WARSAW Dec 28 Polish oil refiner PKN Orlen
has sold some of its so-called mandatory oil stocks to
Royal Bank of Scotland for $383 million, freeing up
funds for the company's energy and shale gas exploration
projects, PKN said on Friday.
This is the second such deal for PKN this year that will
allow the company to cut the cost of holding oil stocks required
for Poland's strategic reserves. PKN has now done four of these
deals in total.
"For the last two years we have been reducing the burden on
our balance sheet thanks to a change in the formula of holding
mandatory inventories," PKN's chief executive Jacek Krawiec said
in a statement.
"We have freed up a total of nearly 2.4 billion zlotys
thanks to these deals," he said. "We will be able to invest
these funds to achieve the goals from our strategy ...
especially regarding energy and unconventional gas exploration."
PKN said it had sold 545,000 tonnes of crude oil, or 18
percent of its total mandatory oil inventories, to Whirlwind, a
special purpose vehicle created by the Polish unit of Royal Bank
Under the deal, Whirlwind will maintain the oil stocks for
PKN until January 28, 2014.
PKN said the deal had been approved by the government agency
that oversees mandatory oil stocks. The proceeds will reduce the
company's debt at the end of 2012, it said.