RIGA — Poland’s PKN Orlen has admitted that it was interested in attracting an outside investor to the Mažeikiai oil refinery, its troubled Lithuanian subsidiary.

Beata Karpinska, a company spokeswoman, told The Associated Press it was considering a sale of a stake in Orlen Lietuva, the subsidiary that controls [private_supervisor]the refinery in Mažeikiai and the terminal in Būtingė. It is Lithuania’s largest enterprise.

Previously the Polish company had denied it was searching for an investor, even though Russian Prime Minister Vladimir Putin had informed Lithuanian President Dalia Grybauskaitė that Russian oil interests were in talks with the Poles on a possible deal.

On Thursday the Dziennik Gazeta Prawna daily in Poland reported that Orlen was searching for a strategic partner and that it was willing to sell 25 percent in its Lithuanian subsidiary. Currently PKN Orlen owns 100 percent of Orlen Lietuva. The paper mentioned Rosneft, Russia’s largest oil producer, as a potential investor.

Karpinska, however, said information about any specific investors was purely speculative.

Russian oil companies have long wanted to obtain control over the Mažeikiai refinery, but they were shut out twice — once in the 1990s and then again in 2006. Disgruntled, the Russians then shut off crude oil supplies to the refinery, citing a pipeline accident in Belarus. Lithuanian inspectors were never allowed to see the damaged pipeline, which Russian officials say is not economically feasible to repair.

The accident has forced Orlen to supply the refinery with crude via the Būtingė terminal, which is considerably more expensive than pipeline deliveries. As a result, the operational margins at the refinery have suffered, and the Poles apparently have acquiesced that, without a Russian partner on board, their multi-billion euro investment in the Lithuanian enterprise will not pay off. [/private_supervisor] [private_subscription 1 month]the refinery in Mažeikiai and the terminal in Būtingė. It is Lithuania’s largest enterprise.

Previously the Polish company had denied it was searching for an investor, even though Russian Prime Minister Vladimir Putin had informed Lithuanian President Dalia Grybauskaitė that Russian oil interests were in talks with the Poles on a possible deal.

On Thursday the Dziennik Gazeta Prawna daily in Poland reported that Orlen was searching for a strategic partner and that it was willing to sell 25 percent in its Lithuanian subsidiary. Currently PKN Orlen owns 100 percent of Orlen Lietuva. The paper mentioned Rosneft, Russia’s largest oil producer, as a potential investor.

Karpinska, however, said information about any specific investors was purely speculative.

Russian oil companies have long wanted to obtain control over the Mažeikiai refinery, but they were shut out twice — once in the 1990s and then again in 2006. Disgruntled, the Russians then shut off crude oil supplies to the refinery, citing a pipeline accident in Belarus. Lithuanian inspectors were never allowed to see the damaged pipeline, which Russian officials say is not economically feasible to repair.

The accident has forced Orlen to supply the refinery with crude via the Būtingė terminal, which is considerably more expensive than pipeline deliveries. As a result, the operational margins at the refinery have suffered, and the Poles apparently have acquiesced that, without a Russian partner on board, their multi-billion euro investment in the Lithuanian enterprise will not pay off.[/private_subscription 1 month] [private_subscription 4 months]the refinery in Mažeikiai and the terminal in Būtingė. It is Lithuania’s largest enterprise.

Previously the Polish company had denied it was searching for an investor, even though Russian Prime Minister Vladimir Putin had informed Lithuanian President Dalia Grybauskaitė that Russian oil interests were in talks with the Poles on a possible deal.

On Thursday the Dziennik Gazeta Prawna daily in Poland reported that Orlen was searching for a strategic partner and that it was willing to sell 25 percent in its Lithuanian subsidiary. Currently PKN Orlen owns 100 percent of Orlen Lietuva. The paper mentioned Rosneft, Russia’s largest oil producer, as a potential investor.

Karpinska, however, said information about any specific investors was purely speculative.

Russian oil companies have long wanted to obtain control over the Mažeikiai refinery, but they were shut out twice — once in the 1990s and then again in 2006. Disgruntled, the Russians then shut off crude oil supplies to the refinery, citing a pipeline accident in Belarus. Lithuanian inspectors were never allowed to see the damaged pipeline, which Russian officials say is not economically feasible to repair.

The accident has forced Orlen to supply the refinery with crude via the Būtingė terminal, which is considerably more expensive than pipeline deliveries. As a result, the operational margins at the refinery have suffered, and the Poles apparently have acquiesced that, without a Russian partner on board, their multi-billion euro investment in the Lithuanian enterprise will not pay off.[/private_subscription 4 months] [private_subscription 1 year]the refinery in Mažeikiai and the terminal in Būtingė. It is Lithuania’s largest enterprise.

Previously the Polish company had denied it was searching for an investor, even though Russian Prime Minister Vladimir Putin had informed Lithuanian President Dalia Grybauskaitė that Russian oil interests were in talks with the Poles on a possible deal.

On Thursday the Dziennik Gazeta Prawna daily in Poland reported that Orlen was searching for a strategic partner and that it was willing to sell 25 percent in its Lithuanian subsidiary. Currently PKN Orlen owns 100 percent of Orlen Lietuva. The paper mentioned Rosneft, Russia’s largest oil producer, as a potential investor.

Karpinska, however, said information about any specific investors was purely speculative.

Russian oil companies have long wanted to obtain control over the Mažeikiai refinery, but they were shut out twice — once in the 1990s and then again in 2006. Disgruntled, the Russians then shut off crude oil supplies to the refinery, citing a pipeline accident in Belarus. Lithuanian inspectors were never allowed to see the damaged pipeline, which Russian officials say is not economically feasible to repair.

The accident has forced Orlen to supply the refinery with crude via the Būtingė terminal, which is considerably more expensive than pipeline deliveries. As a result, the operational margins at the refinery have suffered, and the Poles apparently have acquiesced that, without a Russian partner on board, their multi-billion euro investment in the Lithuanian enterprise will not pay off.[/private_subscription 1 year]

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