Obajtek: Orlen’s long-term contract for Russian oil expires in January, which we will not renew

Orlen’s long-term contract for Russian oil, which we will not extend, expires in January. As a result, about 90 per cent of the oil processed will be from outside Russia, the company’s CEO Daniel Obajtek said on Saturday.

Orlen’s long-term contract for Russian oil, which we will not extend, expires in January. As a result, about 90 per cent of the oil processed will be from outside Russia. For several years, Orlen has been establishing global relationships by diversifying directions. One of the pillars of stable supply is cooperation with Aramco,” Obajtek wrote on Twitter.

Last week, PKN Orlen spokeswoman Edyta Olkowicz said that Orlen “will not extend the long-term contract, which expires in January 2023.

– On the other hand, the only contract then in force for Russian oil supplies in 2023 will cease when sanctions are introduced, for which we are prepared,” she added.

As she recalled, PKN Orlen resigned from Russian oil supplies by the sea with the onset of Russia’s armed assault on Ukraine, and many leading European producers have done the same.

Olkowicz stressed that “the consistent diversification of oil supplies, including through strategic partnerships, has contributed to strengthening the energy security not only of Poland but of the entire region”.

– Currently, already 70 per cent of crude to all Orlen Group refineries in Poland, the Czech Republic and Lithuania comes from alternative directions to Russia, while as recently as 2015, almost 100 per cent of crude to Orlen Group refineries came from Russia, the PKN Orlen spokeswoman noted.

Orlen’s contract with Rosneft expires in January 2023. Under this contract, Rosneft supplies Orlen with 300,000 tonnes of oil per month. Under the second contract with Tatneft, the Polish company buys 200,000 tonnes of oil per month, and the contract with this Russian supplier ends in December 2024.

As PKN Orlen CEO Daniel Obajtek previously stressed, the company does not have the legal title to break long-term contracts for the supply of Russian oil and this is only possible if sanctions are imposed on the supply of crude from Russia.

Source: PortalMorski.pl