Polish Refiner Buys Crude From NIOC

Poland's biggest oil refiner PKN Orlen said it has bought 1 million barrels of Iranian Light oil from National Iranian Oil Company.

The state-run PKN, which mostly refines Russian oil, said that the Iranian oil will be delivered to Naftoport oil terminal in Gdansk in January and then transported to PKN's refinery in Plock, Reuters reported.

"The processing of the feedstock most recently delivered from Iran will be a basis for further plans regarding supplies from that direction," PKN said in a statement. Earlier this year PKN signed and extended agreement to receive oil from Saudi Aramco. Last year, the refiner delivered a gas condensate cargo of Iranian origin for its Mazeikiai refinery in Lithuania.

The shipment, which took place prior to Tehran's landmark nuclear agreement with the six world powers in July last year, raised doubts on whether it was in violation of international sanctions imposed against Iran's nuclear program.

Poland's second biggest oil refiner Lotos is also weighing a long-term oil supply deal with Iran after it received 2 million barrels of Iranian crude in August.

According to reports, Poland has turned to Iran to meet part of its oil demand as the country looks for ways to reduce dependence on oil and gas imports from Russia.

Iran's Europe-bound crude exports in December look set to rise 10% from last month to this year's high of 767,000 bpd, topping levels seen prior to the imposition of tougher sanctions in 2012, Reuters said, citing a source with knowledge of preliminary tanker schedule.