Saudi Aramco invests in Poland’s refining, wholesale, jet fuel ops

SINGAPORE (ICIS)–Energy giant Saudi Aramco is investing in Poland’s refining, wholesale and jet fuel marketing segments via acquisitions from the eastern European country’s biggest refiner PKN Orlen.

“The company has agreed to acquire equity stakes of 30% in a 210,000 barrels per day refinery in Gdansk; 100% in an associated wholesale business; and 50% in a jet fuel marketing joint venture with [UK energy firm] BP,” Saudi Aramco said in a statement on 12 January.

Financial details of the acquisitions were not disclosed.

“These acquisitions will support the diversification of Aramco’s product portfolio across the hydrocarbon value chain – including a focus on liquids-to-chemicals pathways,” said Mohammed Al Qahtani, Aramco senior vice president of downstream operations.

The acquisitions will be made from PKN Orlen following its proposed merger with Grupa Lotos, Poland’s second biggest refiner.

Completion of the transaction is still subject to regulatory approvals, including from the European Commission.

“The investments will widen Aramco’s presence in the European downstream sector and further expand its crude imports into Poland, which aligns with PKN Orlen’s strategy of diversifying its energy supplies,” Saudi Aramco said.

Separately, Aramco has signed a memorandum of understanding (MoU) with its 70%-owned subsidiary SABIC and PKN Orlen for a possible steam cracker and a chemical production facility in central and eastern Europe (CEE).

Another MoU was signed by Aramco and PKN Orlen which focuses on exploring potential opportunities for research and development.

“Our business objectives for oil and chemicals are closely aligned with PKN Orlen, and we are exploring additional opportunities in the European petrochemicals market, as well as in R&D,” Aramco’s Al Qahtani said.