Poland's PKN claims compensation for Russian dirty oil

Poland’s biggest refiner PKN Orlen has asked its Russian suppliers for compensation for contaminated oil, its chief executive said on Twitter, confirming a Reuters report.

In April, buyers discovered that supplies of Russian crude had been contaminated with organic chloride, a chemical used in oil recovery that can damage refining equipment.

Daniel Obajtek wrote on Twitter that PKN Orlen had asked for compensation outlays related to the processing of the oil, the protection of installations and additional purchases of crude oil.

“We are determined to get back all of the costs we incurred,” he said.

Poland’s state-run pipeline operator PERN halted Russian oil imports via the Druzhba pipeline after the contamination was detected. Flows were partially restarted in June. Meanwhile Poland diversified sources of oil to compensate supply.

In the second quarter Polish refineries increased imports from Saudi Arabia, which became the second- biggest oil supplier to Poland after Russia, according to Poland’s central bank. Meanwhile, Poland’s imports of Russian oil fell by 20%.

In November, Russian oil pipeline monopoly Transneft (TRNF_p.MM) said it had set aside 23 billion roubles ($360.31 million) for compensation related to tainted oil.

Reporting by Agnieszka Barteczko; Writing by Marcin Goclowski and Alan Charlish; Editing by Joanna Plucinska, Louise Heavens, William Maclean

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