17.4.1. CONTINGENT ASSETS
Contingentassets
In accordance with the information published in the Financial Statements of PKN ORLEN and ORLEN Group for 2019 and for the interim reports published quarterly during 2020, PERN S.A. informed PKN ORLEN about differences in the quantity of the operating stock of crude oil REBCO-type (Russian Export Blend Crude Oil) in connection with the inventory of crude oil stocks supplied by the tank farm in Adamów, carried out by PERN S.A. as a pipeline system operator. At the same time, at the end of December 2020, PERN indicated another shortage in the amount of PKN ORLEN's crude oil supply delivered by sea through the PERN Manipulation Base in Gdańsk, made an unilateral adjustment of the REBCO crude oil inventory balance.
PERN S.A. maintains that the reason for the change in operating stocks is the difference in methodology of calculating the quantity of crude oil REBCO-type delivered by the tank storage in Adamów and crude oil delivered by sea. As at 31 December 2020, according to received confirmation from PERN S.A., PKN ORLEN's operating stock of crude oil REBCO-type amounted to 585,553 net metric tons. The difference in the quantity of stocks increased by 755 net metric tons in comparison to 2019 and amounted to 90,408 net metric tons.
PKN ORLEN does not agree with PERN S.A position, because in its opinion it remains unfounded, unproven and inconsistent with the agreements binding PKN ORLEN and PERN S.A., and the existing methodology used for calculating the quantity of crude oil REBCO-type and crude oil delivered by sea through the PERN Manipulation Base in Gdańsk and submitted by PERN S.A. to PKN ORLEN is correct and has never been questioned before. PKN ORLEN is currently analysing the possibilities of taking appropriate legal steps related to the information provided by PERN S.A. and reserves the right to take any actions aimed at protecting legitimate interests of PKN ORLEN, including pursuing claims related to the information provided by PERN S.A. about the quantity of PKN ORLEN's operating stock of crude oil REBCO-type.
In the opinion of PKN ORLEN the amount of adjustment of inventories recognised in 2019 and in 12-month period of 2020 in the amount of PLN (156) million is also a contingent asset of PKN ORLEN.
