Reaction has been flooding in to the devastating news that hundreds of Murco Milford Haven Refinery staff face losing their jobs.

Last night (Tuesday) Murphy Oil announced that the deal to sell the refinery to The Klesch Group had fallen through.

The site will now be turned into a storage and distribution facility, requiring just a fraction of the 400 staff employed at the site.

Hundreds of contractors also rely on the refinery for work and the impact on the wider community is also expected to be huge.

Talking to BBC Radio Wales this morning, Bryan Kelly, vice president of UK operations at Murphy Oil Corporation, said: “We’re here at Milford Haven and we are sharing some difficult news with our employees.

“We had done everything that we possibly could to try and sell the refinery and we are convinced there isn’t another option other than to turn the refinery into a storage and distribution terminal.”While he would not confirm how many jobs would be lost, Mr Kelly did concede similar sized terminals in the UK employed only 50-60 workers.

“In the coming days we will be looking at what size workforce we will have.

“We feel very strongly that the UK and Welsh governments have done everything possible to see this deal through.”

Pembrokeshire County Council said it had  been in contact with the Welsh Government to help reconvene the Murco Task Force.

The high-level body was originally set up by the Welsh Government to support the refinery’s parent company, Murphy Oil, to find a buyer.

The council said it is also liaising with other agencies, such as Job Centre Plus and Pembrokeshire College, as well as its own Futureworks/Workways teams in order to offer as much assistance as possible to the refinery employees and the supply chain companies.

Council Leader, Council Jamie Adams, said the announcement by Murphy Oil was “devastating news” for the workforce and their families, especially as the sale of the refinery seemed to have been agreed earlier this summer.

“We will be doing everything we can to soften the blow for the individuals affected,” he added.

Delyth Evans, Labour Parliamentary candidate for south Pembrokeshire, said: "This is a very severe blow to the Murco workforce and their families as well as to the supply chain and the wider community.

"I welcome the statement by Welsh Government Minister Edwina Hart that the support provided up till now will not stop here.

"Firstly it is essential that every effort is made by Murco, the Welsh and UK Governments to retain as many jobs as possible within the facility and to minimise redundancies.

"Secondly, a comprehensive package of support must be provided to those who lose their jobs, and I expect to see the UK and Welsh Governments working together on this.

"And thirdly, everything possible must be done to promote and develop the Haven Enterprise Zone as a fantastic place for energy-related businesses to invest with its natural deep water, excellent facilities and the availability of a highly skilled workforce.

"There is huge potential in the area to develop the energy technologies we will need for the future, and we must take every opportunity to tell companies in the UK and across the world what Pembrokeshire has to offer."

Conservative AM William Graham, Shadow Minister for Business, said: “My thoughts are with workers at Murco and their families as well as all those businesses who are involved in the oil refinery supply chain.

“This terrible news is a body blow for the west Wales economy and will leave thousands of highly skilled workers facing uncertainty as we approach Christmas.

“I’m sure that both the UK and Welsh Governments will wish to provide as much support as possible to the local community to support families who have lost their source of income.”

Paul Davies, Assembly Member for Preseli Pembrokeshire, said: “I am very upset to hear that this deal has fallen through, with devastating implications for so many Pembrokeshire families.

“This dire news will leave many Pembrokeshire businesses which were involved in the supply chain with significantly reduced orders and could result in many further job losses.

“I will be doing everything I can to ensure that Pembrokeshire workers affected by this oil refinery closure will receive every possible support to enable them to find new employment.”

Plaid Cymru Mid and West Wales AM Simon Thomas said: “This is devastating news for employees of the Murco refinery and for their families and I send my deepest sympathies to them. The future looks uncertain for them and I expect the Welsh Government to offer them every support as they move forward.

“The impact of the closure will also be felt in the wider Welsh economy.

"Milford Haven is an important economic hub and we need to work to make it an attractive location for new businesses to invest with new technologies. Wales is an energy-rich country and can be a world leader again. Milford Haven already has a highly skilled workforce, and the Welsh Government now needs to work to ensure that these skills can unlock new employment opportunities for the workforce at Murco.”