Integrated Annual Report 2020

Value chain


The activity in the LOTOS Group is based on a segment management model that builds a full value chain — from extraction to sale of finished products.

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We implement our actions in accordance with the idea of sustainable development and the energy security policy. We are committed to ensuring that our impact on the environment, people and the economy is as beneficial as possible and brings both an increase in the value of the group and benefits to its stakeholders.

The activity of the LOTOS Group comprises the following processes:

It is located in the territory of three countries: Poland, Lithuania and Norway (the largest player in the region). The main portion of the extraction (71%) comes from Norway. The group’s 2P reserves are mostly under the Baltic Sea (62%) and the Norwegian Sea (35%).

The LOTOS Group owns by one of the most modern and youngest refineries in Europe, located in Gdańsk. Its nominal capacity is approx. 10.5 million tonnes of crude oil per year. It has a unique connection with the raw material supply channels by land, from the east, via the PERN pipeline network, and by sea, via Naftoport. Access to supply channels makes it possible to diversify the raw material supply and to react smoothly to fluctuating prices of petroleum products and crude oil types. The dominant type of crude oil processed in Gdańsk is the Russian oil, Urals. The remainder of the raw material is crude oil imported from other directions, including Saudi Arabia and from deposits exploited by companies from the LOTOS Group. As a result of processing the crude oil, the refinery produces the following main products: fuels (unleaded petrol, diesel fuel, light diesel fuel), aviation fuel, asphalts, heavy fuel oil. The Gdańsk plant has the highest processing complexity index in Poland and one of the highest ones in Europe (Nelson Complexity Index).

Fuels manufactured in the Grupa LOTOS’s refinery in Gdańsk are sold on the domestic retail market exclusively through the network of own and partner petrol stations. On the wholesale market, consumers of the products are international corporations, the Material Reserve Agency and the Military Property Agency, national wholesale customers and independent operators. At the end of 2020, there were 513 petrol stations with the LOTOS logo operating in Poland, including 23 so-called traveller service points on motorways A1, A2, A4 and A6, as well as S3 and S7 expressways. The concern also cooperates with an external partner within the framework of the corporate franchise relating to the Subway restaurant.

The LOTOS Group delivers its products to customers, inter alia by railways through its company LOTOS Kolej. In addition to the carriage of Grupa LOTOS products, this company also provides services relating to the carriage of other goods, including dangerous goods. It has, among other things, an agreement with the Polish Armed Forces on the carriage of F34 aviation fuel. In its activity in the area of fuel distribution, the Grupa LOTOS also uses: a modern fuel terminal for road tankers located in Czechowice-Dziedzice, a fuel base in Poznań, Piotrków Trybunalski, Jasło and Rypin.

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Structure of the LOTOS Group

As at 31 December 2020

1) The State Treasury — 0.01%

2) Limited partner

3) General partner

4) CalEnergy Resources Poland Sp. z o.o. – 50%

5) CalEnergy Resources Poland Sp. z o.o. – Limited Partner

6) ) BP Europa SE — 50% 7) Odin Energi A/S — 50% companies classified as joint ventures not included in LOTOS CG

In addition, the Grupa LOTOS S.A:

  • holds 8.97% of shares in the share capital of P.P.P.P. “Naftoport” Sp. z o.o. (a company owned by to the PERN Group from Płock)
  • holds 17.3% of shares in the Grupa Azoty Polyolefins S.A.

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