Aramco Trading, the trading subsidiary of Saudi Aramco, today signed an agreement for the supply of Arabian Crude Oil to Poland’s leading refiner, PKN Orlen, in exchange for a similar volume of high sulfur fuel oil from the Polish refiner. The agreement demonstrates Saudi Aramco’s strategy to place set volumes of crude oil across different geographies, maintaining a healthy balance between third party customers and affiliated outlets.
The agreement was signed this afternoon by President & CEO of Aramco Trading, Mr. Ibrahim Al-Buainain and Executive Director of Trading Grzegorz Markiewicz from PKN Orlen. It was signed in the presence of Saudi Aramco CEO Amin H. Nasser and PKN Orlen CEO Daniel Obajtek at a ceremony hosted by Saudi Aramco at its Dhahran headquarters. The agreement paves the way for a further expansion of Saudi Aramco’s well established partnership and collaboration strategy while diversifying PKN’s crude oil supplies and securing new outlets for their products.
The increasing number of strategic partnerships established across refining, chemical and marketing activities reinforce Saudi Aramco’s downstream growth ambitions and bolsters its successful efforts to span the length of the value chain. The increased European presence also positions Saudi Aramco favorably to supply critical feedstock to the European market.
In addition, the agreement consolidates Saudi Aramco’s efforts to earmark new strategic outlets for crude oil enabling the company to accommodate a range of future market positions, as well as underpinning an optimal balance of geographic exposure between Asia, Europe, and North America.
PKN Orlen has a pre-existing crude oil supply agreement in place with Aramco Trading’s parent company, Saudi Aramco, which provides 74MBD Arabian Crude Oil to Poland’s premier refiner.
SOURCE: Saudi Arabian Oil Co.