The Saudi Arabian Oil Company (Aramco), Saudi Arabia’s multinational Petroleum, natural gas, and a global major integrated energy, and chemicals firm is in the expansion drive broadening its global downstream presence via its latest investments in the Polish (Poland) state Oil refiner, wholesale as well as jet fuel and petrol retailer, PKN Orlen.
Aramco has recently agreed and announced acquiring 30% equity stakes in Polish refinery Gdansk manufacturing anticipated 210,000 barrels per day, an estimated 100% stake in a related wholesale business, as well as a 50 percent stake in a jet fuel marketing joint venture with British multinational oil and gas firm, BP.
As per Aramco’s announcement, it has been made clear that the acquisitions will be made from PKN Orlen following its proposed merger with Poland-based vertically integrated oil company, Grupa Lotos.
This acquisition and investment strategy will also boost Aramco’s presence in the European downstream arena. It will also further expand its crude imports into Poland, which aligns with PKN Orlen’s strategy of diversifying its energy supplies.
As per Aramco’s reports, additionally, to the investments, Aramco had signed a memorandum of understanding (MoU) with a Polish firm and a Saudi-based chemical manufacturing company, SABIC, for exploration of joint prospects in Poland, Central, and Eastern Europe.
According to Saudi’s Oil major, the two firms have signed MoU particularly in focusing upon disclosure of the research and development (R&D) aspects in the territory.
Mohammed Al Qahtani, Aramco Senior Vice-President of Downstream stated: “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.”
He also added: “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 regarding the agreements and MoU, Daniel Obajtek, President of the PKN Orlen Management Board stated: “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.”