The Management Board of Grupa LOTOS S.A. reports that on December 21st 2012 Grupa LOTOS S.A. executed a contract with Petraco Oil Company Ltd. of Guernsey for the supply of 7.2 million tonnes of crude oil to Grupa LOTOS S.A. in the period from January 1st 2013 to December 31st 2015.
Under the contract, crude oil will be delivered via the Druzhba Pipeline or, in specified circumstances, by sea.
The estimated value of the contract as at its date was PLN 17.7bn, translated at the USD/PLN average exchange rate quoted by the National Bank of Poland for December 21st 2012.
The contract provides for contractual penalties of up to PLN 3.8m, translated at the USD/PLN average exchange rate quoted by the National Bank of Poland for December 21st 2012, on an average monthly basis relative to agreed annual volumes.
Payment of contractual penalties excludes the right to pursue claims for damages exceeding the amount of penalties. The provisions concerning penalties and the other terms and conditions of the contract do not differ from those commonly applied in contracts of such type.
The contract is classified as significant as 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.