Mazeikiu deal sealed

Mazeikiu said in a statement that PKN had bought a 30.66-percent stake from the Lithuanian government for $852 (zł.2,445) million. On Thursday it bought 53.7 percent from bankrupt Russian energy giant YUKOS for $1.49 (zł.4.27) billion.

PKN, which now holds 84.4 percent at Mazeikiu, is expected to make a tender offer to buy the remaining shares, except a 10-percent stake that will be retained by the Lithuanian government.

The sale marks the end of a process that began in May, when PKN fought off Kazakh competition to buy the refiner.

After agreeing to buy the plant, PKN saw production cut back by just over half its capacity by a fire in mid-October. Mazeikiu has also had to rely on expensive crude supplied by sea after a leak led to the closure of a 250,000-barrel-per-day pipeline that brings oil from Russia.

Mazeikiu currently refines 15,000 tonnes of crude per day, down from the maximum capacity of 27,400 tonnes. (Reuters)