PKN Orlen signs deal with Aramco for sale of Lotos stake

Leszek Szymański/PAP

Poland's dominant petrochemicals group, PKN Orlen, has signed a deal with Saudi Arabia's Aramco Overseas Company on the sale of a 30-percent stake in the refinery of Lotos as part of remedial measures related to its merger with its smaller local peer.

PKN Orlen said in a market filing on Wednesday that the deal consists of a fixed amount of PLN 1.15 billion (EUR 250 million) and a "variable element depending on the level of net debt and working capital of Rafineria Gdanska (the Lotos refinery - PAP) as on the day of signing the final agreement."

On the same day, November 30, Orlen also signed a joint development agreement with the Saudi Arabian Oil Company and Saudi Basic Industries Corporation to carry out a feasibility study for a petrochemicals complex in Gdansk, northern Poland.

PKN Orlen announced in July that the companies were analysing a possible joint project worth several billion dollars to create a large-scale petrochemicals installation integrated with the Gdansk refinery.