By OGJ editors
HOUSTON, Apr. 22 -- The international unit of Williams Cos. Inc., Tulsa, and Russian oil company OAO Yukos have submitted to the Lithuanian government signed agreements outlining Yukos's purchase of share equity in Lithuanian oil company Mazeikiu Nafta for $75 million.
The contracts also detail a 10-year supply agreement under which Yukos will provide a minimum of 35 million bbl/year of crude oil to Mazeikiu Nafta's 263,420 b/d refinery. In addition, Yukos will provide a $75 million credit line to the Lithuanian company.
Williams and Yukos signed a cooperative agreement for the contracts at midyear 2001 (OGJ Online, June 15, 2001).
Following completion of the transaction, the Williams unit and Yukos will each hold a 26.85% stake in Mazeikiu Nafta, with Lithuania holding 40.66% equity interest. Williams also will retain management of Mazeikiu Nafta, based on an agreement signed with Lithuania in October 1999.
The contracts await approval from the Lithuanian government.
"Williams will be requesting that the Lithuanian government agree to hold a Mazeikiu Nafta board meeting in time to be able to amend the agenda of this month's general meeting of shareholders in order for the company to approve two new share issues," said Randy Majors, managing director, of Williams's international unit.
Mazeikiu Nafta has scheduled a general meeting of shareholders for Apr. 30.