Oil

Production

Increased production was due to higher market demand and very high operating availability of the oil blocks in Płock.

 

 

 

 

 

 

ORLEN Oil Sp. z o.o. production in 2007–2008 (tonnes)

	2007	2008	Dynamics
Lubricants base oils and process oils	207 875	226 682	9,05%
Other products	192 647	226 852	17,76%
Total	400 522	453 535	13,24%

Over the first six months of 2008, research and development works under the first stage of the Base Oils Interchange project, covering mineral engine fuel to heavy Diesel engines, were completed. As a result of the programme, in 2008, production of certified ORLEN Oil Base 150 and 400 started. The two types of oil are equivalent to the Groups’ top quality base oil, as well as products of manufacturers such as Exxon or Shell. We adjusted our offer to the changing market demands and specific customer requirements, as a result of which several new products were included in ORLEN Oil offer.

Certain types of oil, besides well-tested recipes, require relevant certificates in order to proceed with their sales. Automotive certificates are of particular importance. Last year, ORLEN Oil obtained 30 approvals and certificates for its products, both automotive and industrial.

Another stage of the undertaken measures were performance tests in order to evaluate products in realistic conditions. In 2008, ORLEN Oil completed three large test projects concerning the compatibility of selected types of engine oil with PKN ORLEN Biodiesel.

Sales

ORLEN Oil Sp. z o.o. share in the Polish oil and lubricant market represents approximately 23%. The main competitors include Lotos Oil and global corporations: Exxon Mobil, BP/Castrol, Shell, Fuchs, Statoil and several others.

In 2008, ORLEN Oil Sp. z o.o. continued its strategy aimed at implementing a common price and marketing policy and ensuring quick and comprehensive service throughout the country.

In 2008, ORLEN Oil Sp. z o.o. lubricant sales in Poland went up by 2.4% compared to 2007, amounting to 77.7 thousand tonnes.

Sales dropped most significantly in the low class engine oil segment, and rose the highest in the industrial oil segment.

ORLEN Oil Sp. z o.o. lubricant export remained at the same level as in 2007. A significant increase in export concerned base oil, amounting to 67 thousand tonnes in 2008, i.e. approximately 16% more than in 2007.

Investments

The most important investment project in ORLEN Oil Sp. z o.o. was the construction of a dispatch terminal for road tankers at the Production Plant in Płock. The main objective of the project were to increased sale margins resulting from develop ment of an alternative sales channel (cargo dispatch with road tankers and reduction of less profitable sales via the sea or rail). The terminal is expected to be put to operation in 2009.

ORLEN Oil Sp. z o.o. major investment projects included oil base certification programme commenced in 2007 and continued in 2008. The project had to be extended in time due to changes in key quality categories and engine tests defining engine oil. The project gave ORLEN Oil technologies for four types of mineral oil HDDO based on own base oil, to be used with Diesel engines of quality levels confirmed by car manufacturers.

In 2008, certain investment projects started, as well, to be continued in 2009, including: modernisation of the oil building line, implementation of Enterprise Resource Planning system by SAP, modernisation of blending unit in the Production Plant in Jedlicze and modernisation of lubricating oil blending unit in the Production Plant in Trzebinia.