Polish energy giant PKN Orlen pushing for oil deal with Saudis

Storage tanks are seen at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia, Sunday, March 21, 2021. (AP Photo/Amr Nabil)
By Grzegorz Adamczyk
2 Min Read

Poland’s energy giant PKN Orlen is in talks with Saudi Arabia’s Aramco with regard to both oil supplies for the Central European region and the development of petrochemical products. According PKN Orlen CEO Daniel Obajtek, the cooperation with Aramco is a great opportunity for the Polish economy and not just for Orlen.

“We talked with representatives of Aramco about raw material supplies to our region, but also about the prospects for the development of petrochemicals. The production of advanced plastics, in cooperation with the global leader in this industry, is a great opportunity for the Gdańsk plant and the entire Polish economy,” wrote Obajtsk.

Back in July, PKN Orlen reported on talks with both a Saudi chemical manufacturing company, SABIC, and Saudi Aramco about joint investment projects in the petrochemical sector. These efforts involved enhancing the range and quality of products and integration with the Gdańsk oil refinery. 

At the beginning of 2022, PKN Orlen signed an agreement with Saudi Aramco for the supply of 200,000 to 337,000 barrels of oil daily. According to PKN Orlen, that would meet 45 percent of the group’s needs in Poland, Czechia, and Lithuania. The level of supplies is to rise to 400,000 barrels daily (20 million per annum) this year. 

Following its merger with gas giant PGNiG and oil company Lotos, Orlen is the biggest multi-energy conglomerate in Central Europe and one of the largest in Europe. Saudi Aramco is one of the largest oil producers in the world, supplying 10 percent of the world’s daily oil demand.

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