Polish Briefing 23 September, 2019 10:00 am   
COMMENTS: Mateusz Gibała

Polish Briefing: PKN Orlen on deliveries from Saudi Arabia and the merger with Lotos

What goes on in Poland on the 23rd of September.

Saudi Aramco’s deliveries for PKN Orlen are carried out on schedule

Saudi Aramco is implementing contracts with Orlen according to the plan and the group is in constant contact with the Saudis. Deliveries also take place on schedule.

PKN Orlen CEO Daniel Obajtek, when asked about problems in Saudi Arabia, said that PKN Orlen is in constant contact with Saudi Aramco. – As a Group, we receive approx. 300-400 thousand tons of oil per month from Saudi Aramco. Deliveries are not threatened by the Saudi company. We’re after talks. According to the plan, the deliveries will arrive in Poland. Saudi Aramco is fulfilling its obligations and the situation is calming down, which can be seen in oil prices – said the president. – Saudi Aramco has stocks of up to 180 million barrels, which allows it to export without any problems – he added.

He added that as regards diversification, oil supplies from Nigeria and Angola were launched. -We tested about 100 types of oil. We are fully secured when it comes to deliveries. There is no threat to production – Obajtek assured.

Talks with partners about countermeasures regarding the Orlen-Lotos merger

Orlen is to submit remedial measures to the European Commission by the end of September regarding the acquisition of Grupa Lotos. The company is talking with its partners on the market.

– We are trying to submit these remedies on time. There may be shifts of 3-4 days. We need partners for remedies. We are talking not only with the Commission in the pre-notification phase about remedies, but also with market partners. We will submit countermeasures when we receive and negotiate terms with our partners – said PKN Orlen president, Daniel Obajtek.

– When we endured such a period of time without Russian oil, it was a constructive dialogue with the Russian side. This was possible thanks to launching the diversification process. If we could not stand this period of time, it seems to me that there would be no such level. The Płock refinery processes 50% of the crude oil other than Russian. The Russian side recognized our right to claims and we have an identified supplier – he concluded.