ORLEN strengthens upstream operations in Poland

The first phase of the consolidation involves transferring assets related to exploration, production, and storage from ORLEN to ORLEN Upstream Polska. In exchange, the latter will issue new shares to ORLEN, making it the sole shareholder. This structural move aligns with the Polish Commercial Companies Code and is based on a plan agreed upon by both entities. The transaction is subject to approvals from the General Meeting of ORLEN and the Shareholders’ Meeting of ORLEN Upstream Polska, expected by the end of June 2025.

- We see significant potential to expand the upstream segment, which is a strategic pillar of the ORLEN Group. Our employees’ internationally recognized expertise is a key asset. Consolidating this potential into a modern organization with a clear structure will optimize operations and boost the efficiency of managing domestic hydrocarbon reserves, said Wiesław Prugar, Member of the Management Board, ORLEN S.A., responsible for Upstream. - By 2030, we aim to increase domestic natural gas production to 4 bcm annually, in line with the ORLEN 2035 Strategy. This is critical for strengthening Poland’s energy security.

The integration process also includes the transfer of employees from ORLEN to ORLEN Upstream Polska, accompanied by dialogue with labor representatives. The company emphasizes that employees will gain new opportunities for professional development in a focused upstream business environment.

Domestic natural gas production has covered approximately 20% of Poland’s annual consumption in recent years, playing a key role in national energy security. Additionally, E&P activities generate substantial local revenues through production royalties, which are distributed among municipalities (60%), counties and provinces (15% each), and the National Fund for Environmental Protection and Water Management (10%). These funds support essential social and infrastructure investments in resource-rich regions.

ORLEN Group holds upstream assets on four continents: in Europe (Poland, Norway, Lithuania, Ukraine), North America (Canada), Asia (Pakistan, UAE), and Africa (Libya). As of year-end 2024, ORLEN reported 1,306.9 million boe in proven hydrocarbon reserves—73% natural gas and 27% crude oil and NGL. Of these, 710 million boe are located in Poland, 407.8 million boe in Norway, 147.7 million boe in Canada, 40.5 million boe in Pakistan, and 1 million boe in Lithuania.