PKN ORLEN signs contract with Saudi Aramco

PKN ORLEN has signed a contract with Saudi Aramco for the supply of ca. 200 thousand tpm of crude oil to its refineries. The contract will be effective from 1 May to 31 December 2016, with an option of automatic renewal for successive years. The oil will be processed by all PKN ORLEN's refineries in Poland, the Czech Republic and Lithuania.

"This is the first direct long term contract with a supplier from the Gulf region in the history of our company. It shows the direction of our thinking on strategic diversification of crude supply sources, which is centred on partnering with tested oil producers from different geographical regions and on securing optimum supply terms. We have repeatedly announced our intention to use market opportunities to secure an optimal supply structure and good financial terms, and we are delivering on this objective," said Wojciech Jasinski, PKN ORLEN's CEO and President of the Management Board.

PKN ORLEN seeks to ensure stable supplies of the feedstock for its refineries, and is therefore consistently pursuing its supply diversification policy. Since the beginning of 2016, the company has already received six spot deliveries from Saudi Aramco. But at the same time, considering the rising opportunities on the global crude oil markets, PKN ORLEN does not rule out the possibility of sourcing oil from different directions.

Saudi Aramco is an integrated oil and chemicals company and a global leader in the hydrocarbon production, refining processes and distribution industry, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1 billion bbls, and produces 9.54 million bpd. Headquartered in Dhahran, Saudi Arabia, the company employs over 61 000 staff in 77 countries.

Adapted from press release by Francesca Brindle

Read the article online at: https://www.hydrocarbonengineering.com/refining/09052016/pkn-orlen-saudi-aramco-sign-oil-supply-contract-3243/