Klaipedos Nafta AB - Notification on material event

AB Klaipėdos nafta has concluded the Contract for Natural Gas Pipeline System Engineering, Procurement and Construction (EPC) Works

On 6 May 2013 AB Klaipėdos nafta (hereinafter, the Company) concluded the
Contract for Natural Gas Pipeline System Engineering, Procurement and
Construction (EPC) Works (hereinafter, the Contract) with German concern PPS
Pipeline Systems GmbH, the winner of “Procurement of Engineering, Procurement
and Construction (EPC) Works for Natural Gas Pipeline System”. The Company
notified on the winner of the aforementioned procurement on 24 April 2013, by
announcing the notification on material event. Under the Contract natural gas
pipeline system engineering, procurement and construction works, necessary in
constructing the connection between the Liquefied Natural Gas Terminal's jetty
within the water area of the Klaipėda State Sea Port (near the northern part of
the Kiaulės Nugara island) and the Lithuanian natural gas transportation system
(gas pipeline Jurbarkas-Klaipėda (section Tauragė-Klaipėda) near Klaipėda DSS-2
(gas distribution station) by Kiškėnų village, Dovilų sub-district, Klaipėda
district municipality) (hereinafter, the Works) will be executed. 

The main conditions of the Contract inter alia include the following:

1. the total fixed price for all Works shall be LTL 94,840,000 (ninety four
million eight hundred and forty thousand litas), VAT excl., and LTL 114,756,400
(one hundred and fourteen million seven hundred and fifty six thousand four
hundred litas), VAT incl. The rate of the VAT on the day of the conclusion of
the Contract is equal to 21 percent. This fixed price of the Contract can
increase only in exceptional cases provided for in the Contract. The Company
will pay the indicated fixed price of the Contract only for the Works actually
performed; 

2. all the Works under the Contract shall be finished till 1 August 2014. The
Works performance term may only be extended in the exclusive cases set forth in
the Contract. 

The Contract shall enter into force upon the approval of the general meeting of
shareholders of the Company, as provided for in Article 16.10 of the Articles
of Association of the Company. On 22 April 2013 the Board of the Company had
approved the conclusion of this Contract. 




         Mantas Bartuška, Director of the Finance and Administration
Department, (+370 46) 391 763