Saudi Arabia’s multinational petroleum and natural gas company, Saudi Aramco is widening its global downstream presence through its new investments in Polish state oil refiner and petrol retailer, PKN Orlen.
Aramco will acquire a 30 percent stake in a Polish refinery that produces an estimated 210,000 barrels per day, a 100 percent stake in a related wholesale business, and a 50 percent stake in a fuel marketing joint venture with British multinational oil and gas firm, BP.
The acquisitions will be made from PKN Orlen following its proposed merger with Poland-based vertically integrated oil company, Grupa Lotos. Completion of the transaction is subject to regulatory approvals, including from the European Commission.
The new investments are expected to expand Aramco’s presence in the European downstream sector and will further boost its crude imports into Poland, which aligns with PKN Orlen’s strategy of diversifying its energy supplies.
In addition to the investments, Aramco has also signed an agreement with the Polish firm as well as Saudi-based chemical manufacturing company, SABIC to explore and unveil potential petrochemical growth and expansion opportunities in Poland as well as Central and Eastern Europe.
Aramco and PKN Orlen have also signed a memorandum of understanding (MoU) particularly focusing on revealing research and development (R&D) opportunities in the region.
Mohammed Al Qahtani SVP – Downstream Aramco
“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.”
Commenting on the agreements, Mr. 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.”
