Government reveals strategy for oil privatization
The question remained, however, whether the plan would attract interest from foreign investors because the merged refinery Plock and retailer CPN would be a far larger player than refinery Gdanska. At least one foreign oil company turned up its nose at the government's latest oil sector plan.
"We have no interest to be a minority shareholder in Plock-CPN," said Peter Oakford, managing director of Texaco Polska. "Gdansk is not interesting for us, so at this stage we don't have any interest."
Other foreign oil sector players, who did not want to comment directly on the government's plan, said they would prefer a stake in Plock, but may consider the less attractive Gdanska option.
Some executives said Western oil companies are not likely to be drawn to Gdansk's refining capabilities because they are already facing over-capacity problems in Western Europe. Rather, the privatization is likely to draw the interest of Russia's Lukoil. "The Russians are lacking capacity, they bought a refinery in Romania, Poland is naturally the next step for them," said an executive with a Western firm who did not wished to be named.
But the financial advisers working on the oil sector privatization program are convinced that Gdansk will attract enough interest from foreign firms.
"Gdansk is fundamentally less attractive, but there always was interest," said Maciej Olex-Szczytowski, head of Central Europe at Dresdner Kleinwort Benson, which is advising on the privatization along with Warsaw-based Business Management & Finance. "As the oil companies realize that Gdansk is the only refinery they are able to buy in Poland, the interest will grow and the value will grow.
"This privatization is the optimal solution as all three companies have a clear future, it generates maximum money for the State Treasury and it allows Polish society to participate in the privatization as retail investors," he added.
Dresdner Kleinwort Benson estimates that the merged Plock-CPN will have a 30% higher value than if the company were sold on their own.
And the government's plan seems to have cleared some other hurdles. Unions within CPN, which previously tried to block privatization-related mergers, seemed resigned to the decision.
"This is a marriage of convenience," said Walenty Cywinski, head of the trade unions in CPN. "CPN is incorporated into Plock so on principle we don't like it. But we are facing what was decided, and we have to find ourselves there."
And although Plock will get CPN, which with 1,400 gas stations around Poland is the country's largest Petrol retailer, Gdanska will also be able to add to its retail network. Under the privatization plan, the Gdansk refinery will have an option to buy 200 of CPN's stations, adding to its own network of 16 stations and 125 franchise outlets.
"We have no interest to be a minority shareholder in Plock-CPN," said Peter Oakford, managing director of Texaco Polska. "Gdansk is not interesting for us, so at this stage we don't have any interest."
Other foreign oil sector players, who did not want to comment directly on the government's plan, said they would prefer a stake in Plock, but may consider the less attractive Gdanska option.
Some executives said Western oil companies are not likely to be drawn to Gdansk's refining capabilities because they are already facing over-capacity problems in Western Europe. Rather, the privatization is likely to draw the interest of Russia's Lukoil. "The Russians are lacking capacity, they bought a refinery in Romania, Poland is naturally the next step for them," said an executive with a Western firm who did not wished to be named.
But the financial advisers working on the oil sector privatization program are convinced that Gdansk will attract enough interest from foreign firms.
"Gdansk is fundamentally less attractive, but there always was interest," said Maciej Olex-Szczytowski, head of Central Europe at Dresdner Kleinwort Benson, which is advising on the privatization along with Warsaw-based Business Management & Finance. "As the oil companies realize that Gdansk is the only refinery they are able to buy in Poland, the interest will grow and the value will grow.
"This privatization is the optimal solution as all three companies have a clear future, it generates maximum money for the State Treasury and it allows Polish society to participate in the privatization as retail investors," he added.
Dresdner Kleinwort Benson estimates that the merged Plock-CPN will have a 30% higher value than if the company were sold on their own.
And the government's plan seems to have cleared some other hurdles. Unions within CPN, which previously tried to block privatization-related mergers, seemed resigned to the decision.
"This is a marriage of convenience," said Walenty Cywinski, head of the trade unions in CPN. "CPN is incorporated into Plock so on principle we don't like it. But we are facing what was decided, and we have to find ourselves there."
And although Plock will get CPN, which with 1,400 gas stations around Poland is the country's largest Petrol retailer, Gdanska will also be able to add to its retail network. Under the privatization plan, the Gdansk refinery will have an option to buy 200 of CPN's stations, adding to its own network of 16 stations and 125 franchise outlets.
