16.3 C
London
Friday, June 21, 2024

Orlen signed a contract for oil supplies with BP

Must read

- Advertisement -


Orlen has signed an agreement with the British concern BP providing for the supply of a total of over 6 million tonnes of crude oil from deposits in the North Sea during the year. This is about 15 percent of the oil demand of the entire, integrated Orlen Group, the company announced on Tuesday.

When informing about the agreement with the British petrochemical company BP, the Orlen Group emphasized that it “secured further crude oil supplies from Norwegian deposits in the North Sea”.

The contract signed with BP provides for the supply of a total of over 6 million tons of raw material during the year of its validity for the needs of the Orlen Group refinery. The first tanker will arrive at Naftoport in Gdańsk next quarter. Orlen specified that the contract signed with the BP concern “covers the supply of up to 6 million tons of high-quality raw material from a reliable source for a year”. As it was emphasized, “this amount is about 15 percent of the demand for oil of the entire, integrated Orlen Group.”

Read also: Refueling promotions will not lower inflation. Economists explain

- Advertisement -

Orlen diversifies supplies

Orlen’s press release explains that oil will be delivered from the North Sea via terminals in Gdańsk and Butynga (on Lithuania, where Orlen Lietuva, the only refinery in the Baltic States, operates in Mažeikiai – ed.). “The first transport is planned at the turn of August and September” – the concern clarified. According to Orlen, “the actions taken are a continuation of the diversification of raw material supplies carried out by the concern over the last five years.” It was emphasized that “currently 100 percent of crude oil is delivered to Poland from directions other than Russia, including the North Sea, West Africa, the Mediterranean, as well as the Persian and Mexican Gulfs.” – The purchase of raw material from Norwegian deposits is another example of our successful diversification of crude oil supplies. Expanding the portfolio with an additional volume from the North Sea guarantees stable supplies to our refineries and, consequently, uninterrupted fuel supplies to all Orlen stations in the region – said the President of Orlen Daniel Obajtekquoted in the company’s press release.

Read also: End of operation of one of the largest gas fields in the world

The contract with BP may result in further cooperation

Obajtek assessed that strengthening the Orlen Group’s relations with the world’s largest oil producers and securing new supply directions is the result of the emergence – after the acquisitions that Orlen had previously carried out – of “a strong multi-energy concern with a stronger position in trade negotiations”. – We are active all over the world and use our potential to develop extensive cooperation with suppliers from Europe and beyond. This allowed us in Poland to become fully independent of Russian gas, increasing the energy security of the entire region, said the president of Orlen. As he assessed, “the contract with BP can potentially be a starting point for further cooperation, also in areas related to the involvement of both companies in the energy transformation.” Orlen pointed out that as part of its supply diversification strategy, “it is building its import portfolio based on crude oil supplies from the North Sea, West Africa, the Mediterranean, as well as the Persian and Mexican Gulfs”. From deposits in the North Sea, Orlen receives such types of oil as: Forties, Oseberg, Johan Sverdrup, Troll, Grane, Brent and Ekofisk. On the other hand, Forcados and Bonny Light oil are imported from West Africa. The basket of deliveries to the concern also includes mined in USA grades: WTI, Bakken and Mars.

Also check: Oil imports from Russia. New data

Orlen on oil from Russia

At the same time, Orlen emphasized that from the very beginning war in Ukraine“as one of the first companies in Europe”, resigned from importing Russian oil by sea, even though the embargo on these supplies was introduced only in December 2022. “In turn, in the first quarter of this year, Orlen did not extend the contract with Rosneft and terminated the contract with Tatneft, which made it possible to completely abandon the supply of Russian oil to Poland. First this though Tatneft stopped oil supplies to Poland.

“With Russia’s aggression against Ukraine, the company also gave up buying finished fuels from the East, as in the case of oil – long before the introduction of European sanctions, which did not come into force until February 5, 2023.” Orlen added.

The Orlen Group has seven refineries: four in Poland – including the largest one in Płock, as well as two in the Czech Republic and one in Lithuania. It also has about 3.1 thousand. petrol stations in Poland, Germany, the Czech Republic, Slovakia, Lithuania and Hungary. The Orlen Group also has an extensive petrochemical segment. It also implements a number of investments related to renewable energy, such as wind and photovoltaic farms. By 2030, it intends to launch at least one small SMR nuclear reactor.

In February this year, Orlen updated the strategy of the Orlen Group until 2030, taking into account the priority goals of the multi-energy concern, which was established after the merger with the Energa Group, Lotos Group and PGNiG. This document assumes that by the end of the decade the investment outlays of the Orlen Group will amount to approx. PLN 320 billion.

Main photo source: PAP/Leszek Szymanski



Source link

More articles

- Advertisement -

Latest article