Today, AB ORLEN Lietuva, operating as a part of ORLEN Capital Group, and Ministry of Energy of the Republic of Lithuania signed the letter of intent to open the investment opportunities in deeper conversion technologies. Closer cooperation of the Polish oil concern with Lithuania is the result of the meeting held this year between Daniel Obajtek, President of PKN ORLEN S.A. Management Board, and the Prime Minister of Lithuania Ingrida Šimonytė. Such investments would allow increasing the yield of high-margin products from the current 73 percent to over 86 percent, which means that AB ORLEN Lietuva resilience to adverse microeconomic factors would increase significantly.
‘AB ORLEN Lietuva operates the only refinery in the Baltic States, playing the strategic role in ensuring energy security in this part of Europe. Our priority is strengthening its market position, and this is the reason of our consistent investments in the development of the company. We appreciate and welcome the desire of Lithuania to become involved in the project that is crucial for the future not only of ORLEN Lietuva but Lithuania as well. Investments in the Bottom of the Barrel project for deeper conversion in Mažeikiai Refinery would increase the profitability and reinforce stability. This would also contribute to the job creation’, told Daniel Obajtek, President of PKN ORLEN S.A. Management Board.
On 1 July, AB ORLEN Lietuva and Ministry of Energy of the Republic of Lithuania signed the letter of intent to open the investment opportunities in deeper conversion technologies (Bottom of the Barrel project) Such investments would allow for higher yields of more valuable petroleum products to replace high-sulphur vacuum residue. Lithuania, for its part, has expressed the support to the project development and has agreed to look at ways in which it could contribute to the implementation of Bottom of the Barrel project. By the letter of intent, the parties have agreed to gear their cooperation towards creation of the required legal framework as well as coordination of both technical and practical aspects of logistics aimed at preparation for and ensuring of timely implementation of the Bottom of the Barrel project.
For the purposes of the project implementation, the license has already been acquired and front end engineering design developed for Mažeikiai Refinery. With decision on the required investments made, the project would become the largest investment of a nature made in the history of Lithuania. According to PKN ORLEN, it will take approximately four years to implement the project.
AB ORLEN Lietuva generates substantial added value for ORLEN Capital Group and plays an important role in its activity. The company closed the first quarter of the current year with USD 752.7 million revenue, USD 23.6 million net profit, and USD 17.9 million EBITDA LIFO. Positive indicators of AB ORLEN Lietuva financial performance have been achieved through implementation of innovative projects and performance optimization initiatives.
In terms of the throughput, which amounts to 10 million tons of crude oil a year, AB ORLEN Lietuva Refinery is the second in ORLEN Capital Group. It is the only crude oil refinery in the Baltic States. The territory with approx. 2 thousand kilometers of piping occupies the area of more than 1000 ha. Since its establishment, the Refinery has processed ~330 million tons of crude oil. Petroleum products from the Refinery in Mažeikiai are delivered not only to the Lithuanian, but also Latvian, Estonian and Polish markets.
AB ORLEN Lietuva is one of the largest strategic companies of Lithuania by revenue gained, tax paid and products exported. The Company is also one of the largest employers in the region. At the time present, the Company has almost 1500 employees, with 4500 workplaces created in servicing and subcontracting enterprises.
ORLEN Lietuva inf.