PKN ups the ante in race for MN

Last week the CEO of PKN Orlen, Igor Chalupec, met with the Lithuanian Economy Minister, Kestutis Dauksys, to discuss buying Mazeikiu Nafta (MN). Russian giant Yukos is selling its 53.7-percent stake in the firm, in which the Lithuanian government also claims a 40.66 percent stake.

Media speculation indicated that Kazakh firm KazMunaiGaz was willing to pay $1.2 (zł.3.9) billion for the Yukos stake. However, PKN Orlen says it will beat this offer, and is also willing to buy the Lithuanian government's stake in MN. Orlen is now expecting specific questions regarding the purchase of MN from the Lithuanian government.

The Polish oil giant's only disadvantage compared with other bidders is that it does not have its own crude oil reserves. However, it has reliable oil supplies from various countries, including Russia, and Chalupec said the MN refinery would not run short of crude oil supplies if PKN Orlen buys it. (Reuters)