Metso's Device Management Solution to Be Implemented at Grupa Lotos's Gdańsk

HELSINKI (Nov. 4, 2013) – Grupa Lotos S.A. chose Metso's Device Management Solution to optimize its valve spare parts stocking and supply. As part of the contract, Metso will also provide its On-site Supervising Service at the Gdańsk refinery so as to ensure that daily maintenance and turnaround activities always meet the high standards set by Grupa Lotos. The contract value has not been disclosed. Technical Director of Grupa Lotos Grzegorz Błędowski said: "We chose Metso to improve our capabilities in managing valve repairs and spare parts inventory. To support operational processes and to keep high refinery availability, we need reliable equipment and good partners like Metso." Through in-depth understanding of the criticality of individual devices and an intelligent stocking strategy, Metso is able to simultaneously reduce the number of spare parts and components held in stock while increasing the number of devices covered by spare parts in the refinery. Through this approach at other sites, Metso has been able to substantially cut spare parts inventory, reduce yearly spare parts capital and operational expenditure, while significantly increasing the number of devices covered by spare parts. Metso's On-site Supervising Service ensures that maintenance and repair work done by the end user and third parties has been done correctly and meets stringent quality thresholds. As part of the service, Metso assists in maintenance planning, checks the completed maintenance and repair work done on Metso items, carries out testing on repaired equipment to ensure that it has been performed correctly and assists Lotos with all other daily and long-term activities related to Metso valves. Mikko Keto, President of Metso Automation Services commenting on the deal said: "Metso's presence in the oil & gas sector continues to grow with this significant new service contract with leading Polish refinery Grupa Lotos." LOTOS is a vertically integrated oil entity focused on crude oil exploration and production, petroleum processing as well as commodities sales. The company is second largest entity in Poland (in terms of net sales revenues). It has a 34 percent stake in the domestic wholesale fuel market. Moreover, LOTOS holds a strong position in lubes, greases and bitumen sales in Poland. Since June 9, 2005, Grupa LOTOS S.A. is listed on the Warsaw Stock Exchange. LOTOS throughout its business units located in Europe (Poland, Norway, Lithuania) employs approximately 5,000 people. LOTOS operates a state-of-the-art refinery (located in Gdańsk), holding a suitable connection to the Druzhba pipeline and Naftoport - Baltic Sea terminal network. In 2011, using hi-tech solutions, such as Best Available Techniques (BAT), LOTOS finished comprehensive upgrade investment project (Programme 10+), which main goal was to boost refining capacity to 10.5 mtpa. Programme 10+ fruition was estimated on 1.5 billion Euro. Due to Programme 10+ LOTOS is able to enhance Polish, NW Europe and CEE energy security policy, especially in the range of stable fuel supplies. On the upstream side, LOTOS is present in the Baltic Sea, on the Norwegian Continental Shelf and onshore in Lithuania. In 2015, LOTOS plans to produce 1.2 mtpa of crude oil. LOTOS actively supports alternative sources of energy development, especially throughout its biofuels production unit, located in Silesia region as well as relevant international safety environment conferences promotion and arrangement. Apparently company carries out numerous up to date research projects concerning environmental issues, i.a. CO2 sequestration in empty oil fields in the Baltic Sea within Polish top technical universities staff support. Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas.