Rotch Energy edges closer to buying Rafineria Gdanska

Within a few days Nafta Polska, the state agency responsible for oil sector privatization, is to grant Rotch Energy and Lukoil permission to conduct due diligence on Rafineria Gdanska (RG), Poland's second largest oil company. The Rotch Energy consortium, which has been negotiating the purchase of a 75% stake in RG for six months now, has already conducted due diligence a few months ago. However, since then the situation of RG and the whole sector has changed and Rotch was joined by Russian oil giant Lukoil. The reason for this was that Nafta Polska was not satisfied with Rotch's financial backing and the British consortium had to look for a partner, which it found in Lukoil. According to unofficial sources quoted by Rzeczpospolita, Lukoil would only be allowed to acquire a minority stake in the Polish company. (Rzeczpospolita, May 4-5, p. B2) T.J.