NP ties sale of RG with that of indebted smaller refineries

Nafta Polska (NP) has sent PKN Orlen a letter suggesting that it should seriously consider purchasing three additional NP controlled refineries in the south of the country if it still wants to buy Rafineria Gdańska (RG). Although Orlen has not rejected this, it wants to conduct due diligence on them before it makes any binding agreement. The purchase of Jasło, Czechowice and Glimar is another condition for NP's agreement to sell RG, and according to company's insiders, if it is not met PKN Orlen may consider its offer rejected. This development is another part of NP’s three-year long struggle to resuscitate the three small refineries which are still losing their market share to more powerful players. According to unconfirmed information the refineries are $150 million in debt. PKN Orlen believes that niche sector producers can still make a profit making in paraffin, lubricating oil and asphalt. (Puls Biznesu, p. 6) J.K.