Lithuania

Fuels
In 2007, Mažeikių Nafta ORLEN Group processed over 4.7 million tonnes of crude oil representing, a decrease of 41 percent compared to 2006. The volume was calculated exclusive of other raw materials and vacuum distillates input.

The main factor affecting the operating results of AB Mažeikių Nafta in 2007 was the fire in the vacuum distillation column in the 4th quarter of 2006. In effect, the refinery plant was forced to limit the processing of crude oil, and as a consequence, to decrease its production volume.

In the area of aviation fuel, the decrease in production by over 70 percent resulted from the necessity to produce aviation fuel fractions for diesel oil in relation to higher quality requirements regarding diesel oil.

Production volumes of selected refinery products in AB Mažeikių Nafta in 2006–2007 (’000 tonnes)

	2006	2007	Dynamics
Crude oil processing	8 028	4 741	-41%
Total engine petrol	2 285	1 672	-27%
Diesel oil	2 446	1 869	-24%
Light heating oil	32	9	-70%
Aviation fuel	543	151	-72%
LPG	405	285	-30%
Total fuels	5 709	3 987	-30%
Fuel output (%)	68,5	68,6	0,1 pp
Output of white products (%)	68,5	68,6	0,1 pp
Index of refinery exploitation (%)	78,6	53,4	-25,2 pp

Investments
In 2007, AB Mažeikių Nafta investments focused, to a large extent, on the reconstruction of the production capacity lost due to the fire in 2006.

In February 2007, the Company started up the Bitumen Distillation Column (BDU), which partially replaced the part of the installation destroyed in the fire. A month later, the refinery plant renovated the thermal cracking installation which enabled it to restore some of the lost processing capacity, simultaneously increasing the output of light oil products.

In autumn 2007, the refi nery plant carried out the biggest general overhaul in its history combined with modernisation works (including oven replacement in the atmospheric distillation, modernisation of the atmospheric distillation column, modernisation of the catalytic cracking). In December 2007, the Company completed the reconstruction of the vacuum distillation column, started up on 20 January 2008.

Bitumen
The volume of bitumen sales by Mažeikių Nafta in 2007 was over one third lower than in the previous year. Similar to the decrease in the production of the majority of fuels, the decrease in the volume of the bitumen production resulted from the fire in the production installation in 2006.

Bitumen production volume by Mažeikių Nafta in 2006–2007 (tonnes)

	2006	2007	Dynamics
Road bitumen	141 709	94 357	–33%
Roof pitches	11 797	312	–97%

 Bitumen sales structure by Mažeikių Nafta in 2006–2007 (tonnes)

	2006	2007	Dynamics
Road bitumen	141 762	94 310	–33%
Roof pitches	11 797	312	–97%