LOTOS Exploration and Production Norge AS conducts the LOTOS Group upstream activities in Norway. As a part of LOTOS Upstream Capital Group, the company is responsible for implementation of the strategy of LOTOS extraction segment in the North Sea and the Norwegian Sea. At the end of 2017, LEPN held interests in 26 licenses for exploration, appraisal and production of hydrocarbon reserves in the Norwegian Continental Shelf. Moreover, as part of the APA 2017 (Awards in Predefined Areas) licence round, on January 16th 2018, the company received an offer from the Norwegian authorities to acquire two new licenses: PL918S and PL910. After the company’s governing bodies receive the new licences, the number of Norwegian licences will increase to 28. In 2017, LOTOS’ average output from the Norwegian fields was 17,000 boe/day, or 74% of the total Upstream segment’s output. As at the end of 2017, the 2P reserves in the Baltic Sea fields were estimated at 39.3 mboe (including 2.9m tonnes of crude oil and 2.7 bcm of natural gas) and accounted for 45% of the segment’s total reserves. Directors’ Report on the operations of Grupa LOTOS S.A. and the LOTOS Group in 2017.