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UPDATE 1-PKN eyes remaining 10 pct of Lithuanian refiner

Thu Jul 10, 2008 12:09pm EDT
 
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(Changes dateline, adds government reaction, details)

VILNIUS, July 10 (Reuters) - Polish oil refiner PKN Orlen PKNA.WA wants to buy the 9.98 percent of Mazeikiu Nafta it does not already own from Lithuania, but the government does not plan to sell at the moment, the prime minister's advisor said on Thursday.

PKN Orlen, which controls slightly more than 90 percent of the Lithuanian refiner, is also interested in a stake in oil terminal operator Klaipedos Nafta (KNF1L.VL: Quote, Profile, Research, Stock Buzz), the government said in a statement, quoting Chief Executive Wojciech Heydel as saying at a meeting with Lithuania's Prime Minister Gediminas Kirkilas.

"PKN Orlen's CEO asked about possibility to buy the remaining shares, as they did in the past, but there are no plans to sell the shares at the moment," Mantas Nocius, the prime minister's advisor, who was present at the meeting, told Reuters. "We may consider that in the future, of course," he added.

The statement did not give a possible price for the stake.

The government also remains reluctant to sell a stake in Klaipedos.

The Polish oil group said it needed control over Klaipedos, so it can have a say over setting loading tariffs, before it starts building more than 100 million dollars worth of pipelines.

Mazeikiu said it may send its oil products via ports in neighbouring Latvia, if it does not get the control of the Klaipedos oil terminal, its main export hub to western European and the U.S. markets.

The government said a sale of Klaipedos needs parliament's approval and with only a few months left until general elections in October it was not good time to debate the issue.  Continued...

 

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