12-01-2022

Aramco expands European downstream presence with PKN Orlen investments

The Saudi Arabian Oil Company, the world’s largest integrated energy and chemicals company, is expanding its global downstream presence with investments in Poland’s refining, wholesale, and jet fuel marketing segments.

The Company has agreed to acquire equity stakes of 30% in a 210,000 barrels per day refinery in Gdansk; 100% in an associated wholesale business; and 50% in a jet fuel marketing joint venture with BP. The acquisitions will be made from Polish refiner and fuel retailer PKN Orlen following its proposed merger with Grupa Lotos. Completion of 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.

In addition to the investments, Aramco has signed a memorandum of understanding (MoU) with PKN Orlen and SABIC, one of the world’s largest petrochemicals companies, to explore joint opportunities in Poland and elsewhere in Central and Eastern Europe. Another MoU was signed by Aramco and 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: “This is an historic day for the Polish energy industry. The completion of the merger is an opportunity to ensure high-quality 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.”