Notice on the convened extraordinary general meeti

We hereby inform you that on the initiative and by the decision of the Board of AB Klaipedos nafta code 110648893, registered at Burių st. 19, Klaipėda (hereinafter, the “Company”), an extraordinary general meeting of shareholders of the Company was convened on 4 July 2017 at 13:00 p.m. The meeting was held in the registered office of the Company at Burių st.19, Klaipėda.

Agenda of the meeting:

1. Regarding the approval of AB Klaipedos Nafta board decision to conclude the agreement on engineering, procurement and construction (EPC) of 2x10.000 m3 and 4x5.000 m3 light oil products’ tanks with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 2x10.000 m3 and 4x5.000 m3 light oil product tanks”.

2. Regarding the approval of AB Klaipedos Nafta board decision to conclude the agreement on engineering, procurement and construction (EPC) of 6x20,000 m3 light oil products’ tanks with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 6x20,000 m3 light oil product tanks”.

Decisions adopted:

  1. Regarding the approval of AB Klaipedos Nafta board decision to conclude the agreement on engineering, procurement and construction (EPC) of 2x10.000 m3 and 4x5.000 m3 light oil products’ tanks with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 2x10.000 m3 and 4x5.000 m3 light oil product tanks”:

“To approve the decision of AB Klaipedos Nafta board:

1. To conclude the agreement on engineering, procurement and construction (EPC) of 2x10.000 m3 and 4x5.000 light oil products’ tanks (hereinafter – the Agreement A) with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 2x10.000 m3 and 4x5.000 light oil product tanks” who proposed the lowest price – joint venture partners AB „MONTUOTOJAS“ and UAB „HIDROSTATYBA“ (hereinafter jointly referred to as the Contractor A), under the following main conditions:

1.1. The Contractor A shall perform all the works necessary for the engineering, procurement and construction of 2x10.000 m3 and 4x5.000 m3 light oil product tanks, including works related to the procurement of goods and services as defined in the Agreement A.

1.2. The total fixed price for all the works under the Agreement A is EUR 7,473,403.00 excl. VAT and EUR 9,042,817.63 incl. VAT (VAT on the day of signing of the Agreement A is 21%).

1.3. The end of the works set in the Agreement A is 18 months as of the beginning of works. The term for the works may be extended only in exceptional cases set in the Agreement A for no more than 6 months.

1.4. The fixed price of the Agreement A may be increased due to the additional works, if any, up to 10%. The Agreement A price may be also reviewed due to the changes in VAT tariff and due to the changes of price index provided said change is no less than 10%.”

2. Regarding the approval of AB Klaipedos Nafta board decision to conclude the agreement on engineering, procurement and construction (EPC) of 6x20,000 m³ light oil products’ tanks with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 6x20,000 m³ light oil product tanks”:

“To approve the decision of AB Klaipedos Nafta board:

1. To conclude the agreement on engineering, procurement and construction (EPC) of 6x20,000 m3 light oil products’ tanks (hereinafter – the Agreement B) with the winner of public procurement tender performed by AB Klaipedos Nafta “Construction of 6x20,000 m3 light oil product tanks” who proposed the lowest price – consortium consisting of SIA SKH and UAB „Energetikos remonto ir montavimo centras“ (hereinafter jointly referred to as the Contractor B), under the following main conditions:

1.1. The Contractor B shall perform all the works necessary for the engineering, procurement and construction of 6x20,000 m3 light oil product tanks, including works related to the procurement of goods and services as defined in the Agreement B.

1.2. The total fixed price for all the works under the Agreement B is EUR 11,452,750 excl. VAT and EUR 13,857,827,50 incl. VAT (VAT on the day of signing of the Agreement B is 21%).

1.3. AB Klaipedos Nafta is entitled to decide against the construction of 2 tanks within 180 days as of the day of the conclusion of the Agreement B. In this case the total price of the Agreement B would be respectively decreased and would be EUR 8,266,852 excl. VAT and EUR 10,002,890.92 EUR incl. VAT.

1.4. The end of the works set in the Agreement B is 21 months as of the beginning of works notwithstanding whether the Company decides to build 4 or all 6 tanks. The term for the works may be extended only in exceptional cases set in the Agreement B for no more than 6 months.

1.5. The fixed price of the Agreement B may be increased due to the additional works, if any, up to 10%. The Agreement B price may be also reviewed due to the changes in VAT tariff and due to the changes of price index provided said change is no less than 10%.”

         Marius Pulkauninkas, Chief Financial Officer, tel.: +370 46 391 763