Sales of next part of crude oil obligatory inventories

Polski Koncern Naftowy ORLEN S.A. ("PKN ORLEN”, “Company") informs that in the process of changing the formula of keeping crude oil obligatory inventories by PKN ORLEN, the Company sold next part of inventories, through assigning the keeping of the inventories to the third party.

On 23 December 2010 PKN ORLEN concluded with Maury Sp. z o.o., headquartered in Warsaw („Maury”) the agreement for the sale of crude oil (“Sales Agreement”) and the agreement for gathering and keeping of crude oil obligatory inventories (“Agreement for gathering and keeping of inventories”).

On the basis of the Sales Agreement PKN ORLEN sold to Maury crude oil amounted to ca. USD 300 m (i.e. ca. PLN 910 m based on USD/PLN average exchange rate as of 23 December 2010, stated by National Bank of Poland). The crude oil price was established according to market quotations.

On the basis of the Agreement for gathering and keeping of inventories Maury will be providing service of keeping of crude oil obligatory inventories to PKN ORLEN account, whereas PKN ORLEN will guarantee storage of inventories in current location. The Agreement for gathering and keeping of inventories was concluded for one year. The Company takes into account the possibility of its renewal for next period.

Above Agreements were concluded after receiving by PKN ORLEN approval of the Material Reserves Agency for the transaction.

Maury is a SPV which in its statutory activities includes turnover of crude oil. Maury is 100% controlled by RBS Polish Financial Advisory Services Sp. z o.o., which is a subsidiary of Royal Bank of Scotland N.V.

See also: regulatory announcement no 56/2010 dated 30 March 2010.