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January 13, 2022

Polish refiner PKN Orlen signs contracts with Saudi Aramco and MOL

Saudi Aramco will buy a 30% stake in the Lotos oil refinery and MOL will acquire 417 fuel stations in Poland.

Polish refiner and fuel retailer PKN Orlen has agreed to divest Lotos Group assets to Saudi Aramco and Hungary’s MOL.

The move will help the company to fulfil the European Union’s (EU) rulings, enabling the planned takeover of the Lotos Group.

Saudi Aramco has agreed to acquire 30% in the Lotos oil 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 PKN Orlen, following the latter’s merger with Lotos.

PKN Orlen has signed an agreement with Saudi Aramco for crude oil supplies between 200,000bpd to 337,000bpd.

PKN Orlen will also work with Aramco and the Saudi Basic Industries Corporation (SABIC) to discuss investments in high-margin petrochemicals.

Aramco downstream vice-president Mohammed Al Qahtani 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.”

Hungarian oil and gas company MOL will acquire 417 fuel stations in Poland, from PKN Orlen, for $610m. The deal is expected to expand MOL’s regional footprint in Poland.

Orlen will also be acquiring MOL Group’s 144 petrol stations in Hungary and 41 stations in Slovakia for $259m.

MOL Group CEO and management board president Zsolt Hernádi said: “For MOL, the transaction is a major step in its strategic transformation journey, commenced in 2016, which we fast-tracked last year with our updated strategy.

“With this acquisition, we will gain a foothold in the largest economy of Central and Eastern Europe, reaching nearly 40 million potential customers.”

Poland’s Unimot and Hungary’s Rossi Biofuel also agreed to acquire several Lotos assets.

PKN ORLEN Management Board president Daniel Obajtek said: “We are about to finalise the acquisition of LOTOS Group, a deal intended to benefit the entire Polish economy, both companies involved, their respective customers, employees and shareholders.”

In December 2021, Aramco signed a gas pipeline stake deal worth $15.5bn.

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