ORLEN, bp sign oil supply contract for Polish operations
Published on: Aug 21, 2024
The English mobility giant will supply a total of 6 million tonnes of crude oil from Norwegian fields over the course of one year.
ORLEN has signed a contract with bp for the supply of 6 million tonnes of crude oil from Norwegian fields in the North Sea over twelve months.
This will cover about 15% of the annual demand of the entire ORLEN Group for this feedstock. The agreement is structured to provide ORLEN Group flexibility of supply, with crude oil cargoes directed to the Polish port of Gdańsk and the Lithuanian port of Būtinga, depending on demand.
"Working with bp, a stable and well-established player, is a key element in diversifying ORLEN Group’s feedstock portfolio. Notably, the oil we will acquire through this contract is not only of consistent quality and sourced from geographically close North Sea fields but also has properties that ensure high yields and is well-suited to the processing technologies at our refineries. This, in turn, enhances the economic efficiency of our production facilities. As part of our collaboration with bp, we will also explore other potential areas where we can work together," said Ireneusz Fąfara, President of the ORLEN Management Board.
The first oil tanker as part of the contract is expected to arrive in Gdańsk in September 2024. From the fields in the North Sea, ORLEN receives oil grades such as Forties and Brent from UK, and Oseberg, Johan Sverdrup, Troll, Grane, Brent and Ekofisk from Norway.
"Our agreement to supply ORLEN with Norwegian crude oil is an important step for our business in Poland. It also helps enhance energy security for Poland and the wider Central and Eastern European region. Through our trading team we are able to supply not only North Sea crudes but also access many of the other types of oil ORLEN uses," said Bogdan Kucharski, Head of Country, bp Poland.
Orlen also receives volumes of WTI, Bakken and Mars grades produced in the United States. As part of its diversification, the company also receives oil supplies from the Persian Gulf and Forcados and Bonny Light crude oil imported by the company from West Africa.
