Partial Award in arbitration proceedingsRegulatory announcement no37/2025 dated 2 July 2025ORLEN S.A. (the "Company") informs thaton 2 July 2025 it received information that on 1 July 2025 an ad hocArbitral Tribunal in Stockholm issued a partial award (the "PartialAward") in arbitration proceedings started on 14 January 2022 andbrought by the companies PAO Gazprom and OOO Gazprom export ("Gazprom"),which concerned, among other things, a change in the contract price forgas delivered to PGNiG S.A. (currently ORLEN) since November 2017 on thebasis of a sale contract for natural gas to the Republic of Poland dated25 September 1996 (the "Yamal Contact").On the basisof the Partial Award, the Arbitral Tribunal:- dismissed ORLEN'sclaim to reduce the contract price from November 2017 or from January2018;- dismissed Gazprom's claim to increase the contract price fromNovember 2017;- established a new, higher contract price on 1January 2018; and- dismissed all further Gazprom claims to increasethe contract price effective on 1 January 2018.The issuing ofthe Partial Award by the Arbitral Tribunal is a stage in multilayeredarbitration proceedings. In subsequent stages of the arbitrationproceedings, the following will be resolved:- claims of the partiesto change the price conditions of the Yamal Contract from 2020 and 2021;and- disputes and claims related to causes and consequences of thewithholding of supplies by Gazprom in April 2022.The PartialAward modifies the price conditions of the Yamal Contract for the periodfrom January 2018 to January 2021 (i.e. until the earliest potentialdate of the next amendment of the price under the price review claimsfrom 2020/2021 indicated above).The Arbitral Tribunal did notdecide on the amounts or the manner of settlement between the partiesresulting from retroactive implementation of the contract price formula,and it leaves the decision in that area to the parties of the dispute.In the Company's preliminary assessment, the retroactive settlementresulting from the Partial Award in the period between January 2018 andJanuary 2021 results in a difference to be paid by ORLEN ofapproximately USD 290 million. At the same time, admission of Gazprom'sclaim initially submitted as part of the arbitral proceedings wouldresult in a difference to be paid by ORLEN of approximately USD 1.7billion.The Company is analysing the content of the PartialAward as well as the manner of reflecting the financial effects of thePartial Award in ORLEN's financial results and intends to continueactions to protect the Company's interest in subsequent stages of thearbitral proceedings with Gazprom.See also regulatoryannouncements published by PGNiG S.A. (currently ORLEN S.A.):- No.91/2017 of 1 November 2017;- No. 96/2017 of 8 December 2017;-No. 13/2020 of 30 March 2020;- No. 57/2020 of 1 November 2020;-No. 58/2020 of 9 November 2020;- No. 43/2021 of 28 October 2021;-No. 2/2022 of 14 January 2022;- No. 7/2022 of 11 February 2022;-No. 27/2022 of 26 April 2022.