Poland's PKN Orlen halts sale process for Lithuanian unit

14 December 2011 15:25  [Source: ICIS news]

LONDON (ICIS)--Poland's state-controlled PKN Orlen group has suspended the sale process for its Lithuanian subsidiary Orlen Lietuva because of adverse market conditions, treasury minister Mikolaj Budzanowski said on Wednesday.

“Today is not the right time favouring such disinvestment. This project is suspended, maybe it will return in the future, but that depends on the market situation,” Budzanowski told the Polish parliament.

More than a year ago analysts warned that Orlen would struggle to recover its $2.3bn (€1.8bn) investment in Orlen Lietuva.

Late in 2009, Orlen indefinitely postponed plans to turn the refiner’s main site into an oil and petrochemicals complex after it recognised that difficulties in obtaining pipeline oil for the subsidiary from Russia had affected its profitability.

Earlier on Wednesday, Orlen Lietuva announced an investment in expanding its sulphur recovery unit by 40%.

Orlen Lietuva had its name changed from Mazeikiu Nafta in 2009.

($1 = €0.77)

By: Will Conroy
+44 20 8652 3214

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