Polish refiner Orlen is facing significant losses of PLN5bn (€1.2bn) on its Olefins 3 petrochemicals project, according to a government audit. The audit, conducted by the Ministry of State Assets under the new coalition government, revealed financial mismanagement in state-owned enterprises, including failed investments and unjustified expenses totaling billions of zlotys. State Assets Minister Jakub Jaworowski highlighted Orlen’s losses as particularly alarming.
Daniel Obajtek, who served as Orlen’s CEO from 2018 to 2024, was a political appointee of the PiS party and has now transitioned to an MEP for PiS. Following changes to its executive board, Orlen announced plans earlier this year to reevaluate the Olefins 3 project. However, a final decision on the project’s future is still pending.
The Ministry of State Assets has submitted about 50 notifications of potential criminal activity to the prosecutor’s office as a result of the audit, with more cases possibly on the horizon. Executives from state-owned companies who worked under the previous PiS government have denied any wrongdoing, dismissing the audit’s findings as politically motivated.
In addition to the Olefins 3 project losses, the government is investigating a PLN1.6bn ($370mn) loss incurred by Orlen’s Swiss subsidiary, Orlen Swiss Trading (OTS), in a crude oil supply deal gone wrong. The deal involved a little-known counterparty that failed to fulfill its obligations. Allegations suggest that Daniel Obajtek overlooked warnings from the company’s security team regarding Samer A., a Lebanese national hired by Obajtek to lead OTS and who may be linked to the failed crude oil deal.
Orlen reported a PLN40mn (€9.3 million) loss in the second quarter, a stark contrast to the PLN6.1bn profit recorded in the same period last year. The company’s financial challenges, coupled with the ongoing investigations and audit outcomes, paint a concerning picture of mismanagement and potential misconduct within state-controlled enterprises. As the situation continues to unfold, stakeholders and the public are eagerly awaiting further developments and decisions regarding Orlen’s future projects and leadership.
