PKN ORLEN has finalised transactions with Aramco in the refining, wholesale and jet fuel areas, in connection with the merger with LOTOS Group. In addition, PKN ORLEN, Aramco and SABIC signed a cooperation agreement for a potential petrochemical project in Gdansk. Aramco will provide crude oil supplies to cover 45% of the demand of the entire ORLEN Group.

As part of the transaction, already announced in January 2022, PKN ORLEN retained a 70% stake in the Gdansk refinery with a total refining capacity of 210,000 barrels per day, while Aramco will take a 30% stake in the refinery, 100% of the wholesale business and a 50% stake in the jet fuel business of BP Europa SE, which operates at seven airports in Poland.

“The closing of the transaction with Aramco is of strategic importance to further ensure the supply of crude oil not only to Poland, but to the entire region. We have built the largest group in Central Europe, with business strengths in several different areas, which guarantees further dynamic development of current operations, as well as effective entry into new business lines”, said Daniel Obajtek, President of the PKN ORLEN Management Board.

As PKN ORLEN points out, the investment in Poland is a significant step for Aramco on the way to realising its long-term strategy of capacity growth in the area of integrated refining and petrochemical assets and implementing Aramco’s strategy to increase their liquids-to-chemicals capacity to 4 million barrels per day.

“The concluded transactions consolidate Aramco’s presence in the key European market and provide a unique opportunity to develop new liquids-to-chemicals business streams, with the intention of strengthening our global downstream presence and supporting the diversification of our portfolio”, said Mohammed Y. Al Qahtani, Senior Vice President responsible for Downstream, Aramco.

Adrian Andrzejewski