Mazeikiu Nafta's fate still unclear

  • 2005-01-06
  • From wire reports
VILNIUS - Lithuanian officials said they were planning to hold talks with Yukos representatives sometime this month over the latter's intention to raise its stake in Mazeikiu Nafta, the daily Lietuvos Rytas reported Jan. 3. The paper said that Deputy Economy Minister and Mazeikiu Nafta Board Chairman Nerijus Eidukevicius, confirmed this information.


In October Yukos Finance, a Dutch-based subsidiary of the embattled Russian oil major, said it wanted to use an option to buy 9.72 percent in Mazeikiu Nafta for $75 million. Considering the multibillion dollar tax bill the company is still facing in Russia, the firm's intention has reportedly puzzled government officials in Lithuania.

Eidukevicius said that Yukos' reasons for buying an additional stake in the refinery and terminal complex were unclear. "We will try to find out why they need the shares. Until everything is cleared up, the board of the company will not give the go-ahead to start the share purchase procedure," he said.

Yukos, which just lost control over its main production unit, Yuganskneftegaz, currently holds a 53.7 percent stake in Mazeikiu Nafta, while the Lithuanian government owns 40.6 percent of outstanding stock.

Despite the continuing lack of clarity involving the refinery's future ownership structure, the company reported this week that it had its best year in 14 years. Refining volumes rose 21 percent to 8.7 million tons, and earnings reached 600 million litas (173.9 million euros).

In December alone Mazeikiu Nafta refined 832,000 million tons of crude and other feedstock, a 12-month record and up 11.7 percent year-on-year.