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The Warsaw Voice » Special Sections » August 29, 2012
10+ Program
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The Most Modern Refinery on the Baltic Coast
August 29, 2012   
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March 2011 saw the completion of a major investment project by the Lotos group called the 10+ Program. Its purpose was to thoroughly modernize the corporation’s oil refinery in Gdańsk.

The 10+ Program was one of the largest projects carried out in Poland and it took three and a half years to complete, with 50 facilities built from scratch or modernized. As a result, the production capacity of the refinery was increased to 10.5 million metric tons of oil annually and it became one of the most efficient refineries in Europe. The scope of the project is reflected in its value—the design work for the modernized refinery, its construction and equipment cost around zl.5.5 billion in all. Thanks to modernizing the refinery, increasing its production potential and improving product quality, Lotos achieved a much better market position and its best ever financial results.

10+ Program produces results
Lotos came in second among the 500 largest Polish companies ranked by Rzeczpospolita daily and Polityka weekly in 2011, moving up three notches from 2010.

The Top 500 list is produced annually and the companies are ranked according to their sales revenue. In 2011, Lotos generated zl.29.2 billion in sales, which represented a rise of 49 percent in year-on-year terms. It was the highest increase among the 10 largest companies in the league table.

Thanks to the 10+ Program, the Lotos refinery in Gdańsk processed almost 9.2 million tons of oil in 2011, 13 percent more than in 2010. At the end of 2011, Lotos had a 33.5-percent share in the Polish fuel market and an 8-percent share in the retail market.


Benefits of 10+ Program

Economic benefits
The project:
- made it possible to increase the nominal production capacity of the refinery by 75 percent and take oil processing to a higher level,
- enhanced oil processing helped increase the amount of high-margin products, especially diesel oil and aviation fuel,
- contributed to increasing the production of diesel oil and aviation fuel and consequently strengthened the competitive edge of the Gdańsk refinery in Europe,
- enabled Lotos to expand its product range to include products such as “wild” gasoline, which is intended chiefly for foreign markets, and hydrowax, used as a material input in the oil and petrochemical industry,
- justified a faster diversification of oil supply sources,
- helped Lotos better exploit the direct connection between the Gdańsk refinery and the Naftoport oil terminal and PERN storage facilities,
- enabled the processing of various types of petroleum, thanks to the construction of a new integrated system of petroleum distillation facilities, making the company more competitive,
- contributed to a considerable increase in revenues generated by Lotos even before the completion of the project,
- strengthened the position and prospects of the Lotos group on the wholesale and retail fuel markets.

Social benefits:
- During the crisis years of 2008-2009, the Lotos refinery was the largest construction site in Poland, providing jobs to around 3,500 employees from external firms—in the transport, logistics, hotel, construction and repair industries as well as other sectors indirectly related to preparing and carrying out the project in the refinery.
- As a result of the refinery’s expansion, Lotos employed 120 new technical staff, including professionals with engineering degrees, in a two-year recruitment process, the largest such process at Lotos since the refinery was constructed many years ago.
- Thanks to the introduction of high industrial safety standards, the number of accidents was significantly reduced, with the accident rate now lower than the average for Western European construction sites, which are widely considered to be safe enough.
- The new technologies applied thanks to the purchase of licenses, coupled with collaboration with global companies with the highest organizational standards, facilitated the transfer of best management and work organization practices to Polish companies involved in the construction of the new refinery facilities.
- The staff working on the project gained much professional experience, which can be used on other projects in the future.

Environmental benefits:
- The best available technologies (BAT) were applied in the Gdańsk refinery in the course of the investment process.
- The modernization project resulted in the expansion of the vapor recovery system, biological effluent treatment system and many other systems.
- The project enabled Lotos to introduce the highest liquid fuel quality standards (Euro V) faster and more effectively, with some parameters now stricter than required by European Union regulations.
- The project contributed to a further improvement in the refinery’s environmental impact.
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