Poland’s biggest oil company may buy a stake in an East German refinery only after the Berlin government decided to leave Russia’s biggest crude producer as a shareholder, PKN Orlen SA’s chief executive said , Daniel Obajtek.
The ultimatum follows months of speculation that Orlen is looking to invest in PCK’s facilities in Schwedt to ensure supply to its own network of petrol stations in neighboring Germany and help with deliveries to the domestic market.
The main problem is the ownership of the plant. Even after the German authorities took operational control of PCK, Rosneft PJSC still holds a 54% stake, with Shell Plc and Eni SpA the remaining shareholders.
“We don’t want to enter into any relationship with investors from the East,” Obajtek said in an interview on June 27. “This problem must be solved first by the German side.”
Germany, which has been the target of the Polish government’s barbarism over its past energy policies toward Russia, adopted a law this year that would allow it to seize Rosneft’s assets, but has not yet begun that process.
The government in Berlin is open to an offer from Poland but has no immediate plans to sell Rosneft shares, people familiar with the matter said. Instead, he is likely to renew the temporary guardianship adopted in September, according to the people, who declined to be named because the talks are private.
The Schwedt refinery, which supplies most of the fuel for Berlin, had been operating at up to 60% of capacity earlier this year after losing its main route for Russian oil supplies. Deliveries have been helped by a link with the Polish port of Gdansk and a deal with Kazakhstan for 100,000 tonnes of crude a month.
“In the case of the Schwedt refinery, we should assess its impact on the Polish market in the future and analyze the sense of this investment from this point of view,” Obajtek said. The company is “always interested” in investing in projects that benefit its business and does not rule out expanding its portfolio in “many areas, including refining”, he added.
You can’t stand still
State-owned Orlen, which has more than doubled its operations since early last year after taking over Poland’s Grupa Lotos SA and PGNiG SA, wants to invest 320 billion zlotys ($78 billion) this decade It already has refineries in Poland, Lithuania and the Czech Republic.
Until now, the mergers were estimated to bring about 10 billion zlotys in synergies, but the CEO said the final figure will be higher. The company, which pledged to pay dividends every year while keeping its financial ratios at a “safe” level, plans to invest 36 billion zlotys this year and a “similar or slightly higher” amount in 2024.
The expansion comes against the backdrop of European Union plans to ban the registration of new cars with combustion engines from 2035. Orlen recently decided to remove the reference to oil production from the company’s name to underline a planned shift to cleaner energy with a focus on low emissions. energy production, natural gas and the petrochemical business.
The company and its partners are developing small nuclear reactors, or SMRs, with plans to build the first unit in 2029 with the aim of replacing old coal-fired power plants in Poland. It is also building its first offshore wind farm and is looking at further investments in the Baltic Sea after winning five new licences.
At the same time, Orlen continues to expand its fuels business in an effort to strengthen its regional presence.
“I think we should increase the number of gas stations in the region to increase our competitiveness.” Obajtek said. “We are developing, which is why our appetite for new acquisitions does not diminish. A company of this size cannot afford to stand still and we are looking at various options at home and abroad.”
— With the assistance of Petra Sorge.
