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Nigeria: Poland picks Nigerian oil over Russian, 1st shipment in November

Polish oil refiner PKN Orlen expects to receive a 1st ever shipment of Nigerian crude oil next month.

Nigeria: Poland picks Nigerian oil over Russian, 1st shipment in November Nigeria: Poland picks Nigerian oil over Russian, 1st shipment in November


Warsaw, October 10 - Neftegaz.RU. Polish oil refiner PKN Orlen expects to receive a 1st ever shipment of Nigerian crude oil next month, its CEO said, as Poland seeks to reduce its reliance on Russian supplies.

 

State-run PKN Orlen, Poland's biggest refiner, and smaller rival Lotos, which it is taking over, rely mostly on Russian oil delivered via pipelines built in the 1960s but both have increased purchases from other sources.

 

"Nigeria is our new source of supplies we are exploring. Currently, a batch of 130,000 tonnes of Nigerian oil is on its way to Poland. It is expected to arrive in Gdansk in mid-October," PKN's CEO Daniel Obajtek told Reuters. "If tests confirm the assumed yields structure and margins, further oil supplies from Nigeria will be a viable option," he said.

 

PKN Orlen signed a long-term agreement on regular oil supplies with Saudi Aramco in 2016 and since then both PKN and Lotos have also purchased oil from Iran and the U.S.. Oil supplies from Russia account for around 70 % of all oil deliveries to PKN, down from around 90 % in 2015.

 

«There are also tankers sailing to us from other new directions, but at this stage it is too early to talk about it. We are holding discussions on medium- and long-term oil supply contracts with a number of parties, including US partners,» Obajtek also said.

 

Obajtek said that the deteriorating quality of Russian Urals crude was also prompting PKN to diversify its supplies. «Generally, the lower quality may impact contract prices, as it affects our yield» he said but declined to comment on whether PKN is negotiating new contract prices.

Source : Neftegaz.RU