Lotos inks Polish Investments deal

Lotos Petrobaltic, a unit of Poland’s second largest oil firm Grupa Lotos has signed financing deal with Polskie Inwestycje Rozwojowe, operator of the Polish Investments program, and with lenders BGK and Bank Pekao. The funds will be used for a  a PLN 1.8 billion oil exploration project on the B8 deposit in the Baltic Sea. The agreement signed on Monday follows a letter of intent on the project signed in October last year. Lotos will contribute PLN 800 million to the project, PIR will provide PLN 333 million and the two banks will provide USD 210 million. The potential of the B8 deposit is estimated at 3.5 million metric tons of crude oil. Production should start in late 2015 and should amount to some 250,000 tons of crude oil annually.