|Lotos will provide zł.700 million, while PIR and banks will provide zł.900 million for the oilfield investment|
Courtesy of Lotos
Polskie Inwestycje Rozwojowe (PIR), one of the operators of the government's Polish Investments program, announced its first investment project on Monday. The company has signed an agreement with Lotos Petrobaltic, a subsidiary of Poland's second-largest oil firm Grupa Lotos, on the future joint financing of a Baltic Sea oilfield project.
The companies will set up an SPV to manage the project, into which Lotos Petrobaltic will transfer the license and all assets related to the B8 oilfield. PIR and banks will provide financing of about zł.900 million, while Lotos will provide about zł.700 million.
Lotos plans to start commercial extraction of oil from the B8 deposit in late 2015. Its capacity is estimated at 3.5 million metric tons of crude oil.
The investment agreement will be signed before the end of Q1 2014, after PIR receives funds from the State Treasury, the company's CEO Mariusz Grendowicz said. Mr Grendowicz added that PIR is in talks with other companies regarding investments and expects a couple of such deals to be signed before the end of the year.
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