Orlen Lietuva: Difference between revisions

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{{Infobox company
| name = Orlen Lietuva
| logo = Orlen Lietuva logo.jpg
| logo_caption = Orlen Lietuva logo
| logo_size = 221px
| image = ORLEN Lietuva.jpg
| image_caption = ABoil „ORLENrefinery Lietuva“near plantMažeikiai
| image_size = 300px
| trading_name =
| native_name =
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| location_city = Juodeikiai, [[Mažeikiai District Municipality]]
| location_country = [[Lithuania]]
| revenue = 4{{increase}}€7.263552 billion EUR (20212022)<ref name="Rekvizitai.vz-largest-corp.lt">{{cite web|title=DidžiausiosORLEN LietuvosLietuva, bendrovėsAB 2022pajamos, pelnas|url=https://wwwrekvizitai.vz.lt/reitingaiimone/orlen_lietuva/apyvarta/|trans-title=Largest companies of Lithuania 2022|language=lt|date=31 May 2022|website=Verslo Žinios|access-date=4 August 2022}}</ref>
| operating_income =
| net_income = {{decrease}}-€162 million (2022)
| num_employees = 1387 (2019)
| parent = [[PKN Orlen]]
| homepage = {{URL|www.orlenlietuva.lt}}
}}
'''Orlen Lietuva''' (former '''Mažeikių Nafta''') is a subsidiary of the [[Poland|Polish]] [[PKN Orlen]] and it owns the Mažeikiai [[oil refinery]] as well as the oil-processing plant in [[Lithuania]]. It is, the only oil refinery in the [[Baltic States]].
 
'''Orlen Lietuva''' (former '''Mažeikių Nafta''') is a subsidiary of the [[Poland|Polish]] [[PKN Orlen]] and it owns the Mažeikiai [[oil refinery]] as well as the oil-processing plant in [[Lithuania]]. It is the only oil refinery in the [[Baltic States]].
 
== Refinery ==
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The first tanker was loaded in Būtingė in the summer of 1999 and took on board a shipment of YUKOS crude oil. The Terminal can export up to 14 million tons of crude oil a year but can also function as an import terminal.
 
During the construction of the facility, an [[environmental monitoring]] program was introduced that includes tests of sea and ground waters. With the start of the terminal operations, an expanded environmental monitoring program was launched. This included a computer-based leak detection system.
 
The complex of the Būtingė Terminal consists of a crude oil pipeline that connects the facility with the Mažeikiai Refinery inland, onshore terminal equipment and tanks at Būtingė, an offshore pipeline, and a single point mooring (SPM) buoy<ref name="ABM-butinge">''[http://www.nafta.lt/en/content.php?pid=18 Marine Terminal] {{Webarchive|url=https://web.archive.org/web/20070304153840/http://www.nafta.lt/en/content.php?pid=18 |date=2007-03-04 }}'', Mažeikių Nafta company website</ref> which lies 7&nbsp;km offshore.<ref name="GW-1"/>
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However, in 2003 Yukos ran afoul of the Russian authorities and was required to pay billions of dollars in taxes. Facing bankruptcy, Yukos began to sell off its assets, including Mažeikių Nafta.<ref name="FT-1"/>
 
Several potential buyers from [[Russia]], [[Kazakhstan]] and [[Poland]] showed interest in acquiring the refinery, whose majority stakeholder was now [[Yukos International]], a Yukos syndicate.<ref name="AB-sale">''[http://www.nafta.lt/en/news_item.php?pid=1&id=99 PKN Orlen Acquired Mazeikiu Nafta] {{webarchive|url=https://web.archive.org/web/20070927172337/http://www.nafta.lt/en/news_item.php?pid=1&id=99 |date=2007-09-27 }}'', Mažeikių Nafta company website (news, 15-12-2006)</ref> After several months of talks the proposal from Polish company [[PKN Orlen]] was found most lucrative and chosen. Additionally, it was deemed most desirable by Lithuania, which has been aiming to avoid the refinery and infrastructure being bought out by Russian interests due to the [[national security]] concerns.<ref name="FT-1"/> To force the sale to Yukos for lower price, Russia has shut down the only land pipeline, which [[New York Times]] described as "tools for intimidation and blackmail".<ref>{{Cite webnews|url=https://www.nytimes.com/2006/10/27/business/worldbusiness/27iht-embargo.3312013.html?pagewanted=all|title=Lithuania suspects Russian oil grab - Business - International Herald Tribune - The New York Times|author=Andrew E. Kramer|work=The New York Times |date=27 October 2006 |access-date=2016-03-17}}</ref>
 
The agreement between Orlen and Yukos International to buy out the latter's 53.7% stake in the company, was made in June 2006. Several weeks later, PKN Orlen signed a deal with the Lithuanian government to buy a further 30.66%. The [[European Union]]'s regulatory authority approved the deal on November 7, after ruling that it would not significantly harm competition in the European economic area or any substantial part of it.<ref name="BalticTimes-2"/> The buyout was finalized on 15 December 2006, with US$1.492 billion paid by PKN Orlen to Yukos International, and US$851.8 million to the Lithuanian Government.<ref name="AB-sale"/>
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===Fire===
On October 12, 2006, a major fire erupted in the plant around 2:30 pm. The cause appears to have been a leak. The fire was extinguished after 8 pm the same day,<ref name="ABM-fire">''[http://www.nafta.lt/en/news_item.php?pid=1&id=91 Regarding Fire at AB Mazeikiu Nafta] {{Webarchive|url=https://web.archive.org/web/20070927172321/http://www.nafta.lt/en/news_item.php?pid=1&id=91 |date=2007-09-27 }}'', Mažeikių Nafta company website</ref> although some spot fires were still being put out the next day.<ref name="BalticTimes-1">''[http://www.baltictimes.com/news/articles/16596/ Blaze at Mazeikiu Nafta threatens PKN Orlen deal]'', The Baltic Times, (18 October 2006).</ref> During the fire, a 50-meter height vacuum tower collapsed, oil products leaked out, and a series of explosions were heard; The blaze covered about 800 square meters at one point. 23 firefighting vehicles were brought intoto the scene of the accident and eyewitness accounts said that fires reached 150m in height and could be seen from several kilometers away. A black cloud of smoke could be seen from a great distance, and drifted towards the nearby [[Latvia]]n border. There were no casualties among personnel.<ref name="Reuters-1"/> Damages incurred are estimated at around 38 million Euro, as well as around 30 million in lost revenue due to production losses.<ref name="BalticTimes-2">''[http://www.eubusiness.com/Energy/061118154207.38gvp6w8 PKN Orlen buy out of Lithuania's Mazeikiu due on December 15]'', The Baltic Times (18 November 2006)</ref> While significant, when compared with the total output and profits of the plant, they are not as large as had been feared. Initially, after the fire, serious doubts were raised by various media over whether PKN Orlen would go through with the deal to buy the company (although these were immediately denied by Orlen representatives).<ref name="Reuters-1"/><ref name="BalticTimes-1"/> In the end, the blaze did not stop the takeoverdeal from going ahead. Suspicions were raised by various high-profile persons as to whether the fire was an accident, or industrial sabotage on the part of the Russian energy companies in revenge for not being offered to buy the company.<ref name="BalticTimes-1"/> The vice-leader of the [[Russian Duma]], [[Konstantin Kosachev]], stated that "instability will continue to plague the refinery until the Lithuanians finally realize which partners one should choose" only a few hours before the start of the blaze.<ref name="GW-1"/>
 
==References==