Plans for the future

Petrobaltic

In 2008, Petrobaltic generated record-breaking incomes and profits. However, the global economic crisis and the related dramatic fall in oil prices make a repetition of these results impossible in 2009.

Petrobaltic, as it has been mentioned above, is determined to continue its development strategy. Nevertheless, it has to be adapted to the present economic conditions. Therefore, an anti-crisis package was developed that includes four main elements:

• a pro-efficiency programme,
• a financial liquidity enhancement programme,
• a restructuring programme, and
• a human resources management programme.

By implementing the strategic aims and the tasks specified in the anti-crisis package, Petrobaltic intends to continue the exploration of hydrocarbon resources on its licenses. The Management Board of Petrobaltic is analysing several options of obtaining access to a new tool (a drilling rig) that would provide the performance of exploration work within the present structures, as well as the development and service of the already discovered hydrocarbon fields. Negotiations are being carried out with potential partners interested in developing the B4 and B6 gas fields located on the Petrobaltic’s licenses.

When analysing the key events taking place in 2009 in Petrobaltic, it is noteworthy that in Q2 the value of the Companywas assessed by the consortium of BZ WBK, Budoserwis and the Institute of Mineral and Energy Raw Materials Management of the Polish Academy of Sciences, contracted by the Treasury. The Treasury, being a shareholder of Petrobaltic, holding a package of 30.32% of the shares, announced that it intended to contributethe package to Grupa LOTOS.

LOTOS Norge

In 2009 and in the consecutive years, the investment outlays on the Yme field are to be continued in order to start oil production (in October 2009) and to maintain it in the consecutive years according to the schedule. Moreover, work will be continued on obtaining 316DS/CS and PL 455 exploration licenses and licenses obtained during the APA2008 license round. Finally, new licenses will be pursued; therefore, the market will be monitored in order to acquire attractive projects and participate in future license rounds in Norway.