M&A

1 March, 2010

TNK BP interested in buying stake in Lithuania Mazeikiu Nafta

Interfax cited Mr German Khan executive director of Russian-British oil company TNK-BP as saying that the company is interested in buying a stake in Lithuanian petroleum concern Mazeikiu Nafta if the acquisition can be economically justified.

Mr Khan said TNK-BP had long been interested in becoming an MN shareholder owing to its ties with its Polish partners and that it would look closely at the option if it is presented again and be prepared to hold talks.

PKN Orlen bought 84% of MN which is now known as Orlen Lietuva, for USD 2.34 billion in 2006. Russia Lukoil, TNK-BP and Kazakhstan KazMunayGas were also candidates to buy the asset.

Mr Andrius Kubilius Lithuanian Prime Minister said that PKN Orlen could sell 25% of Orlen Lietuva to a Russian strategic investor in return for guarantees that Russia will resume crude oil supplies along the Druzhba pipeline. Rosneft was also named as a possible buyer as was Surgutneftegas.

Mr Sergei Bogdanchikov chief of Rosneft said that the company had not had talks on the issue of acquiring Orlen Lietuva. He said that "There have been no contacts on that topic. We study everything on the market and meet with various companies, but the distance between meeting and purchasing is enormous."

(Sourced from Interfax)