PKN ORLEN strengthens business relationships in Angola
PKN ORLEN’s refinery in Płock is to receive further deliveries of Angolan crude oil at the beginning of August and September of this year. The Group considers Angola to be a promising source of imports, exploring possibilities to increase import volumes and to forge relationships with Angolan partners in other business areas. These were the topics addressed by Daniel Obajtek, CEO and President of the PKN ORLEN Management Board, with representatives of the government of Angola and the country’s largest petroleum and gas production company Sonangol.
"Over the past year, we have significantly expanded the list of source countries for our crude oil imports. Angola is a promising market in this respect. I believe our talks with the oil producer will strengthen our business and commercial relationship to the benefit of both parties. This would help to respond even more flexibly to any disruptions Over the past year, we have significantly expanded the list of source countries for our crude oil imports. Angola is a promising market in this respect. I believe our talks with the oil producer will strengthen our business and commercial relationship to the benefit of both parties. This would help to respond even more flexibly to any disruptions in oil supplies, and thus to increase Poland’s energy security,” said Daniel Obajtek, President of the Management Board of PKN ORLEN.
Diversification of crude oil supplies is among the priorities written into PKN ORLEN’s strategy that was updated last year. Currently, 50% of oil processed by the Płock refinery comes from sources other than Russia, with the figure for the entire Group at as much as 30%. Back in 2012 and 2013, the share of non-Russian crude oil processed by the Group was only 5%.
New supply sources are vital for expanding PKN ORLEN’s feedstock supplier base and for enhancing Poland’s energy security. The diversified supply options have helped to effectively manage the situation caused by the Druzhba pipeline oil contamination. Despite a 46-day halt of supply from Russia, the refinery in Płock operated without interruption, with no need to reduce the utilisation rate. Thanks to diversification efforts, other refineries of the ORLEN Group, including those in the Czech Republic, operated as scheduled.
PKN ORLEN has so far received two cargoes of Angolan crude of 130,000 tonnes each, which complemented spot deliveries. In August and September this year, two more cargoes of Cabinda and Girassol crudes, of ca. 130,000 tonnes each, will be delivered to Naftoport in Gdańsk. They are high-quality crude grades, and the yield structure of products from their processing is well aligned with demand for finished petroleum products on the Polish market.
Diversification of crude oil supplies to the Płock refinery is an effect of business relationships established with companies outside Europe, including in Africa and the Persian Gulf. The efforts undertaken by PKN ORLEN have made it possible to achieve an optimum crude slate that optimises refinery production, and have helped to improve the quality and price of finished products and market stability. The refinery in Płock receives approximately 1.4 million tonnes of crude oil every month, of which an average of ca. 700,000 tonnes is from sources outside Russia. Spot purchases of crude oil from Angola, Nigeria, the United States and the United Arab Emirates have been contracted since the beginning of 2018.
Further diversification opportunities have emerged following reduction of oil volumes under a long-term contract with a Russian producer Rosneft Oil Company at the end of January 2019.