Grupa LOTOS signs sales & purchase agreement for 100% of AB Geonafta’s shares

abarrelfullabarrelfull wrote on 07 Feb 2011 07:02
Tags: deals lithuania lotos upstream

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Grupa LOTOS shall increase by 100 thousand tonnes its annual crude oil production. It is possible thanks to sales&purchase agreement of 100% AB Geonafta’s shares, which produces crude oil on territory of the Republic of Lithuania. Closing documents were signed in Vilnius on 3rd of February. It’s another step for Grupa LOTOS corporate strategy completion, that stands for company’s crude production enhancement.

– Due to Geonafta acquisition we’ll be able to produce extra 100 thousand tonnes of oil. Furthermore LOTOS Petrobaltic shall gain competence and experience of the Lithuanian entity within hydrocarbons exploration and production onshore – emphasis Pawel Siemek, CEO of LOTOS Petrobaltic S.A.

LOTOS Petrobaltic has been AB Geonafta’s shareholder for 10 years, holding 40,59% of the company’s shares. AB Geonafta, together with its subsidiaries: UAB Minijos Nafta, UAB Genciu Nafta and UAB Manifoldas has been focused on crude exploration and production on Lithuanian territory for 20 years. Oil is being produced onshore there.

The final agreement of sales&purchase was signed on 3rd of February in Vilnius. – On 14th of December 2010 we agreed a preliminary contract regarding acquisition of Geonafta’s 59,41% shares. We were mainly waiting for the consent of the Lithuanian antimonopoly authority on that matter – comments CEO Siemek. – Since today we are the rightful, sole shareholder of the Lithuanian entity.

The decision concerning LOTOS increase in AB Geonafta shareholder structure, follows the company’s strategy guidelines to increase LOTOS upstream development. Due to its strategy LOTOS plans to achieve 1,2 million tonnes of crude oil production in 2015. To execute that goal the company plans to spend PLN 3,9 bn between 2011-2015, which stands for 68% of all CAPEX assumed in the strategy.

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