BP and ORLEN Strengthen Partnership with Norwegian Crude Supply Deal
In a significant move towards bolstering its energy security and diversifying feedstock portfolios, ORLEN has entered a comprehensive 12-month agreement with BP to supply 6 million tonnes of crude oil from Norwegian North Sea fields. This partnership, announced on August 19, 2024, will cover approximately 15% of ORLEN’s annual feedstock demand and underscores the companies’ commitment to enhancing economic efficiency and regional energy stability.
### Key Elements of the Agreement
1. **Supply and Delivery**: Under the terms of the contract, BP will deliver crude oil to either the Polish port of Gdańsk or the Lithuanian port of Būtinga, depending on regional demand. The first shipment is expected to arrive in Gdańsk in September 2024.
2. **Diversification and Flexibility**: This agreement forms a crucial element in ORLEN’s ongoing strategy to diversify its feedstock sources. By sourcing high-quality crude from the North Sea, ORLEN aims to leverage consistent oil grades that are well-suited to its refining technologies, thereby enhancing the overall efficiency of its production facilities.
3. **Historical Context**: ORLEN has been actively pursuing a policy of reducing reliance on Russian crude supplies. Since 2023, it has successfully phased out imports from Russia following its invasion of Ukraine. This recent deal with BP further reinforces ORLEN’s commitment to sourcing crudes from more stable and secure regions, including the North Sea, West Africa, and the United States.
### Crude Grades and Supply Chain
ORLEN’s refineries currently process a variety of North Sea crude grades, including Forties and Brent from the UK, as well as Oseberg, Johan Sverdrup, Troll, Grane, Brent, and Ekofisk from Norway. The company also receives significant volumes of West Texas Intermediate (WTI), Bakken, and Mars grades from the