SPY415.21-2.05 -0.49%
DIA340.75-1.11 -0.32%
IXIC13,914.77-137.58 -0.98%

UPDATE 1-Poland's PKN takes reduced supply in Rosneft oil import deal

· 03/16/2021 10:30
UPDATE 1-Poland's PKN takes reduced supply in Rosneft oil import deal

Adds detail, quotes

- Polish state-run refiner PKN Orlen PKN.WA will receive 3.6 million tonnes of crude oil per year from Russia's Rosneft ROSN.MM under a new two-year supply contract signed on Tuesday, PKN said.

Rosneft suspended oil supplies to Poland in February after failing to agree on new contract terms with PKN Orlen when the previous agreement expired on Jan. 31. The previous deal had envisaged deliveries of 5.4 million to 6.6 million tonnes a year.

Polish refineries, including PKN's plant in Plock, central Poland, have been importing most of their crude from Russia via pipelines but have taken steps to reduce their reliance on Russian crude.

PKN this month signed a deal on supplies from U.S. oil major Exxon Mobil XOM.N and has also been buying from Saudi Arabia, Angola, Nigeria and Norway.

"The reduction of crude oil supplies under the agreement with Rosneft does not change anything from the point of view of the stability of supplies to the Orlen group's refineries and fuels in the region," PKN Orlen's Chief Executive Daniel Obajtek said in a statement.

In February sources said that PKN and Rosneft had agreed oil supply terms from March 2021 after a row over prices prompted the suspension in supplies. nL8N2KL2T4


(Reporting by Agnieszka Barteczko
Editing by David Goodman)

((agnieszka.barteczko@thomsonreuters.com; +48226539700; Reuters Messaging: agnieszka.barteczko.reuters.com@thomsonreuters.net))