Crude supplies for Unipetrol secured under first long-term contract
PKN ORLEN has signed a long-term contract for the supply of crude oil to the Czech Republic. The contract was signed during the St. Petersburg Economic Forum. The contracted volumes can cover from 60% to 100% of UNIPETROL's total demand for oil, depending on the economics of the contracted deliveries relative to the conditions prevailing on the crude oil market at a given time.
The contract, whose value is estimated at nearly PLN 20,4 bn, provides for the supply of approximately 8 million tonnes of crude oil. The agreed volumes of REBCO crude will be delivered to the Czech Republic by Rosneft Oil Company through the Druzhba Pipeline. The contract runs from July 1st 2013 until June 30th 2016.
"After painstaking analysis, we made a decision to secure crude supplies for our Czech subsidiary under a long-term contract. Contracting directly with an oil producer guarantees stability of supplies, which is crucial to us, particularly in the challenging business reality of the Czech market," said Jacek Krawiec, President of the PKN Orlen Management Board. "The securing of oil supplies for UNIPETROL will surely support the implementation of our strategy for the company announced in June," Mr Krawiec added.
“Concluding direct long-term agreements complies with the Rosniefts’s strategy in respect of building the company’s goodwill and value for its shareholders through the increase of the crude oil sales effectiveness as well as considers consumers’ interests and strengthens energetic safety of Europe.“- said Igor Siechin, the President of NK Rosnieft.
The contract is a second oil supply agreement concluded by PKN ORLEN directly with an oil producer. In February 2013, the Company secured 18 million tonnes of crude for its Płock refinery under a long-term contract with Rosneft Oil Company.
Rosneft is a Russian oil industry leader and one of the largest publicly traded oil and gas companies in the world. Rosneft’s main operations are exploring for and producing oil and gas and refining and marketing of petroleum products and petrochemicals. Rosneft’s exploration and production activities spread across all of Russia’s main oil and gas provinces: Western Siberia, Southern and Central Russia, Timan Pechora, Eastern Siberia, the Far East and offshore zones in the Arctic. The Company also has projects in Kazakhstan, Germany, China, Algeria, Venezuela and the United Arab Emirates. In 2012 Rosneft confirmed its position as the world’s largest public oil company by proven liquid hydrocarbon reserves. The Company is also an undisputed global leader in terms of hydrocarbon resources.
PKN ORLEN is one of the largest crude oil refiners in Central and Eastern Europe. It manages seven refineries, situated in Poland, the Czech Republic and Lithuania. The integrated refining and petrochemical production complex in Płock is ranked among the most advanced and efficient facilities of this kind in Europe. In 2012, the aggregate amount of crude oil processed by the PKN ORLEN Group was 28m tonnes. The Company operates Central Europe's largest network of almost 2,700 service stations, located in Poland, Germany, the Czech Republic and Lithuania. It also holds ten licences in Poland for oil and gas exploration for both conventional and unconventional resources. The development goal for PKN ORLEN is to transform it into a multi-utility corporate group, operating also in the upstream and power segments.
