In brief

• Orlen CEO Ireneusz Fąfara assessed that the investment in Mažeikiai will never pay off.
• The company is considering adding $600-700 million to complete the installation, or abandoning the project.
• Abandoning it could mean closing the only refinery in the Baltic states.
• The matter is complicated by Lithuania's idea of a windfall tax on fuel companies' extraordinary profits.

Additional outlays in question

Orlen is analysing whether it is worth incurring yet another very high outlay to complete the BoB installation at Mažeikiai (Fąfara: Inwestycja w Możejkach nigdy się nie zwróci. Orlen analizuje scenariusze – Bankier.pl). CEO Ireneusz Fąfara told PAP Biznes that the company is weighing the purpose of these outlays. According to unofficial information, $600 to $700 million is missing to complete the project.

Fąfara assessed that the investment will never pay off (Prezes Orlenu: "ta inwestycja nigdy się nie zwróci". Ważą się losy rafinerii – Business Insider Polska). The CEO also acknowledged that his statement was received rather heatedly in Lithuania (Dwie rafinerie, dwa znaki zapytania. Prezes Orlenu komentuje sprawę Możejek i Aramco – WNP.pl).

Two options

The alternative to further financing is abandoning the project. Such a step could, however, bring closer the closure of the Lithuanian refinery, the only installation of this type in the Baltic states (Orlen wysyła mocny sygnał do Wilna. Przyszłość rafinerii w Możejkach wisi na włosku – Rzeczpospolita). Experts warn that the decision may also have consequences for Vilnius itself.

The announcement that possible significant changes concerning the refinery's future would be discussed with the Lithuanian government was made by the energy attaché at the Embassy of Lithuania in Poland, Beata Viršumirska (Ważą się losy rafinerii Orlenu. Z Litwy płynie kolejny sygnał – WNP.pl).

Dispute over the profit tax

Behind the dispute lies the Lithuanian idea of introducing a tax on the extraordinary profits of fuel companies. Experts appeal for talks with Poland, and some Lithuanian politicians believe that the current statements are not worth paying attention to.

Lithuania's reaction

Lithuanian Minister of Economy and Innovation Edvinas Grikszas stated that he has no information about Orlen's planned withdrawal from the country (Orlen rozważa wycofanie się z Możejek. Litewski minister: Nie mamy żadnych informacji – Bankier.pl).