Poland signs deal to tap British oil

Polish state-owned energy company Orlen has signed a deal with British oil and gas multinational BP to replace Russian oil supplies, Orlen CEO Daniel Obajtek announced on Tuesday.

Under the contract, Orlen will buy up to 6 million tons of crude from BP’s Norwegian fields over the next year. The first shipment is scheduled for late August or early September, according to the Polish firm.

“The contract with BP may potentially be a starting point for further cooperation, also in areas concerning the involvement of both companies in energy transformation,” Obajtek said.

The deal is expected to cover almost 15% of Orlen’s annual demand. It has been described as part of the company’s strategy to diversify supplies and ensure a steady source of crude, following the turmoil on global energy markets in the wake of sanctions against Russia.

In April, Orlen announced it had canceled its last contract on oil supplies from Russia, which the company had with Tatneft.

Although Poland has moved to halt imports of Russian oil, it remains the largest importer of the country’s liquefied petroleum gas (LPG) in the EU, due to its affordability compared to European alternatives.

Russian LPG is not subject to an EU import ban, unlike seaborne oil and petroleum products, and accounts for one-seventh of the fuels on the Polish market.

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