In accordance with the information published in the Financial Statements of ORLEN and ORLEN Group for 2019, 2020, 2021 and 2022, PERN S.A. (PERN) informed ORLEN about differences in the quantity of the operating stock of crude oil REBCO-type (Russian Export Blend Crude Oil) in connection with the inventory of crude oil stocks supplied by the tank farm in Adamów, carried out by PERN as a pipeline system operator. At the same time, as at 31 December 2021, PERN indicated shortage in the amount of ORLEN's crude oil supply delivered by sea through the PERN Manipulation Base in Gdańsk, made an unilateral adjustment of the REBCO crude oil inventory balance.
PERN maintains that the reason for the change in operating stocks is the difference in methodology of calculating the quantity of crude oil REBCO-type delivered by the tank storage in Adamów and crude oil delivered by sea. As at 31 December 2021, according to received confirmation from PERN, ORLEN's operating stock of crude oil REBCO-type amounted to 536,255 net metric tons. The difference in the quantity of stocks increased by 146 net metric tons in comparison to 2020 and amounted to 91,836 net metric tons.
ORLEN does not agree with PERN position, because in its opinion it remains unfounded, unproven and inconsistent with the agreements binding ORLEN and PERN, and the existing methodology used for calculating the quantity of crude oil REBCO-type and crude oil delivered by sea through the PERN Manipulation Base in Gdańsk and submitted by PERN to ORLEN is correct and has never been questioned before.
In the opinion of ORLEN the amount of adjustment of inventories recognised in 2019, 2020 and 2021 and in 2022 totally in the amount of PLN (156) million is also a contingent asset of ORLEN.
In connection with the disclosure by PERN of loss of crude oil belonging to ORLEN and stored by PERN, ORLEN issued a debit note and called for compensation on 24 July 2020 from PERN for the loss of 90,356 net metric tons of crude oil REBCO-type and related unlawful reduction of crude oil inventories of ORLEN, which PERN should keep in its storage and transmission system in the amount of PLN 156 million. PERN did not pay this amount within the deadline specified in the debit note. Consequently, in the period from 30 July 2020 to 19 May 2021 ORLEN has been satisfying PERN’s claims for issued invoices by way of statutory deductions with the claim for compensation.
On 1 October 2021 PERN initiated court proceedings in which it demands ORLEN to be ordered to pay PLN 156 million with interest and a lump-sum compensation for recovery costs, which ORLEN previously deducted from PERN’s remuneration. PERN questions the effectiveness of the deductions made by ORLEN. On 31 January 2022, ORLEN responded to PERN's claim, demanding that PERN's claim be dismissed. ORLEN does not agree with PERN's position presented in the lawsuit filed by PERN. ORLEN disagrees with the position of PERN presented in the lawsuit filed by PERN. In the opinion of ORLEN, PERN's claims are groundless and do not exist, as the amount of PLN 156 million claimed by PERN was effectively deducted from ORLEN's claim for compensation. Court proceedings are pending.
Due to the loss by PERN of further (in relation to the loss covered by the debit note of 24 July 2020) 1,334 net metric tons of REBCO crude oil owned by ORLEN, which PERN was obliged to store and not confirmed in the balance according to the records as at 31 December 2021, on 21 January 2022, PERN received a request for payment along with a debit note for the disclosed further oil loss in the system. PERN did not make the payment resulting from the debit note, and therefore ORLEN set off a claim for compensation for another loss in the amount of PLN 2.6 million against PERN's claims for invoices issued for the transport of the raw material.
As at 31 December 2022, in accordance with the document "Balance of crude oil as at 31.12.2022" provided by PERN.
PERN made another one-sided adjustment in minus the inventory records of crude oil belonging to ORLEN in amount of 1,921 tons net. As a consequence, a loss of REBCO oil in the volume of 146 tonnes was disclosed, which is the difference between the total volume of loss covered by the debit notes of 24 July  2020 and 21 January 2022 and the REBCO oil loss reported as at 31 December 2022. ORLEN will take further legal steps to secure claims arising from the loss disclosed by PERN at the end of 2022.