State to control Klaipeda oil

  • 1998-12-03
KLAIPEDA (BNS) - The government is set to retake control of the Klaipeda Nafta oil company running and oil product export terminal.

The government's stake is expected to rise to 51 percent from 35 percent following a planned increase in the company's authorized capital to 200 million litas ($50 million) from 100 litas, the Lietuvos rytas daily reported Nov. 30. The government had a controlling stake in Klaipeda Nafta two years ago.

Klaipeda Nafta's shareholders decided, after talks with Economy Minister Vincas Babilius last week, to boost the troubled company's authorized capital through capitalization of loans extended by its key shareholder, Naftos Terminalas oil terminal.

The company's shareholders are expected to make necessary decisions during a meeting planned for Dec. 23. The price for the new share will be fixed at 100 litas.

Naftos Terminalas which owns 46 percent of Klaipeda Nafta has given 128 million litas in loans to the company. Private shareholders say the decision is acceptable to them.

Lancaster Distral and Dilan Trading, which hold 6 percent of Klaipeda Nafta's shares, said through their representative they expected the oil product terminal to integrate itself into the Lithuanian oil sector in the future.

Kalipeda Nafta, which planned to export 5 million tons of oil products this year, loaded only 1.6 million tons during the first 10 months.