Breakthrough in negotiations over contaminated oil

​During a meeting in Moscow held to discuss resumption of clean oil supplies to Poland over the Druzhba pipeline, a compensation mechanism between Transneft and oil producers was presented to the Polish side. As announced earlier by Daniel Obajtek, President of the PKN ORLEN Management Board, a breakthrough in the negotiations was finally achieved.

“Our firm negotiating position was rewarded. We could afford it with our government’s backing, but above all thanks to the fact that we have strongly diversified oil supplies to Poland over the past year. Currently, Russian crude accounts for only a half of the throughput volumes of PKN ORLEN’s refinery in Płock. This allows us to flexibly respond in any unforeseen supply disruptions,” says Daniel Obajtek, President of the Management Board of PKN ORLEN.

The Polish side was assured that Transneft would provide funds to Russian oil producers to compensate any claims raised against them by the affected oil importers, including PKN ORLEN. The Russian oil suppliers and producers present at the meeting stressed that this was a right solution.

In terms of technical aspects, the operators are ready to resume deliveries of clean oil as from June 10th.

Parties attending the meeting in Moscow included the Russian Federation’s Deputy Minister of Energy and representatives of Transneft. Poland was represented by PKN ORLEN, PERN and Grupa LOTOS. Also present were representatives of two German refineries, traders buying Russian crude oil and Russian oil producers.