MOSCOW (MRC) -- PKN Orlen, Poland’s largest fuel company has signed an annex to the long-term agreement with the Saudi Aramco oil company, increasing oil supplies by 100,000 metric tonnes per month, reported Polandatsea with reference to the Polish company's statement.
Under the new conditions, the Orlen Group refineries will receive about 300,000 tonnes of oil every month from the Persian Gulf, which means over 20 percent of the raw material for Orlen refineries will come from Saudi Arabia. Under the new terms, the contract with Saudi Aramco will be implemented from May 1 to December 31, 2018, and has an option to extend it for the years to come.
PKN Orlen said in a press statement, that it intends to use the Saudi oil for processing at its refineries in Poland, the Czech Republic and Lithuania.
"PKN Orlen’s management has been consistently implementing a policy of diversification of its raw material supply", said Daniel Obajtek, CEO of PKN Orlen. "The increased imports from Saudi Arabia are the next step in this strategy. The oil from Saudi Arabia is of good quality, which guarantees a high yield of products received from the oil refining process", he pointed out.
PKN Orlen also imports crude oil from Norway, the United Kingdom, Iran, Nigeria, Venezuela and the United States. Thanks to the diversification strategy, currently 30 percent of all oil imports come from other suppliers than Russia.
As MRC wrote previously, in May 2016, PKN ORLEN signed a contract with Saudi Aramco for the supply of ca. 200 thousand tonnes of crude oil monthly to its refineries. The contract was effective from May 1st to December 31st 2016, with an option of automatic renewal for successive years. The oil is to be processed by all PKN ORLEN's refineries in Poland, the Czech Republic and Lithuania.
Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
PKN Orlen is a major Polish oil refiner and petrol retailer. The company is a significant European publicly traded firm with major operations in Poland, Czech Republic, Germany, and the Baltic States. It currently (2015) ranks 353, with a revenue of over USD33.8 billion.