UPDATE 1-Belarus offers Rosneft option to increase Mozyr oil plant stake
* Rosneft has said interested in increasing its stake in refinery
* Belarus wants to sell the plant as part of a wider privatisation (Changes sourcing, adds quote, details)
MINSK Dec 20 (Reuters) - Belarus has offered Rosneft an option to increase its stake in the Mozyr oil refinery if the Russian state-controlled oil producer doubles output at the plant, a Belarus deputy prime minister said on Friday.
Slavneft, a joint venture between Rosneft and Gazprom Neft , already owns 42 percent in Mozyr, which is one of two large refineries in Belarus. The rest is controlled by the Belarus government.
Belarus plans to raise $4.5 billion from privatisation next year, including the sale of the Mozyr refinery, up from $3 billion last year and just under $1 billion in the first half of this year.
The country is facing peak payments on its international debt - which stands at $12 billion - in 2013-2014, while its industrial production is falling and economic growth has slowed.
"We made an offer to Rosneft. One of the conditions for privatisation is to increase oil refining to 20 million tonnes (a year) by 2020," Pyotr Prokopovich told the local parliament.
Mozyr's annual capacity is 11 million tonnes (220,000 barrels per day).
The head of Rosneft, Igor Sechin, has emerged as a surprising ally of Belarus President Alexander Lukashenko after a spat between Moscow and Minsk over potash business earlier this year.
He has said that Rosneft is willing to increase oil flows to Belarus, where Russian crude oil is shipped duty-free thanks to a common custom union with Moscow. (Reporting by Andrei Makhovsky; writing by Vladimir Soldatkin; editing by Megan Davies and Jane Merriman)
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