On December 6th 2013, Grupa LOTOS S.A. executed a contract with Tatneft Europe AG of Zug, Switzerland, for the supply of crude oil to Grupa LOTOS (the “Contract”).
The Contract, covering the period 2014–2016, provides for the supply of approximately 2.4bn tonnes of Russian Export Blend Crude Oil (REBCO) per year. Under the Contract, crude oil will be delivered via the Druzhba Pipeline or by sea.
The estimated value of the Contract as at its date is ca. PLN 18bn.
The Contract provides for compensation in the event of failure to make or accept the deliveries, with the compensation amount not exceeding approximately PLN 1.1m on an average monthly basis relative to the agreed annual volumes. Payment of the compensation does not exclude the right to pursue claims for compensation in excess of these amounts.
The terms and conditions of the Contract do not differ from the terms and conditions commonly applied in agreements 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 publica