Exploration and production activities in Lithuania
Exploration and production operations in Lithuania are carried out through a subsidiary, AB LOTOS Geonafta of Gargždai. The company is the parent of another group of companies, comprising:
- UAB Genciu Nafta (100% owned by AB LOTOS Geonafta),
- UAB Manifoldas (100% owned by AB LOTOS Geonafta),
- UAB Minijos Nafta (50% owned by AB LOTOS Geonafta).
Competition for the upstream business
There is no active E&P market in Lithuania. The AB LOTOS Geonafta Group companies are the only entities engaged in production of oil from Lithuanian fields. The LOTOS Group owns 100% of the Lithuanian assets, except for UAB Minijos Nafta, where it owns 50% and the remaining investors are: Tethys Oil AB, Odin Energy A/S and private investors.
Key assets of the LOTOS Group (production volumes and licences)
The LOTOS Group’s average daily output in Lithuania in 2020 was 0.6 thousand boe/d (down 17% year on year), which accounted for 3% of the Group’s total production volumes.
Production operations were being conducted within the following onshore blocks: Girkaliai, Genciai, Kretinga, Nausodis, Klaipėda, and Gargždai.
As at the end of 2020, the LOTOS Group’s 2P hydrocarbon reserves in Lithuania totalled 2.5 million boe (100% of crude oil), representing 3% of the Group’s total 2P reserves.
Licences held by the AB LOTOS Geonafta Group
As at Dec 31 2020
Source: the Company.
Logistics
Crude oil from the Lithuanian fields is produced using onshore production infrastructure. Produced crude oil is transported by road to a marine terminal in Liepāja (Latvia), and then is taken to Gdańsk by a tanker ship, where it is fully processed by the LOTOS refinery. All associated natural gas is flared.