Polish oil refiner Orlen has reached a settlement to recover $100 million out of the $400 million in prepayment it made for Venezuelan and other oil supplies that were never delivered. The settlement, reported by Polish broadcaster Radio Zet, involves Dubai-based Horizon Global and will see Orlen recover the amount in several tranches by the end of 2025. However, the company is still pursuing efforts to reclaim the remaining funds from other intermediaries involved in the deal.

The prepayment was made in 2023 by Orlen’s Swiss trading arm, OTS, to Horizon Global and other intermediaries for oil deliveries, and a significant portion from Venezuela. However, the oil that was paid for never reached Orlen, and it was revealed that Venezuela's state-owned oil company PDVSA did not receive any of the funds.

The $400 million transaction has sparked an ongoing investigation by Polish prosecutors. The investigation focuses on OTS’ loss of nearly $400 million in prepayments, which has resulted in several legal and financial complications for Orlen. The issue has also led to tensions between Orlen and the intermediary companies involved.

Media reports confirmed that the $100 million settlement with Horizon Global will be paid back to Orlen in multiple instalments by the end of 2025. However, Orlen’s efforts to recover the remainder of the funds, which were transferred to other companies, are still ongoing. The Polish oil giant stated that it is cooperating with national and international authorities to recoup the prepayments and will disclose the results once the process is completed.

Last year, the company acknowledged its involvement in an arbitration process with Orlen’s Swiss trading business OTS. Orlen’s investigation into the matter has also prompted significant legal action, including the detainment of a former CEO of the Swiss trading unit. In December 2024, a Warsaw court ordered the ex-CEO to be detained for three months as part of the ongoing investigation into the financial loss.

The $400 million prepayment loss represents a significant financial setback for Orlen, which has invested heavily in expanding its refining and trading operations.

Orlen’s efforts to recoup the prepayments are part of a larger strategy to recover from financial losses tied to failed oil deals. The investigation into OTS’ dealings has prompted broader scrutiny of how intermediary companies handle prepayments and oil contracts in international trading, particularly in politically sensitive regions such as Venezuela.