Press Release Re. Mazeikiu Nafta
A commentary concerning the Mazeikiu Nafta refinery delivered by Mr Igor Chalupec, President of the Management Board of PKN ORLEN S.A., at today’s press conference.
Pending the European Commission’s approval of the acquisition of the Mazeikiu Nafta refinery (MN), PKN ORLEN may not become involved in MN’s day-to-day operations or influence its functioning. For this reason, PKN ORLEN may not currently participate in any efforts undertaken by MN with a view to securing oil deliveries to the refinery, however, to the best of PKN ORLEN’s knowledge, such efforts are on a successful path. When preparing its bid, PKN ORLEN conducted thorough economic analyses taking into account the costs of deliveries of various types of oil by sea. According to PKN ORLEN’s estimates, oil refining at MN is profitable even in a scenario assuming exclusive deliveries by sea.
As regards the present situation, PKN ORLEN wishes to express its hope that there are not any non-business related reasons behind the reported pipeline failure. If that were the case, Russia could not be perceived as a trustworthy supplier of energy resources. PKN ORLEN is deeply convinced that Transneft will soon remove the pipeline failure and resume oil deliveries via the pipeline. Any prolonged interruption of pipeline deliveries might result in Transneft’s loss of its reputation as a reliable partner.
The acquisition price of MN, specified in the agreements concluded with Yukos International UK BV and the Lithuanian government, is a fixed price and may be reduced only in the event of payment of dividends from the 2005 profit to the existing shareholders.
