Klaipedos Nafta AB - Notification on material event

Concerning investment in 2011

The meeting of the Company's strategic review committee of 14 February 2011
approved the project “Construction of heavy oil product storage tanks” - the
second investment project to be implemented by the Company in 2011. The total
allocations for the tank construction project are estimated at LTL 15-23 m, and
the project's completion date is scheduled for late 2011. 

The first investment project for 2011 - “Recovery of hydrocarbon vapour from
railway gantries” - has already been launched and the relevant public
procurement tender announced on 21 January. The total project investment will
reach LTL 5-7 m, the term for its implementation scheduled for late 2011 -
early 2012. 

The heavy oil product storage tank project will include the construction of two
new storage tanks, each of 32,250 m³ in capacity on the venue of the current
four storage tanks of 5,000 m³ that will be demolished. The emissions of VOC
from the newly installed storage facilities will be reduced by 10 times as
compared to the current emission levels. The project will also include the
installation of above-ground technological pipelines that will be connected to
the existing technological lines.  The two new storage tanks will be adapted
for storing vacuum gasoil, fuel oil, diesel oil and crude oil. 

The hydrocarbon vapour recovery project will include the upgrading of the
technological facilities for the recovery of hydrocarbon vapour emitted during
loading and unloading of oil products from railway tanks, dismantling of the
existing vapour combustion unit which will be replaced by a new hydrocarbon
vapour recovery unit fully compliant with the European Union and the relevant
Lithuanian standards. 




         Johana Bučienė
         Chief Financier,
         +370 46 391 636