PKN ORLEN signed new contracts for oil supplies
On 7 July 2009 PKN ORLEN signed a term contract for REBCO oil supplies in Q3 2009 via the Druzhba pipeline for the Czech company, Unipetrol. The oil will be supplied by Star Oil Establishment, which has its offices in Liechtenstein. The contract's estimated worth is to be $134m. Until now, Star Oil Establishment has supplied Unipetrol with oil under spot contracts, which have totalled $568m over the last 12 months.
On 7 July 2009 the term contract with KD Petrotrade which has its offices in the United Arab Emirates was terminated. Under the contract, Petrotrade supplied PKN ORLEN with 2.4m tons of REBCO oil a year through the Druzhba pipeline. The contract was effective from 1 July 2007 and was to be terminated on 30 June 2010 with a renewal option of two or more years.
The contract was terminated (in accordance with the relevant contractual provisions) following Petrotrade's failure to fulfil certain contractual obligations. According to the contract, the parties have no mutual financial claims against each other in this respect.
Termination of the contract with Petrotrade will not result in interruptions in oil supplies to PKN ORLEN S.A. PKN ORLEN S.A. has secured ongoing supplies of oil to its Płock Plant by signing spot contracts with Souz Petroleum Establishment which has its offices in Liechtenstein. This will not affect the oil purchase price.
