The Management Board of Grupa LOTOS S.A. hereby reports that on August 1st 2007 Grupa LOTOS S.A. and Lurgi S.A. of Kraków signed an annex to the Engineering, Procurement and Construction Contract for the construction of an oil distillation unit of July 19th 2007 (Current Report No. 37/2007). Under the annex, Lurgi S.A. of Kraków will also deliver the installations to the planned oil distillation unit. The construction of the oil distillation unit is scheduled to be completed in the second half of 2009. It will be the second unit of this type at Grupa LOTOS S.A.’s refinery in Gdańsk. Its annual capacity will be 4.5m tonnes of oil, which will make it possible to increase the oil throughput at Grupa LOTOS S.A. to 10.5m tonnes annually, or by approx. 75%. Once completed, the new unit will also help improve the supply of fuels to the domestic market. Following the signing of the annex, the total value of contracts concluded between Grupa LOTOS S.A. and Lurgi S.A. in the last 12 months reached EUR 183m (PLN 697.7m at the mid-exchange rate quoted by the National Bank of Poland for August 1st 2007). The execution of the annex made the contract for the construction of an oil distillation facility covering the engineering design, delivery of installations and management of construction work on the oil distillation unit the largest transaction concluded between the two parties, with the value of approx. EUR 101m (approx. PLN 385m at the mid-exchange rate quoted by the National Bank of Poland for August 1st 2007). The agreement provides for contractual penalties. The limit of financial liability for failure by Lurgi S.A. to properly perform the agreement is 8% of the contract value. The agreement is considered significant because the total value of agreements concluded between Grupa LOTOS S.A. and Lurgi S.A. in the last 12 months exceeds 10% of the equity of Grupa LOTOS S.A. Legal basis for the publication of this report: Par. 5.1.3 of the Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities of October 19th 2005.
Execution of an Annex to the Engineering, Procurement and Construction Contract for an Oil Distillation Unit Signed as Part of the Comprehensive Technical Upgrade Programme – Significant Agreement
Report no. 96/20052007-08-02