PKN Orlen may have to pay USD 100m of compensation for Benzina gas stations, Czech daily ‘Hospodarskie Noviny’ said. In 2004, when PKN Orlen bought Czech Unipetrol, it pledged to sell one-third of Benzina gas stations to the US firm. It hasn’t done it so far. PKN Orlen refuses to comment.
This is not the only problem PKN Orlen faces in the Czech Republic. An arbitrage proceeding is going on against the Polish fuel giant. Agrofert filed a suit demanding compensation. In the contract signed by PKN Orlen and Agrofert, the Czech company pledged not to submit a rival offer to buy Unipetrol. In exchange, PKN Orlen was to sell part of chemical business of Unipetrol for EUR 103m. Transactions were supposed to be concluded till June 2005. Then, the situation on the chemical market improved substantially, the value of the companies owned by PKN Orlen jumped and the company refrained from the transaction.