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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). 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. The vice-leader of the
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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
390:, 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
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border. There were no casualties among personnel. Damages incurred are estimated at around 38 million Euro, as well as around 30 million in lost revenue due to production losses. While significant, when compared with the total output and profits of the plant, they are not as large as had been feared.
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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, although some spot fires were still being put out the next day. During the fire, a 50-meter height vacuum tower collapsed, oil products
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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 which lies 7 km offshore.
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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. Historically, the primary feedstock has been
Russian crude oil transported via the
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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
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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.
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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.
238:, and another products pipeline supplying diesel fuel to the same location. Construction of pipelines in Lithuania started in 1966, with the first crude oil being put through them in 1968. In 1992, the company
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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
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313:. 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.
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420:, 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.
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202:, however the relevant branch of this system has been closed in Russian territory since July 2006, ostensibly for repairs. Crude oil is now being supplied by the
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in an effort to avoid the refinery and infrastructure being bought out by
Russian interests. Russian crude oil is now being transshipped via the
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309:, a group based in the USA. Later, Williams ran into financial trouble and their stake in Mažeikių Nafta was bought by the Russian company
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Mažeikių Nafta operates a system of pipelines with a total length of around 500 kilometers. This system includes two pump stations near
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was established for the purpose of constructing and operating the
Terminal. In 1998, Būtingės Nafta was merged into Mažeikių Nafta.
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concerns. To force the sale to Yukos for lower price, Russia has shut down the only land pipeline, which
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667:"Lithuania suspects Russian oil grab - Business - International Herald Tribune - The New York Times"
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was founded for the operation of
Lithuanian pipelines, which became part of Mažeikių Nafta in 1998.
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The company was first privatized by the Lithuanian government in 1999, when it was bought by
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is a facility owned by Mažeikių Nafta, situated in an all-year-round ice-free area of the
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Williams International and Russian YUKOS Sign Cooperation Agreement on Mazeikiu Nafta
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716:, by Vladimis Socor, Eurasia Daily Monitor Volume 3, Issue 150 (3 August 2006)
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showed interest in acquiring the refinery, whose majority stakeholder was now
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206:(see below). The Mažeikiai refinery is the only oil refinery in the
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New Installations Started their Trip from Klaipeda to Mazeikiai
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PKN Orlen buy out of Lithuania's Mazeikiu due on December 15
510:, Mažeikių Nafta company website (news message, 2006-07-31)
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AB Mažeikių Nafta Modernized Installations in Record Time
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Baltic lessons for EU in dealing with a resurgent Russia
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Interruptions in Crude Oil Supplies to Mazeikiu Nafta
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described as "tools for intimidation and blackmail".
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Non-renewable resource companies established in 1964
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374:On 29 July 2006 Russia shut down oil export to
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362:Druzhba pipeline Lithuanian branch shutdown
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526:Lithuania oil refinery blaze hits output
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665:Andrew E. Kramer (27 October 2006).
727:Regarding Fire at AB Mazeikiu Nafta
438:"ORLEN Lietuva, AB pajamos, pelnas"
879:Oil refineries in the Soviet Union
844:Companies listed on Nasdaq Vilnius
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859:Oil companies of the Soviet Union
645:PKN Orlen Acquired Mazeikiu Nafta
478:Orlen i Możejki - finał przejęcia
869:1964 establishments in Lithuania
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737:, Mažeikių Nafta company website
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554:, Mažeikių Nafta company website
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173:, the only oil refinery in the
69:Mažeikiai District Municipality
370:Mažeikiai oil refinery in 2006
316:Several potential buyers from
16:Subsidiary of Polish PKN Orlen
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792:Orlen Lietuva Company Website
612:. Retrieved on 22 April 2011.
226:, crude oil pipelines to the
874:Companies based in Mažeikiai
533:, newsdesk (12 October 2006)
386:system occurred in Russia's
849:Oil refineries in Lithuania
592:(in Polish). 7 August 2017.
189:, located near the town of
43:oil refinery near Mažeikiai
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839:Oil companies of Lithuania
382:after an oil spill on the
165:and it owns the Mažeikiai
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712:21 November 2006 at the
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299:Profit and loss account
246:Būtingė Marine Terminal
586:"ORLEN W LICZBACH PDF"
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815:56.38944°N 22.17139°E
777:at Wikimedia Commons
376:Mažeikių oil refinery
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90:€7.552 billion (2022)
396:Būtingė oil terminal
252:Būtingė oil terminal
204:Būtingė oil terminal
107:-€162 million (2022)
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418:Konstantin Kosachev
357:Russian hostilities
330:Yukos International
113:Number of employees
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820:56.38944; 22.17139
732:2007-09-27 at the
671:The New York Times
650:2007-09-27 at the
608:2010-12-03 at the
570:2007-03-04 at the
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505:2006-09-21 at the
457:2007-09-27 at the
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31:Orlen Lietuva logo
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63:Headquarters
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487:(in Polish)
301:in mln. USD
262:, north of
240:Naftotiekis
117:1387 (2019)
833:Categories
806:22°10′17″E
803:56°23′22″N
676:2016-03-17
424:References
322:Kazakhstan
256:Baltic Sea
97:Net income
590:PKN Orlen
392:PKN Orlen
380:Lithuania
334:PKN Orlen
236:Ventspils
228:Mažeikiai
195:crude oil
191:Mažeikiai
171:Lithuania
163:PKN Orlen
75:Lithuania
730:Archived
710:Archived
648:Archived
606:Archived
568:Archived
547:Archived
503:Archived
455:Archived
224:Joniškis
181:Refinery
154:(former
49:Industry
531:Reuters
409:Latvian
264:Palanga
260:Būtingė
232:Būtingė
134:Website
82:Revenue
326:Poland
318:Russia
220:Biržai
160:Polish
123:Parent
57:petrol
311:Yukos
128:Orlen
402:Fire
324:and
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53:Oil
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Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
