Dubai: Aramco Trading, the trading subsidiary of Saudi Aramco, said on Thursday it has signed an agreement for the supply of Arabian crude oil to Poland’s leading refiner, PKN Orlen, in exchange for a similar volume of high sulphur fuel oil from the Polish refiner.
The agreement demonstrates Saudi Aramco’s strategy to place set volumes of crude oil across different geographies, maintaining a healthy balance between third party customers and affiliated outlets, Aramco said in a statement.
The agreement was signed by president and CEO of Aramco Trading, Ebrahim Al Bu Ainain and executive director of trading Grzegorz Markiewicz from PKN Orlen.
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.
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.