Key capex projects at the LOTOS Group

Key capex projectsat the LOTOS Group

G R U P A L O T O S S . A .

Marcin PiankowskiChief Investment Officer

Piotr StatkiewiczCEO of LOTOS Exploration&Production Norge AS

Mateusz SiepielskiPresident of the Management Board of LOTOS Upstream

Grzegorz StrzelczykPresident of the Management Board of LOTOS Petrobaltic

DIGITAL

2

REFINING & MARKETING● Hydrocracked Base Oils

● Hydrogen Recovery Unit

● Intermodal transport services

● Construction of CCGT unit

● Modernisation of terminal in Piotrków Trybunalski

● Construction of fourth railway loading facility

● LOTOS Green H2

● Marine cargo handling terminal on Martwa Wisła river

● Partial shutdown programme● Grupa LOTOS S.A.’s financial interest in the Polimery

Police project

CAPEX PROJECTS

GRUPA LOTOS S.A.

3

HYDROCRACKED BASE OILS – HBOPlanning phase

Key capex projects at the LOTOS Group

REFINING & MARKETING

4

Start

DG (Decision Gate) 0

DG0 (Decision Gate 0)DG1

Process to select contractor for project execution

DG2

Obtaining the environmental decision for the HBO project

DG3

Development of structure and arrangement of financing for the project

Construction permit documentation

Delivery of long-lead equipment

Startup of IDW IHF

End of execution

Initiation Planning Execution

1378Forecast total expenditure206Forecast expenditure in 2021

HYDROCRACKED BASE OILS – HBOPlanning phase


Key activities under the project

Project timeline

● Work is under way to arrange financing for the project. The possibility of financing thefirst stage of the project has been confirmed (LNTP – Limited Notice to Proceed).

● It is expected that it will be possible to fully proceed with the project and that theEngineering Procurement Construction – Lump Sum Turnkey contract will be signed inthe third quarter of 2021.

Capex plan for 2021 [PLNm] Capex plan for the entire project execution time [PLNm]

Objectives of the project● To improve the economics of crude oil processing by generating higher margins as

a result of production and sale of new high-margin products (Group 2 and Group 3base oils).

● To increase Grupa LOTOS’ overall competitiveness in production and sale of base oilsand optimise the margin throughout the value chain.


5

HYDROGEN RECOVERY UNIT (HRU)Closing phase



6

3Forecast expenditure in 2021 176Forecast total expenditure

HYDROGEN RECOVERY UNIT (HRU)Closing phase



● Performance test has been completed and the unit has been placed in service.● Repairs of minor defects are continued in accordance with the availability of the

production unit.

To improve the efficiency of crude oil processing and taking the opportunity to process allproduct streams (70 thousand tonnes of LPG, 43 thousand tonnes of naphtha, 39 thousandtonnes of light gasoline, and almost 9 thousand tonnes of hydrogen per year).

Start DG (Decision Gate) 0 DG2

Launch of HRU construction Execution of Annex 2 to the contract with

AMCS Corp.

HRU construction resumed

Completion of installation work on HRU (MC)

Ready for start up

Commissioning



Project timeline

Objectives of the project


7 Key capex projects at the LOTOS Group


PURCHASE OF MODERN INTERMODAL ROLLING STOCK BY LOTOS KOLEJ Execution phase

8

Start

DG (Decision Gate) 0

DG1

DG2

Start of Sggrss rail car delivery (216 pcs)

DG3

Start of Sgmmnss rail car delivery (36 pcs)

End of Sgmmnss rail car delivery (36 pcs)

Delivery of one single-system locomotive

Delivery of one multi-system locomotive

End of Sggrss rail car delivery (216 pcs)

Start of Sggrss rail car delivery (72 pcs)

End of Sggrss rail car delivery (72 pcs)

The end




PURCHASE OF MODERN INTERMODAL ROLLING STOCK BY LOTOS KOLEJ Execution phase


Project timeline


● Annexes have been signed to the flat car delivery contracts – accelerated delivery schedule

● Acceptance test has been conducted and the seventh batch of Sggrss cars has been placed in service.


● The project will enable achieving the strategic objectives for intermodal transport of 0.8to 0.9 billion tkm in 2022.

● The project’s objective will be achieved by providing transport services based onacquired 2 engines and 324 flat cars.


9

CONSTRUCTION OF CCGT UNIT Planning phase



10

Start

DG0'

DG0

Technical and economic analysis

DG1

Preparation of terms of reference

Obtaining environmental decisions and building permits

Completion of EPC & LTSA tenderDG2

DG3 (Final Investment Decision)

Signing the contract with General Contractor

Unit construction start

CCGT tests and start-ups

End of project execution


2.5




Project timeline

Capex plan for 2021 [PLNm]


● Following initial review, the CCGT project qualified for the National ReconstructionPlan. This creates a chance of winning grants or a preferential loan for 25-50% of theproject’s value.

● A scenario analysis, as part of which key project parameters (capacity, location,LOTOS’ equity interest in the ORLEN/Energa joint venture, etc.) will be approved, iscurrently underway.

0,6Forecast expenditure in 2021

The project budget will be defined in detail with the project partners during the planning phase before obtaining FID

● To reduce energy costs – internal electricity demand will be fully satisfied.● To make efficient use of assets – use of heat for heating purposes and integration of the

CHP plant with the refinery.

Capex plan for the entire project execution time [PLNm]

CONSTRUCTION OF CCGT UNIT Planning phase

11

MODERNISATION OF FUEL TERMINAL IN PIOTRKÓW TRYBUNALSKI Execution phase



12

Start

DG0 DG2DG3

Signing of task financing and execution contracts

Submission of Project Information Sheet (PIS)

Submission of environmental impact report

Obtaining final decision on environmental impact of the project

Construction site handover with a handover report

Submission of application for building permit

Obtaining final building permit

Start of commissioning, supply of fuel to the construction site

Use permit, final acceptance

DG4

The end




Project timeline




● In April 2021, the Regional Director of Environmental Protection in Łódź issued a decision setting out the terms and conditions of project execution .

● Upon receipt of the environmental decision, an application for consent to tree and shrub removal is to be filed.

● Opinion on the technical working documentation is yet to be issued.


● The project’s purpose is to upgrade and expand the existing infrastructure of the Fuel Terminal in Piotrków Trybunalski, with the main objective to expand the range of fuels stored and handled at the terminal and to increase storage and handling capacities.

● Its strategic objective is to successfully compete on the fuel storage and distribution markets.

MODERNISATION OF FUEL TERMINAL IN PIOTRKÓW TRYBUNALSKI Execution phase

13

CONSTRUCTION OF THE FOURTH RAILWAY LOADING FACILITYExecution phase



14

Project initiation

Contractor selectionConcept

DG0 IC resolution

Management Board resolution execution phase

DG2

Management Board resolution contract execution

Signing of the contract with Scherzer

Obtaining the building permit

Ready for start up

IC resolution – change of date

Commissioning of the railway loading facility

End of execution phase



Project timeline




● The integrated environmental decision for the project was obtained in the first week of May.

● The loading facility has been placed in service, minor ancillary work is underway.


● To increase railcar loading capacity (mainly diesel oil and gasoline).● To increase flexibility of domestic sales.

ExecutionPlanningInitiation

CONSTRUCTION OF THE FOURTH RAILWAY LOADING FACILITYExecution phase

15

LOTOS Green H2 ProgrammePlanning phase



16

Start

Approval of initiative sheet (DG0)Submission of application with Innovation

Fund (phase 1)

Submission of application with Innovation Fund (phase 2)

Approval of scenario analysis (DG1)

Approval of the programme plan (DG2)

Proceeding to execution phase (DG3)

Commissioning of the unit

Project settlement

The end




Project timeline




● The key activity in the near future is to prepare the best application documentationfor the second round of calls in the Innovation Fund competition (by June 23rd 2021).

● Talks with electrolyzer vendors and potential strategic partners for the project werecontinued.

● To begin hydrogen production at the first large-scale green hydrogen generation plant (by water electrolysis) and integrate the plant into the national electricity market

● To reach a dominant position on the future market of green hydrogen.

The project budget will be defined in detail during the planning phase before obtaining FID2,5Forecast expenditure in 2021

LOTOS Green H2 ProgrammePlanning phase



MARINE CARGO HANDLING TERMINAL ON THE MARTWA WISŁA RIVERPlanning phase

18

Start

DG 0

Obtaining design office’s analysis concerning the validity of building permit designs

and extent of required changes

Obtaining Regional Directorate for Environmental Protection’s decision

regarding habitat destruction

Scenario analysis development

DG 1

CSC’s recommendation of EPC turnkey

contractor

Preparation of project plan

DG 2

Preparing the project financing analysis

DG3

Conclusion of EPC contract

DG4 The end




Project timeline




● Navigation analysis must be carried out as this will help confirm the maximum size ofvessels to be served in the future by the terminal (draught, width, length).

● The Contractor Selection Committee (CSC) is working to select the general contractor(EPC contract).

1Prognozowane nakłady w 2021 roku The project budget will be defined in detail during the planning phase before obtaining FID

● To build a transshipment wharf for seagoing vessels of up to 5,000 DWTand necessary infrastructure linking the terminal with the refinery in Gdańsk.

● The strategic objective is to improve the security of goods dispatching from the refinery by providing an alternative way of shipment.

MARINE CARGO HANDLING TERMINAL ON THE MARTWA WISŁA RIVERPlanning phase



ADAPTATION OF THE GDAŃSK REFINERY TO PARTIAL MAINTENANCE SHUTDOWNS



Capex plan for 2021 [PLNm] Capex plan over the entire project execution time [PLNm]


12Forecast expenditure in 2021 The project budget will be defined in detail during the planning phase before obtaining FID

● P209 Upgrade of flare system and discharge point network − after obtaining theConceptual Design, the deadline for submission of a bid to prepare documentation forwelded connections which are contingent on the 2022 maintenance shutdown timing wasagreed with the contractor. Site visits with the contractor have been made since May 11th.

● P142 Plankton – a strategy has been developed to prepare output data for a request forproposal concerning a conceptual design (study).

● P224 Upgrade of flue gas discharge system – the contractor has delivered a conceptualdesign for the upgrade and a technical design of stacks. The Contractor Selection Process(CSP) for integration of the stacks with the existing infrastructure (designand execution) has been launched.

● P214 Upgrade of CHP Plant and PZE facilities – process to select a contractor to prepare aworking design is underway. At the request of the bidders, the deadline for submission oftenders has been extended until May 17th 2021.

● The environmental decision for all the projects is planned to be obtained in October 2021.

Projects implemented as part of the programme

Name Project phase

Project P142 – Plankton Initiation

Project P209 – Upgrade of flare system and discharge point network Planning

Project P214 – Upgrade of CHP plant and PZE facilities Planning

Project P224 – Upgrade of flue gas discharge system Execution

ADAPTATION OF THE GDAŃSK REFINERY TO PARTIAL MAINTENANCE SHUTDOWNS

21

Start

Determination of project scope

Determination of work to be performed by contractors

Definition of contracting strategy

DG0 Planning phase DG2 Execution Phase

RFSU

DG4 Project completion

The end




ADAPTATION OF THE GDAŃSK REFINERY TO PARTIAL MAINTENANCE SHUTDOWNSTimeline for Project P142 – Plankton

Timeline for Project P209 – Upgrade of flare system and discharge point network

Start

Submission sheet Planning Phase Start

Conceptual design

Determination of welded connections scope

Welded connections documentation

Performance of welded connections

Front-end engineering design

Execution Phase start Execution Phase end

The end


22

Submission sheet

Initiation Sheet Planning Phase Start

Approval of concept documentation

Process to select contractor to prepare multi-disciplinary working design

Selection of contractor to prepare multi-disciplinary working design

Design of repair welded connections completed

Execution Phase start

Purchases of materials for 2022 maintenance shutdown

Completed welded connections

End of execution phase

End of Completion Phase

The end


Start

Planning Phase Start

Process to select contractor for stacks start

Start of Execution Phase

Stack contract

Process to select contractor for integration start

Conceptual design and working design stacks

Process to select contractor for integration end

Welded connections documentation

Building permit

Foundations ready

Installation of stacks

Installation of integration

Flue gas monitoring equipment installation

End of Execution Phase

Defect removal, final documentation

End of Completion Phase

The end




ADAPTATION OF THE GDAŃSK REFINERY TO PARTIAL MAINTENANCE SHUTDOWNSTimeline for Project P214 – Upgrade of CHP plant and PZE facilities

Timeline for Project P224 – Upgrade of Flue Gas Discharge System

23

GRUPA LOTOS S.A.’S FINANCIAL INTEREST IN THE POLIMERY POLICE PROJECT Execution phase

Key projects at the LOTOS Group

EQUITY

24

507Forecast total expenditure2,6Forecast expenditure in 2021

GRUPA LOTOS S.A.’S FINANCIAL INTEREST IN THE POLIMERY POLICE PROJECT Execution phase

Key projects at the LOTOS Group


Project timeline

● Grupa LOTOS has contributed equity and granted a loan in the total amount of PLN500m for the Polimery Police project;

● A contract has been concluded between GL S.A. and Fluor S.A. (to act, on asubcontractor basis, as a Joint Sponsor Monitor under the Polimery Police Project) andFluor S.A. has been engaged to monitor the project on behalf of the Company.


Objectives of the project● Business diversification towards petrochemical products;● To obtain financial benefits from the Polimery Police project.

EQUITY

execution ofLOI

Report of Grupa LOTOS S.A.’s Market Adviser

execution ofTerm Sheet

planning phase (DG0)

execution of Investment agreements

construction site handover

consent of Grupa LOTOS General Meeting to acquire

GAPoly shares

Plot Plan

financingof GL S.A.’s interest

execution phase (DG3)

completionof installations

Integrity test


DIGITAL

25

EXPLORATION & PRODUCTION● YME – new development

● Development of the NOAKA area

● Development of fields B4/B6

● Development of field B8

● POLISH OFFSHORE WIND SERVICE

CAPEX PROJECTS

GRUPA LOTOS S.A.


EXPLORATION & PRODUCTION

YME NEW DEVELOPMENT PROJECTEXECUTION PHASE

27

Start

DG1

DG2

DG3

Caisson permanent support

Existing facility

End of shipyard work

Transportation of the rig to the field

Start of preparation of CR1 change application

Resolution of the company’s governing bodies for CR1

Connection – integration on the field (hook up)

Start of production (First Oil)



YME NEW DEVELOPMENT PROJECTEXECUTION PHASE


Project timeline




● The MODPU left the shipyards in Egersund on December 22nd 2020 and is connected to the field’s tree system.

● The connection and start-up of production systems and wells is in progress, with a pace of work due to favourable weather conditions.

● The YME project is at final stage of implementation. Production launch is scheduled for the fourth quarter of 2021.

● License partners’ decision to repurchase MODPU from Maersk Drilling platform.● Expenditure is projected to increase on account of COVID-19.

780Total approved capex252Forecast expenditure in 2021

● To produce from new fields, including YME reserves, in accordance with the Grupa LOTOS Strategy for 2017−2022.

● To gradually replace production from depleting fields.● To diversify the revenue stream for the Exploration & Production segment of the LOTOS

Group.



NOAKA DEVELOPMENT PLANNING PHASE



Project timeline




PL442 PL873 PL026 NOAKA DEVELOPMENT PLANNING PHASE

● Work is under way on numerical mineral deposit models to make a best estimate oil and gas reserves.

● Work on field appraisal is performed relying on the experience of the project partners, including AkerBP. The technical documentation is being reviewed.

● Preparations for IPR (Independent Project Review), expected to take place on June 15th and 16th 2021, are underway.

103Forecast expenditure in 2021 The project budget will be defined in detail during the planning phase before obtaining FID

● To increase production and expand the portfolio of LEPN production assets on the Norwegian Continental Shelf.

● To achieve estimated production from NOAKA at 29 mboe and net production of up to approximately 16,000 boe/d in 2028.

Start

DG0'

DG0

Concept Select

DG1 FEED

DG2

DG3

NUI HUC

PDQ HUC

First Oil

DG4

End




DEVELOPMENT OF GAS FIELDS B4 AND B6 PLANNING PHASE



Project timeline




DEVELOPMENT OF GAS FIELDS B4 AND B6 PLANNING PHASE

● The gas market and the market of materials and service providers is continually monitoredas part of the Project.

● The ownership status of the land on the gas pipeline route is being established.● The strategy to raise financing needs to be agreed.

10Forecast expenditure in 2021The project budget will be defined in detail during the planning phase before obtaining FID

To design, construct and commission the production, conversion and transmission facilities enabling production and sale of natural gas and light fractions from the B4 and B6 natural gas fields in the Baltic Sea.Project in figures:

o 4.8 bcm recoverable reserves o 400–500 mcm annual plateau production rate o +10–13% increase in domestic productiono 2022 possible investment decision

DG0'

DG0 DG1DG2

Development Plan

DG3FID

DG4First Gas

.




DEVELOPMENT OF OIL FIELD B8 USING CONVERTED JACK_UP PETROBALTIC RIG AS A PRODUCTION HUB EXECUTION PHASE



Project timeline




DEVELOPMENT OF OIL FIELD B8 USING CONVERTED JACK_UP PETROBALTIC RIG AS A PRODUCTION HUB EXECUTION PHASE

● Work on reaching readiness for gas export has been completed.● Leak-tightness tests of the facilities were continued (preparation to start-up the gas

compression and export system), gas export to Energobaltic’s power plant has beenlaunch on a test basis.

● Hydrocarbons were produced from the Central Production Facility on the B8 field usingseven wells: B8-Z1 bis, B8-2, B8-3K, B8-4K bis, B8-5K, B8-6K, B8-7K. The average dailyoutput is approximately 3,500 barrels.

1043Forecast total expenditure15Prognozowane nakłady w 2021 roku

● To obtain stable and efficient production from the converted Petrobaltic rig. ● To achieve optimum production value, water injection into the field and ready for gas

transmission.

● The project ends once the central production facility is ready to extract and transmit gas.

34


INVESTMENT AND MAINTENANCE SERVICES UNDER THE WIND FARM CONSTRUCTION PROGRAMME

PHASE 1 PREPARATIONS

● Geotechnical surveys● Geophysical surveys● Hydrographic surveys

PHASE 3OPERATIONS

● Operations and Maintenance (O&M)● Maintenance, replacement and repair of

OWF components

POLISH OFFSHORE WIND SERVICE will offer a full range of services in each project phase

PHASE 4DECOMMISSIONING

● Dismantling of OWF components

● Upgrade/re-installation

Services planned to be provided in the future on the OWP marketServices currently provided

LOTOS Petrobaltic S.A. (LPB), which has been operating in the oil and gas production sector in the Baltic Sea for more than thirty years, is the company in Poland which has the best technical and operational resources and the potential to act as the operator and coordinator in the provision of maritime logistics services to OWF.

Source: Report entitled “Installation Fleet Operator. Potential of Polish Maritime Industry for the Needs of Offshore Wind Farms”, published in March 2021

12%

88%

Target revenue of the LOTOS Petrobaltic Group in Phase 1 and Phase 2 as a share of spending (PLN 140bn) on the OWP sector in Poland in 2025-2040

Przychody LPB na tle wydatków CAPEX

Pozostałe wydatki CAPEX

Source: In-house analysis, Controlling and Reporting Office, LOTOS Petrobaltic S.A.

PHASE 2CONSTRUCTION

● Laying of submarine cables● Installation of foundations● Installation of wind turbines ● Installation of transformer stations● Installation of other OWF components

„




INVESTMENT AND MAINTENANCE SERVICES UNDERTHE WIND FARM CONSTRUCTION PROGRAMME

Vessels to be secured as part of the project

OWP infrastructure maintenance and servicing vessels – CTV

Vessel for installation of foundations – WTFIV

ready in 2023

Vessel for turbine installation – WTIV

ready in 2024

Cable layer – CLV

ready in 2023

ready in 2025-2026 ready in 2025

OWPinfrastructure maintenance and maintenance vessels - SOV

DIGITAL

36

RETAIL● CODO 2020-2023 service station network development

programme

● Mała Holandia Motorway Service Area III property lease and construction of Motorway Service Area

stations

● Kierzno Południe Motorway Service Area III property lease and construction of Motorway Service Area

stations

● Kierzno Północ Motorway Service Area III property lease and construction of Motorway Service Area

stations

CAPEX PROJECTS

GRUPA LOTOS S.A.


RETAIL

CAPEX ON STATION NETWORK EXPANSION

Key activities under the projects


Objectives of the projects

● Adding two CODO service stations in 2021● Adding six CODO service stations in 2022● Adding seven CODO service stations in 2023● Construction of Mała Holandia Motorway Service Area with the work to be completed in 2021● Settlement of Kierzno Północ i Kierzno Południe Motorway Service Area projects.

● To increase the number of LOTOS service stations in line with the adoptedstrategy.

● To increase the economic efficiency of the service station network and boostthe return on capital employed.

● To strengthen the market position of the LOTOS service station network onPoland’s main transport routes (expressways and motorways).

190Forecast expenditure in 2021 Detailed capex specification for each project

DIGITAL

Thank you for your attention

38 GRUPA LOTOS S.A.

Documents

Key capex projects at the LOTOS Group