The Management Board of Grupa LOTOS S.A. announces that in the period from April 23rd 2015 to December 31st 2015 Grupa LOTOS S.A. entered into contracts with the Vitol Group for an aggregate value of approximately PLN 2.3bn, i.e. the value of a significant contract (more than 10% of the equity of Grupa LOTOS S.A.).
On December 31st 2015, Grupa LOTOS S.A. and VITOL SA of Geneva, Switzerland, signed an annex to the term contract of December 23rd 2013 for crude oil supplies to Grupa LOTOS S.A., as announced by the Management Board of Grupa LOTOS S.A. in Current Report No. 37/2013 of December 23rd 2013 (the “Annex”). The Annex covers supplies in 2016 and provides for the supply of approximately 1.8m tonnes of crude oil. Pursuant to the Annex, the supplies will be transported by sea or over the Druzhba pipeline. As of the Annex date, the value of supplies covered by the Annex is approximately PLN 1.9bn (which renders the underlying contract the largest one among those referred to above).
The Annex provides for compensation in the event of failure to deliver or accept crude oil, in an amount not exceeding approximately PLN 1.0m on an average monthly basis relative to the agreed annual volumes. The payment of the above amounts does not exclude seeking damages in excess of those amounts.
The Annex does not include any condition precedent or specify any date of events giving rise to a claim (dies a quo). The terms and conditions of the Annex do not differ materially from the terms and conditions commonly applied in contracts of such type.
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, as amended.