Plans for the future

We will optimize the financing structure in the coming years. We will gradually build a healthy and balanced portfolio of assets based on currently known investment projects. We intend to increase our involvement in the development of deposits, supplement the portfolio of extraction assets based on market opportunities and limit the share of concessions for deposits in the mature phase of extraction, in the entire asset portfolio.

In addition to organic growth, we plan to actively use the investment opportunities available on the market and complement the portfolio based on the purchase of new attractive assets.

An important element of our activities is building a strong position around the existing Sleipner and Heimdal hubs, as well as the construction of new hubs, e.g. in the area north of Heimdal.

We strive to maximize the output from currently producing deposits, effective development of new deposits using the existing infrastructure in the so-called fast-track, extension of the hub’s lifecycle and postponement of obligations related to the decommissioning of production infrastructure.
As part of the implementation of the hub strategy, we cooperate with experienced Statoil and AkerBP operators, what ensures high efficiency of operations.

The main direction for the development of our mining operations will be the North Sea areas, both as part of the Norwegian and British Shelters, as well as the Baltic Basin region (Baltic Sea, land concessions in Poland and Lithuania).

The total capital expenditure provided for in the Grupa LOTOS S.A. Strategy for the development of defined extraction projects is PLN 3 billion in the 2017-2022 period. In addition, the Strategy provides for the possibility of allocating additional funds from the PLN 3.3 billion pool to be divided among the Segments into new development projects in the perspective after 2018.

We intend to maintain a technological advantage in the Central Europe region and to compete in the field of innovation. We are implementing the EFRA Project investment program. We also analyze three potential directions of building a further competitive advantage based on developed refinery assets.

We are planning to optimize customer service and sales processes, revitalize the loyalty program and introduce innovative products and services while improving current services. We strive to become the leader in the implementation of new generation fuels (CNG, LNG, electricity, hydrogen) as part of the LOTOS Energy Hub project.

We will develop new models of cooperation with research units and start-ups, creating joint research agendas and a fund for the implementation of innovative solutions.

Investment expenditures for 2017-2022:

• PLN 2.0 billion for already implemented projects,
• PLN 4.1 billion reserved for prepared projects but before the final investment decision (mainly in the extraction segment),
• PLN 3.3 billion planned as additional capital expenditures after 2018 – for alternative projects, the final selection of which will take place in 2018 on the basis of economic parameters and market development.