Energy giant BP has secured a 12-month contract to supply Norwegian crude oil to Polish refining company Orlen‘s refineries in Poland and Lithuania.
The deal, which will see bp deliver six million tonnes per annum (mtpa) of crude oil, is set to cover approximately 15% of ORLEN’s total feedstock requirements.
The agreement is designed to give ORLEN flexible supply options, allowing crude oil shipments to be routed to either the Polish port of Gdańsk or the Lithuanian port of Būtinga based on demand.
Under the contract, the first delivery is scheduled to reach the port of Gdańsk in September 2024.
ORLEN receives various oil grades from North Sea fields, including Forties and Brent from the UK, as well as Oseberg, Johan Sverdrup, Troll, Grane, Brent, and Ekofisk from Norway.
As part of diversification efforts, ORLEN also procures oil from the US, including WTI, Bakken, and Mars grades.
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By GlobalDataFurther expanding its supply chain, ORLEN has tapped into resources from the Persian Gulf and West Africa, importing Forcados and Bonny Light crude oil.
bp Poland head of country Bogdan Kucharski said: “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. We also look forward to working with ORLEN on future opportunities to advance the energy transition.”
ORLEN management board president Ireneusz Fąfara said: “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.”
In addition to securing Norwegian crude, ORLEN, through its subsidiary PGNiG Supply & Trading, has recently signed a deal to supply natural gas to Slovakia’s ZSE Group until the end of 2025.
