Aramco announces the completion of three landmark transactions with Polish refiner and fuel distributor PKN ORLEN.
Three transactions
Aramco, through its subsidiary Aramco Overseas Company BV, based in the Netherlands, is closing these three transactions. These involve refining, trading and jet fuel activities. The company acquires a 30% stake in a refinery in Gdansk, Poland.
The refinery produces 210,000 barrels per day. The company also acquires 100% in an associated wholesale business. Finally, the company has a 50% stake in a joint venture with BP Europa SE to market jet fuels.
Thus, this agreement represents an important step in Aramco’s long-term strategy. The company is looking to expand its refining and petrochemical capacity. In addition, it wants to expand its product portfolio across the entire hydrocarbon value chain.
Projects under study
The transactions also aim to establish a solid foundation for further business development. Aramco is looking to expand its chemical liquids production capacity. The company aims to reach 4 million barrels per day.
Mohammed Y. Al Qahtani, Aramco’s senior vice president downstream, says:
“These investments are part of our efforts to consolidate Aramco’s presence in a key European market and provide a unique opportunity to develop new pathways between liquids and chemicals, with the hope of expanding our global downstream footprint and supporting our portfolio diversification. At the same time, we aspire to further develop our product portfolio through our ongoing downstream transformation strategy.”
For PKN ORLEN, these transactions will strengthen the energy supply of Poland. In addition, it will create new growth opportunities.
The two partners also enter into a crude oil sales agreement. Under the agreement, Aramco will supply approximately 45% of PKN ORLEN’s crude oil needs. In addition, the two companies signed an agreement to evaluate the technical and economic feasibility of a petrochemical project in Gdansk.
