Lotos is looking for a strategic branch investor Roberto Galea/WBJ

Treasury Minister Alexander Grad announced in July that his ministry intends to fully privatize Poland’s second-largest petrol producer, Lotos. The announcement came after Economy Minister and Deputy Prime Minister Waldemar Pawlak had stated that Lotos should remain under state control.

“It appears that Lotos could look for a strategic, branch investor, who would take care of its development and enable expansion into overseas markets” Mr Grad told TOK FM radio.

Mr Grad said his ministry was preparing an agreement with the Economy Ministry on the issue of a change in strategy for the oil and petrol sector. The current strategy stipulates that the state should have a more-than 50 percent stake in such firms.

“We came to an agreement with the Economy Minister yesterday that we will change that strategy,” said Mr Grad.

“We will introduce a clause stating that we are taking steps to fully privatize Lotos, but – and this is a very important condition – only after we have received offers and seen what kind of economic entities are interested, what plans they have for Lotos and how they can guarantee the functioning of the firm in Poland as well as its development and stability,” Minister Grad added.

The minister added that only after receiving the offers would the case be put forward before the Council of Ministers and a final decision taken. He declined to comment on how much he expected from the privatization.

Analysts speculate that the state might be more inclined to finalize the sale if gas player PGNiG, oil concern PKN Orlen, or another state-controlled firm expresses interest in the purchase. Executives at both companies have reacted lukewarmly to such speculation.

However, both PGNiG and Orlen could afford to buy the 53 percent stake in Lotos that the government holds, which has an estimated market value of zł.2.14 billion.