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Value chain of the LOTOS Group

G4-3 G4-4
The corporate group

The activity of the LOTOS Group creates a full value chain, from prospecting and extraction of fields, through production, to the sale of finished products and services.

Upstream segment

• portfolio of assets in Norway, Poland and Lithuania

• hydrocarbon reserves in 2P category: 88.2 million boe at the end of year 2017

• total production in 2017 – 8.4 million boe

average daily extraction in 2017 – 22.9 thousands boe per day

extraction set in the 2019-2022 Strategy – 30-50 thousands boe per day

In the upstream segment we add value to the local environment by:

ensuring national energy security

reducing the negative impact on the environment

Refining segment

• we own one of the most technologically advanced oil refineries in Europe, with annual capacity of ca. 10 million tonnes of crude oil

• Nelson Complexity Index (the complexity of preparation process coefficient) – highest in Poland and one of the highest in Europe

In the production segment we add value to the local environment by:

• ensuring the safety in the vicinity and in the neighbourhood of the production plants

• reducing the negative impact on the environment

Marketing segment

• petrol station management – 493 petrol stations

• sale of 10,931 thousand tonnes of products in 2017

• 31,6% – share in the domestic fuel market of the LOTOS Group in 2017

• constantly developed products and services

In the marketing segment we add value to the local environment by:

• product and service innovations, answering the needs our the customers

• continuously increasing the quality of experience during the use of our products and services

• 80% of satisfied customers and the 1st place in the satisfaction ranking of the petrol stations customers that took place in the first half of the year 2017

We manage creating the values

Creating values in the whole supply chain of the LOTOS Group is supported by us by:

  • our pursuit of the efficient use of our assents in the whole value chain
  • active management of opportunities and risks
  • creating technological innovations that enhance the competitiveness of the LOTOS Group
  • processes ensuring safety of people and environment

See our business model and 2017-2022 strategy HERE

Building and ethical supply chain

By choosing our contrahents and cooperators we follow the path of ethics. We decide to cooperate with companies and organisations that are socially responsible. Therefore:

  • we perform supplier audits. We set requirements regarding standards of conduct of our suppliers, we assess the stage of implementation and check, what improvement activities did they undertake.
  • In the agreements with our suppliers we use clauses regarding action fulfilling the social responsibility principle, regulating the employee laws area,
    care for environment, absence of any conflict of interests and anti-corruption clauses.

Our main contractors, whose supply value amounted to over 10% of the total profit of sales in 2017 are, among others:

  • Joint Stock Company Oil Company Rosneft
  • Tatneft

The contribution of the above contractors in the supply of LOTOS Group with our basic raw material, i.e. crude oil,  amounted to, respectively: 25.18%, 24.29% and 19.26%. In 2017, we signed 1,852 agreements with new suppliers.

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