Saudi Press

Saudi Arabia and the world
Tuesday, Jun 24, 2025

Aramco gains footing in Russia’s back yard with Polish oil deal

Aramco gains footing in Russia’s back yard with Polish oil deal

Aramco, the world’s largest oil firm, will buy 30 percent of a refinery on the Baltic coast, as well as a wholesale fuel unit.

Saudi Aramco’s agreement to supply almost half of Poland’s oil will give the world’s biggest crude exporter a stronger foothold in a region that Russian producers have long dominated.

Aramco, the world’s largest oil company, will buy 30% of a refinery on the Baltic coast, as well as a wholesale fuel unit. It also signed a long-term delivery deal with Polish refiner PKN Orlen SA.

The Saudi-government-owned oil giant will be ramping up oil sales in Russia’s energy backyard just as the two nations, who are joint leaders of the OPEC+ producer alliance, work to wind down nearly two years of production cuts they implemented with the onset of the pandemic.

The deal could have implications beyond Poland, as Orlen may use the crude in refineries in Lithuania and the Czech Republic. Many Eastern European plants were designed to run on Russia’s Urals grade and some may require technical adjustment to use different barrels. Crude from Saudi Arabia and Iraq regularly competes with Russian barrels for customers.

Aramco’s purchase will “expand the company’s presence in Europe’s refining system with a stake in a recently upgraded refinery,” Bloomberg Intelligence analysts Salih Yilmaz and Rob Barnett wrote in a research note. It will also help Aramco “strengthen its position in a region traditionally dominated by Russian crude.”

Keen Competition


The 23-member OPEC+ alliance has curtailed output since 2020 to support oil markets after the pandemic forced governments to shut economies, throttling demand. Now, with economies recovering and oil trading above $80 a barrel, the group is gradually rolling back those cuts and bringing more oil back to market.

Competition for customers remains keen among the world’s top producers, even as they work together to control supply. Russia exports oil by pipeline to Asia, where it competes with Saudi barrels in Aramco’s biggest market.

European sales make up a small part of the daily flotilla of crude leaving Saudi Arabia for global markets. Shipments to China alone make up roughly a fourth of the kingdom’s nearly 7 million barrels of daily crude sales, according to data compiled by Bloomberg.

In comparison, the Saudis will be selling at most 337,000 barrels of crude a day to Poland, according to a statement from Orlen. That’s up from previous contracts that allowed for purchases of about 100,000 barrels daily of Saudi oil by Orlen. The new agreement will cover nearly half of the country’s crude needs, according to Orlen Chief Executive Officer Daniel Obajtek.

OPEC+ Output


The Organization of Petroleum Exporting Countries, in which Saudi Arabia is the biggest producer, has said it will continue cooperating with the alliance’s other petrostates, led by Russia, even after the current round of cuts ends. The group has also said it may not roll back all the output cuts this year if demand worsens.

With Saudi production edging above 10 million barrels a day last month, the first time since April 2020, competition for buyers everywhere is likely to intensify. While OPEC+ members are set to increase output next month in accordance with the group’s plans, Russia’s output is capped due to lack of spare capacity and any future growth will be mostly supported by additional drilling.

The last time Saudi production was as high as it is now, Saudi Arabia and Russia were locked in a brief price war, when both countries ramped up output after prior OPEC+ cooperation fell apart.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Black Box Recovered from Air India Crash Site
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Syria to Reconnect to Global Economy After 14 Years of Isolation
Israel Confirms Arming Gaza Clan to Counter Hamas Influence
Global News Roundup: From Ukraine's strategic military strikes and Russia's demands and Tensions Escalate in Ukraine, to serious legal issues faced by Britons in Bali and Trump's media criticism, the latest developments highlight a turbulent landscape
U.S. Reduces Military Presence in Syria
Trump Demands Iran End All Uranium Enrichment in Nuclear Talks
Iran Warns Europe Against Politicizing UN Nuclear Report
×