Rosneft and LUKOIL may sell oil directly to PKN Orlen

According to Russian business daily Vedomosti (7 November 2012), Rosneft and LUKOIL are holding talks with Poland’s PKN Orlen, a major oil refiner and petrol retailer in Europe, on direct supplies of 10 million tonnes a year. PKN Orlen executive chairman Yacek Krawiec notes that based on an oil price of USD 100 per barrel, this is tantamount to USD 7 billion a year. He also points out that the Polish company has a tendency to conclude deals for three years.

While Russian oil is usually exported via traders owing to the logistical supply chain advantages that they offer, they are not required in this case, as the oil would be supplied via the Druzhba oil pipeline.

It remains unclear at present if PKN Orlen with conclude contracts with both companies or one of them.

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