The business activities of Mazeikiu Nafta's major shareholder "Yukos" were disrupted and crude supplies have been interrupted from time to time, but Mazeikiu Nafta has continued moving forward, increasing its crude running capacity from 8 million tons to 10 million tons per year or 830 thousand tons per month. During a typical month, Mazeikiu Nafta now always plans to process 830 thousand tons.

Refinery

In July, Mazeikiu Nafta was scheduled to process 830 thousand tons, however difficulties were experienced in receiving at least half of that amount by pipeline. With the help of Russian producers and "Transneft", Mazeikiu Nafta was able to restore some of the lost volume and for the first time in 5 years the Butinge terminal was again used for its originally intended purpose, when a single cargo was imported. Mazeikiu Nafta ultimately refined 660 thousand tons.

In August Mazeikiu Nafta again planned to run 830 thousand tons of crude oil with the majority scheduled to be delivered by pipeline. Due to a leak in the pipeline in the Russian region of Bryansk on July 29, deliveries were stopped. Originally the interruption was expected to be only a few days, but the current information which Mazeikiu Nafta has, is that the interruption may take considerably more time; how long is currently unknown. In the meantime, Mazeikiu Nafta will again rely on its Butinge terminal and its intended purpose as an "import" facility. Mazeikiu nafta has revised its plan and intends processing 730 thousand tons of crude oil in August, supplying all quantities by alternative means of transportation. All Lithuanian and Baltics fuel demands will be satisfied.

Mazeikiu Nafta will operate at reduced rates until it receives more crude oil through its terminal, but will utilize this rate reduction to perform refinery maintenance activities.

Butinge terminal

In December 2005 a tanker collided with the terminal's floating Single Point Mooring (SPM) device making it necessary to make extensive repairs this summer. In order to minimize the time that the terminal will be out of service to make these repairs, Mazeikiu Nafta has chosen to replace the SPM with a new one. The terminal is planning to be out of service for 12-13 days in September, barring weather delays which should be minimal.

Mazeikiu nafta is confident that it can and will overcome its difficulties.

Contact:
Giedrius Karsokas  
AB Mazeikiu Nafta  
Tel.: +370 610 65298
Fax: +370 443 9 25 79
giedrius.karsokas@nafta.lt