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UK firm Pan European Terminals Plc (formerly Baltic Oil Terminals Plc), has announced that it has received an offer from its partners in CJSC Rosbunker to acquire the remaining 50 percent of the business.

In a statement, Pan European said: "The board is considering this offer and will update shareholders as and when a binding contract has been agreed. Until this time, the asset will remain frozen under a legal order.

"The amount of time and effort that the company has put into resolving the issues at Rosbunker cannot be underestimated, however the board remains conscious of the political and geographical risks involved in such a location as Rosbunker and it is taking steps to mitigate these to the extent possible. Whilst this can extend the time to complete any transaction, it is an essential part of the process after the historical problems.

"Should this transaction progress to conclusion, the company would expect to involve a local third party through back-to-back sale and purchase agreements, and at this time, the company does not foresee the need for additional financing and/or financial support secured on assets outside of Rosbunker or in the form of equity, in order to complete the acquisition."

Pan European has a 50 percent interest in CJSC Rosbunker, which owns a transhipment terminal situated in the port of Baltysk, located at the mouth of the Pregol River in the Kaliningrad Oblast. Baltysk is a deep water port on the Baltic Sea itself and occupies a highly strategic position, as it is located on the promontory between the Gulf of Gdansk and Vislinskiy Zaliv - the channel of water that leads directly into Kaliningrad.

The terminal has been operational and generating revenues since March 2007, handling mazut (using insulated and heated tanks and pipelines) and diesel.

The first phase of construction, consisting of new insulated tanks, an exclusive new twin line railway spur, pumping and handling equipment etc was commissioned in December 2007.

A second and third phase of construction are also planned, which would considerably increase the capacity of the terminal and also allow the berthing of tankers up to 40,000 dwt, making Rosbunker the only deep water terminal in the Kaliningrad region.

The remaining 50 percent stake in Rosbunker is owned by Krutrade AG, a natural resources trading company incorporated in Austria and a wholly owned subsidiary of Kuzbassrazrezugol - a leading Russian exporter of coal.