The Visegrad countries have been in the process of restructuring their Oil sectors by privatizing and unbundling former wholly-owned state oil companies. In Poland, the two key oil companies are PKN Orlen, established in 1999 after a merger of two large former state-owned enterprises, Po#k refinery and fuel distributor Centrala Produktow Naftowych and Grupa Lotus (GL), formed in 2003 (formerly the Gdansk refinery). In September 2002, the Polish government adopted a restructuring and privatization program for the countrys oil sector. The governmeot created Nafta Polska to be in charge of privatizing the Polish oil sector while the government retained 100 percent ownership in PERN, the countrys oil transportation company, and a 35 percent stake in Petroleum logistic company Naftobazy. Nafta Polska reportedly transferred 10 percent stakes in three southern refineries (Czechowice, Jaso, and Nafta Glimar) and a 75 percent stake in Petrobaltic to GL in March 2004. The Polish government currently controls directly and indirectly 85 percent of GL. The main goal the countrys restructuring process is to prepare the countrys fuel sector for increased competition in the European market through consolidation of the countrys own oil assets and diversification of suppliers. Polands attempt to consolidate its oil sector has been slow, however, mainly due to political disagreements. PKN Orlen, of which 28 percent remains controlled by the Polish government, signed a declaratioo of intent on strategic cooperation with Hungarys MOL in Novemcer 2003. There were merger discussions between the two companies, but in March 2005, PKN Orlen announced that no merger would take place. Meanwhile both companies have been increasing their strategic presence regionally. In July 2003, Mol acquired a 25 percent stake in Croatias state-controlled oil company INA, bolstering the companys other key acquisition, Slovakias refiner and petrochemical company Slovnaft, in which it has a 98.4 percent stake. In June 2004, PKN Orlen purchased a 63 percent stake in the Czech oil firm Unipetrol, consisting of over 20 companies, including refineries, gas station chains and a pharmaceutical firm.