Signing of Crude Oil Supply Agreement with PKN ORLEN

AB  „Mažeikių nafta“      Notice of material event           2007.01.08

Signing of Crude Oil Supply Agreement with PKN ORLEN 

We hereby inform that AB Mazeikiu Nafta (“Mazeikiu Nafta”) on 5 January, 2007 
signed an agreement with Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN"), 
Central Europe’s largest downstream oil company, that gives to PKN ORLEN 
the exclusive rights to supply Mazeikiu Nafta with crude oil 
(hereinafter - the “Agreement”). The signing of the Agreement is connected 
with the centralization of crude oil purchases to the PKN ORLEN Group, 
including supplies to the refineries in Poland, the Czech Republic and Lithuania.

The Agreement is concluded for an undetermined period and will come into force 
on the date of signing. The crude oil deliveries associated with the Agreement 
will be realized with the use of the “Druzba” pipeline and through the marine 
terminal in Butinge.

On the day of signing the Agreement, the estimated value of the crude oil supplies
to Mazeikiu Nafta, realized within the Agreement, in the first five years has been
assessed at the level of ca. USD 19 billion (i.e. approximately LTL 49.8 billion, 
based on average USD/LTL exchange rates as of 5 January 2007, as stated 
by the National Bank of Lithuania).

PKN ORLEN holds 84.2% of shares in the initial capital of Mazeikiu Nafta 
as of 5 January 2007. 



Darius Zilinskas
Head of Associated Companies Department
tel.+370 443 92442, darius.zilinskas@nafta.lt