but said it plans to integrate its operations into its neighboring plant in north-east Lincolnshire.
About 250 staff at the North Killingholme refinery will have job security until the end of March, the insolvency service said.
Phillips 66 said it has decided not to restart the standalone refinery at its Lindsay site because it is “not viable in its current form.”
Instead, it will integrate key assets into the nearby Humber refinery, which the company already owns.
Production at the Lindsay site was halted after its owner, Prax Group, went bankrupt in June.
Paul Fursey, chief executive of Phillips 66 UK, said: “We understand and deeply sympathize with how difficult the site closure has been for employees and the local community.
“This sale is the best way to secure jobs, support the local economy and stimulate investment in the region.”
The company said the acquisition will improve operations at its Humber refinery and improve fuel supplies to UK consumers.
The government's official receiver took control of Lindsay's operation following the collapse of its owner and a bidding process was initiated.
It is one of five large oil refineries remaining in the UK following the recent closure of the Grangemouth plant in Scotland.
By decision of the administration, about 125 jobs were cut at the enterprise.
Energy Secretary Michael Shanks said Phillips 66 was the “most credible bidder” in the government's process to find a buyer.
“This agreement marks the next step in securing an industrial future for the Lindsay plant and the workers who have been deeply disappointed by their former owners,” he said.
“Phillips 66 is an experienced and trusted operator, and today’s sale agreement allows them to quickly expand operations at the adjacent refinery while providing job security to all remaining employees through the end of March.
“This will expand the company’s ability to supply fuel to UK consumers, improve domestic energy security and provide jobs, including hundreds of new construction jobs over the next five years.”
