PKN Orlen to renegotiate terms for Lithuanian oil complex

27-Oct-06

Following a fire in the refinery, Polish petrochemicals group PKN Orlen could seek to renegotiate the terms of its takeover of the Lithuanian oil complex, Mazeikiu Nafta. This decision will be arrived at after results of tests and the opinions of advisers and the insurers on the damage caused by fire estimated between 16-38 million euros (US$20-49 million). The Lithuanian government has, however, ruled out renegotiating the price of the sale of Mazeikiu The Polish company had, in May, signed a deal to buy a 53.7% stake in Mazeikiu from bankrupt Russian oil giant Yukos for US$1.492 billion. In June, it struck a deal to buy a further 30.66% stake with the Lithuanian government for US$852 million. The sale was to be concluded this year, pending authorization from the European Commission. Last week, PKN Orlen said it had reached an agreement with the Lithuanian government to complete the takeover of Mazeikiu Nafta.