Integrated Annual Report of LOTOS Capital Group 2016

Principal activities and performance in 2016

Record-high production

In line with the expectations, following the acquisition of the Sleipner production assets on the Norwegian Continental Shelf in December 2015, the LOTOS Group's production of oil and natural gas increased significantly. Record-high production was reported as early as in the first quarter of 2016, with the average daily output close to 30,000 boe.

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Five new production licences in Norway

As in previous years, in 2016−2017 new licences were acquired with a view to increasing production in the future. 

In January 2017, LOTOS Exploration & Production Norge accepted an offer placed by Norwegian authorities for five new production licences on the Norwegian Continental Shelf. The licences cover 'mature areas', i.e. areas where oil and gas deposits are still present, and their extraction is facilitated by existing infrastructure.

LOTOS Exploration & Production Norge is engaged in oil exploration and production activities in the North Sea and the Norwegian Sea. At the end of 2016, the company held interests in 20 licences on the Norwegian Continental Shelf.

Młynary onshore licence

In 2016, the LOTOS Group was awarded one new onshore licence – Młynary. Under the licence, granted by the Ministry of the Environment for three years, LOTOS Petrobaltic is authorised to carry out oil and gas exploration and appraisal activities in the Młynary onshore area, between Elbląg and Braniewo, i.e. to acquire 200 km of seismic data, and − optionally − to drill two boreholes of up to 4,500 meters deep.

LOTOS Petrobaltic is a company responsible for the development of the Upstream segment within the LOTOS Group.