Poland's top two refiners PKN Orlen and Grupa Lotos discuss upstream cooperation

Poland's largest two refiners, PKN Orlen and Grupa Lotos, are discussing cooperation in upstream projects, the companies stated Monday.

"In an effort to improve the security of raw materials [supplies], both companies, having included in their strategies the development of upstream projects, [Monday] discussed the possibilities of joint participation in selected projects," the statement reads.

Due to recently rising concerns regarding the security of supplies of global energy resources, PKN Orlen and Lotos are considering exchanging experiences in supplying oil to their refineries, and may jointly purchase crude in future.
"It would be aimed at better use of a joint purchase potential in relations with current and potential new suppliers," the statement reads.

Both companies also expressed the will to cooperate in realizing the Polish government's energy security policy, but emphasized that joint actions concerning Poland's strategic interests will have no impact on their competition on the Polish market.

PKN Orlen recently slowed down its efforts to gain access to oil fields, as in an updated strategy announced in early June, the investments in oil trade and upstream activity are planned at PLN 1.5 bln in comparison to a total investment plan PLN 21.2 bln.

Lotos is developing its upstream activity on the Baltic Sea, which it plans to increase from current levels of around 250,000 tonnes of oil annually to 1 mln tonnes of oil annually in 2012. The company is also attempting to explore oil fields in the Latvian and Lithuanian parts of the Baltic Sea shelf.
Source:gielda.wp.pl