Participation  in  Latvijas  Kuģniecība share auction for money in Riga

Stock  Exchange is a good deal were benefits Republic of Latvia because

it  receives  financial  means  in  state  budget  as  well  as company

Ventspils nafta by representing interests of its shareholders.



JSC  Ventspils  nafta  management is satisfied that Ventspils nafta has

acquired  substantial  Latvijas  Kuģniecība  share  package.  Based  on

consultations  of  foreign  and  local  experts JSC Ventspils nafta has

carefully  weighted  usefulness  of  acquiring  of  Latvijas Kuģniecība

shares. Considering amount acquired JSC Ventspils nafta management will

decide on best use of those shares.



Decision  to  acquire  JSC  Latvijas  Kuģniecība shares was made due to

growing  competition  and  with  a  goal  to  diversify  risks  for JSC

Ventspils  nafta  in  oil transit business. International auditors have

recommended  diversifying  risks  due  to the fact that Ventspils nafta

mainly  operates  in  one  country  -  Russia.  JSC Ventspils nafta has

participated  in  several investment projects outside transit business,

such as realty.



Last  year  JSC  Ventspils nafta established company SIA Rīgas līcis VN

with  a  goal  to  manage  health centre Rīgas līcis. In 2001 Ventspils

nafta acquired JSC Latvijas Gāze shares that were later sold.