ORLEN signs contract for crude oil supplies directly from Rosneft
PKN ORLEN signed the first on record long-term contract for crude oil supplies directly from a producer, press release of PKN ORLEN reads. Its partner is Rosneft Oil Company, the largest Russian oil and gas company.
The contract, whose value is estimated at about PLN 46 bn (USD 15 bn), provides for the supply of approximately 18m tonnes of crude oil. The agreed volumes of REBCO crude oil will be delivered to PKN ORLEN by Rosneft Oil Company through the Druzhba Pipeline. The contract was concluded for the period from February 1st 2013 to January 31st 2016. Under its terms, crude oil may be alternatively shipped by sea to Gdańsk.
“The contract with Rosneft Oil Company marks the end of the process of contracting crude oil supplies for the plant in Płock necessary for the years to come. We have thus managed to ensure that almost 80% of our supplies will be made under long-term contracts. But this contract is important also in another respect. This is the first time in the almost 12-year history of the Company that we have signed a long-term contract for crude oil supplies directly with its producer,” said Jacek Krawiec, President of the Management Board of PKN ORLEN.
In addition to the contract signed today, PKN ORLEN is party to two other long-term contracts for supplies of crude oil to Płock. At the end of 2012, the contract executed with Mercuria Energy Trading was extended by three years. In 2012, the company also executed a contract with Souz Petrolium, which will remain in force for two more years.
Rosneft is a Russian oil industry leader and one of the largest publicly traded oil and gas companies in the world. Rosneft’s main operations are exploring for and producing oil and gas and refining and marketing of petroleum products and petrochemicals. Rosneft’s exploration and production activities spread across all of Russia’s main oil and gas provinces: Western Siberia, Southern and Central Russia, Timan Pechora, Eastern Siberia, the Far East and offshore zones in the Arctic. The Company also has projects in Kazakhstan, Germany, China, Algeria, Venezuela and the United Arab Emirates. In 2012 Rosneft confirmed its position as the world’s largest public oil company by proven liquid hydrocarbon reserves. The Company is also an undisputed global leader in terms of hydrocarbon resources.
PKN ORLEN is one of the largest crude oil refiners in Central and Eastern Europe. It manages seven refineries, situated in Poland, the Czech Republic and Lithuania. The integrated refining and petrochemical production complex in Płock is ranked among the most advanced and efficient facilities of this kind in Europe. In 2012, the aggregate amount of crude oil processed by the PKN ORLEN Group was 28m tonnes. The Company operates Central Europe's largest network of almost 2,700 service stations, located in Poland, Germany, the Czech Republic and Lithuania. It also holds eight licences for both on-shore and off-shore oil and gas exploration, including for appraisal of unconventional resources. The development goal for PKN ORLEN is to transform it into a multi-utility corporate group, operating also in the upstream and power segments.
