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LOTOS Geonafta, a company owned by LOTOS Petrobaltic, has been contracted to supply crude oil to the Gdańsk refinery. The contract has just be concluded for an indefinite period of time.  Its value over the next five has been estimated at PLN 822m.

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LOTOS Geonafta, a company owned by LOTOS Petrobaltic, has been contracted to supply crude oil to the Gdańsk refinery. The contract has just be concluded for an indefinite period of time.  Its value over the next five has been estimated at PLN 822m. 
The annual volume of crude oil produced by LOTOS Geonafta in Lithuania is close to 100 thousand tonnes,  and this volume in whole will be supplied to Gdańsk. 
By entering into the contract, LOTOS Geonafta has secured a stable offtake of its product,”  says Zbigniew Paszkowicz, Vice-President of the Grupa LOTOS Management Board, Exploration & Production. “As for the Gdańsk refinery, it has secured another source of crude oil supplies, resulting in further diversification.  What is important, the contract is an intra-group transaction, which optimises the cost of crude oil acquisition”. 
Grupa LOTOS keeps diversifying the supplies of crude oil to the Gdańsk refinery.  The feedstock is delivered to Gdańsk not only via the Druzbha pipeline, but also by sea, through the Naftoport terminal.
We take advantage of our seaside location,” stresses Maciej Szozda, Vice-President of the Grupa LOTOS Management Board, Chief Commercial Officer. “We rely on sea transport to import crude oil produced in the North Sea and in the Middle East, to name just two examples.  We are also changing the structure of supplies by making increasing use of spot contracts, which benefits our bottom line as well as product mix”.

LOTOS Petrobaltic S.A. is the pillar of the LOTOS Group’s oil exploration and production business.  The company holds an exclusive licence to explore for and produce hydrocarbons in Polish offshore areas covering some 29 thousand km2.
LOTOS Petrobaltic holds licences for the exploration and appraisal of hydrocarbon reserves, which cover seven blocks totalling over 7,100 km2, situated in the eastern part of the Polish offshore area. The company has also been awarded production licences relating to the B3, B4, B6 and B8 fields. The B3 field is currently in production, while the B8 field is being prepared to come on stream.
LOTOS Petrobaltic has established its own group of companies, which comprises several subsidiaries. LOTOS Exploration & Production Norge AS is a vehicle through which the LOTOS Group intends to secure access to crude oil under the Norwegian Continental Shelf in the North and Norwegian Seas. AB LOTOS Geonafta operates in the Lithuanian oil sector. Energobaltic Sp. z o.o. is responsible for managing tail gas generated in the process of oil production from fields located in the Baltic Sea. The other group companies provide sea transport services.

Communication Office, Grupa LOTOS S.A., ul. Elbląska 135, 80-718 Gdańsk, Poland, tel. (+48) 58 308 87 31, (+48) 58 308 83 88, e-mail: media@grupalotos.pl