PKN ORLEN secures oil supply contract
PKN ORLEN has signed an oil supply contract with Rosneft, with the monthly contract volume amounting to 300,000 tonnes of oil, as agreed with the Russian partners during negotiations. The volume reduction will not affect the security of supplies to ORLEN Group refineries.
Under the previous contract between PKN ORLEN and Rosneft, effective until January 31st 2021, oil supplies amounted to 5.4–6.6m tonnes annually. The new two-year contract provides for annual supplies of 3.6m tonnes to PKN ORLEN refineries.
‘The reduction in crude oil supplies under the contract with Rosneft changes nothing for the stability of oil supplies to ORLEN Group refineries or fuel supplies in the region. We are prepared to meet this challenge, having consistently pursued diversification of supply sources and having established relationships with oil producers in other regions of the world. Also, we enjoy a solid position in the spot market,’ said Daniel Obajtek, President of the PKN ORLEN Management Board.
The Group takes every opportunity that is economically attractive and fits into current market demand. PKN ORLEN is actively looking for new markets and expanding its portfolio of suppliers and crude oil grades. Purchase opportunities and compatibility of various crude grades with processes used by ORLEN Group refineries are monitored on an ongoing basis, taking into account prevailing global trends, including increased demand for finished petroleum products. Selected crude grades with properties other than those of REBCO will increase, under specific conditions, the yield of middle distillates, especially diesel oil.
Crude oil for ORLEN Group refineries is currently supplied under long-term contracts from Saudi Arabia and Russia as well as under spot contracts from the North Sea, Angola and Nigeria.
Furthermore, in early March PKN ORLEN signed its first-ever long-term contract for the supply of US crude. The contract with Exxon Mobil, the world’s largest oil company, provides for the supply of a total of approximately one million tonnes of crude oil to ORLEN Group refineries in Poland, the Czech Republic and Lithuania during the one-year contract term.