Swedish oil concern presents suit against Lithuania

Jul 13, 2000

The claim was presented to the International Chamber of Commerce for arbitration.

Svenska Petroleum, which together with Geonafta established the joint-venture Genciu Nafta (Tribal Oil) in 1993, presented the claim for arbitration in Copenhagen on June 12.

Representatives of the Swedish firm claim the Lithuanian government and Geonafta are violating the terms of the agreement signed in 1993 establishing the joint-venture and are noy fulfilling certain contractual duties.

Stasys Vaitkevicius, general director of the Lithuanian State Assets Fund, said the case for arbitration isn't linked with the state's financial and non-financial rights as a shareholder in Geonafta, and that it was not connected with the privatization of Geonafta as well.

The Assets Fund acting on behalf of the state must reply to the request of the plaintiff by July 30. The litigation is still in the beginning phases.

An almost 81 percent stake in Geonafta held by the Lithuanian state was sold on June 16 to the oil drilling company Naftos Gavyba consortium made up of Lithuanian, Latvian and Swiss firms. The buyers will pay 52 million litas ($13 million) for the shares and invest another 56 million litas.

Svenska Petroleum also took part in the bid of Geonafta shares, but, according to press reports, didn't meet the minimum price of 50 million litas set by the Lithuanian government.

SOCIAL BOOKMARKS:   Delicious   Digg   Reddit   Ask   Facebook   MrWong   Netvouz