Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that it decided to change the formula of keeping the part of crude oil obligatory inventories by PKN ORLEN through assigning the keeping of the inventories to third party.

On 29 March 2010 PKN ORLEN concluded with LAMBOURN Sp. z o.o., headquartered in Warsaw („LAMBOURN”) the agreement for the sale of crude oil (“Sales Agreement”) and the agreement for gathering and keeping of crude oil obligatory inventories (“Agreement for gathering and keeping of inventories”).

On the basis of the Sales Agreement PKN ORLEN sold to LAMBOURN crude oil amounted to ca. USD 280 m (i.e. ca. PLN 800 m). The crude oil price was established according to market quotations.

On the basis of the Agreement for gathering and keeping of inventories LAMBOURN will be providing service of keeping of crude oil obligatory inventories to PKN ORLEN account, whereas PKN ORLEN will guarantee storage of inventories in current location. The Agreement for gathering and keeping of inventories was concluded for one year with the possibility of its extension.

Above Agreements were concluded after receiving by PKN ORLEN approval of the Material Reserves Agency for the transaction.

LAMBOURN is a SPV 100% controlled by Deutsche Bank Poland, which in its statutory activities includes turnover of crude oil.