Embassy Events 2003
Agreement Signed for $690 Million Gdańsk Refinery Project As Part of F-16 Offset Program
18 September 2003With U.S. Energy Secretary Spencer Abraham and Deputy Minister of
Economy, Labor and Social Policy Jacek Piechota in attendance, American
and Polish corporate representatives today signed project documents for
a $690 million program to upgrade the oil refinery in Gdańsk. The
upgrade is strategically important to Poland, because it will transform
the facility into one of the three most technologically advanced
refineries in Europe.
“We are very pleased that we have been
able to expand our cooperation with Poland in a number of areas over
the last several years,” said Secretary Abraham. “Today’s events are a
good illustration of our common desire to continue to develop our
relations, particularly in the economic and commercial fields.”
Today's
signing also means that the Gdańsk upgrade will now formally be
included in the F-16 offset program. In December 2002, the Polish
Government decided to buy 48 F-16's from Lockheed Martin worth $3.5
billion. As part of the sale, Lockheed agreed to offset projects valued
at more than $6 billion in Poland.
Representatives from Lockheed
and Kellogg Brown and Root (KBR), the company overseeing the refinery
upgrade, as well as management from Grupa Lotos SA and Lotos Ekoenergia
SA -- both representing the refinery -- signed the commercial agreement
at the Polish Oil and Gas Company in Warsaw. Phil Georgariou, Lockheed
Martin Aeronautics Co. Poland Offset Program Director said, "Lockheed
Martin understands the importance these types of endeavors have for the
Polish economy, and is proud of the role it has played to bring these
two fine companies together to strengthen the future growth and export
opportunities of the Polish petroleum sector. The signing today
demonstrates that our offset program is moving forward quickly in its
implementation, and already bringing measurable benefits to Polish
industry."
According to David Wood of Kellogg Brown and Root,
"The project is a positive example of American companies working
together for the improvement of the Polish refining industry."
With
the upgrade, the refinery will be able to process high-sulfur Russian
crude oil into gasoline and diesel, which will meet the highest EU
environmental standards. The upgrade will also expand the refinery's
output from 4 to 6 million tons a year. This expansion, as well as the
ability to meet even the toughest EU environmental standards from
low-quality crude oil, will increase the profitability of the Gdańsk
refinery in the coming years.
“I look forward to working with
my colleagues in the Polish Government to facilitate greater
cooperation between our companies in a number of fields, including in
supporting the development of important regional projects like the
Odessa-Brody oil pipeline to bring Caspian oil to European markets,”
noted Abraham.
 Donald Bohler of Lockheed Martin and Paweł Olechnowicz and Marek Sokołowski, both from Grupa Lotos SA |  From left: Deputy Minister of Economy, Labor and Social Policy Jacek Piechota, Amb. Christopher Hill, Interpreter Joanna Zasuń, U.S. Energy Secretary Spencer Abraham, and David Wood of Kellogg Brown and Root | ||
