JSC “Ventspils nafta” is satisfied with engagement of oil industry giant in concern's business

The management of public JSC “Ventspils Nafta” is satisfied with the decision
of the Competition Council (CC), which indicates that the Competition Law of
Latvia does not create obstacles for 49% interest of the company Euromin
Holdings (Cyprus) Limited of the international consortium Vitol, the new
shareholder (34.75%) of JSC „Ventspils Nafta”, in the share capital of
„Ventspils Nafta Terminals” Ltd, the subsidiary of JSC “Ventspils Nafta”. 

 „It means that the corporation Vitol, which is well known in the international
oil and gas industry and whose total turnover reached USD 114 billion in 2006,
will be able to start to fully operate in the market of Latvia. This is a great
achievement not only for JSC “Ventspils Nafta”, but also for the economy of
Latvia in general,” says Olga Pētersone, the chairperson of the Management
Board of JSC “Ventspils Nafta” satisfied with the decision of the competition
Council. Managers of JSC “Ventspils Nafta” indicate that in a result of such a
strategic cooperation between “”Ventspils Nafta” Terminals” Ltd, the largest
crude oil and petroleum product transshipment company in the Baltic region, and
the company Vitol, the most important company in global oil and gas sector, a
serious joint company will form, whose major power will stay in the hands of
JSC “Ventspils Nafta”. 

In compliance with the decision of Competition Council of 26 October 2006
consequently and consecutively studying potential cooperation opportunities
between “”Ventspils Nafta” Terminals” Ltd and the company Vitol, an important
precondition for its precise definition was the opinion of CC taking into
consideration that both of these companies work in the transit sphere. 

Already on 26 October 2006, JSC „Ventspils Nafta” informed the Riga Stock
Exchange about the official proposal for cooperation of the new owner of JSC
“Ventspils Nafta” put forward to the Management Board of JSC “Ventspils Nafta”
by which Euromin Holdings (Cyprus) Limited, the 100% subsidiary of Vitol,
offered to guarantee a certain increase in petroleum product transshipment
volumes expressing its willingness to obtain a position in the management of
the terminal to control its holding. 
 
Euromin Holdings (Cyprus) Limited offered to guarantee a long-term increase in
petroleum product transshipment volumes of “”Ventspils Nafta” Terminals” Ltd
therefore ensuring a sustained raise of company's financial results within this
period. For this purpose, Euromin Holdings (Cyprus) Limited invited to sign a
Call Option Agreement, the subject of which provides for the company of Vitol
Group, by fulfilling their obligations with respect to SIA “”Ventspils nafta”
Terminals”, a possibility of gaining their interest - in this case minor - in
equity capital of the terminal. On 26 October 2006 the Supervisory Board of JSC
“Ventspils Nafta”, as it informed the Riga stock Exchange, gave their consent
to signing such basic document - a Call Option Agreement with Euromin Holdings
(Cyprus) Limited. 

In the last months analysing in detail technical and technological
opportunities of “”Ventspils Nafta” Terminals”, Euromin Holdings (Cyprus)
Limited has admitted that the potential cooperation with this company is
prospective to develop a joint business, and is ready to further raise of the
terminal's financial results. At the moment, the preparation works for this
transaction are being done. It is expected that it could be completed in some
of the next weeks. 

JSC “Ventspils nafta“
For further information, please call Gundega Vārpa (phone number - 7229793) or
e-mail to: gundega.varpa@vnafta.lv.