The Management Board of Grupa LOTOS S.A. hereby reports that on December 4th 2009, Grupa LOTOS SA signed an agreement with Mercuria Energy Trading SA of Geneva, for the supply of 18 million tonnes of REBCO crude oil by Mercuria Energy Trading SA to Grupa LOTOS SA, in the period from January 1st 2010 to December 31st 2014. According to the agreement the supplies will be executed through the Druzhba pipeline or, in certain situations, by sea.
The estimated value of this agreement is approximately PLN 27 bln at the mid exchange rate quoted for USD by the National Bank of Poland as at December 4th 2009.
The Agreement provides for contractual penalties, which shall not exceed monthly average of PLN 2.5m at the mid exchange rate quoted for USD by the National Bank of Poland as at December 4th 2009 in relation to the agreed annual volumes.
The payment of contractual penalties does not exclude the right to pursue compensation claims in excess of the above mentioned penalties. The agreement was concluded on the terms and conditions typical for this type of agreement.
The agreement is considered significant because its estimated value exceeds 10% of Grupa LOTOS S.A.’s equity.
The legal basis for the publication of this Current Report is Par. 5.1.3 of the Minister of Finance’s Regulation on current and periodic information to be published by issuers of securities and conditions for recognition as equivalent of information whose disclosure is required under the laws of a non-member state, dated February 19th 2009.