PKN ORLEN inks long-term contract with Saudi Aramco
Poland’s largest refiner PKN ORLEN has signed an agreement with Saudi Aramco for the supply of 50 Mbpd of crude oil to its refineries. The contract will be effective from May 1 to December 31, 2016, with an option of automatic renewal for successive years. The oil will be processed by 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,” said Wojciech Jasiński, PKN ORLEN's CEO and president of the management board. “It shows the direction of our thinking on strategic diversification of crude supply sources, which is centered 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."
PKN ORLEN seeks to ensure stable supplies of the feedstock for its refineries and is consistently pursuing its supply diversification policy. Since the beginning of 2016, the company has already received six spot deliveries from Saudi Aramco. However, considering the rising opportunities on the global crude oil markets, PKN ORLEN does not rule out the possibility of sourcing oil from different directions.
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