Mazeikiu Nafta, a Lithuanian oil refinery, has applied for permission to buy property in Lithuania - the power plant Mazeikiu Elektrine.

The Competition Council registered the application of Mazeikiu Nafta to acquire 100 percent of the plant on June 7, Palmira Kvietkauskiene, the spokeswoman of the council, told ELTA.

In December 2003, the State Property Fund (VTF) declared Mazeikiu Nafta the winner of the tender to privatise the power plant.

The starting price for 85.72 percent of Mazeikiu Elektrine stood at 15 million litas (4.3 million litas). The company Falcon Capital offered 18 million litas (5.2 million euros), and Mazeikiu Nafta offered 17.8 million litas (5.16 million euros).

Falkon Capital, however, was suspected of being an unreliable company and removed from the tender. It tried to return to the privatisation by suing the VTF but was unsuccessful.

At the end of March, a court rejected the appeal of Falkon Capital concerning the decision of the VTF.

The power plant, which was spun off Lietuvos Energija and became a separate company at the beginning of 2002, provides electricity and heat to Mazeikiu Nafta.

In the previous year, the income of the plant increased 8.9 percent to 125.7 million litas. The net profit of the company reached 3 million litas (0.87 million euros).