SAUDI Aramco and PKN Orlen, the Polish crude oil refining company, held a signing ceremony of a contract agreement for Saudi Aramco to supply PKN Orlen with 50,000 barrels per day (bpd) of crude oil starting May 1, 2016 with provisions for automatic annual renewal. The contract, formally agreed in May, marks PKN Orlen's first long-term contract with a producer from the Middle East region and comes after Saudi Aramco supplied six spot trial cargoes to PKN Orlen's refineries in Poland, Lithuania and Czech Republic, reaffirming Saudi Aramco's continued role as the world's leading and most reliable supplier of energy. The signing ceremony at Saudi Aramco's headquarters was presided by Amin H. Nasser, president and CEO of Saudi Aramco, and Abdulrahman F. Wuhaib, senior vice president, downstream, Saudi Aramco, and by Wojciech Jasi?ski, president and CEO of PKN Orlen. Nasser said: "This agreement marks a strong first-step for Saudi Aramco's entry into the Baltic market, adding value in the key markets of Poland, Lithuania, and the Czech Republic where PKN Orlen operates refineries. We continue to explore opportunities to strengthen our position as the supplier of choice in all global markets and we are confident that we are uniquely positioned to add real value to our customers' businesses and in the growth of the economies they serve." He added: "The agreement also firmly underlines Saudi Aramco's ability to meet customers' needs by leveraging our unparalleled supply infrastructure. We are always ready, willing and able to meet any additional call on demand from new and existing customers around the world." Jasi?ski said: "This is the first direct long term contract with a supplier from the Gulf region in the history of our company. It shows the direction of our thinking on strategic diversification of crude supply sources, which is centered on partnering with tested oil producers from different geographical regions and on securing optimum supply terms. We have repeatedly announced our intention to use market opportunities to secure an optimal supply structure and good financial terms, and we are delivering on this objective." PKN Orlen is one of the largest crude oil refiners in Poland and operates the second largest complex for terephthalic acid production in Europe. In addition to its six refineries, PKN Orlen operates the region's largest network of service stations located in Poland, Lithuania and the Czech Republic. In 2015 Saudi Aramco produced an average of 10.2 million barrels per day of crude oil, a new all-time record. Saudi Aramco, Bahri, Lamprell and Hyundai sign agreement Saudi Aramco also signed a Joint Development Agreement (JDA) with its potential partners — the National Shipping Company of Saudi Arabia (Bahri), Lamprell, and Hyundai Heavy Industries for developing a Maritime Yard that will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore support vessels in the Kingdom. The JDA represents the next phase of development between the partners after signing the Memorandum of Understanding (MoU) in January. Pursuant to the MOU, the partners have been working closely to undertake preliminary due diligence and feasibility studies on various aspects of the project and that work is currently ongoing. With the signing of the JDA, the partners intend to jointly undergo development activities relating to financing, construction, operation and ownership of the Maritime Yard and enter into negotiations of definitive agreements in view of making a Final Investment Decision in due course. As part of this undertaking, Saudi Aramco and the potential partners look forward to leveraging their know-how, combined with current and future business needs, to actively pursue such an investment and promote economic development in the Kingdom. In line with the Saudi Vision 2030, this project aims to localize world-class manufacturing and services to support the growing national and international portfolio. The development of a Maritime Yard signifies Saudi Aramco's continued commitment to the development of the maritime sector and the opportunities it offers for economic growth and job creation.
