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Baltic States: Oil Companies Say They Can Back Out of Baltic Sea Deal

Riga, 29 October 1996 (RFE/RL) -- Two oil companies which have an agreement to explore for oil in the Baltic Sea say they can back out of the deal if Lithuania and Latvia do not resolve their sea border dispute by October 31.

The Latvian parliament last week ratified a license agreement that will allow AMOCO Latvia Petroleum Company and the Swedish oil company OPAB to look for oil sources in a disputed area of the Baltic Sea.

Last week, Lithuanian President Algirdas Brazauskas criticized the Latvian parliament's decision. Brazauskas told the Baltic News Service he thought the Latvians acted "hot-headed." He says the decision would have a negative effort on the relations between the two countries.