Orlen signs annex to lucrative deal

Poland's largest refiner PKN orlen has signed an annex to a long-term deal with Rosneft Oil Company, a press release read. The agreement,  with an estimated maximum value in current market conditions of around PLN 26 billion, provides for the supply of between 18 million to 25.2 million metric tons of crude oil. Deliveries will be carried out from February 1, 2016 to January 31, 2019 to the Płock production plant. PKN ORLEN will also have an option to receive some of the deliveries via the Naftoport terminal in Gdańsk or the Būtingė terminal in Lithuania, the press release also read. Previously PKN ORLEN had a contract for the supply of some 18 million tons of crude oil, with deliveries scheduled between February 1, 2013 and January 31, 2016. Apart from commercial considerations, this continued cooperation with Rosneft Oil Company, which builds on the company’s first long-term crude oil supply contract signed directly with the producer, guarantees long-term supply stability. In addition to the annex, PKN ORLEN is party to a supply contract with Tatneft Europe AG, the trading arm of the oil producer Tatneft, valid until December 31st 2018. The adopted supply structure will enable the company to respond to shifts in the oil market and provide it with an option to secure supplies from alternative sources.