The company PKN Orlen, the Polish oil processing leader, has signed the first long-term contract with Saudi Aramco on a regular supply of oil. Under the terms of the agreement, which runs until the end of 2016, the Saudis will supply the poles 200 thousand tons monthly.
The contract will be automatically renewed each year if the partners decide about its dissolution. Thus, PKN Orlen will receive in the future about 2.4 million tons of Saudi oil annually. Prices for the raw material will be calculated on the basis of the Brent Weighted Average (BWAVE).
“This is our first ever long-term contract with a supplier from the Gulf region. It reflects our intention to diversify sources of oil supplies, and to cooperate with reliable producers from different regions of the world,” — said in this regard, the company’s CEO Wojciech Jasinski.
It is worth noting that, traditionally, PKN Orlen buys Russian Urals oil, which is 90% of the used raw materials. This year “Rosneft” and the Polish refiners extended their contract for three years, with the volume of purchases will grow from 18 million to 25.2 million tons.
Against this background, Saudi 2.4 million tons seem to be not so significant. However, last autumn the head of “Rosneft” Igor Sechin said the dumping of Saudi Arabia on the Polish market is one of the factors of changes in world oil prices.
Capacity tanker of Saudi oil supplies to Poland, which has been observed since the end of September 2015, not just reflects the desire of the Polish consumers to diversify energy supply. It’s also a serious instrument of pressure on Russian suppliers in negotiations for new contract prices.
