PKN ORLEN has signed an agreement with Souz Petrolium for crude oil deliveries

abarrelfull wrote on 23 Dec 2011 07:21
Tags: pkn-orlen poland trading

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Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN") informs that on 22 December 2011 it signed an Agreement with Souz Petrolium SA headquartered in Geneva („Souz Petrolium”), for REBCO crude oil deliveries, in the quantity of 2,4 m tonnes per year, by “Przyjazn” pipeline to PKN ORLEN (“Agreement”). The Agreement is valid from 1 January 2012 to 31 December 2014. In some cases, described in the Agreement, the deliveries can be realized by sea to Gdansk.

The Agreement contains liquidated damages in the amount not higher than PLN 2 m monthly.

For the day of signing the Agreement, the estimated value of the deliveries to 31 December 2014 amounts to ca. USD 5,7 bn (i.e. approximately PLN 19,4 bn, based on the average PLN/USD exchange rate as of 22 December 2011, as stated by the National Bank of Poland).

The total estimated value of agreements signed between PKN ORLEN and Souz Petrolium in the period between 29 September 2011 to 22 December 2011 amounts to approximately USD 6 bn (i.e. approximately PLN 20,5 bn, based on the average PLN/USD exchange rates as of the dates of signing the agreements, as stated by the National Bank of Poland).

In accordance with the “Regulation of the Minister of Finance dated 19 February 2009 on current and periodic information to be published by issuers of securities and on the conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state” the abovementioned agreements constitute a “significant agreement” due to the fact that their total value exceeds 10% of PKN ORLEN’s equity.

• PKN ORLEN has signed an agreement with Souz Petrolium for crude oil deliveries

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