New Management Board in AB Mažeikių Nafta

Such a broad representation of PKN ORLEN on the Management Board of AB Mažeikių Nafta is a results of the strategic character of the investment and its role in building corporate value. The Supervisory Board of AB Mažeikių Nafta (MN) today dismissed 4 current representatives of Yukos International UK B.V. and replaced them with 4 persons proposed by PKN ORLEN.

The Supervisory Board has appointed to the Management Board of MN the following persons: Jan Maciejewicz – Vice President; Cost Management, Paweł Szymański; Member of the Management Board & CFO, Krystian Pater; Executive Director; Refinery Production and Nelson English, present CEO of AB Mažeikių Nafta. Currenty the Management Board of AB Mažeikių Nafta consist of 7 members.

The new Management Board of Mazeikiu will begin work on December 14, 2006.

In addition, the Supervisory Board of AB Mažeikių Nafta elected Marek Moroz, representing PKN ORLEN, as the new Chairman of the Supervisory Board.

Under Lithuanian law, persons sitting on the Management Board of a parent company may not be members of the Supervisory Board of a subsidiary. They may, however, sit on the Management Board of the company. This is due to differences in the role of the Management Board within the company’s corporate governance as compared to their Polish counterparts. The majority of the day-to-day operating management is handled by the Chief Executive Officer, whereas the competencies of the Management Board are directed towards strategic decisions (in a similar way to a Supervisory Board under Polish legislation).

In accordance with policies implemented two years ago by the PKN ORLEN Group, persons delegated by PKN ORLEN to the Supervisory Board and the Management Board of AB Mažeikių Nafta will relinquish all remuneration for their work on the statutory bodies of the company.