ORLEN has obtained full ownership of S54 from Synthos in a deal valued at about PLN 692 million. This acquisition gives ORLEN control over a latest butadiene extraction unit recently under development, which will be incorporated into the Group’s foremost manufacturing plant in Płock.
The transaction consist a package of associated with the agreements formed to stabilize the present partnership between the 2 corporations and establish a framework for future cooperation. By securing this unit, ORLEN target to bolster its petrochemical value chain and make sure long-term operational transparency.
“We’ve been strategically dealing with legacy issues and reconfiguring ventures that failed to appropriately secure ORLEN’s interests. Our efforts also covered the Olefins III venture and the related investment in a brand new butadiene unit. The deal we’ve agreed with Synthos brings this chapter to an end. We’re rebuilding full control over the unit, which is at the very core of the whole venture. To obtain this, we developed a solution that fulfills the expectancies of both parties and lays a solid basis for our further partnership. We’re restoring right business relations. As a result, the New Chemicals venture can move ahead in keeping with our strategic path,” stated Ireneusz Fąfara, CEO and President of the Management Board of ORLEN.
Under the agreement, ORLEN will take complete control of S54, that is built the butadiene extraction unit on the manufacturing Plant in Płock. The new unit will eventually become incorporated into the site’s petrochemical value chain. It will process the whole C4 output and supply raffinate for use in downstream petrochemical processes.
At the same time, the parties signed a series of agreements and amendments to current contracts that comprehensively govern their recent legal and commercial relations. These arrangements resulted from a review of the corporation’s industrial commitments and efforts to rectify in advance investment decisions.
The agreements also cover cooperation between ORLEN and Synthos in the Czech Republic, reducing the period of the Butadien Kralupy JV in addition to the C4, raffinate and butadiene contracts from 2049 to 2038. Also, they steady a further 2-years of ethylene and benzene offtake in the Czech market.
