The Lindsey Oil Refinery in Lincolnshire it to close after the government failed to secure a buyer for the facility.
Prax, which had owned the site, went into administration in June, placing 420 jobs in jeopardy.
The refinery was taken over by the Official Receiver and Ed Miliband demanded an urgent investigation take place into the collapse amid concerns about its management.
The BBC reports Energy Minister Michael Shanks said "no credible offers have been made to purchase the entire refinery and it will be winding down operations".
He added: "We are deeply disappointed with the untenable position in which the owners left Prax Lindsey Oil Refinery.
"Our sympathies are with the workers, their families and the local community.
"While we continue to strongly encourage the owners to do the decent thing and publicly commit to making a voluntary financial contribution to support workers, all those directly employed at the refinery are guaranteed jobs over the coming months.
"The government will immediately fund a comprehensive Training Guarantee for these refinery workers to ensure they have the skills they need and are supported to find jobs in the growing clean energy workforce."