Klaipedos Nafta - Notification on material event

Regarding initiation of procurement of financial services related to redemption of a floating LNG storage and regasification unit

On 5 August 2015 the Board of AB Klaipėdos Nafta (the Company) consented that
the Company takes necessary preparatory actions related to the possible
decision to redeem the floating liquefied natural gas (LNG) storage and
regasification unit for the purpose of decreasing annual LNG terminal
exploitation costs. 

With regard to that, the Board of the Company decided to initiate public
procurement procedures for the purchase of financial services (credit)
amounting up to EUR 300 mln. On 6 August 2016 the Company announced the Draft
Technical Specification as well as the Draft Term-sheet of the Procurement
Contract. It is anticipated to use the credit for the purpose of fulfilment of
financial obligations of the Company arising under the Contract on Lease,
Operation and Maintenance (Repair) of the Floating Liquefied Natural Gas
Storage and Regasification Unit (with amendments and supplements to it) signed
by and between the Company and Höegh LNG Limited on 2 March 2012. It is
envisaged that the procurement contract shall enter into force only subject to
adoption of all necessary legal acts related to the commitment regarding the
redemption of a floating LNG storage and regasification unit, and approval of
the contract by the General Meeting of Shareholders of the Company and the
Board. 


         Marius Pulkauninkas, Director of Finance and Administration
Department, 8 46 391 763