15. Investments in jointly controlled entities

 NOTE Place of business  Principal activity  Valuation method 
joint ventures      
Bassel ORLEN Polyolefines Sp. z.o.o. (BOP) 16.2  Plock  production, distribution and sales of poliolefins   equity method 
Płocki Park Przemysłowo-Technologiczny (PPPT) 16.2  Plock   renting real estate   equity method 
joint operations      
Ceska Rafinerska a.s.  Litvínov   processing of crude oil, manufacturing of oil products  share in assets and liabilities 
Butadien Kralupy a.s.  Kralupy nad Vltavou   manufacturing of butadien  share in assets and liabilities 

In accordance with IFRS 11 „Joint Arrangements” the ORLEN Group classified Unipetrol’s jointly controlled entities: Ceska Rafinerska, a.s. and Butadiene Kralupy, a.s. as joint operations. Additional information is presented in note 3.2.1.

Additionally, ORLEN Upstream has participated in the following joint operations:

  • participation in a holding founded by ORLEN Upstream, Polskie Górnictwo Naftowe i Gazownictwo (PGNIG), LOTOS Petrobaltic as business parties and as scientific parties University of Science and Technology (Akademia Górniczo-Hutnicza), Institue of Oil and Gas (Instytut Nafty i Gazu), Gdansk University of Technology, Warsaw University of Technology (Blue Gas – Polish Shale Gas program). The program aims to manufacture and commercialize the technology and gain knowledge for the extraction of shale gas in Poland. The Company participated in 6 projects carried out in 2013-2016. ORLEN Upstream’s total contribution to the implementation of these projects amounts to PLN 26 million. Untill the end of 2014, the company donated to the Blue Gas program a cash contribution of PLN 2.5 million. In 2014, there were no costs incurred within the holding.
  • exploration – extraction project carried out together with PGNiG (the search area „Sieraków”). The agreement provides the conduct of joint operations and activities in the field of exploration and extraction of crude oil and natural gas, including the production, intensification of extraction, treatment and processing of hydrocarbons. ORLEN Upstream’s share in the joint operation is 49% with 51% share of PGNiG. Sierków search area has been explored and partially recognized with seismic and boreholes. Currenrtly, work is underway covering the implementation of the initial part of the development concept along with geological-investment documentation. ORLEN Upstream has the right to proportionate share of the income and bears a proportionate share in the costs of joint operations.