PKN Orlen buys oil reserves fro PLN 956 mln

Poland's largest oil company paid PLN 959 million ($259 million) to Neon Poland for certain oil reserves.The deal comes after the expiry of an agreement with Neon under which PKN maintained the reserves and bought their oil output. The reserves were worth around PLN 540 million, but the transaction was valued more due to futures contracts guarantees accounting. PKN was obliged to make the purchase because the Polish state orders oil and gas groups to maintain set amounts of reserves for the sake of energy security. Neon Poland is a special purpose vehicle controlled by the local unit of Royal Bank of Scotland. PKN Orlen has been managing six refineries in Poland, Lithuania and Czech Republic. Its revenues reached PLN 106.83 billion in 2014.