MOSCOW (MRC) -- Saudi Aramco and PKN Orlen, the Polish crude oil refining company, has held a signing ceremony of a contract agreement for Saudi Aramco to supply PKN Orlen with 50,000 barrels per day (bpd) of crude oil starting May 1, 2016 with provisions for automatic annual renewal, said the producer on its site on 1 June.
The contract, formally agreed in May, marks PKN Orlen’s first long-term contract with a producer from the Middle East region and comes after Saudi Aramco supplied six spot trial cargoes to PKN Orlen’s refineries in Poland, Lithuania and Czech Republic, reaffirming Saudi Aramco’s continued role as the world’s leading and most reliable supplier of energy.
The signing ceremony at Saudi Aramco’s headquarters was presided by Amin H. Nasser, President and CEO of Saudi Aramco, and Abdulrahman F. Wuhaib, Senior Vice President, Downstream, Saudi Aramco, and by Wojciech Jasinski, President and CEO of PKN Orlen.
Amin Nasser, President and CEO, of Saudi Aramco, said: "This agreement marks a strong first-step for Saudi Aramco’s entry into the Baltic market, adding value in the key markets of Poland, Lithuania, and the Czech Republic where PKN Orlen operates refineries. We continue to explore opportunities to strengthen our position as the supplier of choice in all global markets and we are confident that we are uniquely positioned to add real value to our customers’ businesses and in the growth of the economies they serve."
He added: "The agreement also firmly underlines Saudi Aramco’s ability to meet customers’ needs by leveraging our unparalleled supply infrastructure. We are always ready, willing and able to meet any additional call on demand from new and existing customers around the world."
As MRC wrote previously, in early November 2015, Poland’s top refiner PKN Orlen took delivery of its first crude from Saudi Arabia, a shipment that marked the start of new trade relationship undermining the traditional dominance of Russian supplies.
Wojciech Jasinski, President and CEO, PKN Orlen said: "This is the first direct long term contract with a supplier from the Gulf region in the history of our company. It shows the direction of our thinking on strategic diversification of crude supply sources, which is centered on partnering with tested oil producers from different geographical regions and on securing optimum supply terms. We have repeatedly announced our intention to use market opportunities to secure an optimal supply structure and good financial terms, and we are delivering on this objective."
PKN Orlen is one of the largest crude oil refiners in Poland and operates the second largest complex for terephthalic acid production in Europe. In addition to its six refineries, PKN Orlen operates the region’s largest network of service stations located in Poland, Lithuania and the Czech Republic. It currently (2015) ranks 353, with a revenue of over USD33.8 billion.