Organisation of the Exploration & Production segment

As at December 31st 2020, the LOTOS Group’s Exploration & Production segment was organised in accordance with the business structure chart shown below.

Business structure of the Exploration & Production segment

^*The company is in liquidation from November 25th, 2020

Source: the Company.

The LOTOS Group’s exploration and production activities are carried out by two dedicated entities: LOTOS Petrobaltic and LOTOS Upstream.

LOTOS Upstream (LUPS) pursues its business development plans with the support of the following subsidiaries: LOTOS E&P Norge AS (operations on the Norwegian Continental Shelf), AB LOTOS Geonafta and its subsidiaries (onshore operations in Lithuania), Baltic Gas Sp. z o.o., Baltic Gas i wspólnicy sp. z o.o. sp.k. (special purpose vehicles established to carry out the B4/B6 gas field development project in the Baltic). LOTOS Upstream UK Ltd was established as a vehicle for potential E&P business expansion in the UK. However, in 2020 a decision was made to abandon plans to gain an upstream foothold on the British Continental Shelf. On November 25th 2020, LOTOS Upstream UK was formally placed in liquidation.

LOTOS Petrobaltic and its subsidiaries focus on the exploration and production as well as oilfield operation and services in the Baltic Sea, including production from the B3 field, development of the B8 field to start full-scale production, and execution of exploration projects in the Baltic Sea and within onshore licence areas in Poland. Simultaneously, LOTOS Petrobaltic is launching business development initiatives to leverage its engineering, project execution and design capabilities and to provide services for the offshore sector. Their objective is to diversify the company’s business and revenue sources.