Daniel Obajtek: The acquisition of Lotos Group by PKN Orlen is a historic moment and a giant opportunity for Poland's development

We are in the process of acquiring the Lotos group. This is a critical part of Orlen’s transformation. We started this four years ago, when the energy transformation had a different pace, and before the pandemic which changed the approach to business. However, all that has happened justifies the reason for this acquisition

— PKN Orlen CEO Daniel Obajtek said at a press conference. As he stressed, „this is a historic moment”.

The company announced on Wednesday that Saudi Aramco would buy shares in Lotos refinery, MOL 417 Lotos stations and Unimot - fuel depots. The price in the preliminary agreement for the shares in Lotos Asphalt, to be paid by Aramco, set at around PLN 1.15 billion.

PKN Orlen also said it would buy 144 service stations in Hungary and 41 service stations in Slovakia from MOL. The price to be paid by PKN Orlen for 144 stations in Hungary and 41 stations in Slovakia amounts to around EUR 229 million.

A critical moment of transformation

The acquisition of Lotos Group is a critical moment of transformation - PKN Orlen CEO Daniel Obajtek said while presenting the partners in the acquisition of Lotos on Wednesday.

This is a very important day for our economy and the economy of the entire region. Climate policy, regulatory and market pressures all require us to transform, to take quick and decisive steps

— Obajtek said. As he added, only a diversified entity can carry out such a transformation.

Obajtek noted that Orlen’s acquisition processes are related to decarbonisation and new technologies.

We still have a lot of acquisitions ahead of us to create a concern that will be able to compete, set trends and standards in business

— he said. As he assessed, everything that happened during the pandemic in the economies justifies the process of all these mergers.

Historic moment

The CEO of PKN Orlen also posted a tweet in which he stressed that this is a historic moment and a gigantic opportunity for Poland.

This is a historic moment. We are implementing a project that many of our predecessors spoke about, but they lacked courage and determination. We are creating the strongest fuel and energy company in this part of Europe. The merger of @PKN_ORLEN and @GrupaLOTOS is a gigantic opportunity for Poland’s development!

— wrote Daniel Obajtek.

Saudi Aramco to be strategic partner

Saudi Aramco will be a strategic partner that will cover 30% of the spun-off Gdansk Refinery, wholesale and the aviation fuel area - Obajtek stressed.

The PKN Orlen CEO said that PKN Orlen’s partner in the takeover of Lotos - Saudi Aramco sets trends on the markets; it is the largest oil producer in the world and a leader in modern petrochemistry.

Saudi Aramco does not follow trends, but sets them. It is the largest oil producer in the world and the leader in the development of modern petrochemistry; it has access to modern technologies, thousands of patents, research and development base throughout the world

— he said.

He noted that at the same time PKN Orlen signed three strategic agreements with the Saudi company. These are a framework agreement in the area of analyses and investments in petrochemistry, an agreement on cooperation in research and development and a long-term contract for the supply of crude oil, which will flow to all Orlen’s refineries in Poland, Lithuania and the Czech Republic - Obajtek stressed.

Tłum. K.J.