PKN Orlen declares it must buy Rafineria Gdanska

According to Zbigniew Wrobel, the president the Polish oil corporation PKN Orlen, if his company does not merge with Rafineria Gdanska (RG), the Polish market will suffer from a price war, which foreign corporations will be able to take advantage of. Analysts are wondering if the government will change its oil sector restructuring program and allow PKN Orlen to participate in the privatization of RG. Treasury Minister Wieslaw Kaczmarek says this option could be likely if an investor for RG cannot be found. Recently Rotch Energy invited Lukoil of Russia to join a consortium to buy RG. However, despite this, Wrobel hopes that the government will give a green light for the consolidation of domestic players. "I think that we are the most entitled to bid for RG, as we can guarantee stability and safety for the Polish fuel sector," said Wrobel. PKN Orlen's major advantage over Rotch Energy lies in the fact that it is ready to pay for RG in cash. (Puls Biznesu, p. 7) A.Z.