DS-1, a company building and installing engineering systems, has terminated its joint activity contract, worth tens of millions of euros, with Alvora, a construction company building energy infrastructure, for the upgrading of oil refining company Orlen Lietuva’s (Orlen Lithuania) refinery in Mazeikiai after the latter caught the attention of law enforcement authorities.
The decision was on Friday confirmed by Vykintas Belickas, CEO of DS-1. For its part, Alvora’s CEO says the contract termination won’t affect he project.
“The contract has been terminated, we are no longer involved in this project and we will not be involved with Alvora in any format,” Belickas told BNS.
He refrained to disclose who initiated the termination and why, citing confidentiality reasons.
Alvora was awarded the contract to upgrade the Orlen Lietuva plan for 80 million euros in April after it previously also installed the strategically important Lithuanian-Polish gas pipeline (GIPL). The contract for the installation of engineering systems and energy infrastructure was signed by the project’s general contractor, the UK’s Petrofac.
The latter refrained to comment on the situation when approached by BNS: “Alvora should be contacted directly regarding Alvora or its subcontractors”.
Martynas Pargaliauskas, CEO of Alvora, told BNS that the contract had been terminated by mutual agreement for commercial reasons, adding that both sides have no claims against each other.
“The changes in the contractual relations with DS-1 do not affect the pace of our works or the deadlines for implementation. We continue to carry out our obligations in accordance with the approved schedule, and we plan to complete the work on time,” the Alvora CEO told BNS.
(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)