Integrated Annual Report of LOTOS Capital Group 2015

PLN '000	Dec 31 2015	Dec 31 2014
Upstream segment	8,377	1,661
Downstream segment	-	8,774
Total	8,377	10,435

Upstream segment

PLN 8,377 thousand of assets held for sale recognised as at December 31st 2015 was attributable to tubular elements, on which the Group incurred capital expenditure in connection with the development of the B-8 field (see Note 13.2). The capital expenditure incurred by LOTOS Petrobaltic S.A. for that purpose totalling PLN 45,011 thousand, taking into account capitalised cost of cancellation fee payable to the producer of prefabricated tubular elements, was offset by a PLN 36,634 thousand impairment loss on that capital expenditure recognised in 2015 (see Note 9.4) following a change of the concept of conversion of the Petrobaltic drilling rig into a production centre. In the opinion of the Management Board the amount of assets held for sale of PLN 8,377 thousand as at December 31st 2015 represents the net realisable value of the tubular legs (based on an analysis of current steel prices in Poland and on foreign markets, made by LOTOS Petrobaltic S.A.).

As at December 31st 2014, the Group’s non-current assets held for sale included two helicopters which were sold in Q4 2015. Cash proceeds from the sale in 2015 amounted to PLN 3,700 thousand and were presented in the statement of cash flows under Sale of property, plant and equipment and other intangible assets.

Downstream segment

As at December 31st 2014, disposal groups comprised the Jasło and Czechowice-Dziedzice Branches, operating as separate, organised parts of business, offering services in the area of maintenance of mechanical and electrical operations and controlling devices, overhaul and repair services, and technical tests and analyses, which were sold in 2015.