“Bottom of Barrel” investment in the ORLEN Lietuva Production Plant in Mazeikiu

PKN ORLEN (“Company”) informs that on 8 October 2021 it gave consent, as the sole AB ORLEN Lietuva (“ORLEN Lietuva”) shareholder, for realization by ORLEN Lietuva of the investment – building of the “Bottom of Barrel” unit in the ORLEN Lietuva Production Plant in Mazeikiu (“Project”).

Moreover PKN ORLEN signed today with ORLEN Lietuva an agreement (“Agreement”) on arrangements of directional method of financing of the Project. PKN ORLEN declared to finance up to 100% of the Project realization CAPEX, but not higher than ca. EUR 633 m, under the condition that ORLEN Lietuva will complete the major milestones of the Project according to the Project realization schedule and will not exceed the Project budged which amounts to ca. EUR 641 m. According to the Agreement financing of the Project CAPEX will take place through the transfer of funds to ORLEN Lietuva equity or liabilities. Details regarding terms and conditions of financing will be agreed by PKN ORLEN and ORLEN Lietuva in the separate agreement.

Signing of the Agreement has been preceded by the Company’s Supervisory Board consent.

The completion of the Project is planned by the end of 2024. It is estimated that realization of the Project would increase ORLEN Lietuva EBITDA by ca. EUR 68 m annually.

See also: regulatory announcement no 41/2021 as of 8 October 2021.