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Saudi Arabia’s Aramco will acquire stakes in the refinery, wholesale and jet fuel marketing ventures of Poland’s PKN Orlen.
Aramco will acquire 30 percent of the 210,000 barrels per day refinery in Gdansk, 100 percent of an associated wholesale business, and 50 percent of a jet fuel marketing joint venture with BP.
The acquisitions will take place following its proposed merger with Grupa Lotos, another Polish oil company based in Gdasnk, Aramco said in a press release today (Wednesday). The transaction is subject to regulatory approvals, including from the European Commission.
“The investments will widen Aramco’s presence in the European downstream sector and further expand its crude imports into Poland, which aligns with PKN Orlen’s strategy of diversifying its energy supplies,” the release said.
Aramco has also signed an MoU with PKN Orlen and Saudi-based chemical and manufacturing company SABIC, to explore joint opportunities in Poland and elsewhere in Central and Eastern Europe, as well as another with PKN Orlen which focuses on exploring potential opportunities for research and development.
Mohammed Al Qahtani, Aramco Senior Vice-President of Downstream, said: “These acquisitions will support the diversification of Aramco’s product portfolio across the hydrocarbon value chain - including a focus on liquids-to-chemicals pathways.
“Our expanding global network of refineries and chemical joint ventures allows us to reach new markets with our products, and strategically place crude oil volumes across different geographies. Our business objectives for oil and chemicals are closely aligned with PKN Orlen, and we are exploring additional opportunities in the European petrochemicals market, as well as in R&D.”
Daniel Obajtek, President of the PKN Orlen Management Board, said: “The completion of the merger is an opportunity to ensure reliable crude oil supplies to Poland from Aramco.
“This is a key stage in building a strong multi-utility group that delivers diversified and reliable energy to Poland.
“Such international partnerships are essential for building the largest multi-utility group in this part of Europe.”
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
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