PKN
Orlen's Trzebinia refinery issued a statement yesterday saying that it will buy more than 300,000 tonnes of crude oil from
PGNiG between March 28, 2007 and December 31, 2008 for PLN 355.74m (some
USD 125m).
Our view: Although the exact delivery volume is unknown, calculating with exactly 300 kt it seems that
PGNiG will sell its crude oil at 57.0 US$/bbl to Trzebinia refinery which means 10-12 US$/bbl discount to
Brent versus 7 US$/bbl discount we have calculated in our
PGNiG model. If we calculate with 315 kt (this is implied by the statement of Trzebinia that 15,000 tonnes of oil would be delivered by
PGNiG until end 2008) the discount would come at 15 US$/bbl. We are keen to hear more on this contract later today, however, at the first sight the terms of the contract seem more unfavorable for
PGNiG than we thought before.