Rosneft Signs 3-Year Oil Delivery Extension Deal With Poland's PKN Orlen

Russia's Rosneft and Poland's PKN Orlen signed an extension of the current contract that had to expire on January 31.

MOSCOW (Sputnik) – Russia’s Rosneft oil giant has signed a three-year extension of its contract with Poland’s Polski Koncern Naftowy Orlen (PKN Orlen) into early 2019 and plans to boost its supply volume during that timeframe, Rosneft said Thursday.

"Updated commercial terms require a three-year extension of the agreement (from February 1, 2016 to January 31, 2019) and an increase in the volume of deliveries to 25.2 million tonnes," the company said.

Rosneft and PKN Orlen signed a contract to deliver 18 million tonnes of crude oil to Poland via Russia’s 5,530-mile Druzhba (Friendship) pipeline on February 1, 2013.

The current contract expires on January 31, 2016.

The Russian oil giant said the latest deal was consistent with its strategy to create shareholder value by improving the efficiency of oil sales, in addition to meeting consumer needs and strengthening Europe’s energy security.

"Rosneft is increasing its presence in traditional markets, keeping them for Russian companies…The concluded agreements confirm Rosneft’s status as a leading oil supplier to the largest consumers in Europe," Rosneft CEO Igor Sechin was quoted as saying in the press release.

PKN Orlen announced the signing of an annex to its long-term crude oil supply contract with Rosneft late on Wednesday.