President John Bumgarner of Williams' unit Williams International, also said that what it did in Lithuania would be good for Russia, which is also Lithuania's only oil supplier.

``The government wants a win-win situation for them, for us and ultimately for Russia,'' Bumgarner told Reuters in an interview. ``One of the major beneficiaries...will be Russia because of the ability of these investments to increase Russian exports.''

Williams has already signed an agreement in principle to review the possibility of taking one-third stakes in refinery Mazheikiu Nafta, oil transporter Birzhu Pipeline and planned oil terminal Butinges Nafta.

If Williams carries out its plans, the investment would be among the highest in Lithuania by a Western firm, with Philip Morris so far the leader at $60 million.

Williams would bringthe power of a company with $14 billion of assets in 1997, more than Lithuania's entire planned gross domestic product for 1998, and revenues of $4.4 billion.

``Everything we have studied indicates that Russia needs more export capacity, not less,'' Bumgarner said. Russia exports crude oil to Lithuania while the Baltic state exports oil products. The planned Butinge terminal is aimed at being a new crude oil exporter.

``In the long-term, we believe the oil is there and the need for hard currency is there and we expect them (Russia) to be interested in more exports,'' Bumgarner said. Bumgarner said Williams' investment in Lithuania was a question of how and when rather than if.

``We have spent an enormous amount of time and people's expense evaluating the situation and we wouldn't be spending those human resources if we weren't serious,'' he said. Bumgarner could not say when the deal might close but noted that they must conclude talks within 60 days of receiving due diligence information, which he saidshould be next week.

Williams would be the operator of the projects although the government and Williams have both had talks with Russia's Lukoil over joining the US company in either the refinery or the oil terminal. Williams has also met with Yuksi.

He said Williams aimed to boost the output of the Mazheikiu refinery, the only one in the Baltics, which produced five million tonnes in 1997. It has a capacity of 15 million tonnes.

``Hopefully, in the process of negotiating with the Russians on crude oil perhaps we can be successful in negotiating with the Russians for some offtake,'' Bumgarner added. He said that completing the troubled Butinge terminal, an estimated $268 million project scheduled for finish by late 1998 on Lithuania's northwestern coast, was a priority.

``For everybody...November to December of 1999 (completion)is achievable. But we would like to get more than a mild sense of confidence, we would like to get a conviction,'' he said. Williams is also interested in a gas pipelinelinking Belarus to the Russian enclave of Kaliningrad, to be co-owned by Russia's Gazprom, Lithuania and Williams, a project he estimated at around $100 to $130 million.

Bumgarner has not ruled out other possible projects in the country, including telecoms. ``Our skill in telecoms is mainly in data pipelines...not retail distribution but we hope as we get settled in to work on some data and video applications,'' he said.