Energy, Investments, Latvia, Markets and Companies

After the meeting, Prime Minister Godmanis affirmed LETA that Vitol has expressed readiness to make new investments in Latvia, however, without revealing the exact value of the planned deal. Godmanis also pointed out that these matters will be discussed at a Port Authority meeting.

Godmanis did not comment on what concerns exactly Vitol has about the security of investments in Latvia.

He also did not answer directly about the lingering conflict in Ventspils transit business circles.

As Godmanis informed, during the meeting, the Vitol representatives pointed out that the volume of oil transshipments at Ventpils port has increased significantly since Vitol launched its business in Latvia. Vitol also confirmed their wish to increase the volume of the handled products even further, as well as to make new investments.

The prime minister emphasized that the Latvian state is interested in the increase of oil product flow via the ports and its task is to secure a safe business environment. At the same time, increasing competition from other ports has to be taken into consideration.

As reported, in April last year, Vitol management had a meeting with then Prime Minister Aigars Kalvitis (People's Party) and expressed concern about their investments' safety in Latvia and about the recent transit business developments in Ventspils.

The international oil and gas company Vitol Group acquired 34.75% of VN shares at the end of 2006, at the present moment it owns 47.89% of enterprise's shares.

Vitol has also acquired 49 percent of the shares at the VN subsidiary company Ventspils nafta terminals.

As reported, VN profit reached LVL 49.5 million last year, which is seven times more than in year 2006. The VN concern's net turnover last year surpassed LVL 81 million, which is by LVL 11.7 million more than in year 2006.