Unipetrol RPA SRO, the marketing arm of Unipetrol AS, and parent company Polski Koncern Naftowy SA (PKN Orlen) have signed separate agreements with OJSC Rosneft Oil Co. and PJSC Tatneft to supply Russian crude oil through mid-2019 to subsidiary Ceska Rafinerska AS’s 5.4 million-tpy refinery in Litvinov, Czech Republic.
Under the first contract, signed on June 30, Rosneft will ship 2.9-5 million tonnes/year of Russian Export Blend crude oil (REBCO) to the Czech Republic along its Druzhba pipeline from July 1, 2016, to June 30, 2019, Unipetrol said.
Alongside benefitting from more favorable contractual terms as a result of jointly purchasing crude with PKN Orlen, the long-term contract with Rosneft covers 65% of Unipetrol’s total demand for REBCO, a major refining feedstock, said Marek Switajewski, Unipetrol’s chairman and chief executive officer.
As part of a second contract also signed on June 30, Tatneft will supply a total 600,000 tonnes of REBCO from July 1, 2016, to June 30, 2017, Unipetrol said.
The medium, sour Russian crude will be valued according to prevailing market conditions at the time of its delivery using the differential price of Russian Urals to the Brent Dated Index.
Contact Robert Brelsford at [email protected].