9 Mar 2023 11:45

Ukrnafta signs contract with PKN Orlen for petroleum product supply

MOSCOW. March 9 (Interfax) - Ukrnafta, which owns a network of more than 500 gas stations, has signed a contract with Poland's PKN Orlen for the supply of petroleum products, Ukrainian media reported, quoting the Ukrainian company's press service.

The agreement will enable Ukrnafta to receive oil products directly from their producer. In addition, Ukrnafta is negotiating with Orlen to export its own crude to free up space in underground oil storage facilities and stave off a glut.

"We are grateful to our Polish partners and look forward to a long and rewarding partnership. I hope I will soon be able to share good news about oil exports," said Sergei Koretsky, the head of Ukrnafta.

Ukrnafta reduced production of oil and condensate by 8.6% to 1.37 million tonnes in 2022. At present, the company is storing the crude it produces in underground pipelines and expects to start exporting or having it toll-refined abroad as soon as possible.

The state-controlled Ukrnafta holds 85 hydrocarbon development licenses and has 1,809 oil and 153 gas wells on its balance sheet. The company owned 537 gas stations, including 449 operational as of late December 2022.

Orlen report said in a report that revenue from sales to Ukraine in 2022 amounted to PLN 4.441 billion, up from PLN 2.124 billion in 2021, and to PLN 1.393 billion in Q4 2022, up from PLN 0.62 billion in Q4 2021.