Aramco Trading, the trading subsidiary of Saudi Aramco, signed a supply agreement for crude with Poland’s refiner PKN Orlen.
As part of the deal, Aramco will receive a similar volume of high sulphur fuel oil from the Polish refiner.
Aramco said the deal demonstrates the company’s strategy to place set volumes of crude oil across different geographies, maintaining a healthy balance between third party customers and affiliated outlets.
The agreement paves the way for a further expansion of Saudi Aramco’s well established partnership and collaboration strategy while diversifying PKN’s crude oil supplies and securing new outlets for their products, the company said.
“The increasing number of strategic partnerships established across refining, chemical and marketing activities reinforce Saudi Aramco’s downstream growth ambitions and bolsters its successful efforts to span the length of the value chain. The increased European presence also positions Saudi Aramco favourably to supply critical feedstock to the European market,” Aramco said.
In addition, the agreement consolidates Saudi Aramco’s efforts to earmark new strategic outlets for crude oil enabling the company to accommodate a range of future market positions, as well as underpinning an optimal balance of geographic exposure between Asia, Europe, and North America.
PKN Orlen has a pre-existing crude oil supply agreement in place with Aramco Trading’s parent company, Saudi Aramco, which provides 74MBD Arabian Crude Oil to Poland’s premier refiner.
The agreement was signed by president & CEO of Aramco Trading, Ibrahim Al-Buainain and executive director of Trading Grzegorz Markiewicz from PKN Orlen. It was signed in the presence of Saudi Aramco CEO Amin H. Nasser and PKN Orlen CEO Daniel Obajtek at a ceremony hosted by Saudi Aramco at its Dhahran headquarters.