Exploration and production (upstream business)

Management approach

The vehicle through which the LOTOS Group pursues its objectives and projects in the area of exploration for and production of oil and gas is LOTOS Petrobaltic, the only company engaged in upstream oil operations in the Polish economic zone of the Baltic Sea.

Its links with Grupa LOTOS go back to 2005, when the Company became the major shareholder of LOTOS Petrobaltic. LOTOS Petrobaltic operates offshore Poland, over an area covering approximately 29 thousand sq. km. Currently, work is underway on eight exploration and four production licences. LOTOS Petrobaltic is the parent company of its own group, which comprises six subsidiaries and associates.

The scope of the company’s operations in 2010 included exploration and development work on the Baltic Sea, expansion of the portfolio of licences on the Norwegian Continental Shelf and development of the Yme Production Project. On the Norwegian Continental Shelf, LOTOS Petrobaltic conducts its exploration and production work through LOTOS E&P Norge (LOTOS Exploration & Production Norge AS) with its registered seat in Stavanger, Norway, which was established in 2007.

Grupa LOTOS, through its subsidiary LOTOS Petrobaltic, is the only Polish enterprise engaged in hydrocarbons production in the Polish economic zone of the Baltic Sea

Grupa LOTOS, through its subsidiary LOTOS Petrobaltic, is the only Polish enterprise engaged in hydrocarbons production in the Polish economic zone of the Baltic Sea

LOTOS Petrobaltic is focused on pursuing the strategy of the LOTOS Group, while maximising its financial performance. Shareholder value is created in a sustainable manner, based on the management standards adopted by the LOTOS Group, that is with due regard to the principles of social intercourse and environmental protection.

In 2010, LOTOS Petrobaltic was covered by the LOTOS Group’s non-financial reporting, which constitutes the basis for preparation of reports demonstrating the Company’s adherence to the principles of sustainable growth. As part of that system, LOTOS Petrobaltic reports its environmental performance, which is another proof of the commitment of the whole LOTOS Group and of LOTOS Petrobaltic to corporate social responsibility.

In November 2010, the LOTOS Group unveiled its new strategy for 2011–2015, along with development directions until 2020. The new strategy places a particular emphasis on intensifying the Company’s upstream operations (exploration for and production of crude oil and natural gas). For LOTOS Petrobaltic this spells the need to embrace new challenges and initiatives, while indicating its growing role as member of the LOTOS Group.

The LOTOS Group’s strategic objective for its upstream business is to increase the production of hydrocarbons, in line with the priorities of Poland’s energy security policy until 2030.

The objective will be accomplished by:

  • improving the security of supplies by obtaining direct access to hydrocarbon reserves,
  • increasing the production volumes – thanks to the implementation of programmes aimed at increasing oil production rates from the Baltic offshore fields, as well as the execution of new projects outside of Poland – to:
    • 24,000 boe/d (barrels of equivalent/day), or 1.2 million tonnes per year, by 2015,
    • 100,000 boe/d (barrels of equivalent/day), or 5 million tonnes per year, by 2020,
  • holding equivalent reserves of 330 million boe.


The LOTOS Group is divided into the marketing, operational, exploration and production, and management segments.

Business strategy

Our strategy calls for mitigating the negative environmental impact and valuing the intellectual capital of our employees.