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{{Short description|Subsidiary of Polish PKN Orlen}}
'''Mažeikių Nafta''' is an [[oil refinery]] and [[oil-processing]] plant in [[Lithuania]]. It is the only refinery in the [[Baltic States]].
{{Infobox company
| name = Orlen Lietuva
| logo = Orlen Lietuva logo.jpg
| logo_caption = Orlen Lietuva logo
| logo_size = 221px
| image = ORLEN Lietuva.jpg
| image_caption = oil refinery near Mažeikiai
| image_size =
| trading_name =
| native_name =
| native_name_lang =
| industry = [[Oil]], [[petrol]]
| foundation =
| location_city = Juodeikiai, [[Mažeikiai District Municipality]]
| location_country = [[Lithuania]]
| revenue = {{increase}}€7.552 billion (2022)<ref name="Rekvizitai.vz.lt">{{cite web|title=ORLEN Lietuva, AB pajamos, pelnas|url=https://rekvizitai.vz.lt/imone/orlen_lietuva/apyvarta/}}</ref>
| operating_income =
| net_income = {{decrease}}-€162 million (2022)
| num_employees = 1387 (2019)
| parent = [[Orlen]]
| homepage = {{URL|www.orlenlietuva.lt}}
}}
'''Orlen Lietuva''' (former '''Mažeikių Nafta''') is ana subsidiary of the [[oilPoland|Polish]] refinery[[PKN Orlen]] and it owns the Mažeikiai [[oil-processing refinery]] as well as the oil-processing plant in [[Lithuania]]. It is, the only oil refinery in the [[Baltic States]].
 
== Pipeline SystemRefinery ==
The '''Mažeikiai refinery''', located near the town of [[Mažeikiai]], has a design processing capacity of 15 million tons of [[crude oil]] per year. However, it is more efficient to process around 8 million tons of crude oil, while using the remaining capacity for processing other feedstock.<ref name="ABM-refinery">''[http://www.nafta.lt/en/content.php?pid=34 Mazeikiai Refinery] {{Webarchive|url=https://web.archive.org/web/20070927172402/http://www.nafta.lt/en/content.php?pid=34 |date=2007-09-27 }}'', Mažeikių Nafta company website</ref> Historically, the primary feedstock has been Russian crude oil transported via the [[Druzhba pipeline]], however the relevant branch of this system has been closed in Russian territory<ref name="GW-1">''[http://gospodarka.gazeta.pl/gospodarka/1,33207,3794065.html Orlen i Możejki - finał przejęcia]'', [[Gazeta Wyborcza]], (15 December 2006) {{in lang|pl}}.</ref> since July 2006,<ref name="ABM-druzhba">''[http://www.nafta.lt/en/news_item.php?pid=1&id=87 Interruptions in Crude Oil Supplies to Mazeikiu Nafta] {{Webarchive|url=https://web.archive.org/web/20060921171551/http://www.nafta.lt/en/news_item.php?pid=1&id=87 |date=2006-09-21 }}'', Mažeikių Nafta company website (news message, 2006-07-31)</ref> ostensibly for repairs. Crude oil is now being supplied by the [[Būtingė oil terminal]] (see below).<ref name="Reuters-1">''[http://www.alertnet.org/thenews/newsdesk/L12905213.htm Lithuania oil refinery blaze hits output]'', [[Reuters]], newsdesk (12 October 2006)</ref> The Mažeikiai refinery is the only oil refinery in the [[Baltic States]].
Mažeikių Nafta operates a system of pipelines with a total length of around 500 kilometers. This system includes two pump stations near [[Biržai]] and another near [[Joniškis]], crude oil pipelines to the [[Mažeikiai]] Refinery and [[Būtingė]] Terminal, a crude oil pipeline leading to Ventspils, and a products pipeline supplying diesel fuel to [[Ventspils]].
Construction of pipelines in Lithuania started in 1966, with crude oil starting to flow through the pipelines in 1968. In 1992, the company '''Naftotiekis''' was founded for the operation of Lithuanian pipelines, which became part of Mažeikių Nafta in 1998.
 
== MarinePipeline Terminalsystem ==
Mažeikių Nafta operates a system of pipelines with a total length of around 500 kilometers. This system includes two pump stations near [[Biržai]] and another near [[Joniškis]], crude oil pipelines to the [[Mažeikiai]] Refinery and [[Būtingė]] Terminal, a crude oil pipeline leading to [[Ventspils]], and aanother products pipeline supplying diesel fuel to [[Ventspils]].the same location.
The Būtingė Terminal is state-of-the-art facility of Mažeikių Nafta situated in an all-year-round ice-free area of the [[Baltic Sea]]. The project began in 1995 when the company '''Būtingės Nafta''' was established for the purpose of constructing and operating the Terminal. In 1998, Būtingės Nafta was merged into Mažeikių Nafta.
Construction of pipelines in Lithuania started in 1966, with the first crude oil starting tobeing flowput through the pipelinesthem in 1968.<ref name="ABM-pipeline">''[http://www.nafta.lt/en/content.php?pid=19 Pipeline System] {{Webarchive|url=https://web.archive.org/web/20070304154648/http://www.nafta.lt/en/content.php?pid=19 |date=2007-03-04 }}'', Mažeikių Nafta company website</ref> In 1992, the company '''Naftotiekis''' was founded for the operation of Lithuanian pipelines, which became part of Mažeikių Nafta in 1998.
 
== Būtingė Marine Terminal ==
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 is also capable as an import terminal.
The [[Būtingė Terminaloil terminal]] is state-of-the-arta facility ofowned by Mažeikių Nafta, situated in an all-year-round ice-free area of the [[Baltic Sea]] on the Lithuanian coastline near the town of [[Būtingė]], north of [[Palanga]]. The project began in 1995 when the company '''Būtingės Nafta''' was established for the purpose of constructing and operating the Terminal. In 1998, Būtingės Nafta was merged into Mažeikių Nafta.
 
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. Butbut iscan also capablefunction 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.
 
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, which connects the facility with the Mažeikiai Refinery, onshore terminal equipment and tanks at Būtingė, offshore pipeline, and a single point mooring (SPM) buoy. These units form the onshore and offshore parts of the Terminal.
 
The complex of the Būtingė Terminal consists of a crude oil pipeline, whichthat 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 TheseMarine unitsTerminal] form{{Webarchive|url=https://web.archive.org/web/20070304153840/http://www.nafta.lt/en/content.php?pid=18 the|date=2007-03-04 onshore}}'', andMažeikių offshoreNafta partscompany ofwebsite</ref> thewhich Terminallies 7&nbsp;km offshore.<ref name="GW-1"/>
== Sale of the Company ==
 
Several potential buyers from [[Russia]], [[Kazakhstan]] and [[Poland]] showed their interest in oil pant. After several months of talks, proposal from Polish company [[PKN Orlen]] was the most lucrative and satisfied National Security criteria of Lithuanian state.
== Privatization ==
Minister of Economics [[Kęstutis Daukšys]] and Vice-minister of Economics [[Nerijus Eidukevičius]] singed selling contracts in 2006-06-09. By this new agreement Mažeikių Nafta will be sold to PKN Orlen. Agreement states that Lithuanian Government will sell 30,66 % shares of their Mažeikių Nafta company for approximately 700 million US dollars. PKN Orlen will buy 53,7 % shares for 1,492 billion US dollars from bankrupted [[Yukos]] also. Lithuanian Government is hoping that the new contract will come into force in several upcoming months.
[[File:Gewinne_von_ORLEN_Lietuva.svg|thumb|500px|[[Profit and loss account]] in mln. USD<ref>{{cite web |url=http://raportzintegrowany2016.orlen.pl/pl-orlen-w-liczbach-pdf |title= ORLEN W LICZBACH PDF |website= PKN Orlen |language=pl |date=7 August 2017}}</ref>]]
 
The company was first privatized by the Lithuanian government in 1999, when it was bought by [[Williams Companies]], a group based in the USA. Later, Williams ran into financial trouble and their stake in Mažeikių Nafta was bought by the Russian company [[Yukos]].<ref>[http://www.williams.com/newsroom/news_releases/2001/rel743.html Williams International and Russian YUKOS Sign Cooperation Agreement on Mazeikiu Nafta] {{Webarchive|url=https://web.archive.org/web/20101203063451/http://williams.com/newsroom/news_releases/2001/rel743.html |date=2010-12-03 }}. Retrieved on 22 April 2011.</ref>
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 news|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"/>
 
==Russian hostilities==
===Druzhba pipeline Lithuanian branch shutdown===
[[File:AB_Mazeikiu_nafta4a.jpg|thumb|Mažeikiai oil refinery in 2006]]
On 29 July 2006 Russia shut down oil export to [[Mažeikių Nafta|Mažeikių oil refinery]] in [[Lithuania]] after an oil spill on the [[Druzhba pipeline]] system occurred in Russia's [[Bryansk Oblast|Bryansk oblast]], near the point where a line to Belarus and Lithuania branches off the main export pipeline. Transneft said it would need one year and nine months to repair the damaged section. Although Russia cited technical reasons for stopping oil deliveries to Lithuania, Lithuania claims that the oil supply was stopped because Lithuania sold the Mažeikių refinery to Polish company [[PKN Orlen]]<ref>[http://www.jamestown.org/publications_details.php?volume_id=414&issue_id=3822&article_id=2371343 Russian oil supplies to Lithuania cut off] {{webarchive|url=https://web.archive.org/web/20061121034522/http://www.jamestown.org/publications_details.php?volume_id=414&issue_id=3822&article_id=2371343 |date=21 November 2006 }}, by Vladimis Socor, Eurasia Daily Monitor Volume 3, Issue 150 (3 August 2006)</ref> in an effort to avoid the refinery and infrastructure being bought out by Russian interests.<ref name="FT-1">''[http://www.ft.com/cms/s/05ff71f8-7b60-11db-bf9b-0000779e2340.html Baltic lessons for EU in dealing with a resurgent Russia]'', Financial Times, (24 November 2006)</ref> Russian crude oil is now being transshipped via the [[Būtingė oil terminal]].
 
===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 to 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 deal 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==
{{Reflist}}
 
==External links==
{{Commons category-inline}}
*[http://www.nafta.lt/en/ Mažeikių Nafta Company Website]
* [https://archive.today/20130218235209/http://www.orlenlietuva.lt/en/main/news/news?id=3665 New Installations Started their Trip from Klaipeda to Mazeikiai]
* [https://archive.today/20130219000649/http://www.orlenlietuva.lt/en/main/news/news?id=5474 AB Mažeikių Nafta Modernized Installations in Record Time]
*[http://www.nafta.lt/en/ MažeikiųOrlen NaftaLietuva Company Website]
 
{{Authority control}}
[[Category:Companies of Lithuania]]
{{Coord|56|23|22|N|22|10|17|E|type:landmark|display=title}}
 
{{DEFAULTSORT:Orlen Lietuva}}
[[de:Mažeikių Nafta]]
[[Category:CompaniesOil companies of Lithuania]]
[[lt:Mažeikių nafta]]
[[Category:Companies listed on Nasdaq Vilnius]]
[[nl:Mažeikių Nafta]]
[[Category:Oil refineries in Lithuania]]
[[ru:Mažeikių Nafta]]
[[Category:Buildings and structures built in the Soviet Union]]
[[bat-smg:Mažeikiu napta]]
[[Category:Oil companies of the Soviet Union]]
[[Category:Non-renewable resource companies established in 1964]]
[[Category:1964 establishments in Lithuania]]
[[Category:Companies based in Mažeikiai]]
[[Category:Oil refineries in the Soviet Union]]