Yukos signs crude-for-shares deal

  • 2002-06-20
  • Staff and Wire reports, VILNIUS
The Lithuanian government and the U.S.-based energy company Williams International signed a crude-for-equity deal on June 18 as expected with Yukos that will give the Russian oil supplier a 26.85 percent stake in Mazeikiu Nafta, the Baltics' sole oil refinery.

Williams and Yukos will each hold 26.85 percent in Mazeikiu and the Lithuanian government will hold 40.66 percent under the agreement, which was negotiated for more than a year. The remaining shares in the company will be sold on the stock exchange.

Yukos paid $75 million in cash and $75 million in guaranteed loans for the stake. It will also guarantee supplies of 35 million barrels a year for 10 years to Mazeikiu, which has been plagued by shortfalls in the delivery of Russian crude.

The Yukos cash and investments will help fund an estimated $400 million in renovations to the Soviet-built refinery.

The deal will not give Yukos buy-out rights but does stipulate that the company will be offered shares from other shareholders that may want to sell.

The deal is the largest investment by a Russian company in Lithuania.