ORLEN Group to acquire transport vessels for OWE with the support from IDA JSC

Date of posting: 2023-10-13

LOTOS Petrobaltic of the ORLEN Group has signed a cooperation agreement with Industrial Development Agency JSC (IDA JSC). It concerns granting support for the construction of 3 vessels intended for the transfer of workers to the offshore wind power (OWE) area and securing financing for the project. The vessels, to be commissioned between 2025 and 2026, will also be available for installation work and cable laying.

- We are taking a comprehensive approach to offshore wind energy development. We are investing in the construction of the first offshore wind farm to be built in Polish Baltic waters. Baltic Power, as it is referred to, is today the most advanced offshore wind project in Poland. We have also recently obtained five further concessions for the construction of new assets in the Polish Exclusive Economic Zone of the Baltic Sea. At the same time, we are already thinking about servicing these facilities. With the agreement with Industrial Development Agency S.A., we are starting to build a specialised fleet to service offshore wind energy," says Daniel Obajtek, President of the Management Board of ORLEN.

The cooperation concerns crew transfer vessels (CTVs).
According to the agreement, a designated company from the Capital Group of Industrial Development Agency JSC will acquire bids from shipyards for the construction of three such vessels, obtain financing and then deliver the already finished vessels and hand them over to LOTOS Petrobaltic in the so-called bareboat charter (i.e. without crew).

The vessels are to be built by Polish shipyards and designed by a Polish design office on the basis of a technical design provided by LOTOS Petrobaltic. Technical requirements include: allowing 24 technicians to be transported, a dual-fuel engine with an alternative power option for zero-emission sailing, the ability to transport cargo and their own crane. The vessels are expected to be commissioned between 2025 and 2026 and chartered for maintenance work on offshore wind farms.

- LOTOS Petrobaltic has more than 30 years of experience in offshore operations and marine logistics. We are also active in the offshore wind sector, conducting geotechnical surveys. Our ambition is to increase our involvement in this area. The agreement we concluded will allow us to gain additional competences in the form of providing logistics services for the servicing of offshore wind farms. This is not only an important step in the implementation of our strategy, but also an opportunity for the entire economy. The participation of Polish businesses in this process will contribute to building their position in the global value chain in the offshore wind energy segment - says Grzegorz Strzelczyk, CEO of LOTOS Petrobaltic.

LOTOS Petrobaltic's cooperation with Industrial Development Agency S.A. started already in 2021. The common goal is the construction and chartering of service vessels owned by a shipowner based in Poland, which offers the prospect of creating and systematically strengthening a local supply chain of products and services (local content) for OWE created by domestic industrial companies. Companies from the Capital Group of the Industrial Development Agency S.A. have the potential, including financial potential, which can be effectively used in the implementation of offshore wind energy projects in the Baltic Sea.

- The Industrial Development Agency JSC supports the development of Polish industry in three main areas: restructuring, development of innovative technologies and energy transformation. IDA S.A. links these key issues by actively supporting the building of the supply chain for Polish offshore wind farms. Thanks to its involvement in the creation of the Polish service fleet, our company will increase its participation in the construction of the supply chain for the newly emerging energy sector in Poland - the offshore wind energy sector - says Cezariusz Lesisz, President of the Management Board of the Industrial Development Agency JSC

The signed agreement is the next stage of the implementation of LOTOS Petrobaltic's strategy, which assumes gaining the position of an offshore wind shipowner specialising in offshore logistics and servicing the underwater infrastructure of offshore wind farms. As part of the company's development, it is particularly important to fulfil the obligations contained in the sectoral agreement, to which it is a signatory, regarding the participation of domestic companies in the supply chain of services for offshore wind farms.


LOTOS Petrobaltic of the ORLEN Group is the only Polish mining company involved in the exploration and exploitation of oil and gas deposits on the Polish Baltic Sea shelf, comprehensive offshore logistics services, as well as marine research and fleet management. It is the ship owner and operator of drilling platforms and production centres, as well as a fleet of specialist vessels. For 30 years, LOTOS Petrobaltic has been successfully operating in this extremely difficult field of offshore mining, extracting oil and gas from beneath the seabed and contributing to Poland's energy security.
The company is also developing new lines of business related to offshore wind energy, CCS and hydrogen projects.

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