ORLEN has entered into a five-year exclusive agreement with Lithuania’s KN Energies, previously known as Klaipedos Nafta, granting it sole access to a small-scale LNG reloading wharf station in Klaipėda, which will bolster gas supply to north-eastern Poland and the broader Baltic region. Since the initiation of an earlier contract, ORLEN has received nearly 60 thousand tonnes of liquefied natural gas via the Klaipėda terminal.
PGNiG Upstream Norway from ORLEN Group commenced the production of oil from Tyrving field in the North Sea. Tyrving reserves are estimated at ca. 25 million barrels. Production from Tyrving will have an exceptionally low carbon footprint of 0.3 kg per barrel.
ORLEN Group will become a license partner in one of the five largest discoveries made on the Norwegian Continental Shelf in the last 10 years. As a result of a sales and purchase agreement signed with Source Energy, PGNiG Upstream Norway will obtain 20% stake in the Atlantis field in the North Sea. By acquiring the equity in Atlantis ORLEN Group is looking to maintain long term stability and high volumes of its gas production in Norway, which will be delivered to Poland via the Baltic Pipe.
PGNiG Upstream Norway of ORLEN Group has bought an additional 19.5% stake in the Eirin gas field from Equinor Energy. As a result of the transaction, the volume of gas that ORLEN Group will produce from the field will almost double, to over 1.5 billion cubic metres.
In the three months ended 31 March 2024, the ORLEN Group generated LIFO-based EBITDA* of PLN 8.4 billion and net profit of PLN 2.8 billion. The stable financial results were delivered with a PLN 1 billion q/q reduction in net debt. Over the period, the Group invested nearly PLN 6.4 billion across all its business lines. The retail segment saw a 20% y/y increase in sales reflecting growing demand in Poland and the Group’s entry into a new market with the acquisition of over 260 fuel stations in Austria. The energy segment’s performance remained stable, its electricity output from renewable and low-carbon sources upped to nearly 70%.
Yet another production installation used by ORLEN Group on the Norwegian Continental Shelf has been connected to clean energy generated onshore. The electrification of the Sleipner field will prevent 160,000 tonnes of carbon dioxide emissions per year. About two-thirds of the gas production of PGNiG Upstream Norway in 2024 will be carried out using facilities powered from shore.
The ORLEN Group has increased the volume of natural gas transported to Poland from its own production assets in Norway by more than 30%, equating to an additional 1 bcm annually. Gas produced from Norwegian fields by PGNiG Upstream Norway already accounts for about a half of the entire Baltic Pipe capacity booked by ORLEN.
PGNiG Upstream Norway and its license partners successfully completed drilling in the PL211 CS licence in the Norwegian Sea. The appraisal well confirmed that the Adriana field contains natural gas and condensate reserves of 28-43 million barrels of recoverable oil equivalent.
In the three months ended 31 December 2023, the ORLEN Group generated LIFO-based EBITDA* of PLN 11.2bn and net profit of PLN 7.3bn. The full-year LIFO-based EBITDA* for 2023 was PLN 44.8bn and net profit reached PLN 27.6bn. The Group’s fourth-quarter results were positively impacted by the performance of the gas segment, which delivered an EBITDA of PLN 11bn, primarily on the back of lower gas procurement costs and higher sales. ORLEN also increased its retail sales volumes by more than 20% (y/y), partly as a result of the acquisition of service stations in Hungary and Slovakia.
The ORLEN Group has prepared the first report dealing so comprehensively with the pace and trajectories of Central and Eastern Europe’s energy transition. The examination of the region’s energy markets helps comprehend its potential while underscoring its specific conditions in comparison with the rest of the EU, influenced by geopolitics and wealth levels, among other factors. The complete report is available at future.orlen.pl
MSCI has upgraded ORLEN’s ESG rating from ‘BBB’ to ‘A’. Compared to previous scores, there have been upgrades in the environmental and social aspects, represented by the ‘E’ and ‘S’ of the ESG acronym. Significant progress has been noted in emissions reporting, decarbonisation plans, and leveraging investment opportunities in energy transition supported by clean technologies. The company has once again received very high ratings for safeguarding workers’ rights and ensuring occupational health and safety.
The Minister of State Assets appointed Witold Literacki to the ORLEN Management Board with effect from 6 February 2024. Furthermore, at today's meeting the Company's Supervisory Board appointed Witold Literacki as acting President of the Management Board with effect from 6 February 2024. At the same meeting, the following members of the current Supervisory Board: Kazimierz Mordaszewski, Tomasz Sójka and Tomasz Zieliński were delegated to the Management Board for up to three months, until a new Management Board is appointed. The new Management Board will be appointed following a competition-based recruitment process.
“Since the commencement of my mission at the ORLEN Group, I have operated under the steadfast belief that mediocrity is not an option. I can now proudly say that, through collective efforts, we have successfully secured our place as a fully-fledged member of the premier league of Europe’s major players,” declares Daniel Obajtek, CEO and President of the Management Board of ORLEN S.A., in his introductory remarks to our latest report titled “Multi-Energy ORLEN.
PGNiG Upstream Norway AS (PUN) has obtained ten new license areas for exploration on the Norwegian Continental Shelf as a result of Awards in Predefined Areas (APA) for 2023. In total, 25 oil companies from all over the world applied. PUN will act as the operator of one of the ten newly awarded licenses. It should be noted as well that through the purchase of KUFPEC Norway AS, PUN will ultimately inherit two additional new license areas around the Sleipner Field. As a result, the number of licenses in Norway, in which PUN, the company of the ORLEN Group, holds shares, will increase to 104.
