PKN Orlen CEO: we have broken dependence on Russian crude
PKN Orlen is prepared to give up Russian oil altogether if further sanctions on its imports are imposed, the company assures. We have broken our dependence on Russian crude; currently, 10 per cent of Russian oil goes to the Group’s refineries, Orlen CEO Daniel Obajtek pointed out.
– Already 90 per cent of the oil processed by the Orlen Group comes from countries other than Russia. This is the result of intensive efforts to diversify supplies carried out after 2015, PKN Orlen said in a press release on Wednesday.
The company stresses that by gaining reliable trading partners, it is prepared to give up Russian oil altogether if further sanctions on its imports are introduced.
PKN Orlen CEO Daniel Obajtek points out that the development of the Orlen Group goes hand in hand with an increase in the raw material and fuel security of Poland and the entire region. He adds that “the condition for both is the diversification of supplies of crude oil and other energy raw materials”.
– That is why, over the past few years, we have been intensively building global relationships that have allowed us to open new directions for oil imports to our plants in Poland, Lithuania and the Czech Republic. In this way, we have broken our historic dependence on Russian crude, which as recently as 2015 accounted for almost 100 per cent of the oil going to Orlen Group refineries. Currently, it is only 10 per cent, – Obajtek said, quoted in the press release.
The company recalled that PKN Orlen’s contract with Rosneft for the supply of 3.6 million tonnes of crude oil per year expired at the end of January 2023. It added that Russian crude had been replaced by oil imported from other directions.
– Consequently, from February this year, as much as 90 per cent of the crude processed at Orlen Group’s refineries will come from outside Russia. Regardless, Orlen Group is already fully prepared to cope without Russian crude, so the possible introduction of new sanctions on oil imports from this country would not affect the Company’s operations, the company assured.
The company recalled, that the ban on Russian oil imports to the European Union, which came into force on 5 December 2022, has covered only supplies by sea. As added, PKN Orlen had already stopped importing Russian crude by ship earlier – since the outbreak of the war in Ukraine. It was pointed out that this was possible due to the pursued diversification strategy and the search for new trading partners.
As a result, in response to Russian aggression in Ukraine, PKN Orlen was able to quickly reduce its purchases of Russian oil, it was reported.
As part of its diversification strategy, PKN Orlen is building its import portfolio based on crude oil supplies from the North Sea, West Africa, the Mediterranean basin as well as the Persian and Mexican Gulf. The Company’s key partner is currently Saudi Aramco, the largest oil producer in the world. In 2022. PKN Orlen and Saudi Aramco signed a strategic cooperation agreement which, among other things, ensures that the Polish company will be supplied with enough crude oil to cover around 45 per cent of the total demand of all Orlen Group refineries.
On 5 February this year, new EU sanctions covering imports of Russian refined fuels will come into force. The restrictions are intended to make it more difficult for Russia to finance the war in Ukraine while maintaining the stability of global energy supplies.