Sales of next part of crude oil obligatory inventories

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN”, “Company") informs that within the process of changing the formula of keeping crude oil obligatory inventories by PKN ORLEN, the Company sold a part of inventories, through assigning the keeping of the inventories to the third party.

On 28 march 2012 PKN ORLEN concluded with Ashby Sp. z o.o., headquartered in Warsaw („Ashby”) the agreement for the sale of crude oil (“Sales Agreement”) and the agreement for order of creation and keeping of crude oil obligatory inventories (“Agreement for creation and keeping of inventories”).

On the basis of the Sales Agreement PKN ORLEN sold to Ashby crude oil with the value amounted to ca. USD 403 m (i.e. ca. PLN  1 250 m based on USD/PLN average exchange rate as of 28 March 2012, stated by National Bank of Poland). The crude oil price was established according to market quotations.

On the basis of the Agreement for creation and keeping of inventories Ashby will be providing service of keeping of crude oil obligatory inventories to PKN ORLEN account, whereas PKN ORLEN will guarantee storage of inventories in current location. The Agreement for creation and keeping of inventories was concluded for one year. The Company takes into account the possibility of its renewal for the next period.

Above Agreements were concluded after receiving by PKN ORLEN of approval of the Material Reserves Agency for the transaction.

Ashby is a SPV which in its statutory activities includes turnover of crude oil. Ashby is in 100% controlled by RBS Polish Financial Advisory Services Sp. z o.o., which is a subsidiary of Royal Bank of Scotland N.V.

See also: regulatory announcement no 56/2010 dated 30 March 2010.