The story of LOTOS began in 1971 with the decision to build a refinery in Gdansk to supply Poland with fuels and lubricants. Four years later the plant was ready to process 3 million tonnes of crude oil annually. Refining capacity has since grown significantly to 10.5 million tonnes per year and Grupa LOTOS, as it became, evolved to become a vertically integrated international oil group with an asset portfolio comprising 16 companies arranged into upstream and downstream segments. It has been listed on the Warsaw Stock Exchange (WSE) since June 2005 and is one of the largest companies in Poland.
The downstream segment consists of a world class refinery in Gdansk, the 3rd largest retail network in Poland and sales of petroleum products such as fuel, bitumens and lubricants.
The upstream segment, which includes LOTOS Exploration and Production Norge AS, is engaged in the offshore exploration and production of crude oil from the Baltic Sea and the Norwegian Continental Shelf. The Company also has access to onshore hydrocarbon deposits in Lithuania through its subsidiary AB LOTOS Geonafta.
LOTOS Exploration and Production Norge AS (LEPN) was established in Norway/Stavanger in 2007 with a vision to build a strong upstream position for LOTOS in Norway. LEPN prequalified as an operator in 2008 and made its first acquisition the same year. Growth since then has been both organic and through acquisition. LEPN has also been supporting long term growth aspirations by acquiring acreage through active participation in license rounds and APA. The first operated exploration well was drilled successfully in 2012 and since then there have been two acquisitions that delivered significant company growth on each occasion. First, in 2013 LEPN acquired interests in 14 licenses from Centrica, including the Heimdal facilities and later, in 2015, acquisition of interests in 4 licenses in the Sleipner area from ExxonMobil. This included the Sleipner facilities. By the end of 2015 LEPN production had risen to 22 300boe/d. Furthermore, LEPN had become a licensee in three development projects: Utgard, Yme and NOAKA, which when delivered will be transformational for LEPN.
Base production from the Heimdal and Sleipner Areas, and three exciting development projects mean that LEPN is now perfectly positioned for long term growth and meeting the founding vision of building a strong upstream position for LOTOS in Norway.