Nafta Polska proposes termination of RG privatization

Nafta Polska (NP) has turned to the Treasury Ministry with a proposition to terminate the privatization process of the Gdańsk Refinery (RG). According to unofficial information, the proposal outlines the most probable consequences of selling RG to the consortium of PKN Orlen and Rotch Energy. NP has previously expressed doubts as to Rotch's financial soundness and believes that the consortium's purchase would lead to a total takeover of RG by PKN Orlen. In such an event Rotch would enter the structure of PKN at the expense of the Treasury's stake. The proposed solution envisages formation of the Lotos Group, which will incorporate RG, Jasło, Czechowice, Glimar, and oil exploration company Petrobaltic. Privatization of Lotos would then be carried out through a public share offering or a merger with PKN Orlen, which would strengthen the Treasury's stake in Orlen. Treasury Minister Piotr Czyżewski said yesterday that within three weeks he will decide whether to support the proposal. The Ministry wants to conclude all decisions concerning the privatization of the oil sector before June's EU referendum.(Rzeczpospolita, p. B2) A.K.