Saudi Aramco is set to widen its foothold after agreeing to acquire a minority stake in a Baltic coast refinery and to deliver nearly half of Poland’s oil.
- The Saudi Arabian giant is set to purchase 30% of a refinery on the Baltic coast, which has long been dominated by Russian producers. The two countries are currently looking to ease production cuts set during the COVID-19 pandemic.
- Saudi Aramco also inked a delivery deal with Polish refiner PKN Orlen SA, which may use refineries in Lithuania and the Czech Republic. A number of plants in Europe were designed to run on Russia’s Urals grade and may need to be adjusted to be compatible.
- Analysts believe the purchase of the recently upgraded refinery will give Saudi Aramco a bigger presence in Europe’s refining system, which has historically been dominated by Russian producers.
Saudi Arabia and Russia were earlier involved in a price war when the middle eastern country’s production was last as high as it is currently.
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Source: Bloomberg
