PKN Orlen signed an agreement with Mazeikiu Nafta that gives to PKN Orlen the exclusive rights to supply Mazeikiu Nafta with crude oil, the company announced on Friday. The crude oil deliveries will be realized with the use of the “Druzba” pipeline and through the marine terminal in Butinge.
Our view: This is a technical move connected with the centralization of crude oil purchases to the PKN. The main question now whether PKN Orlen will succeed to negotiate with Transneft and the pipeline deliveries to Mazeikiu could be resumed in the next months. We regard the news as neutral.