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. Last Updated: 07/27/2016

Refinery Out of Crude




VILNIUS, Lithuania -- Lithuania's Mazheikiu Nafta , now one-third owned by U.S. energy firm Williams International, said Monday it had halted refining operations due to a lack of Russian crude supplies.


"Negotiations with potential suppliers are going on," the refinery, which provides some 10 percent of the Lithuanian gross domestic product, said in a statement. It did not say when refining operations would begin again.


Russia, Mazheikiu Nafta's sole crude supplier, had approved a fourth-quarter crude export schedule of 691,000 metric tons to Lithuania, but 420,000 tons of that was to be exported through the Butinges oil terminal, leaving the refinery far less than it needs to operate normally throughout the quarter. Crude supply interruptions in the first half of the year forced the refinery into two costly shut-downs that pushed Mazheikiu Nafta into a nine-month pretax loss of almost $40 million.