Despite  the  adverse  business environment effecting the operations of

JSC  "Ventspils  nafta",  in  2003 the Company is planning a profit and

purposeful investments directed towards introduction of new services.

In  the  first  quarter  of  2003  Russia,  by  applying administrative

methods, has artificially suspended oil transport to Ventspils terminal

via the pipeline, and is channelling the oil to Russian ports. However,

JSC  "Ventspils  nafta"  has managed to use its capacities by accepting

oil products shipped by the rail, and is forecasting a profit generated

on  services  which  do not depend on the decisions of Russian pipeline

administration.

In  2003 JSC "Ventspils nafta" income from operations is expected to be

LVL  36.7  million,  and the profit forecast is LVL 0.04 million. These

results  will  be obtained via continuing to reload crude oil and other

oil  products  from  rail,  and  by  expanding  the  range  of reloaded

products.

To  enhance  the  accepting  and servicing of oil shipments by rail, in

2003   the   Company   will  continue  to  invest  in  development  and

modernisation.  Total  value of investment projects in 2003 will be LVL

7.7  million,  including  the project design for reconstruction of rail

platform,  launching  of  a  new  pump house, as well as a study of the

possibilities  to  increase  the  processing of oil products shipped by

rail. "Ventspils nafta" will continue to optimise the costs.