Klaipedos Nafta AB - Notification on material event

The Board of AB Klaipėdos Nafta approved of the award of the contract to PPS Pipeline Systems GmbH, the winner of the “Procurement of Engineering, Procurement and Construction (EPC) Works for Natural Gas Pipeline System”

On 22 April 2013 the Board of AB Klaipėdos Nafta decided to amend the decisions
adopted by the company's Board on 21 December 2012 on conclusion of the
contract with the winner of the public procurement “Procurement of Engineering,
Procurement and Construction (EPC) Works for Natural Gas Pipeline System”
(hereinafter, the Procurement) - the consortium of AB Kauno Dujotiekio Statyba
and UAB Šiaulių Dujotiekio Statyba. 

 The Board decisions, dated 21 December 2012, were amended as after the
above-mentioned decisions were adopted some Procurement procedures were
repeated, new tender offers were submitted and the results of the Procurement
changed, i.e. the German concern PPS Pipeline Systems GmbH was recognised to be
the winner, and the earlier decisions of the Board could no longer be
implemented. 

 On 22 April 2013 the Board of AB Klaipėdos Nafta inter alia took the following
decisions: 

  1. To change the decisions taken in the meeting of the Board of AB Klaipėdos
     Nafta on 21 December 2012, in connection with the conclusion of the
     Contract (hereinafter, the Contract)
for Natural Gas Pipeline System Engineering, Procurement and Construction
     (EPC) Works
(hereinafter, the 
Works
)
, necessary in constructing the connection between the Liquefied Natural   Gas Terminal's (
hereinafter, the 
LNGT) 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), reading them as follows:<p>1.1.  To conclude Contract with PPS Pipeline Systems GmbH, the winner of the
     public procurement
“Procurement of Engineering, Procurement and Construction (EPC) Works for
     Natural Gas Pipeline System” performed by
AB Klaipėdos Nafta under negotiated procedure with a publication of notice,
     that submitted the most economically beneficial tender offer (hereinafter,
     the Contractor).<br />1.2. 
The total fixed price for all the Works under the Contract will 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. AB
     Klaipėdos Nafta will pay the indicated fixed price of the Contract only for
     the Works actually performed
.<br />1.3. All the Works under the Contract must be finished till 1 August
2014. The 
     Works performance term may only be extended in exceptional cases set forth
     in the Contract
.</p>
  2. To determine that 
all these decisions of the Board of the Company will enter into full force
     only after they are approved by the General Meeting of Shareholders of AB
     Klaipėdos Nafta, as provided for in Article 16.10 of the Articles of
     Association of AB Klaipėdos Nafta, and the Contract with the winner will be
     concluded only after expiry of the obligatory 15 days' period of deferment
     applicable to the conclusion of the Contract, as provided for in Article
     2.22  of the Law of the Republic of Lithuania on Public Procurement and in
     case there are no valid instructions or decisions of institutions with
     relevant powers
, prohibiting signing the Contract with the Contractor that won this
     specific public procurement.

The Board of the Company also decided to convene the extraordinary General
Meeting of Shareholders of the Company on this issue to be held on 31 May 2013
at 1:00 p.m. at its registered office Burių St. 19, LT-91003 Klaipėda,
Lithuania. A separate notification on material event will be given to inform
about this General Meeting. 




         Mantas Bartuška, Director of the Finance and Administration
Department, 8 46 391 763