POLAND POLAND -- Country Profile Country Profile

WPC Regional Meeting, Portoroz, April 2003

Teresa Imielinska

Polish National WPC Committee

Poland

Status: Republic

Area: 312 700 km2

Border to border distances:

650 km north-south690 km east-west

Administrative system: 16 provinces

Capital: Warsaw (Warszawa) - 1.6 million inhabitants

Official language: Polish

Currency: zloty (PLN); 1US$ = 4.06 PLN (April 2003)1€ = 4.36 PLN (April 2003)

Population: 38.7 million, including 62% in urban areas

Poles represent 98.7% of the total population

Poland

• GDP: ( 2002) 769.4 billions PLN ( in current prices)

• GDP per capita: 19 909.84 PLN

• GDP growth: 2002/2001 1.3 %

• Unemployment rate: 18,7 Jan.2003

• Inflation rate: 2002/2001 - 1.9 %

• Average monthly salary for 2002 - 2133 PLN

Energy market

Solid fuels25,8%

Liqud fuels25,0%Gaseous fuels

14,2%

Elektricity14,3%

Other20,8%

Total energy consumption 3019.6 PJ

Map of Polish oil infrastructure

Consumption of liquid fuels in Poland, between 1998-2002

1191012 42612 46912 94512 68212 23811 800TOTAL

2 6202 8732 2721 6311 6511 326742Light heating oil

4 8704 8425 1635 7875 5675 5045 845Diesel Oil

4 4204 7115 0345 5275 4645 4085 213Petrol

2002200120001999199819971996

Domestic consumption of liquid fuels in Poland between 1996-2002

5 213

742

5 845

5 408

1 326

5 504

5 464

1 651

5 567

5 527

1 631

5 787

5034

2272

5163

4711

2873

4715

4 420

2 680

4 870

1996 1997 1998 1999 2000 2001 2002

- Motor gasoline - Light heating oil - Diesel oil

Petrol station networks in Poland - the position as on 30.06.2002

Foreign companis13%

Other Independent operators

51%PKN ORLEN group

30%

Rafineria Gdanska5%

Southeren refineries1%

Breakdown of Eurosuper gasoline prices (at pumps) at the end of February 2003 (in €/1000 litres) compared to the average European price

344,8 315,6

510,6

359,6

165,2

148,6

0

200

400

600

800

1000

1200

European average Poland

Price excluding taxes Excise tax VAT

1020,6

823,8

EU

RO

/ 10

00 l

Breakdown of diesel oil prices (at pumps) at the end of February 2003 (in €/1000 litres) compared to the average European price

353,3324,5

358,2

252,3

138,1

126,9

0

100

200

300

400

500

600

700

800

900

1000

European average Poland

Price excluding taxes Excise tax VAT

849,6

703,7

EU

RO

/ 10

00 l

Present ownership structure of Polish oil sector

DEC (railway tankard )

100 % GATX

NAFTOBAZY(fuel storage )

NAFTA POLSKA S.A.RAFINERIA CZECHOWICE

RAFINERIAJASLO

RAFINERIA GLIMAR

RAFINERIAGDA NSKA SA

1 0 0 %

1 0 0 %

7 5 %

17,62%

PERN(pipelines )

1 0 0 %

PGNiG(mining of crude oil andgas on the land )

1 0 0 %

PETROBALTIC(mining on the sea )

NAFTOPORT Sp. z o.o.

7 5 %

RAFINERIAJEDLICZE

RAFINERIATRZEBINIA

PKN ORLEN S.A.

7 5 %77,07%

25,64%43,59%

12,85%

6 Chemical Companies(Owned by State Treasuryby )

1 0 0 %

State Treasury

10,38%

Privatisation projects being in realization

Privatisation of Gdansk Refinery S.A.:• The second bid opened in 2000

• Exclusiveness for the Rotch Energy Limited. Period of exclusiveness has been extended twice.

• Admission of PKN ORLEN S.A. to the privatisation process of Gdansk Refinery S.A.

• Common offer of Rotch and PKN Orlen for buying 75% shares of Gdansk Refinery - December 2002.

• Decision of Ministry of Treasury expected.

Foreseen closure of transaction - until the end of 2003.

Privatisation projects being in realization

Privatisation of the Naftobazy Ltd.:

• Invitation to negotiations - October 2002 -addressed to the companies specialized in fuels storage,

• Due diligence process of the Company by investors - completed.

• Biding offers expected up to the end of March.

Conclusion of the buying from 51% to 65 % sharesof the Company until the end of 2003.

Quality of motor fuels

• Adaptation of European Standards:EN 228:1999, EN 590:1999

• Mandatory quality of fuels introduced from 1January 2003 corresponding with Directive98/70/EEC,

• Monitoring system to be introduced as from 1January 2004

Mandatory oil stocks

Adaptation of the law• general obligation of stocking the oil by all of

producers and importers

• adaptation of the fuel categories: petrol, diesel and fuel oils.

Poland declared reaching the level of themandatory oil stocks for not less than 45 days inthe moment of accession and 90 days until 2008

Mandatory oil stocks

Present level of reserves

Reserves stocked by refineries at the end of 2002 are equal to the amounts for 36 days of domestic fuel consumption, that together with state reserves for 14 days corresponds to 50 days of domestic consumption security.