Saudi Aramco Gains Foothold In Poland

Saudi Aramco, the state-owned oil company of Saudi Arabia, has completed a deal to buy a 30% stake in Gdansk refinery in Poland, a sector that has previously been controlled by Russian oil corporations. In this case, Saudi Aramco will supply Poland with 10-17 million tons of oil per year, enough to meet up to half of the country’s needs. Orlen would, according to experts, limit its purchases of offshore Russian oil on the spot market while maintaining supply through the Druzhba pipeline.

Orlen, the Polish company that is merging with the Lotos group, has announced the sale of 30% of its Gdansk refinery (210,000 bpd capacity) to Saudi state company Saudi Aramco for more than $250 million, a deal that is required for Orlen to meet the European Commission’s conditions for the takeover of Lotos. Orlen also owns two refineries in the Czech Republic and one in Lithuania, in addition to the two refineries in Poland (Gdask and Plock).

A large long-term contract to deliver 200,000-337,000 barrels per day (10-16.8 million tons per year) of oil has also been signed with Saudi Aramco. This amounts to around half of Poland’s total oil consumption (31 million tonnes in 2019).

« Orlen refines over 40 million tonnes of crude oil each year. This contract is for 20 million tonnes of oil, which will flow in several ways (from Gdansk) – to the Plock refinery, the refinery in Mozhejki, two refineries in the Czech Republic, and so on » Daniel Obajtek, Orlen’s CEO, stated.

source: bloomberg.com

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