Legal regulations impose on businesses and traders operating on the Polish market the obligation to maintain mandatory reserves of crude oil and fuels (except LPG). In 2011, the established level was the amount corresponding to at least 76 days of average daily production or import, carried out by the producer or trader in the previous year. The 14 days of reserves were covered by the Material Reserves Agency.
In 2011, PKN ORLEN crude oil reserves were stored in underground caverns of IKS “Solino” and the Production Plant in Płock.
PKN ORLEN stored mandatory reserves of fuel in over twenty places across Poland, among others at fuel terminals owned by the Company, aboveground tanks leased from external companies, underground caverns of IKS “Solino” and tanks located on the premises of the Production Plant in Płock.
The agreement regarding collection and storage of mandatory reserves of crude oil concluded between PKN ORLEN and Lambourn expired at the end of the first quarter of 2011 in connection with changed rules for storing mandatory reserves of crude oil. Consequently and in accordance with legal provisions in force in Poland regarding maintenance of mandatory reserves, PKN ORLEN purchased crude oil from Lambourn. The ownership of the raw material was transferred to PKN ORLEN on 1 April 2011, after payment of the entire amount resulting from this transaction.
In 2011, PKN ORLEN remained a party to the agreement concluded on 23 December 2010 with Maury, which was the basis for sale of a part of crude oil reserves.
Pursuant to the Ordinance of the Minister of Economy of 7 July 2011, producers and traders operating on the Polish market were given an opportunity to temporarily reduce the level of reserves held. As a consequence, PKN ORLEN reduced the amount of mandatory reserves of petrol by 4% and diesel oil by 7% in relation to levels reached as at 30 June 2011.
In 2011 the Company also continued activities regarding development of comprehensive solutions at the governmental level in order to change the rules for storing mandatory reserves on the Polish market. In accordance with the assumptions such activities are aimed at increasing involvement of the government in storing mandatory reserves. Representatives of PKN ORLEN were among participants of consultations.
According to the Czech law, mandatory crude oil and fuel reserves are maintained by a government agency dedicated for these purposes.
As at the end of 2011, mandatory reserves in Lithuania covered 90 days, of which ORLEN Lietuva and companies importing fuel to Lithuania provided for 60 days (the other 30-day reserves were maintained by the Lithuanian State Agency). Crude oil reserves were stored at the Mažeikiai refinery and the offshore transhipment terminal in Butinge, whereas finished products reserves – at two terminals leased in Lithuania.
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