prospecting and extraction of hydrocarbons
Modernity and efficiency in oil extraction and processing
The Company’s core business covers three areas:
crude oil processing
trading in petroleum products
Exploration & Production Segment
This area is responsible for the acquisition and production of oil and gas and the associated auxiliary, transportation and service activities.
The LOTOS Group is the only company involved in extraction in the Polish Exclusive Economic Zone of the Baltic Sea. Outside Poland, it extracts resources on the Norwegian Continental Shelf and in Lithuania.
In 2021, the LOTOS Group’s oil and gas production averaged 17.3 thousand boe per day. The structure of this output was as follows:
At the end of 2021, the LOTOS Group’s total crude oil and natural gas 2P reserves were 69.2 million boe, of which 83% was crude oil and 17% natural gas. The structure of 2P reserves was as follows:
Refining & Marketing Segment
The function of this area is the manufacture, processing of refined petroleum products, as well as their wholesale and retail sale and auxiliary, transportation and service activities.
The LOTOS Group’s commercial activities in 2021 were conducted within Grupa LOTOS and its subsidiaries: LOTOS Paliwa, LOTOS Oil, LOTOS Asfalt, LOTOS-Air BP. It is characterized by high efficiency – the new technologies which are used in production processes make it possible to obtain as much as 86% of the so-called white products, i.e. high-margin fuel, from crude oil, while additional 8% is made up of heavy products sold to business partners, such as bitumen, petroleum coke and heavy fuel oil.
Grupa Lotos S.A.’s refinery processed approximately 9.9 million tons of crude oil and produced 11 million tons of products in 2021. The main element in the production structure was diesel fuel. About 6 million tons of this product were produced, 3.8% more than in the previous year. Its share in the product structure was 54.1%. The products obtained as a result of crude oil processing are sold in Poland and abroad, in the wholesale channel and to retail customers through the Group’s own network of service stations. At the end of 2021, the LOTOS service station network consisted of 520 facilities (increase by 7 compared to the end of 2020. Among them are 327 the so-called CODO (Company Owned Dealer Operated) stations – including: 30 MOP stations, the remaining 297 own stations, and 193 DOFO (Dealer Owned Franchise Operated) stations
