Mandatory Reserves

In 2007, the ORLEN Group’s mandatory reserves were stored in over 30 storage facilities in Poland and Lithuania. In the Czech Republic, it is the Czech ASMR (Agency Storing Mandatory Reserves) that is obliged to amass and maintain fuel and crude oil reserves. The ASMR is fi nanced from the State budget and commissions the operational tasks to be carried out by Cepro, a state-owned company, with regard to fuels and Mero with regard to crude oil.

Poland
In 2007, a new Act on Mandatory Reserves came into force, which imposed additional obligations on entrepreneurs resulting from, inter alia, the adjustment of Polish regulations to the standards of the International Energy Agency. PKN ORLEN had to meet new requirements by amassing reserves at the end of 2007 corresponding to 73 days, calculated on the basis of net import of crude oil in the preceding year, and not as previously, on the basis of fuel sales. By the end of 2008, PKN ORLEN will be obliged to amass mandatory reserves corresponding corresponding to 76 days of net import of crude oil, which will constitute the Company’s target. The remaining 14 days will be provided by the National Material Reserve Agency.

In 2007, the Company stored mandatory reserves of crude oil and fuels in 25 locations on the territory of Poland and in the Production Plant in Płock.

Lithuania
As at the end of 2007, mandatory reserves of the Lithuanian company, AB Mažeikių Nafta corresponded to 38 days of fuel sales in the preceding year, while the remaining 38 days were kept by the National Material Maintenance Agency, fi nanced from the state budget. By mid 2009, the refinery plant in Mažeikiai will be obliged to achieve a level of 45 days, and the remaining 45 days will be amassed by the National Agency.

In 2007, the Company stored mandatory reserves of crude oil and fuels in 2 locations on the territory of Lithuania and in the tanks in the Refinery Plant.