On December 23rd 2013, Grupa LOTOS S.A. executed a contract with VITOL S.A. of Geneva, Switzerland, for the supply of crude oil to Grupa LOTOS (the “Contract”).
The Contract, effective throughout 2014, provides for the supply of approximately 2.4m tonnes of Russian Export Blend Crude Oil (REBCO). Under the Contract, crude oil will be delivered by sea or via the Druzhba Pipeline.
The estimated value of the Contract as at its date is approximately PLN 6bn.
The Contract provides for compensation in the event of failure to make or accept the deliveries, in an 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 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.