Poland’s PKN Orlen to join Hands with Lotos

Poland's PKN Orlen to join Hands with Lotos

Merger between Poland’s PKN Orlen and Grupa Lotos is planned and is beneficiary for both companies.

CEO of Lotos said that anybody who doesn’t have an interest in capital markets and oil companies had doubts that such a merger will be beneficial for both firms.

CEO of Lotos Group informed that the first quarter of 2018 will end with a record share of crude oil not coming from the East at the level of 40 percent. After joining PKN Orlen, President Jastrzębski could enter the authorities of the new entity and continue the course on diversification in Gdańsk.

Russia is losing the control over oil producer

According to the International Energy Agency by 2019 the USA will overtake Russia in oil producing. Shale oil extraction on US concessions increased over 10 million barrels a day. This allowed the US to overtake Saudi Arabia in mining. By the end of 2018, according to IEA, it will exceed 11 million tonnes. The agency does not want that production to be collapsed in the next five years.

Competitors of Russia in Europe are suppliers from the Middle East. Both Poland companies have already imported oil from Saudi Arabia and Iran, but also from the USA. The restriction for imports from Iran is the threat of new US sanctions, which discourages Poles from investing in long-term cooperation with this country.