Rotch & Orlen start due diligence into Gdansk Refinery

The consortium of Rotch Energy and domestic oil giant PKN Orlen has started due diligence of the Gdansk Refinery (RG) and meanwhile another informal offer for the company has been placed by Russia's Lukoil and Konsorcjum Gdanskie (KG) which groups private owners of gas stations. According to a Puls Biznesu source, the price offered by the second consortium is higher than the Rotch-Orlen bid and although the exact sums remain unknown, Orlen President Zbigniew Wrobel has in the past indicated his willingness to pay at least as much for RG as Lukoil's previous offer of $274 million. The source added that KG, in co-operation with the Russian oil concern, has also proposed some transactions in the nature of offset agreements. Lukoil would increase its exports of oil from Russia through state-owned Naftoport, which would then be sent to US and Western European markets. Moreover, Lukoil would propose some barter trade whereby Russians would buy food worth zl. 1.8 billion in exchange for the oil sold to Poland. "Lukoil has also promised to renovate and modernize its 100 ships in Polish shipyards. Moreover it would be possible to place part of the production of one plant in Pomorze," the source said. (Puls Biznesu, pp. 1, 7) M.M.