Lithuanian refiner Mazeikiu Nafta said that a $400 million investment programme to modernise the plant to European standards had been given the green light.

Mazeikiu, majority-owned by Russia’s troubled Yukos, said the capital expenditure was a key part of the company’s general development strategy until 2009.
“These funds are earmarked for upgrading our plant because of more stringent European Union quality requirements coming into effect in January 2005 and four years later in January 2009,” said Mazeikiu Nafta spokesman Giedrius Karsokas.
He said he would provide no breakdowns of the planned spending, but said the $400 million was not entirely earmarked for the quality upgrade as there were “other projects”.
Late last year the refiner said it had agreed on a $15 million overdraft credit with Citibank London and was planning big new investments.
The 20-year-old Soviet-built refinery completed an $80 million overhaul last September with the launch of a new Penex isomerisation and feedstock units.
At the time Mazeikiu spokesman Karsokas said, “Shareholders ...will decide on another $400-$600 million of investments between now and 2009.”
The then loss-making oil terminal, refinery and pipeline system was taken over by Yukos in late 2002 when it bailed out US investor Williams.
The firm swung into a small net profit already in the full-year 2003 as activity surged.
Mazeikiu said it had processed 760,000 tonnes of oil in September 2004, down from 813,000 the previous month, but still the third highest monthly figure in 13 years.
Mazeikiu has processed 6.280 million tonnes since the start of the year, a rise of 1.31 million tonnes over the same January-September period in 2003.