Williams-Yukos deal to be settled soon

VILNIUS - The Lithuanian Parliament's Social Liberal faction called on party leader and Parliamentary Chairman Arturas Paulauskas to agree with the Social Democrat faction, its coalition partner in the new majority, on convening an extraordinary parliamentary session on July 30-Aug 5.

In the session, Parliament would debate laws regarding the agreements between the American company Williams International and Russia's Yukos on long-term oil supplies to the Lithuanian oil company Mazeikiu Nafta.

Under a 10-year crude oil supply deal, Yukos would provide the Mazeikiai-based refinery with 4.8 million tons of crude per year and also export 4 million tons through Mazeikiu Nafta's Butinge terminal annually. The Russian oil producer would acquire a 26.85 percent stake in Mazeikiu Nafta.

The deal can be implemented only if Parliament adopts amendments to the law on the privatization of Mazeikiu Nafta, which would enable Yukos to acquire shares in the Lithuanian oil company.

Meanwhile another Russian oil giant, Tyumen Oil, has submitted an official offer to Lithuanian Prime Minister Algirdas Brazauskas on participation in the privatization process of Mazeikiu Nafta.

Tyumen Oil President German Chan met with Brazauskas on July 13. Chan said Brazauskas had not presented any official position on the issue.

Economy Minister Petras Cesna said the government would consider Tyumen Oil's offer. He could not say whether the announcement of a public tender for long-term oil supplies to Mazeikiu Nafta was possible.

Cesna did not rule out the possibility, however, that two Russian companies could participate in the deal, noting that Williams International, the U.S. operator of Mazeikiu Nafta, would have a great influence on the decision.