Poland’s largest oil and refining giant, Orlen, has pulled the plug on the construction of a costly petrochemical complex, potentially sparing itself a financial loss of €3.5 billion.
The decision follows a damning review that exposed skyrocketing costs and questionable practices by the company’s former management, appointed by the country’s previous government.
Initially budgeted at €1.95 billion, the company’s new management found that the estimated total cost of the Olefiny III project ballooned to an eye-watering €11.96 billion.
Orlen’s review revealed the first thorough evaluation of the investment since its inception, branding the project “unviable” with no prospects for a return on investment.
Initially budgeted at €1.95 billion, the company’s new management found that the estimated total cost of the Olefiny III project ballooned to an eye-watering €11.96 billion.
Orlen’s review revealed the first thorough evaluation of the investment since its inception, branding the project “unviable” with no prospects for a return on investment.
“Numerous irregularities in the planning phase, combined with soaring costs, made the Olefiny III project a trap—not just for the management, but for Orlen and the Polish economy,” said Orlen CEO Ireneusz Fąfara in a scathing critique of the previous leadership’s oversight.
To mitigate losses and salvage existing work, Orlen has unveiled a “New Petrochemicals” plan.
This revamped initiative, leveraging some of Olefiny III’s infrastructure, is projected to cost €7.97 billion.
Expected to be operational by 2030, the new project aims to generate annual EBITDA returns of €129–188 million, potentially turning a financial disaster into a profitable pivot.
To mitigate losses and salvage existing work, Orlen has unveiled a “New Petrochemicals” plan.
This revamped initiative, leveraging some of Olefiny III’s infrastructure, is projected to cost €7.97 billion.
Expected to be operational by 2030, the new project aims to generate annual EBITDA returns of €129–188 million, potentially turning a financial disaster into a profitable pivot.
