Saudi Aramco completes new oil deals with Poland’s PKN Orlen

World’s largest oil-exporting company acquires 30% stake in Gdansk refinery to expand operations in Europe

Saudi Aramco acquired equity stakes of 30 per cent in Pkn Orlen's 210,000 barrels-per-day refinery in Gdansk and a 100 per cent stake in its associated wholesale business. Reuters
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Saudi Aramco, the world’s largest oil-exporting company, has completed three transactions with Polish refiner and fuel retailer PKN Orlen as the company continues to focus on expanding its operations globally.

As part of the transactions, first announced in January, Aramco acquired a 30 per cent stake in Pkn Orlen’s 210,000 barrels-per-day refinery in Gdansk, as well as a 100 per cent stake in its associated wholesale business, the company said on Wednesday.

It also bought a 50 per cent stake in a plane fuel marketing joint venture with BP Europa, which operates in seven airports in Poland.

Aramco completed the deals through its subsidiary Aramco Overseas Company based in the Netherlands.

“These investments are part of our efforts towards cementing Aramco’s presence in a key European market and provide a unique opportunity to develop new liquids to chemicals pathways, with hopes of expanding our global downstream footprint and supporting the diversification of our portfolio,” said Mohammed Al Qahtani, Aramco senior vice president of downstream.

Aramco is continuing to expand its operations and partnerships globally to boost growth.

In August, the company said it would acquire Kentucky-based motor oil maker Valvoline's lubricants business for $2.65 billion.

The deal, subject to customary closing conditions and regulatory approval, is expected to close in this year or early next year.

It also signed a preliminary agreement with China's Petroleum and Chemical Corporation, better known as Sinopec, to boost collaboration in oil and gas projects in the kingdom.

Aramco will also supply about 45 per cent of PKN Orlen’s crude requirements as part of a new agreement signed with the Polish company, it said.

In addition to the investment, Aramco, Sabic and PKN Orlen have signed a joint development agreement to assess the technical and economic feasibility of a potential petrochemical project in Gdansk.

“These transactions are of strategic importance in further strengthening energy supplies, not only in Poland but for the entire region,” said Daniel Obajtek, president of the PKN Orlen.

Updated: November 30, 2022, 1:44 PM