By selling 49% of the shares of ““Ventspils Nafta” Terminals” Ltd a new stage in relations of Vitol and Ventspils Nafta has started

After receiving a positive resolution of the Competition Council of Latvia made
on 21 February 2007 stating that there are no obstacles for  getting joint
decisive control over “”Ventspils Nafta” Terminals” Ltd, a 100% subsidiary of
JSC “Ventspils Nafta”, as well as Euromin Holdings' offer to create a joint
business with “”Ventspils Nafta” Terminals” Ltd, the directors of JSC
“Ventspils Nafta” have given their consent to the participation with a 49%
stake of Euromin Holdings in the share capital of “”Ventspils Nafta” Terminals”
Ltd.  In a result of such starategic cooperation between the largest crude oil
and petroleum product transshipment company “”Ventspils Nafta” Terminals” Ltd
in the Baltic region and the global company Vitol involved in oil and gas
sector, a serious joint company will form, whose major control will stay in the
hands of JSC “Ventspils Nafta”. 
“We are pleased to have concluded the acquisition of a 49% stake in to
““Ventspils Nafta” Terminals” and look forward to further developing this
important strategic asset together with our partners in “Ventspils Nafta”.
Participating in the equity of the “”Ventspils Nafta” Terminals” was a natural
progress of our involvement in “Ventspils Nafta” and already we are pleased to
see that our involvement has led to a significant improvement in the volumes
and range of products put through the terminal,”  says Dennis Crema, senior
commercial representative of Vitol. 

But the chairperson of the Management Board of JSC “Ventspils Nafta”, Olga
Pētersone, stresses that „On one hand, we have said also previously that we are
satisfied with the decision of this global company to join the business of JSC
“Ventspils Nafta” Group and enter the market of Latvia in general. On the other
hand, this satisfaction is made even bigger by the fact that “Ventspils Nafta”
while maintaining control over this business sphere, which is very essential
for concern's business, at the same time gets a strategic partner in transit
sphere, as well as guarantees for steady long-term income.” 
The share capital of ““Ventspils Nafta” Terminals” Ltd is LVL 78,541,800
consisting of 785,418 capital shares, each having a nominal value of Ls 100. In
compliance with the agreement on direct cooperation which is being concluded
between the owners of the new joint company, the company of Vitol Group
guarantees ““Ventspils Nafta” Terminals” Ltd steady long-term flow of income. 
““Ventspils Nafta” Terminals” Ltd is a company of JSC “Ventspils Nafta” Group
rendering transit services - oil and gas oil receiving by pipelines; oil, gas
oil, car petrol and other petroleum product receiving by railway and sea, their
storage and transshipment. 

““Ventspils Nafta” Terminals” Ltd is the largest among such companies in the
region, and its crude oil and petroleum product tank farm reaches 1,2 million
cubic metres and has no analogues among similar companies in the nearest
countries.  Owners of ““Ventspils Nafta” Terminals” Ltd have searched for
possibilities to attract a strategic partner in order to ensure terminal's load
according to its projected capacity taking into account that crude oil
transport by pipeline to Ventspils was stopped. This stage has not finished
with Vitol becoming one of the joint owners of JSC “Ventspils Nafta” and
““Ventspils Nafta” Terminals” Ltd. Both Vitol and Ventspils Nafta are open for
strategic partnership including the one with companies of power sector in
Russia. 
The total turnover of the companies of Vitol Group reached 114 billion dollars
in 2006. The basic activity of the company is transport and trade with crude
oil and petroleum products. The company is also involved in oil processing and
manages oil transshipment terminals and pipelines. 
On 5 October 2006, Euromin Holdings (Cyprus) Limited, a subsidiary of Vitol,
bought 34.75% of the state-owned shares of JSC “Ventspils Nafta” during a
public auction at the Riga Stock Exchange saying that it is interested in the
development of  companies of JSC “Ventspils Nafta” operating in transit
business. 
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. 



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