Thursday, February 12, 2015

Lotos continues to invest – Republic

Lotos continues to invest – Republic

Source: Bloomberg

Gdansk company will meet all key projects. Some of them, however, will be modified. In September, publish a strategy for 2020.

Despite the unfavorable environment, in particular a strong decline in oil prices and rising dollar, Grupa Lotos intends to continue all the key investments planned for the coming years. Some of them, however, will be modified so that it gave the expected rate of return.

Among the projects is the development of modified tar B8 field located in the Polish zone of the Baltic Sea. Group Lotus has made such changes in its implementation, in order to be profitable at an oil price located even slightly lower than the $ 50 per barrel.

The company also modified its plans in Norway. Especially wants to solve the problem of tar Yme field. – I believe that this year we will build a position to recover all the money inserted in Yme. Maybe even completely out of this project – said during a press conference, Paul Olechnowicz, president of Lotos. Operation Yme has been blocked due to be mounted on the bed of a defective production platform.

According to the initial assessment will be carried out two projects for which the company acquired nearly 1 billion zł from a recent issue of shares. As for the development of the gas-bearing deposits B4 and B6 in the Baltic and the delayed coking plant construction, together with associated infrastructure in the refinery. It combines the cost of the first of them will be about 0.8 billion zł, and another 2.34 billion zł. – Both projects after the change in the market has been re-examined and are still profitable – Olechnowicz says.

He added that in the first quarter, the Board will make the final decisions on the future of Lotus Railway Company, the second largest rail carrier goods in Poland in terms of transport work. – We do not need to sell Lotus Railway. Currently we are looking for a partner to relieve our investment program and contribute to the development of the company – says Olechnowicz. Gdansk will remain a shareholder company Lotos Kolej. In the first phase of plans to acquire the company for a financial partner.

The CEO said, too, that in September Lotos publish a strategy for 2020.

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