Crude deliveries to PKN ORLEN
PKN ORLEN secured crude oil deliveries for the coming years. Today the Holding company signed a term contract with Souz Petrolium. PKN ORLEN signed a long-term agreement for crude oil delivery. The new agreement guarantees secure crude oil deliveries at attractive conditions.
The crude oil supplier to PKN ORLEN under a new long-term contract is Souz Petrolium. Talks were conducted with a dozen companies, including manufacturers. The choice of the supplier was made on the basis of the price offered and the guarantee of timely delivery. The concluded agreements concern the crude oil delivered via the Friendship pipeline to Płock. As a result, under a valid contract with Petraco and under the contract signed today with Souz Petrolium, PKN ORLEN will receive approximately 60% of crude oil from term contracts, whereas the part not currently included in term contracts – under spot agreements. PKN ORLEN continues to conduct talks with two potential crude oil suppliers under term contracts. If any of the offers is financially appealing and guarantees the security of delivery, the Holding company does not preclude signing another term contract. Souz Petrolium has been supplying the crude oil to the Holding company for the last dozen months under spot agreements and has fully fulfilled the commitments made.
The agreement signed today presumes deliveries of 4.8 million tonnes of REBCO crude oil per year to PKN ORLEN S.A via the Friendship pipeline. The agreement is valid from 1 January 2010 to 31 December 2012. Moreover it provides for liquidated damages in the amount not higher than 3 million PLN per month.
As of the day of signing the agreement, the estimated value of deliveries up to 31 December 2012 amounts to approx. 8 billion USD (i.e. approx. 22.4 billion PLN).
I consider the agreement for crude oil delivery signed today a huge success and the best possible solution from the perspective of the Holding company and the energy security of the Polish economy. The crude oil will be supplied by the company, which guarantees the continuity of delivery at a good price - said Jacek Krawiec, CEO of PKN ORLEN.
The concluded agreements guarantee full security of deliveries. In case the deliveries may not be realized via the Friendship pipeline, the supplier will deliver crude oil from anyplace at the same price by sea. Thanks to its own laboratory research and conducted investments, PKN ORLEN is able to process 64 types of crude oil from the whole world. Such a wide range of possibilities combined with complementary spot deliveries guarantees permanent availability of this raw material for PKN ORLEN.
We are very pleased with the outcome of difficult negotiations and I am convinced that in the upcoming year this contentment will also be shared by our customers, mainly drivers using Polish roads, having the guarantee of availability of fuels at a good price – added CEO, Jacek Krawiec.
