Govt Looking for Investor to Rekindle Refinery
The government is looking for a strategic partner for the refinery Nafta Lendava. In line with government plans, the refinery is meant to be sold by the end of the year, however, the Economy Ministry said it would give priority to finding a suitable investor rather than selling in time.
The ministry said the goal was to find a buyer that would invest in getting the refinery on its feet again and ensuring its long-term operations.
The interest in the refinery in the northeastern-most part of Slovenia on the border with Hungary has been expressed by a number of foreign investors, the ministry says.
In August last year, the state and Russian oil giant Lukoil signed a letter of intent on cooperation in the privatisation. Economy Minister Andrej Vizjak and Lukoil CEO Vagit Alekperov agreed at the time that the two sides would draw up concrete plans for the privatisation of Slovenia's lone refinery.
No proposals have been unveiled to the public as yet, but the Economy Ministry explained that the letter of intent does not oblige "the state to sell Nafta Lendava nor Lukoil to buy the company".
Nafta Lendava chief supervisor Drago Siftar said that the privatisation was halted because of the arrival of a strategic partner that was willing to invest extensive funds into the company. Siftar added that the company in question was from the EU, but was not a major player on the global market.
The paper went on to write that the potential bidder could unveil its strategy of development for Nafta Lendava in the near future, after which the government would decide on the offer. The Economy Ministry denied these claims.
Nafta Lendava was established in 1945 and was a leading company in this part of Slovenia before it ran into trouble during the period of intense economic restructuring that followed Slovenia's independence in 1991.
The company, which is wholly owned by the state, completed debt restructuring in 2005 that has allowed it to relaunch operations.
The government confirmed privatisation plans for Nafta Lendava on 26 October 2006, envisaging the sale of the whole stake by the end of 2007.
The government wants a buyer that will view Nafta Lendava a strategic investment and has the funds to invest in the group's development.
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