The parties said that negotiations would continue but refrained from predicting the final outcome.
"We signed a memorandum regulating the progress of further talks. The Lithuanian government wants stable oil supplies for Mazeikiu Nafta, which is why it has picked us out as its partner," a TNK-BP spokesman said.
Until recently, Lithuania favored TNK-BP as a contender for the purchase of the Mazeikiu Nafta stock controlled by Yukos, since TNK-BP met the requirements of the Lithuanian government in terms of ensuring stable and long-term oil deliveries to the Mazeikiu oil refinery.
TNK-BP made a lowball offer for the packet [some $1 billion], while Kazakhstan's state oil and gas company KazMunaiGaz said it was ready to pay $1.2 billion, but the Kazakh company could not provide the oil refinery with crude due to unsettled problems with Russian oil company Transneft.
The Mazeikiu Nafta complex comprises the eponymous oil refinery, which has an annual capacity of 12 million metric tons, an oil terminal in Butinge with an 8-million-ton annual capacity, and an oil pipeline.
Yukos International U.K. B.V. holds operator rights and a 53.7% stake in Mazeikiu Nafta, whereas the Lithuanian government owns a 40.66% stake.
The Lithuanian government plans to buy Yukos' stake for $1 billion and then sell the packet to an investor for $1.7-$2 billion.
The government wants to sell up to 30% of its 40.66% stake to the new owner of Mazeikiu Nafta.
Market experts assess the Yukos-held Mazeikiu Nafta packet at $1.5-$2 billion.
