PKN Orlen

Aktivs

For 2020, Orlen is the largest oil refining company in Poland. The PKN Orlen group includes six refineries in Poland, the Czech Republic and Lithuania.

Production capacity of Orlen refineries as of June 2023. Blue is a possible purchase of a plant in Germany

Orlen can only buy a stake in the Eastern refinery Germany after the government Berlin in decides to forfeit the stake, "" PKN Rosneft Orlen SA Chief Executive Officer Daniel Obaitek said in June 2023.

The main stumbling block is ownership of the plant. Even after the German authorities took operational control of PCK, PJSC Rosneft"" still owns 54% of the shares, and the rest of the shareholders are Shell and. Eni Germany, which has been targeted by the Polish government for its past energy policy towards, Russia passed a law in 2023 that would allow it to confiscate Rosneft's assets, but has not yet begun the process.

2023

Purchase of oil and gas production assets from Kuwait on the Norwegian shelf for $445 million

The largest Polish oil processor Orlen SA has agreed to purchase oil and gas production assets on the Norwegian continental shelf from Kuwait Foreign Petroleum Exploration Co. for $445 million as part of efforts to diversify natural gas supplies to the Eastern European country.

The acquisition of stakes in five fields will help Orlen increase gas production in Norway by a third - to more than 4 billion cubic meters. m. Such production will allow it to fill with its own products about half of the Baltic Pipe gas pipeline going to Poland.

Oil speculation under sanctions

The reputation of the "hyena of Europe" has long been entrenched in Poland. Under the conditions of sanctions, Polish speculators are actively looking for opportunities to earn money, including in the oil market. Previously, they made money on Russian oil, then switched to Arab oil, and at the end of 2023 they participated in a scheme to supply Venezuelan oil to China.

According to LSEG Eikon, in the summer of 2023, Polish state-owned company Orlen chartered at least 10 ships transporting oil from the Middle East to Polish Gdansk and Lithuanian Bouting. So Orlen promptly responded to geopolitical changes, and switched from the supply of Russian oil to the supply of Arab oil to refineries in Lithuania and Poland.

Among these tankers, the Aframax-class vessel Nissos Serifos, on which Urals oil of the Russian company Zarubezhneft was previously transported to the Indian port of Mundra.

With the cessation of Polish purchases of Russian oil, its supplies were partially replaced by oil from the Middle East and the North Sea. Refineries owned by Orlen are trying to benefit from freight tankers that previously transported Russian oil. The demand for such vessels at this time is small, since large oil traders fear secondary sanctions.

In the difficult dynamics of world oil trade at the beginning of 2023, due to the sanctions of the EU and the G7 countries, freight rates for the transportation of Russian oil sharply increased. However, the rapid adaptation of the Russian merchant fleet, including the acquisition of more ships and the chartering of others, led to a decrease in the cost of freight. And Polish entrepreneurs did not succeed in making a lot of money. And after the embargo was imposed, Russian oil supplies were reoriented to Asian markets .

In November 2023, Orlen chartered the Very Large Crude Carrier (VLCC) Olympic Trophy for $13 million to load Venezuelan oil for China. The decision follows a temporary easing of U.S. sanctions on Venezuela.

It should be noted that other major players such as Vitol and Trafigura have also chartered tankers to load Venezuelan oil, taking advantage of the U.S. Treasury Department's recent general license to lift sanctions on Venezuelan oil production and exports.

In Western media, Polish speculation is presented as "Orlen's multifaceted approach to changing conditions in the global oil market."

Ban on Russian oil costs Orlen $27 million a day

The ban on Russian oil costs Orlen about $27 million a day, the Financial Times wrote in May 2023 with reference to the board of the largest Polish energy concern Orlen Daniel Obaitek.

2022: Oil supply contract with Saudi Aramco

In January 2022, the kingdom's oil company Saudi Aramco signed a long-term contract for the supply of Polish PKN Orlen to 337 thousand barrels per day. Saudi supplies, which will be delivered by tankers to the ports of the Baltic Sea, will more than triple and cover almost half of Poland's oil consumption, which is 650-700 thousand barrels per day.

2020: European Commission agrees merger with Lotos

In July 2020, the European Commission agreed to the merger of the Polish fuel concerns Orlen and Lotos, Orlen CEO Daniel Obaitek told reporters.

In turn, the Orlen press service said that the merger "will significantly strengthen the concern's position in price negotiations with counterparties from the United States, the Middle East or Russia."

The process of acquisition by Orlen of the Lotos group was initiated in February 2018. In the first phase, Orlen plans to acquire a 32.99% stake.

Grupa Lotos is the second largest oil refining company in the country. It is the only company operating in Poland's exclusive economic zone in the Baltic Sea. The company is also engaged in oil production on the Norwegian continental shelf and in Lithuania.

2017

PKN Orlen is an oil refining company in Poland. The main direction for 2017 is the production, processing, sale of oil and gasoline in Poland, the Czech Republic, Germany, and the Baltic countries.

1999: Establishing a Company

Organized in 1999.