Today, PKN ORLEN repurchased from Whirlwind a pool of mandatory oil reserves sold to the company in December 2012. The transaction value of approximately USD 400m, including settlement of the forward contract hedging the purchase price of the oil, is close to the amount of proceeds received from its sale a year ago.

In accordance with the contract terms, PKN repurchased the reserves from Whirlwind and has assumed their ownership. As a result, approximately PLN 1.2bn in inventories will be reported for the first quarter of 2014. In addition, for the effective term of the contract on building and maintaining mandatory oil stocks, Whirlwind paid a fee to PKN ORLEN for guaranteed maintenance of the reserves, which significantly reduced the cost of the reserves maintenance incurred by the Company. Another contract concerning mandatory reserves, executed with Neon in June last year, will continue in force until January 29th 2015. Neon provides services to PKN ORLEN which involve maintaining a pool of 490.8 thousand tonnes of REBCO oil, with a value of approximately USD 314m (around PLN 1,044m).

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