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The Warsaw Voice » Business » September 17, 2008
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Lotos Plans Huge Investment
September 17, 2008 By L.¯.    
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3.4 billion zlotys, or around $1.4 billion, is how much Poland's defense ministry will spend this year on investment projects and on buying new hardware for the country's armed forces.

Lotos, Poland's second largest fuel producer, plans to invest heavily in new oil deposits over the next several years. The processing capacity of the Lotos refinery in Gdańsk is expected to increase to 10 million metric tons of oil annually by 2012.

Last year, Lotos subsidiary Petrobaltic extracted some 195,000 tons of oil from the Baltic Sea. Lotos chairman Paweł olechnowicz says Lotos is mainly interested in Baltic and Norwegian shelf deposits. Petrobaltic holds a stake in Norwegian-based company Lotos E&P Norge that deals with projects on the Norwegian shelf.

By 2012 Lotos plans to spend more than zl.5 billion annually on its oil projects, an amount comparable to its expenditure on modernizing and expanding the oil refinery in Gdańsk. Petrobaltic plans to spend around zl.3.4 billion to increase extraction of oil from the Baltic Sea. Some of the money will go toward launching extraction from the new B23 deposit, while the company's Norwegian projects are expected to cost some zl.1.6 billion.

Meanwhile, Lotos is seeking drilling and extraction licenses from the Norwegian oil ministry. The bidding process is scheduled for the end of this year.

Last year Petrobaltic secured a concession from the Polish government to extract natural gas from a deposit in the Baltic Sea. The deposit, referred to as B4, is estimated to hold 2 billion cubic meters of gas. The concession is valid for 25 years.
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