OREANDA-NEWS. LOTOS Petrobaltic S.A. has signed a contract for the conversion of its drilling rig into a production unit. The consortium of the project's contractors consists of companies controlled by Polska Grupa Zbrojeniowa S.A. (Energomontaz - Polnoc Gdynia and Nauta Shiprepair Yard) and a domestically-owned shipyard, Crist.

The conversion is an important part of the project for the development of the B8 field, which is co-financed by commercial banks and the Polish Investments government programme. Over the period until 2015, the project will require capital expenditure to the tune of PLN 1.8bn.

- I am glad that the work on the new platform will be done by Polish engineers. Shipyards of the MARS group have proved that they have the skills and resources necessary to handle the project. Several dozen new jobs may be created by the consortium companies in connection with the contract. The partnership forged by LOTOS with Polish shipyards is an example of business collaboration that creates added value for the national economy. Increased crude oil production will enhance Poland's energy security and enable Polish specialists to keep their jobs - noted Wlodzimierz Karpinski, Minister of the State Treasury.

So far the Petrobaltic rig has been used for drilling in search of hydrocarbons under the Baltic Sea. Now the unit will be adapted for production work, as drilling equipment and systems will be dismantled and replaced by oil and gas production and separation equipment. Conversion will also include replacement of the platform's legs, expansion of the pontoon and hotel facilities, as well as construction of process modules.