Lotos eyeing long-term Iran oil supply deal

Lotos eyeing long-term Iran oil supply deal
Poland's second-biggest refiner Lotos says it is looking into sealing a long-term oil supply deal with Iran.

Lotos Chief Executive Officer Marcin Jastrzebski was quoted by media as saying that the deal could be signed with Iran after his company completed a new coking unit at its Gdansk refinery next year.

This could be part of the company’s plans to diversify its imports of oil and gas away from Russia, its largest supplier, Reuters wrote in a report on Jastrzebski’s announcement.   

Lotos CEO acknowledged this, but emphasized that the plan was meant to improve the financial performance of his company, as well.

"The primary goal of the diversification is to improve (financial) results not just to change suppliers," he was quoted as saying by Reuters.

In 2016, 75 percent of oil processed at Lotos's refinery came from Russia, the report added.

Last year, the Polish company signed an oil purchase agreement with National Iranian Oil Company (NIOC) and the first tankers carrying 2 million barrels of Iranian oil arrived in Poland in mid-August.

It is now in talks to receive another 2 million barrels, Reuters added.

"We are negotiating a supply of heavy oil from Iran," Jastrzebski told Reuters. "We assume that shipment of two million barrels will reach the (Polish) port of Gdansk at the beginning of May."

Iran’s shipment of oil for Lotos was the country’s first sent to Poland after the removal of sanctions against the Islamic Republic in early 2016. 

There were other indications that Poland was increasing its imports of oil from Saudi Arabia, as well. This was also seen as part of Warsaw’s policy to reduce its dependence on Russian oil.  


Feb 13, 2017 14:21

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