The ORLEN Group refineries receive oil from alternative supply directions

The ORLEN Group has imported about 130,000 tonnes of Johan Sverdrup crude sourced from Norwegian fields in the North Sea. A tanker carrying the cargo has just arrived at Naftoport in Gdańsk. The ORLEN Group has also made agreements to increase the volumes of oil imported from other non-Russian sources. The measures taken fully ensure continuity of production at the ORLEN Group’s refineries in Poland, the Czech Republic and Lithuania. They are another step in the process of oil supply diversification pursued by the Company over the past four years. As recently as 2013, a whopping 98% of the crude feedstock processed in Płock was REBCO oil sourced from Russia. Currently, the grade accounts for only about 50% of the plant’s crude slate, the balance coming from Saudi Arabia, the US and West Africa, and Norway.

- The purchase of Norwegian crude is yet another example of our ongoing efforts to diversify oil supplies, which guarantee stability and continuity of operation of our refineries and strengthen energy security of Poland. After the merger with Grupa LOTOS, the ORLEN Group's oil requirement in Poland will be about 26 million tonnes annually. Scale does matter. It will facilitate establishment of new and development of existing relations with the global producers. This is precisely our strategic goal behind building the multi-utility group. The agreements we signed as part of the merger with LOTOS provide for the supply of up to 20 million tonnes of high-quality crude from a reliable source and reinforce our relations with the suppliers, translating into greater independence of PKN ORLEN and improving the energy security of the entire region - says Daniel Obajtek, President of the Management Board of PKN ORLEN.

The uninterrupted refining production at the ORLEN Group’s refineries guarantees steady fuel supplies to the market. Currently, there are no fuel shortages in Poland. Should it become necessary, PKN ORLEN is able to deal with any undersupply using output from its two Czech refineries and, additionally, from its refinery in Mažeikiai, Lithuania. In the case of the Lithuanian refinery, transport of the product is possible both by rail and by sea. It is important to note, however, that the ORLEN Group’s Czech and Lithuanian refineries will first meet demand in their respective regions, as is the case today.

All logistics processes supporting fuel deliveries at the ORLEN Group are also secured. The ORLEN terminals and storage depots are operating without disruption. As the Group is well prepared to withstand the impact of the current situation, the availability of fuel at its stations is fully assured. This is a result of earlier investments and decisions made by the PKN ORLEN Management Board. In April 2021, PKN ORLEN repurchased OTP, Poland’s largest road haulier of liquid fuels, which has given the Group full control over the product along the entire logistics chain. In June 2021, PKN ORLEN acquired the fuel loading terminal in Mockava on the Poland-Lithuania border, enabling the Group to transport large volumes of diesel and gasoline from Lithuania’s Mažeikiai refinery to the Polish market bypassing Belarus.

PKN ORLEN has its own rail company, ORLEN KolTrans, which delivers fuel to virtually all of the Group’s depots across the country. For the past four years, PKN ORLEN has also consistently expanded the storage capacities of its terminals.

The company continues its efforts across global markets, taking every opportunity to expand cooperation with oil suppliers from Europe and other parts of the world. Poland is receiving supplies from Nigeria, the United Arab Emirates, Saudi Arabia and the United States, as well as from Norway.

Fields in the North Sea provide a source of Forties, Oseberg, Johan Sverdrup, Troll, Brent and Ekofisk oils for the Group. Forcados and Bonny Light oil grades are imported from West Africa. ORLEN Group’s supply portfolio also includes WTI, Bakken and Mars oil produced in the United States.

The crude from Norway's North Sea fields was delivered to Naftoport in Gdańsk by the tanker Crude Zephyrus. The vessel was built in 2021, with an overall length of 274 meters, a width of 48 meters, and cargo carrying capacity of about 150,000 tonnes. The tanker with oil purchased by PKN ORLEN travelled a distance of about 600 nautical miles, or nearly 1,100 kilometres.

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