Another major investment started during the PiS government may end up in the trash. This is the construction of the Olefin III petrochemical complex in Orlen, which has already begun. The new chairman of the concern stated that the investment costs have increased significantly, so the decision on its fate would be made in the future. “The smiling Coalition has already tried to turn the Olefin complex into a forced labor camp, now it is shouting about mismanagement. Do you want to return the market to Germany?” – Daniel Obajtek, former chairman of Orlen, replied to him.
Orlen CEO Ireneusz Fąfara told PAP Biznes on Friday that the company is considering investing in the Olefiny III complex and needs time to decide on its future. In his opinion, the start of the investment, the value of which has increased from the initial PLN 8 billion to PLN 25 billion, was not based on rational assumptions.
In theory, in such a situation you can continue the investment, stop it or bring it to a point where it can be stopped for a while. The decision we must make will be rational and safe.
– said President Ireneusz Fąfara this morning. The data provided by Fąfara were corrected by former PKN Orlen President Daniel Obajtek.
When the final investment decision was made in 2021, its cost was estimated at approximately PLN 13.5 billion, not PLN 8 billion as indicated by the current chairman of the board of directors of Orlen. The decisions of the previous board of directors of the concern regarding the construction of Olefina were preceded by analyses and recommendations of one of the international consulting firms. In making this decision, not only the development of petrochemicals was taken into account, but also the extension of the service life of refineries.
– wrote Daniel Obajtek, former president of Orlen, in a statement sent to the PAP.
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“Do you want to give the market back to Germany?
From the Olefins complex, the smiling Coalition has already tried to set up a forced labor camp and is now screaming about mismanagement.
Somehow, strangely, other petrochemical investments are made by Belgium and… Germany. Isn’t it worth it in Poland? And this is said by the president of Orlen, who has not made any investment decisions since he became the head of the concern, and who should know perfectly well that petrochemicals are seen in the perspective of several decades.
When it comes to costs – look at Shell’s investment in Pennsylvania.
Do you want to deliver the market to Germany?
– wrote Daniel Obajtek in a comment on the X platform to his statement.
Investment supervision – outside the Orlen management team – managed international companies and law firmshaving extensive experience in large investments around the world
– says the statement from the company’s former president.
Obajtek said the investment cost was revised in 2023, which was caused by the Covid-19 pandemic, the outbreak of war in Ukraine and a dramatic change in macroeconomic factors.
In the ISBL area, i.e. the petrochemical production unit, costs increased by approximately 30 percent, while the largest increase of twice the budget was recorded in infrastructure. Orlen’s Board of Directors was aware of the changes in these circumstances and therefore decided to launch a recovery program.
– Obajtek wrote in a statement.
The Petrochemical Value Building Program undertakes the development of petrochemical products such as: a strong pillar of concern, which would also influence the development of the refinery. The cost of this program, and not the investment in the expansion of olefins itself, is PLN 25 billion
– said the PiS MEP.
Obajtek said investment costs for other petrochemical investments around the world were also reviewed.
One example is Shell’s investment in Pennsylvania.where final costs increased by 130% compared to original estimates.
– informs the president, Fafara Obajtek.
The Olefin Complex III is the largest petrochemical investment in Europe in 20 years, thanks to which petrochemical production and the target share of oil processing will be increased to 19%. The petrochemicals produced at the Olefin Complex III will serve as the basis for more advanced plastics, which are used, among others, in the production of everyday items: cleaning products, hygiene and medical products, as well as synthetic fibers for the production of clothing. They will also include, among others: car parts, household appliances and electronic devices.
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