Rotch wins exclusivity for 75% of Rafineria Gdanska

Treasury Ministry and Nafta Polska have granted Consortium Rotch Energy Limited exclusive negotiation rights in the tender for a 75% stake, worth an estimated $200-300 million, in Poland's second largest oil company, Rafineria Gdanska (RG). The consortium's chief rival was Hungarian concern MOL. CRE says it wants to increase the refinery's output to 7.5 million tons from the present 4 million tons per year. It also plans to improve the quality of RG' s products and cut the company's costs.The consortium won exclusivity despite alleged under-the-table dealings of the Hinduja brothers, owners of Gulf Oil International, a member of the consortium. The two men are to appear in Indian court under charges of corruption in purchasing weapons from Swedish Bofors. CRE has until July 9th of this year to to apply for the purchase of the RG shares. Sources close to Rotch say another issue of RG shares is being prepared which would take place after the deal has been clinched. (Rzeczpospolita, June 9-10, p. B1) J.K.