PKN ORLEN has signed an annex to the agreement with Mercuria Energy Trading SA for crude oil deliveries

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 21 December 2012 it signed an Annex to the Agreement dated 1 December 2009 (“Annex”) with Mercuria Energy Trading SA headquartered in Geneva, Switzerland („Mercuria Energy”), for REBCO crude oil deliveries, in the quantity of 3,6 m tonnes per year, by “Przyjazn” pipeline to PKN ORLEN. The Annex is valid from 1 January 2013 to 31 December 2015. In some cases, described in the Annex, the deliveries can be realized by sea to Gdansk.

Liquidated damages, after signing of today Annex, has been set in the amount not higher than ca. USD 0,7 m (i.e. approximately PLN 2,2 m based on the average PLN/USD exchange rate as of 21 December 2012, as stated by the National Bank of Poland) monthly.

For the day of signing the Annex, the estimated value of the deliveries to 31 December 2015 amounts to ca. USD 8,5 bn (i.e. approximately PLN 26,0 bn, based on the average PLN/USD exchange rate as of 21 December 2012, as stated by the National Bank of Poland).

The total estimated value of agreements signed between PKN ORLEN and Mercuria Energy during the last 12 months amounts to approximately USD 8,9 bn (i.e. approximately PLN 27,4 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).

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.

See also: regulatory announcement no 173/2009 dated 1 December 2009.