The energy sector is currently undergoing immense transformation. What does this mean for a company like LOTOS Petrobaltic (LPB) that has oil and gas at its core?

LPB is committed to adjusting to the new market demands and the wellbeing of the planet. One way we are doing this is by diversifying our fuels. However, it is a significant challenge for us since our expertise has always revolved around oil and gas, and we have been operating in the Baltic Sea since 1974. We are the first and only company to operate logistically in the Polish part of the Baltic Sea, which means we possess all the geological information and knowledge about its shores.

It’s interesting that LPB is moving into offshore wind given that gas is seen as a transition resource and is expected to be around for many years. What is your strategy for this new endeavor?

Although gas may still be around for many years, it is not preferred by financial institutions and EU institutions. That is why our strategy now is to become a leader in offshore wind in the Baltic Sea, our cradle, and the area where we are the most experienced operator. We are already involved in geo surveys and plan to utilize our fleet and participate in all stages from construction to installation, servicing, and more.

Are there any challenges that stand out as you make this transition to offshore wind?

Apart from the expected consequences of COVID-19 and the current price of an oil barrel that is crucial for our core business, the challenge we face is preparing the company for future tasks connected with green energy demand. Fortunately, we have access to experienced design offices and shipyards, such as CRIST, capable of building offshore wind suitable vessels. We are also in touch with classification societies, vendors, turbine suppliers, and developers. We believe offshore wind is the best response to changing market conditions, and we are placing our faith in it.

LPB has begun reconstruction of B3 oil field and continues production in B8. How do you see these fields playing out in the future of the company?

Our core business and background have always been upstream, and we hold licenses and remain the operator of the B3 and B8 fields. They contain rich deposits of oil and gas, especially B8, which is planned to be developed further. The oil we produce is ultra-light and used for special purposes by the Grupa LOTOS refinery. We used to call it “green gold” as it is actually green in color, not black.

COVID-19 has impacted many industries. Do you have any sense of how it will impact your business and the energy sector in the short term?

The impact of COVID-19 on the market is enormous. Although our experience is helping us survive this difficult time, it remains an ongoing battle. From simple crew changes to financial standing, everything has been impacted. One thing is certain – the world will be changed, and nothing will be the same as before COVID-19.

What were the first measures LPB put in place to manage the crisis?

Our first priority is always the safety and security of our employees. Therefore, the very first measures we put in place were related to their safety.