AB Mažeikių Nafta (MN) has been operating since 1980 and is one of the largest companies in Lithuania.
The capacity of the refinery plant totals approximately 10 million tonnes of crude oil per year.
AB Mažeikių Nafta - Shareholder structure as on 31 December 2007
| PKN ORLEN | 90,02% |
| The Lithuanian government | 9,98% |
| Others | 0% |
The acquisition of Mažeikių Nafta by PKN ORLEN is an element of the strategy implemented by the Company in respect of monitoring development opportunities on new markets. The acquisition of MN contributed to an increase in ORLEN Group’s crude oil processing capability by approximately 50 percent and enabled the retail network to be developed abroad.
The AB Mažeikių Nafta logistics facilities include:
AB Mažeikių Nafta - Financial data as on 31 December 2007
| Rvenues from sales | 9 623 770 |
| Initial capital | 529 379 |
| Net profit | 551 606 |
| Equity | 6 008 776 |
AB Mažeikių Nafta uses three main distribution channels for its fuel products: the local Lithuanian market (1.6 million tonnes of products), land export to the markets of Latvia, Poland, Ukraine and Estonia (1.7 million tonnes of products) and by sea to Western Europe and the USA (4.7 million tonnes). Exports to Western Europe and the USA pass through a terminal owned by Klaipedos Nafta. The products exported by AB Mažeikių Nafta are also carried by rail to terminals in Estonia, Latvia, Ukraine, and four terminals in Poland. Mažeikių Nafta exports approximately 80 percent of its crude oil products.
AB Mažeikių Nafta capital group is currently composed of eight companies:
AB Mažeikių Nafta is also a minority shareholder in UAB Naftelf (a joint venture with the French company
Corelf), which is involved in the sale of aviation fuel as well as related machines and equipment.
With regard to fuel quality and environmental protection in 2007, the Company started up a petrol desulphurisation installation, thanks to which the petrol produced in the refinery plant for the Lithuanian market is zero-sulphur petrol.
At the end of September 2007, production was suspended and the planned general overhaul of the refinery plant commenced. The overhaul lasted 60 days and included a large scope of works, in the performance of which 4,000 people were involved. The overhaul of technological equipment was carried out, ovens and burners were replaced, new pipelines were laid, existing pipelines renovated, and new technological apparatus installed. The overhaul was of particular significance, because implementation of the modernisation plan was carried out simultaneously.
In 2007, 12 large investment projects were completed. At the end of 2007, the Company completed the reconstruction and modernisation of a large vacuum distillation column, which enabled the full processing capacity of the refinery plant to be restored.
In 2007, PKN ORLEN commenced a modernisation programme at AB Mažeikių Nafta, within the framework of which capital expenditure will amount to USD 1.6 billion by 2012. The main objectives of the project are, interalia, to upgrade fuel quality to the requirements of EU standards, increase the share of white products in overall production, increase the alkylation capability, construct a polypropylene installation and take over and modernise a combined heat and power station.
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