No. 171/2009 | 27-11-2009
PKN ORLEN has signed an agreement with Souz Petrolium for crude oil deliveries
Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 27 November 2009 it signed an agreement with Souz Petrolium SA headquartered in Geneva („Souz Petrolium”), for REBCO crude oil deliveries, in the quantity of four million eight hundred thousand (4.8 m) tonnes per year, by “Przyjazn” pipeline to PKN ORLEN (“Agreement”). The Agreement is valid from 1 January 2010 to 31 December 2012. In some cases, described in the Agreement, the deliveries can be realized by sea to Gdansk.
The Agreement contains liquidated damages in the amount not higher than PLN 3 m monthly.
For the day of signing the Agreement, the estimated value of the deliveries to 31 December 2012 amounts to ca. USD 8 bn (i.e. approximately PLN 22.4 bn, based on the average PLN/USD exchange rate as of 27 November 2009, as stated by the National Bank of Poland).
The total estimated value of agreements signed between PKN ORLEN and Souz Petrolium in the period between 16 October 2009 to 27 November 2009 amounts to approximately USD 8.4 bn (i.e. approximately PLN 23.5 bn, based on the average PLN/USD exchange rates as of the dates of signing the agreements, as stated by the National Bank of Poland). Agreement dated 27 November 2009 is the agreement with the highest amount from among all agreements concluded between PKN ORLEN and Souz Petrolium in this period.
In accordance with the “Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information to be published by issuers of securities and on the conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state” the abovementioned agreements constitute a “significant agreement” due to the fact that their total value exceeds 10% of PKN ORLEN’s equity.