II. Statement of profit or loss and other elements of the global result for the financial year ended December 31st, 2023

File no. 4395/270/2020 - Onești Courthouse - Municipality of Onești - plaintiff; Local Council of Onești Municipality - plaintiff,, CONPET S.A. – defendant)

Court hearing: -

by which is requested the instance that, by decision that will be pronounced dispose:

- Obligation of the defendant to conclude the Convention for the exercise of the right of legal servitude on the lands in the surface of 11,474.5 sq.m., under-crossed and affected by the crude oil transport pipelines within the radius of Onești municipality, against the payment of an annual annuity, during the life of the pipelines, to the local budget of the municipality of Onești, determined by the principle of the smallest infringement of the right of ownership and calculated taking into account the value of the movement of the property affected, established under the law at the time of the damage.

The obligation of the defendant to pay material damages, representing the equivalent value of the lack of use for the land in the area of 11,474.5 sq. m. crossed and affected by the crude oil pipelines within the municipality of Onești, established according to the Market Study approved by the Decision of the Local Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the Decision of the Local Council no. 122 of 29.06.2020, calculated starting with 2017 and until the date of concluding the agreement for exercising the right of legal easement over these lands, to which are added late fees, interest and late payment penalties in the amount provided by the Fiscal Procedures Code applicable in this period.

- The obligation of the defendant to pay the trial costs incurred by this trial.

Case File no. 5971/2/2022 – Bucharest Court of Appeal (OMV Petrom – plaintiff, NAMR, CONPET - defendant), by which is requested the instance that, by decision that will be pronounced dispose:

Court hearing 09/24/24

Annulment in part of Article 1 of Order 229/2021 in respect of the tariffs set out in Annex 1 and Annex 3 and, accordingly, Annexes 1 and 3 of Order 229/2021 and, consequently, Order the NAMR to issue a new order for the approval of transport tariffs via the national transport system of crude oil, gas, condensate and ethane for 2022, including appropriately modified tariffs in the DOMESTIC tariffs (Annex 1) and import tariffs for THE refineries in the Ploiesti Basin (Annex 3).

The partial annulment of Article 3-8 of the Annex to order no. 53/2008, as well as the obligation of the NAMR to issue a new order by which to properly complete Order no. 53/2008.

The obligation to pay the court costs.

At case, on the deadline of 14.03.2023, the applicant OMV PETROM requested in proving the probable claims with documents and judicial accounting expertise.

On the deadline of 25.04.2023, Conpet opposed the evidence with documents and the evidence with judicial accounting expertise, both requested by the plaintiff OMV Petrom SA.

On the deadline of 09.05.2023, the Court approved for the claimant and for the defendant the evidence with documents. Orders the defendant ANRM to submit to the case file the administrative documentation related to the NAMR Order no. 229/2021 amending the NAMR Order no. 13/2010 and Order no.13/2010 and of the NAMR Order no.53/2008, under the conditions provided by Law no.182/2002 on the protection of classified information. Rejects as useless the case resolution the consent of the evidence with technical accounting expertise.

On 31.05.2023, the defendant ANRM submitted to the Classified Documents Department of the Court of Appeal of Bucharest the documentation requested by the court with the mention that some documents are confidential according to Article 4, para.4 of the Petroleum Law no.238/2004 and others are of „confidential information” nature.

On the deadline of 06.06.2024, the Court ordered, that the defendant the NATIONAL AGENCY FOR MINERAL RESOURCES, submit a written opinion on the application for the administration of the evidence made by the plaintiff, on the legal nature of the confidential documents provided for by the Petroleum Law no. 238/2004, on how to consult these documents and on its declassification of documents constituting state secret, respectively confidential information, according to the provisions contained in Law no.182 of 12 April 2002. That the defendant CONPET SA submits a written view on the application for the administration of evidence made by the plaintiff, on the legal nature of the confidential documents provided by the Petroleum Law no. 238/2004, on how to consult these documents.

The defendants of CONPET and NAMR sent to the court the views requested for the deadline of 05.09.2023. The court has postponed the ruling.

By the conclusion of 14.09.2023, the Court finds that the documents of an unclassified nature, submitted by the defendant NAMR to the Classified Information Compartment of the Court of Appeal of Bucharest are not confidential and do not fall within the scope of the provisions of art. 4 Of the Petroleum Law no. 238/2004 of 7 June 2004, with the related legal consequences regarding the evidential regime of these documents.

Grants the parties access to the content of confidential, non-classified information submitted by the defendant NAMR to the Classified Information Compartment of the Court.

On the deadline of 14.11.2023, the applicant OMV Petrom submitted an application for the access of OMV Petrom to classified documents and additional evidence. It was requested to the court to order CONPET to issue access permits to classified information in this case for Mr. Marius Davițoiu and Marian Nita (employees of OMV PETROM who benefit from authorizations access to confidential documents within the Company, here included the relations with the NAMR) as well as completing the probation with new documents and with the Conpet interrogation.

The court ordered the adjournment of the case so that the defendants of NAMR and Conpet formulate a point of view on the request made by the plaintiff, on the access of its legal representatives to the content of the classified information ''Confidential information” and on the evidence of questioning of the defendants requested by the applicant.

Conpet submitted to the case file the point of view requested by the court.

On the deadline of 12.03.2024, the Court rejects as unfounded the applicant's request to grant access to its employees, Marius Davitoiu and Marian Nita, to documents classified as confidential information, as unfounded, filed to the court's classified information compartment. Approves for the plaintiff the evidence with documents and asks the parties to submit to the case file the documents that substantiated the issuance of the administrative act whose cancellation is requested, the documents, other than those submitted to the case file and to the court's classified information department, relating to the structure of operational costs, the share of modernization,as well as any other financial-accounting documents that justified the issuance of the contested administrative act. Rejects as useless the solution of the case the consent of the evidence with the interrogation of the defendant Conpet.

Case File no. 7035/2/2022 – Bucharest Court of Appeal (OMV Petrom – NAMR - plaintiff, CONPET - plaintiff), by which is requested the instance that, by decision that will be pronounced dispose:

Court hearing 04/09/24

Partial cancellation of the addenda no. 2-9 to the transport contract no. BC OMV 108/25.03.2020 concluded between OMV Petrom and CONPET, respectively of the articles regarding tariffs on the DOMESTIC subsystem and the IMPORT subsystem, charged for transport services provided by CONPET and established by NAMR no.229/2021, within the limit of the tariffs to be established following the contentious administrative endeavors carried out by OMV Petrom regarding the tariffs with NAMR and, consequently, the obligation of CONPET to pay compensation to OMV Petrom representing the difference between the amount of the tariffs adopted by the order of NAMR no. 229/2021, paid by OMV Petrom in the period 01.01.2022-31.08.2022 and the amount of tariffs to be established in file no.5971/2/2022, updated with the inflation index, as well as the related legal interest.

Payment to OMV Petrom of the difference between the amount of tariffs paid by OMV Petrom for the transport of marine oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of tariffs under the IMPORT subsystem according to the subsystem actually used, updated with the inflation index, as well as the related statutory interest.

to rule the obligation the defendant to pay any other amounts representing civil fruits that CONPET acquired or could have acquired in connection with the amounts charged from the OMV PETROM based on the tariffs

- to rule the obligation to pay the court costs.

Trial stage: Court of first instance – suspended until the final settlement of the case forming the object of the file no. 5971/2/2022 of the Court of Appeal of Bucharest, section IX of the Fiscal and Contentious Administrative matters.

Case File no. 4988/2/2023 – Bucharest Court of Appeal (OMV Petrom – plaintiff, NAMR - defendant, Conpet S.A defendant), by which is requested the instance that, by decision that will be pronounced dispose:

- The annulment in part of Articles 1 and 3 of the Additional Acts no.10, no. 11 and no.13, respectively of Articles 1 and 4 of the Addendum no.2, respectively extending the duration of the transport Contract,

- Obligation of Conpet to pay to OMV Petrom, as compensation, the amounts representing:

i. the difference between the amount of the tariffs provided for in the Addendum no.2 to the transport contract and the amount of tariffs to be determined as legal, as well as the related statutory interest calculated from the date of payment of the difference in tariff;

ii.the difference between the amount of tariffs paid by OMV Petrom for the transport of crude oil and the amount of tariffs established proportionally, in relation to the domestic and import tariffs depending on the subsystem actually used and the legal interest;

iii.any other amounts of civil fruits that Conpet has acquired or may have acquired in relation to the amounts unlawfully collected from OMV Petrom based on the tariffs;

- to rule the obligation to pay the court costs.

Trial stage: Court of first instance - suspended until the final settlement of the case subject to case no. 7035/2/2022 of the Court of Appeal of Bucharest

Case File no. 5559/2/2023 – Bucharest Court of Appeal (OMV Petrom – plaintiff, NAMR - defendant, Conpet SA - defendant), by which is requested to the court that, by the decision that will be pronounced to dispose:

- Cancellation in part of article 1 of Order 364/2022 regarding the tariffs set out in Annex 1 and Annex 3 and, accordingly, of Annexes 1 and 3 of Order 364/2022 in what concerns the tariffs for the country and import subsystem, within the limit of the quantum of tariffs that will be established as legal;

- to rule the obligation to pay the court costs.

Case File no. 8213/2/2023 – Bucharest Court of Appeal (OMV Petrom – plaintiff, Conpet SA - defendant, NAMR - defendant), by which is requested the instance that, by decision that will be pronounced dispose:

Court hearing 04/18/24

- The annulment in part of art.1 and art.3 of the Addendum no.14 of art.1 and 4 of the Addenda no.15, no.16, no.17, respectively Articles 1 and 5 of the Addendum no.18, by which the duration of the Contract of Transport was successively extended;

- The annulment in part of Article 2 of the Addenda no.14-18 for the purpose of removing quantities transported from the Midia Terminal from the quantities transported through the country subsystem and including them to the quantities transported through the import subsystem;

- Obligation of Conpet to pay to OMV Petrom, as compensation, the amounts representing:

i.the difference between the amount of tariffs provided for in the Addenda no. 14 - 18 to the Contract of transport and the amount of tariffs that will be established as legal,as well as the related statutory interest calculated from the date of payment of the difference of tariff;

ii.the difference between the quantum of tariffs paid by OMV Petrom for the transport of crude oil and the quantum of tariffs proportionally established, by reference to the country and import tariffs according to the subsystem actually used and the statutory interest;

iii.any other amounts of civil fruit that Conpet has acquired or may have acquired in relation to the amounts unlawfully collected from OMV Petrom on the basis of tariffs;

- To rule the obligation to pay the court costs.

In 2023, the Company performed the following significant transactions with related parties:

Court hearing 17.04.2024

22.Affiliated parties

Procurement from related parties

							- RON-
Partner	Unsettled amount on December 31, 2021	Procurements during 01.01.2022-31.12.2022	Settlements during 01.01.2022-31.12.2022	Unsettled amount on December 31, 2022	Procurements during 01.01.2023-31.12.2023	Settlements during 01.01.2023-31.12.2022	Unsettled amounts on December 31, 2023
SNTFM CFR Marfă SA	5,792,599	73,827,367	70,611,140	9,008,826	18,394,881	27,374,296	29,411
ELECTRICA FURNIZARE S.A.	-	17,314,401	13,916,985	3,397,416	541,373	3,938,789	-
SPEEH HIDROELECTRICA S.A.	-	12,593,201	12,593,201	-	20,377,225	13,843,888	6,533,337

! The amounts are VAT inclusive.

Prepayments awarded to affiliated parties

		- RON-
Partner	31.12.2023	31.12.2022
SPEEH HIDROELECTRICA S.A.	1,989,045	1,989,045
ELECTRICA FURNIZARE S.A.	277,365	1,540,604

Guarantees received from affiliated parties

		- RON-
Partner	31.12.2023		31.12.2022
SNTFM CFR Marfă S.A.	-		500,000

23.The Audit Committee

The Company’s audit for the year 2022 has been provided by the company PKF Finconta S.R.L.

By the OGMS Resolution no.6/28.10.2022 there was approved the appointment of the company PKF Finconta S.R.L. as financial auditor of the Company CONPET for a period of 3 years (2022, 2023, 2024).

The fees are established based on the contract concluded between the two parties.

24.Risk Management

Within CONPET SA the Internal Control Management System has been implemented and developed, containing the 16 standards included in the Internal control management code of the public entities. The implementation of Standard 8 requirements “Risk Management” was a priority in the organization by documentation and application of provisions of PS-MI-18 “Risk management” system procedure (sheet process, flow diagram and system procedure). In 2023 there have been identified and assessed the risks that may affect the achievement of the objectives. At CONPET level, a significant risk register was elaborated and an annual plan containing measures to control significant risks, responsible and time-frames for the measures were developed.

The complex processes and activities carried out within CONPET S.A. may generate risks coming from various areas such as:

(a) Exchange Rate Risk

The company may be exposed to currency exchange rate fluctuations through cash and cash equivalents, receivables, short-term investments, long-term loans or trade debts denominated in foreign currency.

The functional currency of the Company is the Romanian Leu (RON). At present the Company is exposed to the exchange rate risk through cash and cash equivalents, as well as through the procurements made in a currency different from the functional currency. The currencies exposing the Company to such a risk are mainly EUR, USD and GBP. The debts in foreign currency are subsequently expressed in RON, at the exchange rate on the date of the balance sheet, communicated by the Romanian National Bank. The resulting differences are included in the profit and loss account, but do not affect the cash flow up to the moment of the liquidation of the liability.

The Company’s exposure to the currency risk expressed in RON was insignificant, as revealed in the statements below:

					- RON-
December 31, 2023	Value	RON	EUR	USD	GBP
Monetary Assets
Cash and cash equivalents	107,742,173	107,712,907	22,135	6,082	1,049
Trade receivables and other receivables on short and long term	55,499,035	55,499,035	-	-	-
Monetary debts
Various suppliers/creditors	(36,664,385)	(33,815,517)	(2,742,023)	(106,844)	-
Net exposure in the statement of the financial standing	126,576,823	129,396,425	(2,719,888)	(100,762)	1,049

					- RON-
December 31, 2022	Value	RON	EUR	USD	GBP
Monetary Assets
Cash and cash equivalents	127,672,452	127,292,223	364,177	15,762	290
Trade receivables and other receivables on short and long term	51,718,705	51,718,705	-	-	-
Monetary debts
Various suppliers/creditors	(48,530,056)	(47,174,756)	(1,355,300)	-	-
Net exposure in the statement of the financial standing	130,861,101	131,836,172	(991,123)	15,762	290

(b) Credit risk

Credit risk is the risk that the company bear the financial loss due to the failure of contractual obligations by a customer or counterpart to a financial instrument, and this risk results mainly from trade receivables, cash and cash equivalents and short-term investments of the company.

Maximum exposure to the collection risk on the reporting date was:

	- RON-
Name	December 31, 2023	December 31, 2022
Trade receivables and other receivables on short and long term (net value)	55,499,035	51,718,705
Total	55,499,035	51,718,705

The company carries out trade relations only on a contractual basis with recognized third parties, which justifiy credit financing. The company is closely monitoring the exposure to commercial credit risk.

Financial assets which may subject the Company to risk are mainly trade receivables.

The company has implemented a series of policies that ensure that the sale of services is made to the clients with a rapid collection. The value of net claims (without adjustments for depreciation) represents the maximum amount at risk of collection.

On December 31, 2023 the Company holds cash and cash equivalents in amount of 107,742,173 RON (on December 31, 2022: 127,672,452 RON). The liquid assets are held in banks, out of which we enumerate BCR, TRANSILVANIA, Raiffeisen Bank, BRD Groupe Societe Generale, CEC Bank, Unicredit Bank, Exim Bank, Garanti Bank, Credit First Bank, Europe Bank, etc.)

The credit risk related to trade receivables is low because of the regular collection of transport services. Even though there are significant concentrations, the customer base is extremely low, the management considers the commercial credit to be low.

The statement of the seniority of the clients’ receivables at the date of preparation of the statements of financial statement is the following:

			- RON-
Name	Gross value December 31, 2023	Adjustment December 31, 2023	Net value on December 31, 2021 December 31, 2023
Seniority less than 30 days	48,007,876	-	48,007,876
Seniority between 30-60 days	98,106	-	98,106
Seniority between 60-90 days	4,062	1,964	2,098
Seniority between 90-270 days	7,092	2,309	4,783
Seniority between 270 days -1 year	3,845	3,845	-
More than 1 year	200,500	200,500	-
Total	48,321,481	208,618	48,112,863

			- RON-
Name	Gross value December 31, 2022	Adjustment December 31, 2022	Net value on December 31, 2021 December 31, 2022
Seniority less than 30 days	44,918,815	4,681	44,914,134
Seniority between 30-60 days	148,344	978	147,366
Seniority between 60-90 days	11,108	6,376	4,732
Seniority between 90-270 days	78,557	72,595	5,962
Seniority between 270 days -1 year	10,590	10,590	-
More than 1 year	127,716	127,716	-
Total	45,295,130	222,936	45,072,194

The statement of seniority of other receivables on the date of drawing up the statement of financial standing is:

				- RON-
Name	Gross value on December 31, 2023	Impairment December 31, 2023	Gross value on December 31, 2022	Impairment December 31, 2022
Seniority less than 30 days	2,282,700	-	2,421,973	-
Seniority between 30-60 days	196,453	-	14,516	-
Seniority between 60-90 days	334,117	-	87,733	130
Seniority between 90-270 days	1,111,809	-	153,276	-
Seniority between 270 days -1 year	312,836	5,744	116,592	12,500
More than 1 year	2,050,291	1,692,955	1,697,570	1,661,555
Total	6,288,206	1,698,699	4,491,660	1,674,185

The statement of the seniority of long-term receivables at the time of drawing up the statement of financial standing is:

				- RON-
Name	Gross value on December 31, 2023	Impairment on December 31, 2023	Gross value on December 31, 2022	Impairment on December 31, 2022
Fixed claims <1 year	278,769	1,404	122,717	122,717
Fixed claims> 1 year	2,837,891	320,189	2,852,134	320,189
Total	3,116,660	321,593	2,974,851	442,906

The statement of the seniority of the services prepayments on the date of drawing up the statement of the financial standing is:

				- RON-
Name	Gross value on December 31, 2023	Impairment December 31, 2023	Gross value on December 31, 2022	Impairment December 31, 2022
- seniority less than 30 days	1,597	-	2,101	-
- seniority between 30 days and 60 days	-	-	365	-
- seniority between 90 days and 270 days	-	-	1,294,625	-
Total	1,597	-	1,297,091	-

The movements in the adjustments for the impairment of the clients’ receivables were the following:

		- RON-
Name	2023	2022
Balance on January 1	222,936	120,337
Growths during the year	8,118	104,752
Write-backs during the year	(22,436)	(2,153)
Balance on January 31	208,618	222,936

The movements in the adjustments for the impairment of other receivables were the following:

		- RON-
Name	2023	2022
Balance on January 1	1,674,185	2,458,264
Growths during the year	30,443	12,630
Write-backs during the year	(5,929)	(796,709)
Balance on December 31	1,698,699	1,674,185

The movements in the adjustments for the impairment of long-term receivables were the following:

		- RON-
Name	2023	2022
Balance on January 1	442,906	602,655
Growths during the year	-	-
Growths during the year	(121,313)	(159,749)
Balance on December 31	321,593	442,906

The liquidity risk is the Company’s risk of facing difficulties in the fulfilment of the liabilities associated with the financial debts that are being settled in cash or by the transfer of other financial asset. The Company’s approach in the liquidity management consists in providing, as much as possible, that it will always dispose of enough liquidities to pay the maturity liabilities, both under normal and stress conditions, without bearing unacceptable losses or endanger the Company’s reputation.

The liquidity risk is managed by the Company’s management by the application of a permanent insurance policy of liquidities meant to cover the settlement of the due financial liabilities.

							- RON-
2023		Contractual cash flows		<1		Over 1 year	Over 5 years
Trade liabilities		33,091,805		33,091,805		-	-
Liabilities to the employees		39,908,276		14,143,449		2,878,921	22,885,906
Other liabilities		33,364,459		30,571,853		2,007,577	785,029
Total		106,364,540		77,807,107		4,886,498	23,670,935
							- RON-
2022	Contractual cash flows		<1		Over 1 year		Over 5 years
Trade liabilities	43,914,968		43,914,968		-		-
Liabilities to the employees	37,433,451		14,364,317		3,439,960		19,629,174
Other liabilities	32,314,474		29,565,362		1,847,870		901,242
Total	113,662,893		87,844,647		5,287,830		20,530,416

(d) The Personnel Risk and the Waging System

On December 31, 2023, the structure according to age is not balanced, the age categories with the highest rate ratio in the company are ranging between 51 - 60 years old (52.78%) and between 41-50 years old (26.15%).

The average age of CONPET's personnel is high (49.7 years), and the advantage it brings is the work experience gained by employees within the company, this indicates stability and professionalism. The average age of the personnel employed in the last two years is 41.3 years, with an average work experience of 15.9 years.

However, the risk of personnel in the future is the company to deal with personnel shortages due to staff departures experienced natural causes.

The level of this analyzed risk was low; being a high tolerability risk and for the control thereof have been set medium and long-term measures by way of the personnel policy and the monitoring of the personnel fluctuations (personnel input/output). In this regard, the urgent need of vacant posts occupancy is carefully monitored, according to the needs required by organizational entity, the complexity and diversity of activities, skills needed and the responsibility related posts.

(e) The Risk Determined by the Correlation with the Global Market Evolution

Identified Risks

A. Geopolitical Risk

At the level of the last decade, the protracted economic crisis felt globally, the Covid pandemic 19, the war Russia – Ukraine, as well as the war Israel - Hamas generated successive extreme evolutions in the price of oil.

The causes that generated major fluctuations in oil prices in 2023 were caused by: fear of escalating into a broader conflict between Israel and the Palestinian Islamist group Hamas (which would cause oil supplies to be disrupted in an under-supplied market; information that Russia could lift the ban on diesel exports; information that the United States could reach an agreement to ease sanctions against Venezuela.

B. Oil price volatility risk

During 2023, the price of crude oil has varied between minimum values of 66.74 USD/b and maximum values of 93.68 USD/b. The causes of oil price declines were: notifications/observations regarding oil demand declines in the US and China; the poor demand and concerns that the OPEC agreement+ will not do enough to limit oil supply affect the prices; oil prices following the publication of an inflation report in the USA, bankruptcy of Silicon Valley Bank and Signature Bank NY, incidents that have sparked fears of a possible financial crisis with a negative impact on future oil demand.

C. The Market Risk

Following the embargo, the oil exports from Russia were redirected to Asian markets and a gap of almost 1 million barrels/day since 2022, which was also felt throughout 2023 on the global market. Some of the main causes of extreme oil price variations were when the OPEC leader announced in 2023 that it would keep production down 1 million barrels per year until the end of the year, while the non-OPEC leader Russia has pledged to cut oil exports by 300,000 barrels per day by year's end; ongoing wars have continued to generate rising inflation, supply chain pressures and changes in the behavior of the global oil market (significant structural disruption of supply and continued price volatility). At the national level, in 2023 continued the decrease of the internal production and offset with the import quantities, given that the refining capacities were the same.

(f) Capital Market Risk

The Romanian capital market registered a positive evolution during 2023, continuing the positive upward trend started at the time of the evolution to the emerging market status. The average daily liquidity for all types of financial instruments recorded an upward trend during the period considered. Romania's representativeness in Emerging Markets indices has significantly improved year over year. Given that the company CONPET S.A. is included in the composition of the FTSE Global MicroCap index, the risk of reduced liquidity is reduced.

(g) Legislative-related Risks

The frequent amendments of the normative acts here included those that bear direct impact on CONPET business may trigger risks for the company.

The effort of the company CONPET to constantly adapt to changing legislative requirements may generate additional costs and possible future changes in the legislative framework could have negative effects on the activity and profitability of CONPET (increased taxes, introduction of new taxes and duties, reduction or suspension of tax concessions etc).

Moreover, a possible increase in the level of the royalty paid for the use of the National Transport System may affect the financial statements and financial projections. An increase of the level of the royalty shall reflect into an augmentation of the transport tariff and, subsequently, the consequences may be seen on two lines: in the decrease of the crude transported quantities and over the pump price of the finite products resulted from the crude oil processing.

An important risk is being represented by the loss of the facility regarding the expenses borne by the Romanian State to provide the guard and protection of the pipelines by gendarmes, regulated by GD no. 1107 dated November 14, 2012, which amends and complements GD no. 1468/2005.

(h) Risk of disputes

Within the last years, the Company prepared various legislative proposals to amend Law no 238/2004 - Petroleum Law, hoping for a coherent and clear regulation of the legal regime of lands under/over crossed by the major transport pipelines. Essentially, these proposals are based on the following assumptions:

- public property (of the major pipelines) must coexist with private ownership of lands, which leads to the conclusion that the state must be acknowledged the exercise, free of charge, of certain categories of real rights (servitudes etc.) for the presence of the pipelines in the field;

- CONPET shall indemnify the owner of the land in full for any action that involves temporary occupation of the land for the purpose of repair or damage suffered by the owners as a result of breakdowns.

The regulatory framework for environmental protection applicable to CONPET S.A.is complex due to the activity of transport of crude oil/condensate/rich gas via pipeline and by railway and, for good compliance, all applicable legal requirements and how to implement them in separate registers, developed by environmental factors (water, soil-basement, air, protected areas), regulations (authorizations), SEVESO, waste.

An important risk factor is the loss of the facility regarding the expenses incurred by the Romanian State to ensure the security and protection of the pipelines with gendarme flocks, regulated by GD. 1107 from November 14, 2012, which amends and complements GD no.1468/2005.

Keeping the risk related to the regulatory framework under control is done through careful monitoring of the new legal requirements or changes of the applicable regulations, as well as by implementing the necessary actions to comply with them. It is also envisaged to develop and submit proposals for amendments appropriate to the domain where CONPET operates, when draft regulations are under public debate.

(j) The Market Risk

The market risk comes from the fact that the company is not interconnected to other transport systems in the region, being strictly dependent on the level of crude oil processing in the refineries in Romania.

With the support of the main shareholder, the Ministry of Energy and the National Agency for Mineral Resources – NAMR), the company CONPET is working to identify new opportunities to increase the use of the system, while getting involved in regional projects started in its field of activity, as well as in the development of activities related to the core business (supply of oil/oil products storage services, supply of crude oil transport services with own tank cars etc).

(k) Operational risk

The operational risk comes from the tear and wear of the National Transport System (NTS) via the pipelines, as a consequence of the low degree of use (small quantities, reduces frequency), potential escalation of the criminal phenomenon of attack on pipelines with significant impact on NTS pipelines and on the environment and the impossibility of carrying out the transport programs by railway, for reasons exclusively related to the railway operator.

To control these risks, measures were established such as: redefining the transport infrastructure according to the demand perspective, extending the implementation of the pipeline leak detection and localization system, and calculation of penalties under contract or procurement of the rail transport service with another railway operator for routes on which the transport program is not carried out.

(l) Other environmental aspects

- Identification of environmental aspects and environmental impact assessment

The activity of environmental impact assessment is carried out in the production sectors whenever there are changes in the system involving activities with environmental impact, the list of issues with significant impact identified at the level of the company being the basis of the elaboration of the Environmental management program and of the Action Plan for the achievement of environmental objectives.

During 2023, environmental aspects were reviewed at the site level, focusing on identifying environmental aspects, including how risks and opportunities related to environmental aspects are treated to prevent and limit their consequences on human health and the environment, using opportunities both for the benefit of the organization, as well as of the environment. The following documents have been reviewed:

• The Environmental Management and Actions Program, which includes: environmental policy commitments, general objectives and measurable environmental targets, the environmental protection performance indicators, functions responsible for achieving environmental targets, as well as actions to achieve environmental objectives, which took into account the significant environmental aspects identified at the level of CONPET SA., the measures in the inspection reports/protocols-authorities on compliance with legal requirements and other applicable requirements;

• List of significant environmental aspects and associated impacts generated at the level of CONPET S.A.

The stage of achieving the objectives and established targets and the stage of achieving the actions for the achievement of the environmental objectives are analyzed annually by the executive management, within the management analysis.

- Assessments of compliance with legal requirements and other environmental requirements

The assessment of compliance with the legal requirements or other applicable environmental requirements is carried out by: • inspections made by environmental authorities (representatives of central and local environmental authorities and water management),

- inspections performed by OHS officials and personnel of the Environmental Protection Department,

- external audits carried out by bodies certifying the environmental management system integrated in the company’s management system;

- internal audits carried out by internal auditors of the Management Systems and Internal Management Control Department and the Public Internal Audit Office.

The regulatory and control authorities in the field of environment and water management carry out, in CONPET S.A. locations, scheduled, unannounced and thematic controls, regarding the compliance with legal requirements and other environmental regulations, no major non-conformities being found.

To verify the compliance with the legal requirements, at the level of 2023, 46 external inspections of the environmental authorities in the counties where CONPET S. A. performs its activity were registered.

The personnel within the sectors, respectively the OHS managers, carry out scheduled inspections according to the Annual Inspection Graphic, in what concerns compliance with legal requirements and other applicable requirements, but also unscheduled inspections, according to the duties in the job description.

During 2023, an external audit has been carried out by the BUREAU VERITAS certification body to verify compliance with the requirements of ISO 14001:2015 referring to the environmental management system. Any non-conformities/deviations were found, and no comments were made regarding the compliance obligations in this field.

Following the internal audits established in the annual internal audit program, the nonconformities identified in the environmental management system were duly identified and corrected.

- Pollutions bearing significant impact on the environment

During the pumping of crude oil, accidental pollution can occur on the transport pipelines, from internal or external causes, generating pollution of the geological environment that can bear a significant impact. Thus, during 2023, accidental pollution was reported in the areas: Lipanesti, Paralela 45, Magurele, Plaiul Corbului-Matita, Gageni, Urlati (Prahova county), Traian Valley, Cumpana (Constanta county), fixed point Arges (Giurgiu county), Valea Lupului-Coltesti (Gorj county), Icon, Otestii de Jos (Olt county), Ghimpati (Dâmbovița County0.

The expenses made in 2023 for the decontamination of the affected areas reached 252.89 thousand RON.

25.Subsequent events and other mentions

There have not been registered significant events ulterior to the conclusion of the financial year.

These financial statements, from page 2 to page 61, have been authorized for issue by the company’s management on March 20th, 2023.

Director General		Economic Director
Eng. Dorin Tudora		Econ. Sanda Toader

ANNUAL REPORT

OF THE ADMINISTRATORS

OF THE COMPANY CONPET S.A.

for the financial year ended

December 31st, 2023

CONTENTS

MESSAGE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS 4

1. COMPANY PRESENTATION 7

1.1 Report grounds 7

1.2 SUBSTANTIATION DATA 7

1.3 Main activities 8

1.4 The company’s mission, vision and values 8

1.5 Shareholding Structure 8

1.6 Company Organization 9

1.7 Strategic development objectives 9

2. RELEVANT CORPORATE EVENTS IN 2023 AND TO DATE 10

3. CONPET 2023 – EXECUTIVE SUMMARY 11

3.1 Operating Activity Indicators 11

3.2. Financial Results Indicators 11

3.3 Investment Activity Indicators 13

3.4 Company’s Stock Market Indicators 14

4. ANALYSIS OF THE COMPANY’S BUSINESS 15

4.1 Analysis of the operating activity 15

4.1.1 The regulatory Framework 15

4.1.2 The crude oil, condensate, rich gas and ethane transport activity 15

4.1.3 Other activities 19

4.1.4 Analysis of the operating activity 19

4.1.5 Analysis of the supply activity 20

4.1.6. Legal papers concluded according to Art. 52 para. (1) and (3) GEO no. 109/2011 20

4.1.7 Company mergers and reorganizations, procurements and disposals of assets 21

4.1.8 Development of the internal control management system 21

4.1.9 Risk management 26

4.1.10 Internal and external audit 35

4.1.11 Assessment of human resources and social dialog activity 36

4.1.12 Analysis of the OHS activity 40

4.2 Analysis of the Development Activity 44

4.2.1 Main components of the NTS infrastructure 44

4.2.2 The wear degree of the company’s properties 47

4.2.3 Investments achieved in 2023 48

4.2.4 Disputes and other aspects on the company’s tangible assets 50

4.3 Analysis of the Financial Activity 72

4.3.1 Statement of the Financial Standing 73

4.3.2. The global result statement 76

4.3.3 Economic-Financial Indicators 82

4.3.4 Execution of the revenues and expenditure budget 83

4.3.5 Cash-flow 85

4.3.6. The internal control and the risks management systems in the financial reporting process 87

4.3.7 Related Parties 87

4.4 Analysis of the corporate activity 88

4.4.1 Capital market business 88

4.4.2. Corporate Governance 92

4.4.3. The Company Management 132

5. THE NON-FINANCIAL STATEMENT FOR THE YEAR 2023 157

6. PROPOSAL OF THE BOARD OF DIRECTORS 182

6.1 Approval of the financial statements concluded on 31.12.2023 182

6.2 Approval of the allocation of net profit related to the financial year 2023 182

ANNEXES 184

MESSAGE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS

Esteemed shareholders,

Esteemed investors,

Having over 120 years of experience in the transport of crude oil via pipelines in Romania, CONPET is a safe, experienced and established company in the oil and gas sector both nationally and internationally.

The continuity, stability and success that define today this company with tradition and of national strategic interest are due to values and principles that have been an unchanged legacy from one generation to another by oilmen. Starting with the professionalism, seriousness and responsibility for an activity with many implications, to the constant concern for development, continuous adaptation and evolution, all these skills led and created the modern and powerful company that CONPET is today.

CONPET performed also in 2023, in several directions: providing services to its customers at the highest quality and safety standards, making significant investments, continuing the professional training of specialists, increased involvement in the community, to which was added an evolution in identifying and carrying out new projects.

In 2023, we achieved the goals we set at the beginning of the year, fulfilling the development plans and strategies we built for operational efficiency, safety and sustainable development.

CONPET registered, in 2023, a turnover of 485.1 mRON, higher by 2.7% YoY. At the same time, the operating revenues were 540.9 million RON, registering an increase of 3.6% compared to 2022.

The operating profit of 66.4 million RON achieved in 2023 was higher by 3.6 million RON as compared to 2022.

In 2023, the company registered a net profit of 61.6 million RON, over the budgeted level by 13.6 million RON.

In 2023, CONPET reached a capitalization of 708.2 million RON (81.80 RON/share on 31.12.2023) and the dividend yield was 8.40%.

Achieving the investments scheduled for 2023 was a major objective that the company's management closely followed with the well-determined purpose of optimizing the activity, increasing the performance of the National Transport System and safety in operation.

In this context, we mention with priority one of the most important investments made in the last 10 years within CONPET, a large-scale strategic project that was completed in the first quarter of the year - "Replacement of connecting wires on the import crude oil transport pipelines, under crossing the Danube and Borcea arm". Due to the magnitude of the works, the investment effort involved (22 million EUR, excluding VAT), the impact on the environment and the national energy security, the project is a premiere within CONPET, being possible through a very good collaboration with our contract partners, but also through the special involvement of our specialized personnel.

In a global economic climate marked by concerns for environmental safety, the construction of new pipelines at the under crossing of the Danube and the Borcea arm has led to secure transport and safe operation of crude oil transport pipelines in conditions of maximum safety, demonstrating once again our responsible commitment to protecting the environment.

In this chapter, we remind that CONPET has adopted an environmental policy integrated with the policy related to quality, health and safety at work and in accordance with the principles of sustainable development, being aware that the responsibility towards the environment is inextricably linked to the envisaged performances.

In addition to the environmental protection measures that accompany our core business, CONPET has adopted a strategy that promotes energy efficiency and sustainability. Electric and hybrid cars, photovoltaic panels, as well as electric locomotives have been introduced.

A constant concern of CONPET is represented by the welfare of its employees, as human resource is one of the main values of the company. Professional development and improvement, health maintenance, salary increase, ensuring an optimal balance between professional and personal life are priorities that are continually improving, and 2023 has been a year that has increased these benefits.

At the same time, an important development line for CONPET is represented by corporate social responsibility (CSR) actions. A successful and responsible company at the same time requires care and involvement for the community and its people. We are aware of the role we have and the influence we can exert, so we want to be an example and a positive force in the community.

In 2023, CONPET continued to actively participate in multiple projects, in rural and urban communities, covering various fields – sports, education, social and cultural. As a result of the pandemic, the attention paid to the medical sector has increased considerably, thus our company has played a significant role in supporting major projects to equip hospitals with modern equipment, necessary for the good activity thereof.

Also, at the heart of the concerns regarding the internal dimension of CSR is the training of employees in the spirit of the company's organizational culture, of the principles and values that it promotes and supports in the community. Thus, in 2023, CONPET organized, for the second consecutive year, a blood donation campaign, offering employees the chance to join a noble cause of helping patients in need, in a gesture of empathy and solidarity.

The action and development lines of CONPET are multiple. They include the efficiency and safety of our transport activity, business profitability, interest and trust of investors, environmental protection, welfare and evolution of our own human resource, community involvement, perseverance directed towards excellence and continuous adaptation. CONPET's commitments are always firm, and the actions speak for themselves every year about what it means to involve people, at all levels, in maintaining a business and taking it further with each step.

CONPET carries out, responsibly, that keeps the world moving, being at the same time a company oriented towards the future and ecological practices, which understands to maintain the right balance between past and future, tradition and progress.

Sincerely yours,

Cristian - Florin GHEORGHE

Chairman of the Board of Directors

1. COMPANY PRESENTATION

1. 1.1 Report grounds

The Annual Report of the Board of Directors of CONPET SA for the year ended December 31st, 2023, was prepared in accordance with:

- Chapter 3 of the Minister of Public Finances’ Order no. 2844/2016 for the approval of the accounting Regulations compliant with International Financial Reporting Standards;

- Article 65 of Law no. 24/2017, republished, regarding the issuers of financial instruments and market operations;

- Annex no.15 on the requirements of the Annual Report, from Regulation no. 5/2018 regarding the issuers of financial instruments and market operations issued by the Financial Supervisory Authority;

- Art. 56 of the Government Emergency Ordinance no.109/2011 on the corporate governance of the public enterprises, subsequent amendments and completions;

- Chapter VI Art. 7 regarding the Administrator’s Obligations provided in the Mandate Contracts concluded between the administrators and CONPET S.A.;

- Art. 20 Para (1) letter (e) of CONPET S.A. Articles of Incorporation;

1.2 SUBSTANTIATION DATA

Date of the report	March 20th, 2023
Issuer’s Name	CONPET S.A.
Registered Offices	no. 1-3 Anul 1848 Street, Ploiesti, Prahova County, Zip Code 100559,
Telephone/facsimile number	0244 401360/0244 516451
E-mail/Internet	conpet@conpet.ro / www.conpet.ro
Trade Identification Number at the Trade Register Office	1350020
Trade Registry Number	J29/6/22.01.1991
The regulated market trading the issued securities	Bucharest Stock Exchange, Premium category
Subscribed and paid-up share capital	28,569,842.40 RON
Main features of the issued securities	8,657,528 shares with a nominal value of 3.3 RON/share.
Total market value	708,185,790 RON (81.80 RON/share at 31.12.2023)
Applied accounting standard	The International Financial Reporting Standards
Auditing	The Financial Statements concluded on December 31st, 2023 have been audited

1.3 Main activities

CONPET is a strategic company, part of the architecture of the national energy system, being the operator of the crude oil national transport system via pipelines.

Since 2002, CONPET is the concessionaire of the operation of the crude oil, rich gas, condensate and ethane National Transport System, based on the oil Concession Agreement concluded with the National Agency for Mineral Resources, approved pursuant to GD no. 793/25.07.2002.

The Crude Oil, Rich Gas, Condensate and Ethane National Transport System (NTS) is being defined and regulated by the Petroleum Law no. 238/07.06.2004 and the Methodological Norms for the enforcement of the Petroleum Law, approved under GD no. 2075/2004 and is part of the state’s public property, being of strategic importance.

1.4 The company’s mission, vision and values

CONPET mission is the operation of the National Transport System via Pipelines under safety and efficient conditions, free access to the available capacity of the system to all solicitors, authorized legal persons, under equal conditions, in a non-discriminatory and transparent manner.

CONPET Vision mainly aims at:

- Operational effectiveness and safety;

- Performance optimization;

- Sustainable development of the company;

- Ongoing training, adaptability and qualitative increase;

- Social responsibility and respect for the environment.

Company’s Values:

- Professionalism, effectiveness and performance;

- Ongoing training, adaptability and qualitative increase;

- Social responsibility and respect for the environment.

1.5 Shareholding Structure

CONPET is a publicly owned company, listed at the Bucharest Stock Exchange, under COTE symbol.

The synthetic structure of the Shareholders, on reference date 31.12.2023, is as follows:

- 58.7162% - the Romanian State by the Ministry of Energy;

- 41.2838% - Other shareholders natural and legal persons.

Chart 1 - CONPET S.A. Shareholding Structure on 31.12.2023

The number of CONPET Shareholders registered at Depozitarul Central S.A. at the end of 2023 is 16,248, 5.5% higher than the end of 2021 (15,408 shareholders).

The share capital of CONPET on 31.12.2023 is 28,569,842.40 RON and is divided into 8,657,528 nominative shares, each share with a nominal value of 3.3 RON/share.

CONPET did not perform transactions having as scope its own shares and, consequently, the company does not hold own shares.

1.6 Company Organization

The Company CONPET S.A. was established in 1990, based on the Government Decision no. 1213/1990 regarding the set-up of joint-stock companies in the industry, by taking-over the entire assets and liabilities of I.T.T.C. Ploieşti, being the first company established in the oil industry in Romania.

Following the take-over of all assets and liabilities of I.T.T.C. Ploiești, CONPET has become the operator of the crude oil, rich gas, condensate and ethane National Transport System.

The crude oil, rich gas, condensate and ethane National Transport System (NTS) is part of the State’s public property and bears strategic importance. The NTS is being defined and regulated pursuant to the Oil Law no. 238/07.06.2004 and the Methodological Norms for the Application of the Oil Law, approved pursuant to G.D. no. 2075/2004.

CONPET supplies transport services for its clients via both the National Transport System, conceded under the Concession Agreement and by rail, from the loading ramps to the refineries, for the oil areas which are not connected to the major transport lines.

1.7 Strategic development objectives

The strategic objectives established and assumed by the administrators through the Administration Plan, for the period 2023-2027, were defined in close correlation with the strategic directions, vision and expectations of the tutelary authority.

The strategic objectives are:

- boost efficiency and improve the activity performance;

- develop new activities, related and non related to the core business;

- ensuring effective management in human resources management;

- selection of company directors based on criteria of professionalism and integrity;

- ensuring modern management by implementing and maintaining risk management, control, ethics, integrity and corporate governance processes;

- ensuring a balance between the dividend policy and the one regarding the provision of the necessary funds for the investment programs undertaken by the company for development and modernization.

2. RELEVANT CORPORATE EVENTS IN 2023 AND TO DATE

February 17th, 2023

The Ordinary General Meeting of Shareholders approved the Investment Program and the Revenues and Expenditure Budget for 2023.

In the same meeting, the OGMS appoints in the capacity of provisional administrators on a period of maximum 4 months, starting 22.02.2023 until 21.06.2023 (inclusive of) Mr. Gheorghe Cristian - Florin, Mr. Buică Nicușor - Marian, Ms. Kohalmi - Szabo Luminița - Doina, Ms. Tănăsică Oana - Cristina, Mr. Gavrilă Florin - Daniel, Mr. Zaman Andrei - Mihai, Mrs. Barbu Irina - Mihaela.

April 27th, 2023

The Ordinary General Meeting of Shareholders approved the Annual Financial Statements on the date and for the financial year ended on 31.12.2022. At the same meeting, the OGMS approved the distribution of the net profit for the financial year 2022 and of some amounts of the retained earnings.

June 21th, 2023

The Ordinary General Meeting of Shareholders approved the extension of the mandate contracts of the provisional administrators by a period of 2 months, starting from 22.06.2023 until 21.08.2023 (inclusive of), for Mr. Gheorghe Cristian - Florin, Mr. Buică Nicușor - Marian, Ms. Kohalmi - Szabo Luminița - Doina, Ms. Tănăsică Oana - Cristina, Mr. Gavrilă Florin - Daniel, Mr. Zaman Andrei - Mihai, Mrs. Barbu Irina - Mihaela.

August 18th, 2023

The General Meeting of Shareholders appointed the administrators of the company with a mandate for a period of four years, starting with 22.08.2023 and until 21.08.2027 (inclusive of), as follows: Mr. Gheorghe Cristian - Florin, Mr. Buică Nicușor - Marian, Ms. Kohalmi - Szabo Luminița - Doina, Ms. Tănăsică Oana - Cristina, Mr. Gavrilă Florin - Daniel, Mr. Zaman Andrei - Mihai, Mr. Dănilă Alin - Mihael.

December 19th, 2023

The Ordinary General Meeting of Shareholders approved the financial and non-financial performance indicators, resulting from the company's Administration Plan.

February 28th, 2024

The Ordinary General Meeting of Shareholders approved the Investment Program and the Revenues and Expenditure Budget for 2024.

3. CONPET 2023 – EXECUTIVE SUMMARY

3.1 Operating Activity Indicators

The comparative situation of the quantities of products, crude oil, rich gas and condensate, transported and the revenues obtained based on tariffs approved by order of N.A.M.R., as well as revenues from other types of operations related to transport via the NTS, during 2021-2023, is presented below:

Indicators	M.U.	2023	2022	2021	Variation%
Indicators	M.U.	2023	2022	2021	2023/2022	2022/2021
Total transported quantities	Thousand tons	6,294	7,100	6,651	▼ 11.4%	▲ 6.8%
Total transport revenues	Million RON	482.9	469.9	410.5	▲ 2.8%	▲ 14.5%

Table 1- Evolution of the transported quantities and transport related revenues during 2021-2023

Chart 2 - Evolution of the quantities transported on the Domestic and Import subsystems during 2021 -2023 (thousand tons)

Chart 3 - Evolution of the revenues transported on the Domestic and Import subsystems during 2021-2023 (mRON)

3.2. Financial Results Indicators

The economic and financial activity of CONPET SA in 2023 was performed based on the indicators included in the revenues and expenditure budget.

The comparative evolution of the main indicators of financial results in the period 2021-2023, as well as the change in the values recorded in 2023 compared to budget, is presented as follows:

2023		Variation (%) Achieved/Budget	Indicators (mRON)	2023	2022	2021	Variation%
Achieved	Budget	Variation (%) Achieved/Budget	Indicators (mRON)	2023	2022	2021	2023/2022	2022/2021
485.1	492.8	▼ 1.6%	TURNOVER	485.1	472.2	412.8	▲2.7%	▲14.4%
540.9	547.0	▼ 1.1%	Operating revenues, out of which:	540.9	522.1	458.4	▲ 3.6%	▲13.9%
482.9	490.2	▼ 1.5%	Transport revenues	482.9	469.9	410.5	▲ 2.8%	▲14.5%
474.5	493.9	▼ 3.9%	Operating Expenses	474.5	459.3	400.7	▲ 3.3%	▲14.6%
66.4	53.1	▲25.1%	EBIT (operating profit)	66.4	62.8	57.7	▲ 5.7%	▲ 8.8%
61.5	66.1	▼ 7.0%	Value adjustments on fixed assets, less adjustments related to rights of use resulted from leasing contracts	61.5	53.1	51.9	▲ 15.8%	▲ 2.3%
127.9	119.2	▲ 7.3%	EBITDA	127.9	115.9	109.6	▲ 10.4%	▲ 5.7%
6.4	2.6	▲146.2%	Financial Result	6.4	9.3	3.1	▼31.2%	▲200.0%
72.8	55.7	▲ 30.7%	EBT (gross profit)	72.8	72.1	60.8	▲ 1.0%	▲18.6%
61.6	47.9	▲ 28.6%	NET PROFIT	61.6	61.7	51.9	▼ 0.2%	▲18.9%

Table 2 – Evolution of the results from the operating and financial activity 2021-2023 and 2023 vs Budget

Chart 4 - Analysis of the indicators achieved in 2023 as compared to Budget (mRON)

Chart 5 - Analysis of the indicators achieved during 2021-2023 (mRON)

In 2023 the turnover recorded an increase by 2.7% as compared to the level achieved in 2022. Compared to the budget, the turnover decreased by 1.6% (7.7 mRON).

The operating profit, amounting to 66.4 mRON, registered an increase of 5.7% (3.6 million RON), compared to 2022, in contrast, the net profit decreased by 0.2% (0.1 million RON).

As compared to the budget, the net profit is higher by 28.6%.

CONPET is a company paying substantial contributions to the consolidated State budget. The total amount paid in 2023, to the account of the state budget, was of 187 million RON, the most important of which are:

VAT	54 mRON
Tax on salaries and related contributions	76 mRON
Income tax	11 mRON
Oil royalty	38 mRON

3.3 Investment Activity Indicators

The investment program related to 2023 included rehabilitation works of major transport pipelines and modernization works for installations and related equipment to the Crude Oil National Transport System.

The investment projects within CONPET target, mainly, enhancing efficiency of the transport activity as well as the operation, under safe conditions, of the National Transport System.

CONPET investments provided in the rehabilitation, modernization and development programs, agreed with the National Agency for Mineral Resources, according to the “Petroleum concession agreement for the operation of the national transport system of crude oil, rich gas, condensate and ethane, including the main pipelines and the ancillary installations, endowments and facilities” are financed from the modernization quota included in the transport tariffs.

In 2023, have been achieved investments amounting 83,062 thousand RON, reaching 74.2% degree of achievement.

2023		Degree of achievement	Investments (thousand RON)	2023	2022	2021	Degree of achievement %
Program	Achieved	Degree of achievement	Investments (thousand RON)	2023	2022	2021	2023/ 2022	2022/ 2021
112,000	83,062	74.2%	Total investments, o/w:	83,062	148,712	63,536	55.9%	234.1%
90,000	71,580	79.5%	Public domain	71,580	137,008	45,596	52.2%	300.5%
22,000	11,482	52.2%	Operating domain	11,482	11,704	17,940	98.1%	65.2%

Table 3 – Investments achieved 2023 vs. program and compared to the period 2021-2023

Chart 6 - Share of investments by financing sources in 2021 -2023

3.4 Company’s Stock Market Indicators

The market capitalization amounted to 708.19 million RON (81.80 RON/share) on 31.12.2023, respectively 586.98 million RON (67.80 RON/share) on 31.12.2022.

The evolution of COTE share and market capitalization during 2021 - 2023 is as follows:

Indicators	MU	31.dec.2023	31.dec.2022	31.dec.2021
COTE closing price	RON/share	81.80	67.80	79.00
Market capitalization	Million RON	708.19	586.98	683.94
Market capitalization	million Euro	142.36	118.64	138.21

Table 4 - Evolution of COTE share and stock capitalization during 2021– 2023

On 31.12.2023, CONPET S.A. ranked 33 according to capitalization, with a value of 708.19 million RON, holding a share of 0.24% in total market capitalization.

The Company CONPET S.A. is being included in 7 indices out of 9 of the Bucharest Stock Exchange, namely BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BET-NG and BET Plus. At the same time, starting from March 21st, 2022, the shares of the company CONPET S.A. are part of the FTSE Global Micro Cap indices dedicated to emerging markets, and on 01.09.2023, following the quarterly revision of the indices, carried out by the global provider of MSCI indices, CONPET (COTE) is included in the MSCI Frontier IMI and MSCI Romania IMI Investable Market Indices) indices.

In 2023, 13,961 stock transactions have been recorded, with a traded volume of 509,910 shares, the total value of the transactions being 38.96 million RON. During 01.01.2023-31.12.2023, the minimum trading price amounted to 68.8 RON/share and the maximum price to 82.2 RON/share. On average, 2,056 shares/day have been traded, the average value of a trading day amounting to 157,101 RON/day (248 days).

The net profit per share is of 7.12 RON/share in 2023.

4. ANALYSIS OF THE COMPANY’S BUSINESS

4.1 Analysis of the operating activity

4.1.1 The regulatory Framework

CONPET SA is the operator of crude oil, rich gas, condensate and ethane National Transport System (NTS). The transport service is being supplied under the natural monopoly regime based on the tariff set by NAMR.

The NTS is being defined and regulated pursuant to the Oil Law no. 238/7.06.2004 and the Methodological Norms for the Application of the Oil Law, approved pursuant to GD no. 2075/2004.

4.1.2 The crude oil, condensate, rich gas and ethane transport activity

CONPET S.A. supplies transport services for its clients both via NTS according to the Oil Concession Agreement of the National Transport System of crude oil, rich gas, condensate and ethane, as well as by rail, from the loading ramps to the refineries, for the oil areas not connected to the transport major pipelines.

The NTS was built taking into account the natural distribution of the oil fields, so as to ensure the transport of crude oil from all these fields to the refineries. The system operation is being made based on the local dispatch centers, coordinated from the Company’s Central Dispatch.

The pipeline network of the NTS is approximately 3,800 km long, currently being used a pipeline network of 3,161 km.

The Crude Oil, Rich Gas, Condensate and Ethane Transport System has in composition more transport subsystems, as follows:

- The domestic crude oil and condensate transport subsystem, consisting of pipelines through which crude oil and condensate are transported from extraction units throughout the country to refineries. The domestic crude oil and condensate production is transported both via pipelines and by rail or combined (rail and pipelines).

- The rich gas transport subsystem is meant for the rich gas transport from the rich gas separation units in Ardeal (Biled and Pecica) to Petrobrazi refinery.

- The ethane transport subsystem provides the ethane transport from Turburea ethane separation platform to Arpechim Pitesti refinery. Currently, due to the inactivity of the Arpechim refinery, the subsystem is used only on the pipeline section linking Totea warehouse to Petrobrazi refinery, for the transport of condensate.

- The import crude oil transport subsystem ensures the transport of crude oil from the Oil Terminal Constanta to the refineries in Ploiești (Petrobrazi și Lukoil), Arpechim-Pitești and Midia.

The transport of the crude oil quantities is being performed from the sites of products delivery by the producers or importers, from the extraction areas, or from Oil Terminal to the processing units (refineries), using the facilities inside the pumping stations and the receiving sites.

These facilities shall consist of crude oil and condensate storage tanks, storage tanks for the storage of rich gas, technological pipes from the pumping/receipt warehouses, pumping aggregates, major pipelines, crude oil and rich gas loading and unloading ramps, rail tank cars.

For the crude oil, rich gas and condensate transport service, CONPET has to develop, on an annual basis, a proper transport program so as to provide free access to the available capacity of the system to all applicants, authorized legal persons, under equal conditions, on a non-discriminatory and transparent basis.

The available throughput represents the difference between the total physical throughput of the system and the crude oil scheduled for transport in the given year.

The transport contracts signed with the beneficiaries of the services are compliant with the regulated frame-contract approved by NAMR and provides the legal framework for the supply of the transport services.

The transported volume by products - crude oil, rich gas and condensate, programmed and achieved in 2023 and the extent of usage of the transport capacity, are as follows:

Transport Subsystems	Indicators and products	2023	2022	2021	Variation (%) 2023/2022
DOMESTIC	Domestic crude oil, condensate and light condensate
	- programmed quantities (thousand tons)	2,982	3,058	3,260	▼ 2.5%
	- achieved quantities (thousand tons)	2,930	3,045	3,222	▼ 3.8%
	- degree of achievement	98.3%	99.6%	98.8%	-1.3 p.p.
	- degree of use of the transport throughputs	47.4%	49.2%	52.1%	-1.8 p.p.
	Rich gas
	- programmed quantities (thousand tons)	11	9	16	▲ 22.2%
	- achieved quantities (thousand tons)	18	17	19	▲ 5.9%
	- degree of achievement	163.6%	188.9%	118.8%	-25.3 p.p.
	- degree of use of the transport throughputs	24.0%	24.7%	26.6%	-0.7 p.p.
	Total domestic subsystem
	- programmed quantities (thousand tons)	2,993	3,067	3,276	▼ 2.4%
	- achieved quantities (thousand tons)	2,948	3,062	3,241	▼ 3.7%
	- degree of achievement	98.5%	99.8%	98.9%	-1.3 p.p.
	- degree of use of the transport throughputs	47.1%	49.0%	51.8%	-1.9 p.p.
IMPORT	crude oil
	- programmed quantities (thousand tons)	3,358	4,039	3,244	▼ 16.9%
	- achieved quantities (thousand tons)	3,346	4,038	3,410	▼ 17.1%
	- degree of achievement	99.6%	99.9%	105.1%	-0.3 p.p.
	- degree of use of the transport throughputs	27.7%	34.2%	28.9%	-6.5 p.p.
TOTAL	- programmed quantities (thousand tons)	6,351	7,106	6,520	▼10.6%
	- achieved quantities (thousand tons)	6,294	7,100	6,651	▼ 11.4%
	- degree of achievement	99.1%	99.9%	102.0%	- 0.8 p.p.
	- degree of use of the transport throughputs	34.3%	39.3%	36.8%	- 5.0 p.p.

Table 5 - Transported quantities by types of products between 2021-2023

The degree of use of the transport system in 2023 was down by 5 p.p. as compared to 2022, due to the decrease, by 806 thousand tons, in the transported quantities.

In 2023, the refineries in Ploiesti were under scheduled technical overhaul, the OMV Petrom refinery between 20.04.2023 – 12.06.2023, and the Lukoil refinery between 01.11.2023 – 30.11.2023.

Of the total quantity of crude oil, condensate and rich gas from indigenous production, transported and delivered to OMV Petrom refinery, approximately 32.8% (967 thousand tons) were transported by rail.

The evolution of the standardized technological consumption per products as recorded between 2021 - 2023, is as follows:

Products	2023			2022			2021
Products	Standardized	Achieved	Variation	Standardized	Achieved	Variation	Standardized	Achieved	Variation
Import crude oil	0.260%	0.195%	-0.065 p.p.	0.244%	0.171%	-0.073 p.p.	0.239%	0.168%	-0.071 p.p.
Domestic crude oil, condensate and light condensate	0.368%	0.350%	-0.018 p.p.	0.368%	0.361%	-0.007 p.p.	0.366%	0.348%	-0.018 p.p.
Domestic rich gas	7.383%	3.179%	-4.204 p.p.	7.383%	3.367%	-4.016 p.p.	7.383%	3.359%	-4.024 p.p.

Table 6 - The evolution of technological standardized consumption as compared to achieved between 2021-2023

Chart 7 - The evolution of the technological standardized consumption as compared to the achieved during 2021-2023

The technological consumptions recorded during transport were admitted within the limits, provided in the transport contracts.

The tariffs for the supply of crude oil, rich gas and ethane are regulated and approved by the NAMR and are distinguished for each transport subsystem.

The tariffs applied for the import transport subsystem vary according to the installment of transported quantity, being practiced the bracketing tariff model and the refinery- the hand-over site. Between 2022 and 2023, the following tariffs were applied:

- Tariffs from transport services on Domestic Subsystem

Period	M.U.	Transport Tariffs	Approved by NAMR Order no.
January 1st, 2022 - December 31st, 2022	RON/ton	105.50	229/2021
January 1st, 2023 - December 31st, 2023	RON/ton	117.95	364/2022

Tabel 7 - Transport tariffs Domestic – Subsystem

- Tariffs for transport services on the Import Subsystem

Period	Tranches	Arpechim Refinery	Ploiesti Basin *)	Petromidia Refinery	Approved by NAMR Order no.
Period	thousand tons/month	RON/ton	RON/ton	RON/ton	Approved by NAMR Order no.
January 1st, 2022 - December 31st, 2022	no more than 80	46.65	45.66	18.51	229/2021
	80 -120	37.32	36.53	14.81
	120 -160	27.99	27.39	11.11
	over 160	21.00	20.55	8.33
January 1st, 2023 - December 31st, 2023	no more than 80	52.25	51.60	20.73	364/2022
	80 -120	41.80	41.28	16.59
	120 -160	31.35	30.96	12.44
	over 160	23.51	23.22	9.33

*) Petrobrazi Refinery and Lukoil Refinery

Tabel 8 - Transport tariffs import - subsystem

The transport tariffs include a modernization quota meant exclusively for the financing of the investments related to the National Transport System.

The company holds a monopoly position on the pipeline transport market, not having competitors in its main area.

The transport services are being contracted based on the agreements concluded with the clients, drafted according to the frame contract annually approved by the National Agency for Mineral Resources.

Revenues from the provision of transport services and invoiced to beneficiaries increased by 2.8% compared to 2022, reaching the value of 482.9 million RON.

The income statement for each client and their share in the total transport revenues are as follows:

Chart 8 - The evolution of the transport revenues, per clients, achieved during 2022-2023

The transport services supplied by the company are addressed to a reduced number of clients, the volume thereof is closely related to the trade policy applied by the beneficiaries of the supplied services.

The revenues from the transport services supplied for OMV Petrom account for 78.2% in the total transport revenues of the company.

4.1.3 Other activities

The revenues from other activities hold a share of 0.5% in turnover decreasing by 5.7% (135 thousand RON) compared to 2022, coming from leases of lands and telecommunication equipment, rail shunting, etc.

4.1.4 Analysis of the operating activity

In the table below is presented the evolution of the transport services supply and other services, for the period 2021-2023:

Indicators	M.U.	2023	2022	2021	Variation%
Indicators	M.U.	2023	2022	2021	2023/2022	2022/2021
Revenues from transport services Domestic Subsystem	Thousand ron	343,752	321,320	293,265	▲ 7.0%	▲ 9.6%
Revenues from transport services Import Subsystem	Thousand ron	130,096	144,044	113,541	▼ 9.7%	▲ 26.9%
Total Operating Revenues*)	Thousand ron	473,848	465,364	406,806	▲ 1.8%	▲ 14.4%
Revenues from other operations related to transport by NTS	Thousand ron	9,025	4,493	3,671	▲ 100.9%	▲ 22.4%
Total transport revenues	Thousand ron	482,873	469,857	410,477	▲ 2.8%	▲ 14.5%
Revenues from rents	Thousand ron	2,078	1,966	1,633	▲ 5.7%	▲ 20.4%
Other revenues	Thousand ron	163	410	677	▼ 60.2%	▼ 39.4%
Turnover	Thousand ron	485,114	472,233	412,787	▲ 2.7%	▲ 14.4%

Table 9 - Evolution of turnover revenues during 2021-2023

Chart 9 - Evolution in turnover during 2021 - 2023 (thousand RON)

In 2023 the turnover recorded an increase by 2.7% as compared to the level achieved in 2022.

Transport revenues hold a share of 99.5% in total turnover, the remaining 0.5% is revenues from renting land and telecommunications equipment and from shunting wagons.

4.1.5 Analysis of the supply activity

The procurement activity

The procurement activity performed in compliance with the provisions of the Internal Procurement Norms of CONPET S.A. and other internal procedures.

During January-December 2023, have been initiated 99 procurement procedures and have been concluded 95 by contracts in total amount of 430,858 thousand RON and 1,118 thousand Euro.

The contracts for the procurement of products and works with a value higher than 500,000 Euro and the services procurement contracts with values higher than 100,000 Euro, concluded between 01.01.2023 and 31.12.2023, were presented in the form of annexes to the preliminary report drawn up for the year 2023, uploaded on the CONPET website on February 28th, 2024.

4.1.6. Legal papers concluded according to Art. 52 para. (1) and (3) GEO no. 109/2011

According to the provisions of Article 52 para. (6) of GEO no. 109/2011 "In the half-yearly and annual reports of the Board of Directors [...] shall be mentioned, in a special chapter, the legal acts concluded under the conditions of para. (1) and (3), [...]”.

The transactions concluded according to Article 52 of GEO no. 109/2011 in the second semester of 2023 can be found in Annex no. 1.

4.1.7 Company mergers and reorganizations, procurements and disposals of assets

There were no mergers and reorganization activities in the reported period, January – December 2023.

The company has no open subsidiaries in Romania or abroad.

Purchases of tangible and intangible assets in the period January - December 2023 were made in accordance with the investment program and the approved revenues and expenditure budget and are intended for deployment and modernization.

In the reported period there have not been made purchases of assets consisting of buildings and/or lands.

4.1.8 Development of the internal control management system

The internal control management system

The company CONPET S.A., defined as a public entity in accordance with the Order of the Secretary General of the Government no. 600/2018, applies the Code of the internal control management of public entities approved by the aforementioned legislation.

CONPET S.A. does annual self-assessments of the degree of implementation of the internal control management standards and reports in accordance with the legal requirements.

According to the provisions of OGSG no. 600/2018 for approving the Internal Control Management Code of public entities, the Monitoring committee of the internal control management system was appointed, by decision of the Director General.

The main attributions of the Committee for the monitoring of the internal control management system:

- Draws up the Development Program of the internal control management system covering the objectives of CONPET SA in internal control management, including, for each standard of internal control management, activities, officers in charge and deadlines, as well as other relevant elements in implementing and developing the internal control management system.

- Aims to achieve and provides upgrade of the development program of the internal control management system.

- Coordinates the process of updating the general and specific objectives, the procedure activities, the risk management process, the system performance monitoring, the procedure situation and the monitoring reporting system, respectively information to the Director General.

- Analyzes and gives priority to significant risks, that might affect achieving the objectives of CONPET S.A., by establishing the risk profile and risk tolerance.

- Analyzes and endorses annually the risk profile and the risk tolerance limit proposed by the technical secretariat based on the Risk Registry within CONPET S.A. and submits to approval of the Director General.

- Analyzes the annual plan of implementation of the control measures for the significant risks within CONPET S.A., drafted by the technical secretariat and submits to the approval of the Director General.

- Analyzes the annual report on internal control management system and submits it for approval to the Director General.

- Analyzes and endorses the Report on the status of implementation of the actions included in the Internal Managerial Control System Development Program.

The Commission shall cooperate with all organizational entities so as to implement and develop the internal control management system. Each member of the Monitoring Committee is responsible for fulfilling the tasks from the development program of the internal control management system and for compliance with established deadlines.

The Internal Audit shall advise the Monitoring Commission and attends its meetings. The Internal Public Audit Bureau monitors the activities of the Monitoring Commission and regularly informs the Director General on the activity of the Monitoring Committee and the problems they are facing and which may affect the process of implementing and maintaining the internal control management system.

The Development Program of the internal control management system of CONPET is analyzed annually, on the self-evaluation of the implementation degree, according to OGSG no. 600/2018. The development program of the internal control management system of CONPET SA for 2023 has been approved by the Director General.

According to the provisions of the system procedure “Setting the objectives of CONPET S.A.”, SMART objectives have been set for 2023, at the level of all organizational entities. During 2023, some of the specific objectives were revised as a result of changing the assumptions/premises underlying their formulation.

In 2023, meetings of all risk management teams (EGR) were held, in which each team reassessed the risks corresponding to the established objectives and analyzed the status of implementation of control measures. Control measures have been proposed to mitigate risks, as well as deadlines for their implementation, according to the provisions of the system procedure "Risk management". The significant risks and their control measures were the subject of debate within the meetings of the Commission for the monitoring of the internal control management system.

Following these sessions, the risk profile at CONPET S.A. level is as follows:

- 100 tolerable risks (with exposures from 1-4);

- 82 high tolerability risks (exposure between 5-8);

- 16 low tolerability risks (exposure between 9-12);

- 0 intolerable risks (exposure 15-25).

The risk profile at CONPET SA in 2023 as compared to 2022 and 2021, is as follows:

Chart 10 - Risk profile CONPET SA - comparative presentation 2021-2023

During the risk analysis meetings, carried out by the management in 2023, the risk management teams also took into account the risks identified during the external audit on information security. As a result, the number of risks identified in 2023 increased to 198 risks, compared to 163 risks identified in 2022.

The Technical Secretariat of the Monitoring Committee has established the Significant Risk Registry within CONPET S.A. (with a tolerance level higher than or equal to 9).

This document was revised three times during 2023, following the reformulation/reassessment of significant risks and the addition with additional control measures, as well as the risk reanalysis in EGR meetings, following the revision of the specific objectives for 2023.

The activities of treatment the significant risks were centralized and the Annual Plan for the implementation of control measures for significant risks has been developed, as required by OGSG no. 600/2018. Following the reformulation/reassessment of significant risks and completion with additional control measures, the Annual Plan for the implementation of control measures for significant risks at Conpet S.A. level for 2023 has been revised.

Based on the Risk Register at CONPET level and the methodology established by the system procedure "Risk Management", the risk tolerance limit at CONPET S.A. level for 2023 is exposure maximum 12, the risk appetite being at a medium level. The management of the company does not tolerate risks with exposure higher than 12. If the exposure of a risk increases above the tolerance limit, the Monitoring Commission shall meet for an analysis/proposal of urgent measures. Following the risk analyses carried out during 2023, no intolerable risks were identified.

In 2023, all the actions included in the development program of the internal control management system at CONPET S.A. have been made within the deadlines set in the program.

Following the self - assessment of the internal control management system in accordance with OGSG no. 600/2018, it has been declared compliant at 31.12.2023 with all 16 standards implemented. The results of the self-assessment and the details regarding the stage of implementation and development of the internal control system were included in the Report on the managerial internal control system (Annex no.4 to this report) and in the centralizing situation regarding the stage of implementation, on December 31st, 2023. These reports were also communicated to the Board of Directors and the Tutelary authority.

Integrated management system

Certification of the Integrated management system quality - environment - occupational health and safety was held for the first time in September 2007 with recertification every three years.

Later, in September 2016, the company also obtained certification for the energy management system, a system that was implemented and integrated into the previous management systems.

Following the external recertification audit, carried out by the BUREAU VERITAS body, in September 2022, the certificates for the management systems of quality, environment, health and safety at work and energy were issued:

- Certificate no. RO22. RO22.4340383Q, in accordance with the requirements ISO 9001:2015;

- Certificate no. RO22. RO22.4340383E, in accordance with the requirements ISO 14001:2015;

- Certificate no. RO22. RO22.4340383S, in accordance with the requirements ISO 45001:2018;

- Certificate no. CZE - 2200254, in accordance with ISO 50001:2018 requirements.

Between August 28th - September 1st, 2023, the external surveillance audit for quality, environmental, occupational health and safety, energy management systems took place, according to the requirements of ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 50001:2018, audit carried out by the certification body BUREAU VERITAS. Following the external surveillance audit for the management systems of quality, environment, occupational health and safety, energy, no non-conformities were identified.

The audit team of the BUREAU VERITAS body concluded that the organization CONPET S.A. has established and maintained an integrated management system in accordance with the requirements of the reference standards and has demonstrated its ability to meet the requirements according to the policy, objectives and scope of the organization. As a result, the certification body BUREAU VERITAS recommended maintaining the certificates for quality, environment, occupational health and safety and energy management systems, issued for the organization CONPET S.A.

Starting 2010, within CONPET SA the railway safety management system is implemented and maintained in accordance with the national legal requirements on railway safety and reference European Directives. The field of application of this system includes the railway ramps where CONPET carries out railway shunting, for which the company holds the “Licence for the performance of rail transport services (railway shunting)”, granted by the Romanian Railway Authority (Ro. AFER).

Also, for railway ramps where CONPET S.A. performs only railway shunting in its own interest/for third parties/on industrial railway line that is not owned by the company, the Romanian Railway Safety Authority (Ro. A.S.F.R.) issued the Single Safety Certificate, in accordance with the provisions of the Order of the Minister of Transport, Infrastructure and Communications nr. 743/2020 for the issuance of the single safety certificate to operators performing only railway shunting on Romanian railways. The certificate is updated whenever CONPET S.A. requests the amendment of Annex B containing the list of powered railway vehicles with which the company performs the railway maneuver.

On 31.12.2023, the Single Safety Certificate no. O.M.F. 2023008, valid until 20.09.2025, subject to periodic endorsement at one year.

Starting January 2021, within CONPET has been deployed the anti-bribery management system implementation program, as required by SR ISO 37001:2017, program which finalized in June 2022.

In July 2022, following the external audit performed by the certification body SRAC CERT,

the following certificates have been issued:

- SRAC nr.28/13.07.2022

- IQNet nr. RO-0028/13.07.2022

asserting compliance with the requirements of the anti-bribery management system implemented by CONPET S.A. in compliance with the requirements of ISO 37001 standard.

Following the external surveillance audit in June 2023, the SRAC CERT certification body did not identify any non-conformities of the anti-bribery management system and recommended maintaining the certificate of conformity no. 28/13.07.2022 for the anti-bribery management system implemented in the organization CONPET S.A.

In order to determine the effectiveness of the integrated quality - environment - health and safety - energy –- and railway safety management system, in May 2023 the Management Analysis no. 31 was carried out. Following the carried-out analysis, actions were established to increase the effectiveness of the management systems. All the actions included in the Action Plan of AEM 31 have been implemented up to December 31st, 2023.

Within the energy management system, the energy objectives and targets for the year 2023 were established as follows:

Energy objective 2023	Energy target 2023
O1: Maintaining energy efficiency for electricity use.	O1/T1: Maintaining the annual average of the specific technological consumption of electricity in the Transport Operations Unit at a maximum level of 3.3 KWh/ton produced O1/T2: Maintaining the electricity annual average consumption in Conpet administrative buildings as compared to the reference period 2019.
O2: Increasing energy efficiency for the uses of natural gas.	O2/T1: Reducing natural gas consumption at CONPET as compared to the reference period 2019.
O3: Increasing energy efficiency for uses of diesel.	O3/T1: Reduction of specific diesel consumption for the rail shunting within CONPET as compared to the 2019 reference period
O4: Increasing energy efficiency for the uses of automotive fuels.	O4/T1: Maintaining the auto fuel consumption in CONPET compared to the reference period 2019.
O5: Increasing energy performance for the uses of water	O5/T1: Maintenance of the water consumption at CONPET level, for every location by the observance of the Water Management Rights Permit

Table 10 - Energy objectives and targets 2023

In order to meet these targets, was developed and approved the document: “Action plan for achieving energy objectives and targets 2023”.

The internal audit of the integrated quality– environment– occupational health and safety management system and the railway safety management system shall provide information regarding the compliance with the requirements of the references and applicable legal requirements. Internal audits are also aimed at assessing the effectiveness and continuous improvement of the implemented management systems.

The internal audits were conducted in accordance with the approved program for the year 2023 and the audit criteria established in the audit plans. The results were communicated to the audited persons by distributing the audit reports, to which were attached reports of non-compliance and corrective action opened during audits. The company annually provides resources to develop adequate internal audit, mandatory requirement of the reference standards SR SR EN 9001:2015, SR EN ISO 14001:2015, SR ISO 45001:2018, SR EN SR 50001: 2019 and SR ISO 37001:2017, as well as the regulations on railway safety.

Studies	Total	% in total employees	Women	% in total employees	Men	% in total employees
General	87	6.0%	8	0.6%	79	5.4%
Secondary education	807	55.4%	72	4.9%	735	50.4%
Higher education	563	38.6%	211	14.5%	352	24.2%
Total	1,457	100%	291	20.0%	1,166	80.0%

Table 11 - Personnel structure by education level and gender at December 31st, 2023

The evolution of the personnel structure by education categories and gender reveals that the company promotes a non-discriminatory behavior by employing female specialists with higher education and professional skills that contributes to the growth of the company’s activity results.

Chart 13 - Evolution of the personnel structure by level of studies between 2014 -2023

The personnel with managerial positions represent 5.3% of the total number of employees and the executive staff amounts to 94.7%. Of all employees with managerial positions 32.5% is represented by female persons.

In 2023 the structure of employees by categories was the following:

- Directly productive 538 employees;

- Technically productive 325 employees;

- Administrative 257 employees;

- Indirectly productive 210 employees;

- General service 127 employees.

Chart 14 - The structure of employees by category in 2023

The degree of unionization of the workforce at the end of 2023 is 98.6%. During 2023, there have been no elements of a conflicting nature between employees and the management of the company.

Aspects regarding the Collective Labor Agreement

The Collective Labor Agreement is approved by the Board of Directors and is registered with the Prahova Territorial Labor Inspectorate. It is concluded for a period of 2 years, starting with 07.06.2022.

In application of the approved Collective Labor Agreement, 12 protocols were concluded in 2023.

Professional Training and Authorization Activity

In order to maintain and/or develop specific skills and basic abilities of the human capital, the training activities are carried out on an ongoing and planned basis, based on the professional training and authorization programs of the company, as a result of the conduct of a comprehensive process of identification and priorities setting of the CONPET SA staff training needs.

Training of company personnel is achieved mainly through participation in external courses, organized in collaboration with certified trainers for all fields of activity within the company. Also, training is conducted internally by trainers and/or experts of the company, with a good knowledge and experience relevant to the activity of the company. They support professional training sessions and training with the aim of updating job-specific knowledge and skills, as well as examining or checking the employees participating in the respective sessions.

Training of the employees has two components: training (technical, economic and other specialties) necessary to perform duties in the job description and a general one on training and/or professional licensing in various fields.

CONPET management assures annually by the Revenues and Expenditure Budget sources for the provision of training sources. Special attention is paid to the training of technical staff (maintenance and operations), mainly for new skills necessary to carry out the work safely on the National Transport System.

Crt.no.	Type of professional training/ authorization	Nuber of participations
Crt.no.	Type of professional training/ authorization	2023	2022	2021
1	Various fields authorizations (specific per activity)	106	119	73
2	Railway authorizations	376	251	245
3	Training	464	413	302
4	Internal authorizations	407	450	439
5	Qualifications/internal authorizations	1,345	1,167	15
6	Total number of trainings/authorizations	2,698	2,400	1,074

Table 12- Structure of training/professional authorization courses in 2021 -2023

Chart 15 - Type of professional training and authorization in 2023

The situation of professional training expenses made during 2021-2023 is presented as follows:

Indicators (thousand RON)	2023	2022	2021
Authorization courses	228	188	128
Training courses	365	401	279
Total personnel training expenses	593	589	407

Table 13 Professional training - expenses 2021-2023

The training and professional authorization activities of the company’s employees for 2021-2023 were carried out by framing within the approved revenues and expenditure budget.

Regulation on the assessment of the professional performance of CONPET S.A. employees

The professional performance evaluation of CONPET S.A. employees is carried out in accordance with the Regulation on the evaluation of individual professional performance of Conpet employees - Annex to the Internal Regulation.

The Regulation is in line with the provisions of the GSG Order no. 600/20.04.2018 approving the Code of Internal Control Management, Law no.53/2003 republished, - the Labor Code, as well as with the Board of Directors requests, that focus on the individual professional performance, a basic principle in labor relations.

The action for evaluating the professional performance of employees for the activity carried out in 2022 took place in 2023Q1, in accordance with a new Regulation for evaluating the performance of the employees.

After the centralization and processing of the information resulting from the evaluation of the professional performance of the employees for the activity carried out in 2022, the evaluation report of the performance of the employees was drawn up and submitted to the management. The evaluation report includes the results obtained by the employees following the performance of their evaluation, inclusive of the degree of achievement of the SMART individual performance objectives of the employees occupying management positions.

The evaluation of the professional activity of employees for 2023 will be carried out in the first quarter of 2024.

At the end of 2023, addenda to the individual employment contracts were concluded for the employees with management positions, which contain, in the form analyzed and established at the level of each entity: individual objectives, performance indicators, target values and their associated weights for the activity from the year 2024.

4.1.12 Analysis of the OHS activity

Identification of the environmental aspects and environmental impact assessment

The environmental impact assessment activity is carried out in the production sectors whenever changes occur in the system involving environmental impact activities, the list of significant impact issues identified at company level being the basis for the development of the Environmental Management Program and the Action Plan for the achievement of the environmental objectives.

During 2023, environmental aspects were reviewed at the site level, focusing on identifying environmental aspects, including, how risks and opportunities related to environmental aspects are treated to prevent and limit their consequences on human health and the environment, using opportunities both for the benefit of the organization, and, as well as the environment. The following documents have been reviewed:

- The Environmental and Actions Management Program containing: the commitments associated to the environmental policy, general objectives and measurable environmental targets, the performance indicators on environmental protection, the positions responsible for the achievement of the environmental targets; as well as actions to achieve environmental objectives, which took into account the significant environmental aspects identified at the level of CONPET S.A., the measures in the inspection reports/ minutes-authorities on compliance with legal requirements and other applicable requirements;

- The list of significant environmental aspects and associated impacts generated at the level of CONPET S.A. company.

The stage of achievement of the objectives, targets set and the stage of the implementation of the actions set for the achievement of the environmental objectives are analyzed annually by the executive management, in the framework of the analysis carried out by the management.

Regulation of activities in terms of environment and water management

In terms of environmental protection and water management, CONPET S.A. activity is authorized in accordance with the provisions of GEO 195/2005 on environmental protection, as supplemented and amended and Water Law no.107/2005, with subsequent amendments and additions.

CONPET S.A. activity is authorized in all counties by the regulatory authorities (A.N.P.M./National Agency for Environmental Protection, county A.P.M./Agency for Environment Protection, A.N.A.R./National Administration „Romanian Waters”, A.B.A./Water Basin Administration, S.G.A./Water management Unit), holds 39 water management authorizations and 22 environmental authorizations.

For the operation in legality from the point of view of environmental protection, for the year 2023 the annual endorsements of the environmental authorizations were obtained. Furthermore, there have been revised:

- The Environmental Authorization for Țicleni – Ploiești crude oil, rich gas and ethane major transport pipelines and the related work sites on the administrative territory of Gorj, Vâlcea, Olt, Argeș, Dâmbovița, Prahova counties;

- The environmental Permit for the crude oil loading ramp Marghita, Bihor county;

- The Environmental Authorization for the Transport of hazardous waste, substances and dangerous goods across the country.

As regards the water management regulation, during 2023, 5 water management permits have been renewed for watercourses crossings by pipeline routes related to the N.T.S., namely:

- Water management authorization for Import crude oil transport pipelines Ø 14’’, 20’’, 28’’, Constanta county;

- Water management permit for import crude oil major transport pipelines and local pipelines, Ialomita county;

- Water management authorization for Rampa Imeci, Covasna County;

- Water management permit for import crude oil major transport pipelines and local pipelines, Dambovita county;

- Water management permit for crude oil, rich gas and ethane transport pipelines in Dolj County.

Having regard to the content of the Emergency Ordinance no. 52 of 31.05.2023 for amending and completing some water regulations establishing new tariffs, their implementation generating an impact on the company's profit, we specify the following aspects:

- The transport pipelines, active/inactive/conservative, managed by CONPET company, cross water courses - natural monopoly of strategic interest held by the National Administration ''Romanian Waters’’;

- The administration of crude oil/rich gas/ethane/fiber optic pipelines is regulated in terms of water management, with a number of 39 water management authorizations at the company level, their content includes, among others, the crossing points of the watercourses, as well as the crossing lengths;

- According to the current legislative amendments - Art. 81, Paragraph 34 of the Water Law no.107/1996: „For the use of the public domain, in order to cross/under cross the goods managed by the National Administration ”Romanian Waters’’, a charge of use is established”;

- The amount of the tariffs for the use of the public domain, in order to cross/over cross the goods administered by the National Administration “Romanian Waters’’ is regulated by the above-mentioned normative act and is found in Annex 5, item 7.3, this being of 5.2 RON/lm per crossing, VAT excluded/month;

- In order to estimate the financial impact generated by the application of the legal norm, all crossings and under crossings, as well as the crossing lengths found in the current water management authorizations have been identified and centralized. Following their inventory, the costs with the new usage tariff for 37,845 lm of pipes amounts to approx. 196.79 thousand lei, VAT excluded/month;

At the same time, in Art. 81 Par. 31 of the Water Law nr. 107/1996 a new letter (e) was inserted, with the following content: “e) contribution related to general administrative, maintenance and development expenses, for the sustainable management of the infrastructure of the National Water Management System, at a fixed rate, applicable to all users of water resources by categories of resources and users".

This fixed quota is paid annually and is additional to the subscriptions concluded with A.N.A.R. for the payment of water consumption.

Following the inventory of the existing drillings in CONPET S.A. working points, the total value for one-year amounts to 62.7 thousand RON.

Assessments of compliance with legal requirements and other environmental requirements

The assessment of compliance with the legal requirements or other applicable environmental requirements is carried out by:

- inspections carried out by the environmental authorities (representatives of central and local environmental and water management authorities);

- inspections carried out by HSEQ supervisors and the staff of the Environmental Protection Department;

- external audits carried out by bodies certifying the environmental management system integrated in the company’s integrated management system;

- internal audits performed by the internal auditors within the Management Systems and Internal Control Management Departments and the Internal Public Audit Department.

The environment and water management authorities are carrying out scheduled audits in CONPET S.A. sites, unscheduled and thematic, with regards to the observance of the legal requirements and other environmental regulations, not having been found major nonconformities.

To verify compliance with the legal requirements, in 2023, were recorded 46 external inspections of the environmental authorities in the counties where CONPET S.A. operates.

The personnel within the sectors, namely the HSEQ responsible perform scheduled inspections, as per the annual Chart of inspection with regards to the compliance of the legal requirements and other applicable requirements, but also unscheduled inspections as per the attributions of the job description.

During 2023, an external audit was carried out by the BUREAU VERITAS certification body, to verify compliance with the requirements of the ISO 14001:2015 standard that refers to the environmental management system. No non-conformities/deviations were found regarding the compliance obligations in this area.

Following the internal audits established in the annual internal audit program, the non-conformities identified in the environmental management system were identified and corrected in time.

Pollutions bearing significant impact on the environment

During the pumping of crude oil, accidental pollution can occur on the transport pipelines, from internal or external causes, generating pollution of the geological environment that can have a significant impact. Therefore, in 2023 there have been reported accidental pollutions in the areas: Lipănești, Paralela 45, Măgurele, Plaiul Corbului-Matița, Găgeni, Urlați (județul Prahova), Valea lui Traian, Cumpăna (Constanța county), fixed point Argeș (Giurgiu County), Valea Lupului-Colțești (Gorj county), Icoana, Oteștii de Jos (Olt county), Ghimpați (Dâmbovița county).

The expenses made in 2023 for the decontamination of the affected areas reached 253 thousand RON.

For compliance with the regulations required by the national legislation in force on the environment, regarding management of dangerous waste, “paraffin - type” and “tank sludge”, the company CONPET has the obligation to contract services for recovery/disposal thereof avoiding sanctions provided by GEO no. 195/2005 on environmental protection, Law 17/2023 on the approval of GEO no. 92/2021 on waste regime and GD no. 1061/2008 on the transport of hazardous waste in Romania.

Hazardous waste “tank sludge-type” is generated from the storage of the crude oil in tanks (in time, mechanical impurities from crude oil settles generating this sludge), it must be periodically evacuated, in order to ensure the necessary storage space for the crude oil, respectively repairs/calibration of tanks, as well as the need to eliminate the risk of fires or pollution from oil storage tanks, tanks leaks, decanters and sewage that is no longer present in the technological and sludge deposits.

The expenses for the execution of the slurry cleaning services carried out in 2023 were 456 thousand RON.

In the process flows performed by CONPET SA, periodically, based on maintenance programs, the major and/or local crude oil transport pipelines are subject to inside cleaning with special devices called "pigging". Following the execution of inside cleaning of these pipelines, of the related keyboards, of the filters from pumps or skids, paraffin is generated which is a hazardous waste according to environmental legislation in force. This waste was stored in metal dumps, located in the technological premises of the company, until its disposal by authorized operators, contracted by the company.

Monitoring of environmental factors

Based on the requirements of the chapter “Environmental Monitoring” included in the environmental permits, “The annual program for monitoring and measuring the characteristics of the environmental factors 2023” has been developed which has included the performance of the following parameters:

- concentration of pollutants in the exhaust emissions from the water surface into the water in the sewer network and the concentration of pollutants in the groundwater (existing monitoring wells) determining the level of pollution in the event of accidental pollution of rivers;

- the concentration of pollutants in atmospheric emissions of stationary sources and/or movable (thermal power stations, oil storage tanks), and the concentration of pollutants in the ambient air;

- concentration of specific pollutants from soil samples;

- noise level.

To determine the level of pollution for the environmental factors: water, air, soil and noise, analysis are being conducted by certified laboratories. The values recorded for each measured indicator were below the maximum limits provided for by the regulation, according to test reports issued. The physical and chemical analyzes to monitor environmental factors were taken through laboratories accredited according to SR EN 17025: 2005.

The results of monitoring the environmental factors are communicated to the environmental authorities as required by environmental permits. In 2023, the costs for environmental factors monitoring amounted to 26 thousand RON.

4.2 Analysis of the Development Activity

4.2.1 Main components of the NTS infrastructure

Below is represented, on the map of the country, the Crude oil, Condensate, Rich gas and Ethane National Transport System.

Chart 16 - The National Transport System operated by CONPET

Given the natural distribution of the oil fields spread over the entire Romanian territory, the National Transport System was built so as to meet the transport needs from all those fields to the refineries. The system operation is being made based on the local dispatch centers, coordinated from the Company’s Central Dispatch.

The Crude Oil, Rich Gas, Condensate and Ethane National Transport System has in composition 4 transport subsystems, grouped according to the transported products as follows:

The domestic crude oil and condensate subsystem transport

The subsystem contains pipelines covering approx. 1,700 km, for the transport of crude oil and condensate from the production units of OMV Petrom and third parties, operating areas throughout the country, to the refineries.

This subsystem has the following main components:

- Ardeal component, used to transport crude oil from the deposit to the railway loading ramps in rail tanks and by rail to the refineries in Ploiești or to Bărbătești unloading ramp.

- Moldova component used to transport crude oil from the production units related to Lucăcești, Comănești and Cerdac pumping stations to Rafo Onesti and Dărmănești refineries. Currently, as the processing plants of crude oil from Rafo Onești and Dărmăneşti refineries do not operate anymore, the pumping of the crude oil taken over for transport is taken to the warehouse of Moineşti loading ramp. From here the oil is transported by rail tanks to Petrobrazi, Petrotel- Lukoil refineries or other destination, depending on customer requests. During 2017, following the takeover of the concession by Mazarine of several oil fields in the region of Moldova, the Cerdac deposit was closed. The crude oil extracted from this area is being transported by the storage trucks to Ghelinţa/Comănești deposit.

Starting 2019, the crude oil from Ghelinţa storage warehouse is transported by tankers to the loading dock Imeci, loaded into railway tanks and transported to Petrobrazi/Lukoil refinery.

- Ghercesti - Ploiești component includes takeover of the crude oil from the production units related to Gherceşti, Lact, Izvoru, Videle, Poeni, Roata and Potlogi pumping stations and transport of crude oil by pipeline to Petrobrazi refinery in Ploiești.

- Ticleni–Ploiesti component includes two main lines with a length of approx. 250 km, line I and line II.

The major pipeline line I ensures the transport of crude oil from Țicleni and from Bărbătești unloading ramp to the refineries in Ploiești (with the possibility of pumping to Arpechim Pitești terminal, as well).

The major pipeline line II collects the crude oil and condensate from the pumping and repumping stations Mădulari, Orlești, Otești, Poiana Lacului, Oarja, Saru, Siliște and Bucșani for supply to the refineries in Ploiesti (or to the terminal in Arpechim Pitești).

- Muntenia basin pipeline component includes pipelines used to transport the crude oil from the stations and deposits close to the city of Ploiești.

- The local pipeline component used to transport crude oil from deposits to the loading ramps in railway tanks, and from here to the refineries in Ploiești.

The rich gas transport subsystem

The subsystem is intended for the transport of rich gas from the recovery plants in Ardeal, Oltenia and Muntenia to the refineries in Pitești and Ploiești. The transport subsystem has the following composition:

- major pipeline, line I Țicleni-Ploiești (served the region from Oltenia and Muntenia and today is no longer used following the closure of production facilities by OMV Petrom);

- local piping in Ardeal.

Rich gas transport via pipeline in Arpechim refinery has been suspended since April 2011. In 2017, the dower of the rich gas pipeline 6⅝” line I Bărbătești – Ploiești has been discharged, in length of 289 km.

Currently, there are running two recovery plants (Abrămuț and Calacea). Produced rich gas is transported via pipeline from the ramp Abrămuț to Marghita ramp, and from the ramp Calacea to Biled ramp, and from here by railway to Petrobrazi.

The ethane transport subsystem

This subsystem has been allocated for the transport of ethane from the deethanizer platform Turburea to Arpechim refinery Pitesti. At present, due to the inactivity of Arpechim refinery, the subsystem is not used. Ethane transport has been suspended since November 2008. We mention that a part of this pipeline (11 km) is used to transport condensate from Hurezani and Capreni deposits to Petrobrazi refinery, with the approval of NAMR.

Import crude oil transport subsystem

The import crude oil transport subsystem ensures the transport of crude oil from the Oil Terminal Constanta to the refineries in Ploiești, Petromidia Refinery and Arpechim Pitesti. The import crude oil transport subsystem consists of the following pumping stations: Constanța South, Mircea Vodă, Bărăganu, Dragoș Vodă, Călăreți, Mavrodin și Mărtinești. Depending on the chosen pumping type, different pumping scenarios can be performed for each transport relationship.

In 2023, the new under crossings of pipelines 20" and 28" Constanta – Baraganu were put into operation, at the Danube under crossing points C1 – C2 and Borcea arm under crossing C3 – C4.

The crude oil, condensate and rich gas domestic production is transported only via pipeline, either by rail tanks, or combined (rail and pipeline).

During the transport process, CONPET uses approximately 90 tanks of various capacities. Starting 2019, CONPET runs a big process of rehabilitation of tanks and replacing those with high degree of wear and storage capacity over the necessary of transport stream with new ones to meet the needs of current production, environment and energy consumption. The modernization and development process will be completed in 2030.

On 31.12.2023, the company also owns a fleet of 246 vehicles, intended for the transport of personnel for work purposes, means of intervention vehicles, off-road vans and mixed transport of persons and goods and special vehicles (emptying, cranes, diggers, etc.).

4.2.2 The wear degree of the company’s properties

In order to perform the transport of crude oil and rich gas, from and to all its business partners, in conditions of maximum operation, high efficiency and operating costs as low as possible, in compliance with the Legislation in force relating to environmental protection and labor protection and the other normative acts in the field, CONPET carries out a continuous activity on the improvement of the technical condition of the National Transport System.

In the period between 1995-2007, through the Modernization Project co-financed by the World Bank, works consisting of the rehabilitation and modernization/refurbishment of the Oil National Transport System have been conducted. This project has targeted:

- pipelines rehabilitation;

- rehabilitation of the pumping stations on the major pipelines and two crude oil and rich gas loading/unloading ramps;

- automation of the transport system and introduction of the SCADA system;

- introduction of crude oil tax measurement systems;

- development of a telecommunication system.

After 2007, the emphasis has been mainly placed on the further modernization of the pipeline system.

In order to correctly determine the parts of the pipes to be replaced, periodically the pipes of the transport lines are inspected with smart pigging for the determination of the parts of the spent pipe.

Furthermore, for safe operation, monitoring and maintenance of the National Transport System via pipelines, it was considered the performance of works intended to secure the infrastructure of the water crossings designed to enhance the degree of safety in operation of the pipelines in question, indirectly, and the protection of the waters crossed against pollution.

The pipelines that make up the Crude Oil National Transport System over cross/ under cross various watercourses.

Another important component in terms of safe operation and environmental protection in order to pay attention to the investment process was to secure the crossings. The works carried out were:

- low weirs;

- bank protections upstream and downstream of the low weir;

- wave crushers;

- piles foundation consolidation;

- bank protections on the route of the pipelines which are parallel with the river bed (damaged bank);

- other works related to pipeline consolidation.

In 2023, the new under crossings of pipelines 20" and 28" Constanta – Baraganu were put into operation, at the Danube under crossing points C1 – C2 and Borcea arm under crossing C3 – C4.

The modernization of the pipeline transport subsystems also included the investments made at the other technological components of the system, namely:

- pumping stations;

- technological installations;

- PSI facilities;

- technological and administrative buildings;

- energy, thermal and telecommunication installation;

- other auxiliary components.

The improvement of the technical status of the transport system, led to:

- reduced technological costs in the storage and transport process;

- minimized energy, fuel and lubricant consumptions;

- minimized operating costs and reduced operating difficulties;

- improved safety and flexibility of the system;

- reduced environmental impacts;

- improved quantitative and qualitative measurements of the crude oil transported.

Compared to the above, it can be appreciated that the technical condition of the Crude oil National Transport System via pipelines, operated by CONPET, is an appropriate one.

4.2.3 Investments achieved in 2023

The achievement of the investments program approved for the year 2023 is the following:

Crt. No.	Name of the element – thousand RON	2023 Program	Achieved 2023	Degree of achievement %
	TOTAL GENERAL, out of which:	112,000	83,062	74.2%
I	PUBLIC DOMAIN	90,000	71,580	79.5%
1	Pipelines rehabilitation, o/w:	25,681	18,004	70.1%
1.1	Pipeline replacement	24,315	17,927	73.7%
1.2	Safe disposals	1,366	77	5.6%
2	Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm	28,782	28,782	100.0%
3	Modernization and monitoring of the cathodic protection system related to the NTS domestic and import	2,950	1,554	52.7%
4	Technical support and consultancy	25	0	0.0%
5	Tanks	3,603	2,972	82.5%
6	Energy works	3,497	2,581	73.8%
7	Telecommunication works	1,600	1,000	62.5%
8	Pumping systems modernization	7,531	5,762	76.5%
9	Stations/ramps modernization	10,672	6,973	65.3%
10	Buildings, stations fencing	1,155	248	21.5%
11	Automation and SCADA works	4,454	3,704	83.2%
12	Other expenses	50	0	0.0%
II	OPERATING DOMAIN	22,000	11,482	52.2%
	Investment objectives, o/w:	18,148	8,990	49.5%
1	Pipelines rehabilitation	2,600	1,003	38.6%
2	Buildings, stations fencing	2,443	458	18.8%
3	LDH and tank cars	7,020	4,506	64.2%
4	Other works	5,277	2,351	44.6%
5	Intangible investments	808	672	83.2%
	Independent facilities and equipment	3,852	2,492	64.7%

Table 14 - The achievement of the investment program 2023 as compared to Program 2023

Significant investment objectives completed in 2023

- Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm;

- Replacement of crude oil transport pipeline L1 Ø 8 ⅝ ʺ Țicleni Bărbătești, in the water access road site Bărbătești City Hall, approximately 200 m;

- Replacement of a crude oil section Ø 6 ⅝ʺ Urziceni-Albești area, Parepa locality, 1500 linear meters in length;

- Replacement of a section of about 500 m length pipeline Ø 5 9/16 Copăceni - Vega Refinery and smart pigging;

- Replacement of Ø 20” C4 Bărăganu crude oil transport pipeline along 3 lines, C2-C3 along 6 lines, Ialomita county;

- Replacement of Ø 20ʺ Bărăganu-Călăreți crude oil transport pipeline along 6 lines, Călărași County;

- Condensation tank Barbatesti station;

- Moreni crude oil tanks;

- PSI tanks in Constanta and Pecica stations;

- Cathodic protection systems related to the domestic and import NTS;

- Tele-transmission and tele-management of the power consumptions in 8 work sites of CONPET;

- Modernization of Marghita ramp;

- Expanding Cyber + Telecom telecommunications locations for SCADA system and weighing system;

- Realization of an electricity production system (a photo voltaic power plant) with photo voltaic panels in the precinct of Administrative Headquarters 2;

- Conversion of two diesel-hydraulic locomotives into electric locomotives.

Significant investment objectives in progress on 31.12.2023

PUBLIC DOMAIN

- Replacement of pipeline Ø 20” Constanța county - C1 - 8 sections;

- Cathodic protection systems related to the domestic and import NTS;

- Modernization of pumping station Ochiuri;

- Rehabilitation works at Cireșu loading ramp;

- Upgrade of Moreni station;

- Upgrade of Mislea station;

- Biled Fire Prevention and Security tank;

- Buffer tank Independenta;

- Tele-transmission and tele-management of the power consumptions in 7 work sites of CONPET;

- Extension of SCADA system - 4 ramps and 5 stations;

- Rehabilitation of pumps room and connection buildings in Calareti station;

- Smart pigging of Ø10 ¾” F1 Barbatesti – Ploiesti Vest and Ø 10¾” F2 Orlesti – Ploiesti (Petrobrazi) pipelines;

- Replacement of pipeline section Ø 6⅝" Paduret II - Buda over a distance of 7,600 m;

- Replacement of pipeline section Ø 8” Moreni - Mija approx. 7,200 m and pigging stations;

- Safe disposal of the Ø 12" and Ø 14" Cartojani-Ploiesti pipelines at the over crossing of Cricovul Dulce;

- Replacement of Ø 8 ⅝” Lucăcești-Vermești crude oil transport pipeline - the section from Deal Măgura to Vermesti in approx. 9 km in lenght.

OPERATOR FIELD

- Conversion of diesel locomotive in electric locomotive;

- Replacement of pipeline section Ø 6⅝ʺ Warehouse Petrom Orzoaia de Sus – Urlați crude oil station, about 1,600 m in length.

Commissioning achieved in 2023 amounted to 183,684 thousand RON, out of which, per financing sources:

- 173,114 thousand RON out of the modernization quota;

- 10,570 thousand RON out of other own sources;

4.2.4 Disputes and other aspects on the company’s tangible assets

During 2023 CONPET SA was involved in a total of 142 litigations. Among them, 45 litigations have been completed.

The most important disputes in which the company is involved are presented below:

a) The disputes concerning the ownership of the tangible assets of the company

CONPET S.A. is not involved in trials regarding the claim of ownership of certain real estate.

b) Litigation in connection with the claims of the owners of the lands crossed by the Crude Oil National Transport System.

On 31.12.2023, CONPET S.A. had a number of 14 files before the courts in different procedural stages, having as subject the claims of the landowners related to the lack of use of the owned lands transited by the major pipelines that are part of the Crude Oil National Transport System. Among these, we list a number of 10 cases that we consider to be important in terms of the amount of the applicants' claims and representative through the legal content of the applications (the rest of the cases outlining some of the types of legal proceedings listed below):

1. File no. 3451/108/2016*** – Timisoara Court – pending

Trial stage: Appeal - retrial

By Decision no. 761/23.11.2017 the Court of Appeal Timișoara admits the appeal of the applicant Territorial Administrative Unit of Pecica, Arad County, annuls the appealed judgment and sends the case for retrial to the Arad Tribunal. Decision no. 761/23.11.2017 was appealed by CONPET S.A. at the High Court of Cassation and Justice.

Clarifications: The Territorial Administrative Unit of the city of Pecica has filed a petition requesting the court to order the obligation of the defendant CONPET S.A. to divert the crude oil pipeline that crosses a number of 22 plots of building land, intended for housing construction, to pay the amount of 65,000 Euro representing the value of a building that could no longer be capitalized, to pay an annual rent, during the existence of the pipeline, as a result of the enclosing of the areas shown above by the right of legal servitude exercised by CONPET S.A. and to compel the defendant CONPET S.A. to pay compensation for the period 31.10.2014-31.05.2016 as a result of the limitation of the attributes of the ownership of the 22 plots of building land and the decrease of the fair market value of the land in the real estate market due to the restrictions imposed by Order no.196/2006 of NAMR regarding constructions. At the same time, he requested that the defendant CONPET S.A. be ordered, from 3 to 3 years, to adapt the amount of the damages to the value of circulation at that time of similar lands and of the provisions of the future orders of the N.A.M.R.

By the Report dated 07.06.2018 the High Court of Cassation and Justice declared Conpet’s appeal as inadmissible, being promoted against a final judgment, which does not fit into the hypothesis regulated by Art. 483 Para.1 Code of Civil Procedure. The parties submitted their views on the report. By the Conclusion dated 10.10.2018, the High Court of Cassation and Justice basically admits the appeal declared by the claimant-defendant Conpet S.A. against the civil decision no. 761/A of November 23rd, 2017 issued by the Timişoara Court of Appeal – Second Civil Section.

By Decision no. 615/22.03.2019 the High Court of Cassation and Justice admits the appeal filed by the appellant-defendant Conpet S.A., scrapps the decision under appeal and refers the case to a new trial to the same court of appeal – the Timișoara Court of Appeal.

By Decision no. 306/07.06.2021 Timișoara Court of Appeal rejects the appeal declared by the appellant-claimant, the Territorial Administrative Unit of Pecica city.

The sentence was appealed by the Territorial Administrative Unit of Pecica city.

By Decision no. 641/15.03.2023 the High Court of Cassation and Justice admits the appeal, scrapps the decision under appeal and refers the case to a new trial to the same court. Final judgement.

By Decision no. 621/13.12.2023 the Court of Appeal of Timișoara admits the appeal of the applicant Territorial Administrative Unit. Pecica city. It partially changes the appellant's sentence in the sense that it admits in part the request for summons made by the claimant the Territorial Administrative Unit Pecica city in opposition to the defendant CONPET S.A. and obliges the defendant to pay the amount of 137,045.69 EUR as compensation in favor of the claimant. It upholds the rest of the appealing sentence. It obliges the respondent to pay in favor of the appellant the amount of 17,579 RON as legal expenses. The decision can be object to appeal after communication.

2. Case File no. 1372/212/2017** - Constanta Court of Appeal – pending

Cruceanu Alin Florinel filed a petition against CONPET S.A. requesting the court to rule the obligation of Conpet SA to pay damages equal to the market value of the real estate property with a surface of 460 sq.m located in Lazu commune, Luceafărului street, Constanța county and of the real estate property with a surface of 460 sq.m located in Lazu commune, 31 Luceafărului str., Constanța county, the equivalent value estimated at 30,000 EUR, the equivalent in 134,700 RON; the obligation of Conpet SA to pay the equivalent value of the lack of land use in the form of an annual rent for the last three years; the obligation of Conpet SA to pay the legal expenses of settling the present request. Subsequently, the claimant specified his action regarding the second head of claim, requesting the court to order Conpet SA to pay the amount representing the lack of use of the two real estate properties for the period between 10.12.2015 and the date of the final judgment through which the first head of claim was allowed.

Conpet formulated the reconventional petition requesting the court to rule the obligation on the claimant to allow CONPET S.A. the exercise of the right of legal servitude instituted by the provisions of art. 7 and et seq. of Law no. 238/2004 on the two plots of land owned by the claimant Cruceanu Alin Florinel, situated in Agigea commune, Lazu village, 29, Luceafărului street, respectively 31, Luceafărului street, Constanța county. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline Ø 20” Constanța-Bărăganu for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and to perform the execution of any repair works and for the establishment of the amount of the annual rent provided by law owed by us to the claimant in exchange for exercising the right of legal easement.

Conpet also filed an impleader request with the Ministry of Public Finance and the National Agency for Mineral Resources (N.A.M.R.) that if Conpet S.A. Ploiești will fall into claims regarding the claimants' claims made in the summons to compensate us with the amounts we will be obliged to pay to the claimants.

Clarifications: By Sentence no. 8561/14.07.2021 the Constanța Courthouse rejects, as unfounded, the exception of the lack of passive procedural quality invoked by the Romanian State through the Ministry of Public Finance, the NAMR and the Ministry of Energy. It rejects as unfounded the pleas of the lack of passive procedural quality regarding the impleaders the Ministry of Public Finance, National Agency for Mineral Resources. It admits the request formulated by the claimant Cruceanu Alin Florinel, against the defendants CONPET S.A., the Romanian State through the Ministry of Public Finance, the National Agency for Mineral Resources and the Ministry of Energy. It obliges the defendants, jointly and severally liable, to pay to the claimant the amount of 184,700 RON representing the market value of the land building in surface of 460 sq.m located in Lazu Commune no.b29 Luceafărul Street, Constanța County and the market value of the land building with an area of 460 sq.m located in Lazu Commune, no. 31 Luceafărul Street, Constanța county. It obliges the defendants, jointly and severally liable, to pay to the claimant the amount of 22,164 RON representing the equivalent value of the lack of land use between 10.12.2015 -10.12.2018. It rejects, as unfounded, the request for impleader formulated by CONPET SA against the Ministry of Public Finances. It rejects, as unfounded, the impleader formulated by CONPET SA against the National Agency for Mineral Resources. It rejects, as unfounded, the counterclaim formulated by CONPET SA against Cruceanu Alin Florinel. It obliges the defendants jointly and severally liable to pay to the claimant the legal expenses in the amount of 8,414.28 RON represented by the stamp duty and the expert's fee. The court order was attacked with appeal by CONPET S.A., N.A.M.R., the Romanian State through the Ministry of Public Finance and Cruceanu Alin Florinel.

By Conclusion no. 1548/07.10.2021 it was admitted the exception for lack of jurisdiction of Civil Section 1 of Constanta Tribunal, and the jurisdiction to resolve the appeal has been declined in favor of Civil Section 2 of Constanta Tribunal.

By Decision no. 1003/08.07.2022, Constanța Tribunal rejects, as unfounded, the appeal filed by the applicant appellant Cruceanu Alin Florinel in opposition with the defendants CONPET S.A., the Romanian State through the Ministry of Public Finance, the National Agency for Mineral Resources and the Ministry of Energy. Admits the appellants' appeal: the National Agency for Mineral Resources, the Romanian State through the Ministry of Public Finance through the Regional Directorate of Public Finances Galati – County Administration of Public Finances Constanta County and CONPET S.A. It changes in part the Civil Sentence 8561/14.07.2021, pronounced by the Constanţa Courthouse in the File no. 1372/212/2017, as follows: It admits the exception of the lack of passive procedural capacity of the defendants, the National Agency for Mineral Resources and the Romanian State through the Ministry of Public Finance - regarding the summons request. It rejects the summons request filed by the claimant Cruceanu Alin Florinel against the defendants the Romanian State through the Ministry of Public Finance and the National Agency for Mineral Resources, as being filed against persons without passive procedural standing. It rejects, as unfounded, the summons request filed by the claimant Cruceanu Alin Florinel against CONPET S.A. It rejects, as unfounded, the request for summons in the guarantee formulated by the defendant CONPET S.A. against the National Agency for Mineral Resources and the Romanian State through the Ministry of Public Finance. It admits the counterclaim filed by the defendant CONPET S.A. against the claimant Cruceanu Alin Florinel. Establishes in favor of CONPET S.A. an easement right with a total area of 81 sq.m over the applicant's lands consisting in the right of use over an area of 2.4 meters wide placed along the crude oil pipeline that under crosses the applicant's lands, as identified by the expert Datcu Dumitru by Annex to the Answer to objections (f. 229, vol. 2 from the file of Constanța Courthouse) - blue cross hatch. It establishes the annual rent owed by the defendant to the claimant in the amount of 693 Ron. It forces the claimant Cruceanu Alin Florinel to pay the defendant CONPET S.A. the amount of 3,853.75 Ron as legal expenses.

The judgment was attacked with recourse by Cruceanu Alin Florinel.

By Conclusion no. 23/22.03.2023 Constanta Court of Appeal admits the exception of the lack of procedural (functional) material competence of the second civil section of insolvency and litigations with professionals and companies of Constanta Court of Appeal. Declines the jurisdiction to settle the case in favor of the Civil Section I of the Constanta Court of Appeal. Without possibility of appeal.

By Conclusion no. 86/10.05.2023 the Civil Section I of the Constanta Court of Appeal admits the exception of lack of procedural jurisdiction in solving the appeal. Declines the jurisdiction to settle the Appeal in favor of the Civil Section II of the Constanta Court of Appeal. It notes the negative conflict of competence. Suspends ex officio the trial of the case and orders the submission of the file to the High Court of Cassation and Justice in order to resolve the negative conflict of jurisdiction arising.

By Decision no. 1833 of 26.10.2023, the HCCJ establishes the competence to settle the case in favor of the Constanța Court of Appeal, Civil Division II, for insolvency and litigation with professionals and companies. Final judgement.

3. File no. 18344/212/2017- Constanta Court - pending

Mitu Dumitru and Mitu Rodica initiated a law suit requesting the court to rule the obligation of Conpet to pay damages for the two plots of land located in Lazu village, Agigea commune, Constanța county affected by the route of some pipelines that transport oil products, as well as ordering the defendant to pay an annual rent for the lack of use of the land affected by the exercise of the right of legal servitude, starting with 20.06.2014 and of compensation in the form of an annual payment for affecting the use of the part of the land on which the pipeline is not located, with the obligation to pay the court costs.

Conpet formulated a reconventional petition requesting the court to rule the obligation of the claimants to allow the company CONPET S.A. the exercise of the right of legal servitude instituted by the provisions of Art. 7 et seq. of Law no. 238/2004 on the two plots of land owned by the claimants. The right of legal servitude shall be exercised on a 2.4-meter-wide corridor located along the F2 Ø 20” Constanţa-Bărăganu crude oil major pipeline for the purpose of permanent access to the pipeline for the day-to-day inspection of the pipeline condition and for performing any repairs and to set the amount of the annual rent prescribed by the law owed by Conpet to the claimants in exchange for the exercise of the right to legal servitude. Conpet also formulated a petition of summoning in guarantee the Ministry of Public Finance and the National Agency for Mineral Resources (N.A.M.R.) so that if CONPET S.A. Ploiesti falls in claims regarding the claims of the claimants formulated in the legal petition to compensate us with the amount that we shall be obligated to pay the claimants.

Clarifications: By Sentence no. 3555/11.04.2023 the Constanta County Court rejects as unfounded the exception of the lack of passive procedural quality of the defendant CONPET S.A. invoked by way of defence. Rejects as unfounded the plea of lack of passive locus standi of the summoned under guarantee the Romanian State through the Ministry of Public Finance through the Regional Directorate of Public Finance Galati - County Administration of Public Finance Constanta, invoked by the statement of claim. Dismisses as unfounded the plea of lack of locus standi of the defendant, the National Agency for Mineral Resources. Dismisses as unfounded the plea of lack of locus standi of the defendant, the Ministry of Energy, invoked by way of defence. Dismisses the application for summons as unfounded. Rejects as devoid of purpose the claim for warranty. It admits the counterclaim filed by the defendant CONPET S.A. against the claimant Mitu Dumitru and Mitu Rodica. Orders the applicants Mitu Dumitru and Mitu Rodica to allow the company CONPET S.A. to exercise the legal easement right established by the provisions of Art. 7 et seq. of Law nr. 238/2004 on the two plots of land owned by the applicants Mitu Dumitru and Mitu Rodica, located in County. Constanța county. The right of legal servitude shall be exercised on a 2.4 meter wide corridor located along the F2 0 20" Constanţa-Bărăganu crude oil pipeline for the purpose of permanent access to the pipeline for the day-to-day inspection of the pipeline condition and for performing any repairs. Establishes the amount of the annual annuity owed to the applicants in exchange for exercising the right of legal easement at the amount of 81 RON, which will be updated annually with the inflation rate. Orders the applicants to pay to the defendant reconvenient CONPET S.A. the sum of 3,350 Ron, by way of costs.

The decision was appealed by the plaintiffs.

By Decision no. 284 /11.03.2024 Constanta Tribunal rejects the appeal, as unfounded. With the right of appeal after communication.

Court hearing: --

4. Case File no. 220/262/2017*- Ploiești Court of Appeal – pending

Chivu Ion filed a petition requesting the court to rule the obligation of Conpet SA to divert the crude oil pipeline passing through his property in surface of 1,753 sq.m located in Ocniţa commune T14, P114, the establishment of the access location with the obligation of Conpet SA to pay an annual rent related to both the access, road and the pipeline that damages the land and damages for the land affected by the pipeline.

Clarifications: By Sentence no.1000/05.11.2019 the Moreni Courthouse partially accepts the main part of the petition. The court partially admits the counterclaim.

The judgment was attacked with appeal by Conpet SA and Chivu Ion.

By Decision no. 223/02.06.2020 the Dâmbovița Tribunal accepts the appeals, annuls the judgment appealed and sends the case back to the first court.

By Sentence no. 694/06.10.2022 Moreni Law Court admits the request in part. Rejects, as unfounded, the plea of lack of passive locus standi of the defendant applicant Conpet S.A. as regards the heads of claim for compensation and annuity, raised by him.

It accepts the plea of lack of passive locus standi of the defendant plaintiff Conpet S.A. as regards the head of claim relating to the diversion of the oil pipeline, and, consequently, dismisses this head of claim in contradictory with the defendant plaintiff Conpet S.A. as having been brought against a person without passive locus standi.

It admits the request to show the right holder made by the defendant-claimant CONPET S.A. with regard to claim no. 1 (concerning the diversion of the pipeline) regarding the Romanian State, through the Ministry of Public Finance, represented in the process by the Dâmbovița County Administration of Public Finance.

Rejects as unfounded the plea of lack of passive locus standi formulated by the Romanian State, through the Ministry of Public Finance, through the Dâmbovița County Administration of Public Finances.

Notes that by civil decision no. 432/30.05.2018, pronounced by the Dâmbovița Tribunal, the request for showing the right holder filed by the defendant-applicant CONPET S.A. also with regard to the National Agency for Mineral Resources (with reference to the head of claim aimed at diverting the pipeline) was granted.

It finds that the plea of inadmissibility raised by the defendant-applicant Conpet S.A. was qualified as a basic defence.

Admits in part the main application, as it was stated, brought by the applicants - the defendants Chivu Ion and Chivu Florica Daniela in contradiction with the defendant - applicant CONPET S.A., intervener the Romanian State through the Ministry of Public Finance - Regional General Directorate of Public Finance Ploiesti, and principal intervener the National Agency for Mineral Resources (N.A.M.R.).

It admits in part the counterclaim, made by the defendant-applicant CONPET.

Orders the defendant plaintiffs to abolish the construction without a permit-cellar existing on the land belonging to them, located on the crude oil transport pipeline 6 5/8" Ochiuri Moreni, which under crosses the land located in Ocnita, T 14, P 1 14, cadastral number 159 Land Book no. 70441, Dambovita county identified according to the sketch drawn up in the expertise report in the topography specialty dated 19.02.2018 (f, 259 vol. II initial file).

Establishes the amount of the annual annuity owed by the defendant plaintiff CONPET S.A. to the defendant plaintiffs for the exercise of the easement right established by Art. 7 Para. I of Law nr. 238/2004 on the land owned by the defendant plaintiffs, on the corridor of 2.4 sq.m, located along the transport pipeline, at the amount of 21.14 Ron and obliges the applicant defendant to pay to the defendants' complaints from the date of the final stay of the present sentence.

Dismisses the remainder of the summons and the counterclaim.

It admits, in part, the parties' request on the award of court costs and orders the plaintiff defendant to pay to the defendant plaintiffs the sum of 2,239 Ron as costs, in proportion to the admitted claims.

Orders the defendant plaintiffs to pay the sum of 1,247 Ron as costs to the defendant plaintiff CONPET S.A., in proportion to the admitted claims.

It compensates the legal expenses, within the limit of the amount of 1,247 RON and it obliges the defendant claimants to pay to the claimant defendant the uncompensated difference of 992 RON in legal expenses.

The decision was appealed by Chivu Ion.

By Decision no. 194 /23.03.2023 Dambovita Tribunal rejects the appeal as unfounded.

Chivu Florica – Daniela and Chivu Ion filed an appeal.

By Decision no. 73/07.03.2024 Ploiești Court of Appeal admits the exception to the ineligibility, invoked ex officio. It rejects the appeal as inadmissible. Final judgement.

5. Case File no. 5413/204/2017 *- Prahova Tribunal – pending

Trial stage: Merits - retrial

Dobrogeanu Dumitru and Dobrogeanu Păun Ioan filed a petition of trial asking the court to rule the obligation of CONPET SA to pay an annual rent for the land plots occupied by the two oil products pipelines (crude oil) starting 01.07.2014 and in the future, for the entire duration of the pipelines, to pay the compensation for the losses incurred by not reaching certain economic objectives on the remaining area between the two pipes after their restriction and the area along the national road DN1 (E60) and payment of court costs. The first part of the claim was estimated by the claimants at the amount of 48,000 Euro/year (220,000 RON), and the second part at the amount of 25,000 RON/year.

Clarifications: By Sentence no. 2446/28.08.2018 the Prahova Tribunal admits the exception of the lack of passive capacity to stand trial, invoked by the defendant National Agency for Mineral Resources. It dismisses the action, in contradiction with that defendant, as being brought against a person without procedural capacity. It admits the exception of the res judicata. It dismisses the claim filed against the defendant SC Conpet SA, as there is res judicata. It finds that the defendants have not applied for legal expenses.

The decision was appealed by Dobrogeanu Dumitru.

By Decision no. 2804/11.11.2019 the Ploiești Court of Appeal rejects the appeal filed by the appellant Dobrogeanu Dumitru as unfounded. It admits the plea of inadmissibility of the cross-appeal. It dismisses as unfounded the cross-appeal declared by the appellant Dobrogeanu Păun Ioan.

The decision was attacked with recourse by Dobrogeanu Dumitru and Dobrogeanu Păun Ioan.

By Decision no. 206/04.02.2021, the High Court of Cassation and Justice rejects the appeal filed by the claimant Dobrogeanu Păun Ioan against the civil decision no. 2804 of November 11th, 2019, pronounced by the Ploieşti Court of Appeal, Civil Section I. Admits the appeal declared by the applicant Dobrogeanu Dumitru against the same decision. It scrapps the appealed decision and the civil sentence no. 2446 of August 28th, 2018 of the Prahova Court and sends the case for retrial to the Prahova Court.

Deadline: 21.03.2024

6. Case File no. 4395/270/2020 - Onești Court - pending

Object: Onești Municipality and the Local Council of Onești Municipality, Bacău County, have sued Conpet S.A. asking the court:

“1. The obligation of the defendant at the conclusion of the agreement for the exercise of the right of legal easement over the lands with an area of 11,474.5 sq.m, crossed and affected by crude oil transport pipelines within the municipality of Onești, equivalent to the payment of an annual rent, during the existence of the pipelines, to the local budget of Onești municipality, determined according to the principle of the least violation of the property right and calculated taking into account the circulation value of the affected real estate, established under the law, at the time of the damage.

2. Obligation of the defendant to pay material damages, representing the consideration of the lack of use of land in the surface of 11,474.5 sq.m under crossed and affected by crude oil transport pipelines within the radius of the municipality of Onești, established according to the Market Study approved by the Decision of the City Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the City Council Decision no. 122 of 29.06.2020, calculated starting from 2017 until the date of conclusion of the Convention for the exercise of the right of legal servitude on such land, plus late increases, interest and late payment penalties in the amount provided for in the Code of Tax Procedures applicable during that period.

3. The obligation of the respondent to pay the trial costs incurred by this trial”.

Deadline: 26.09.2024

7. Case File no. 1657/91/2020 *- Vrancea Tribunal – pending

Parties: Vasile Maria Ilaria - at S.C.P.A. Buruian, Caracaş and Associates - Plaintiff

Dragu Georgeta - at S.C.P.A. Buruian, Caracaş and Associates - Plaintiff

The company Conpet SA Ploiesti - defendant

The Romanian State - by the Ministry of Public Finance - defendant

The National Agency for Mineral Resources - defendant

Object: By their summons, the claimants Vasile Maria-Ilaria and Dragu Georgeta requested to the court to:

A. Mainly, to oblige the defendant to pay an annual rent of 496.64 Euro for the pipe protection area belonging to the defendant and passing through the private property of the undersigned, starting from the date of registration of this application for legal action;

B. In particular, to oblige the defendant to pay an overall compensation of 508,080 Euro for the assignment of the attribute of use of the good according to its intended purpose, i.e. that the undersigned cannot build construction on the private property;

C. In particular, to oblige the defendant to pay the legal interest for the annual annuity referred to in item A, starting from the date of registration of the application for this legal appeal;

D. Mainly, order the defendant to pay legal interest for the global indemnification provided for in item B, starting from the date of registration of the present summons.

E. In the alternative, we request you to order the other two defendants to pay the amounts indicated in the preceding paragraphs.”

Conpet filed a counterclaim in this case, requesting the court:

1. To oblige the complainants Vasile Maria – Ilaria, Dragu Georgeta and Dragu Maria to allow the company CONPET S.A. the exercise of the right of legal services established by the provisions of Art. 7 et seq. of Law no. 238/2004 on the land owned by them, situated in Focsani city, Vrancea County. The exercise of the right of legal easement is to be carried out in a passage of 2.4 meters wide located along the Ø 20” Bărăganu - Borzești/Rafo Onești crude oil transport pipeline standing for purposes of permanent access to the pipeline in order to verify the day-to-day management of the status of the pipe and the execution of any repair works. The exercise of the right of easement is to be carried out throughout the existence of the pipeline located on the claimants' land but not later than the date of termination of the oil concession agreement concluded by us, signed by CONPET S.A., with the Romanian State.

2. To establish the amount of the annual rent provided by law due by us, the undersigned CONPET SA, to the claimants Vasile Maria- Ilaria, Dragu Georgeta and Dragu Maria in exchange for exercising the right of legal easement, rent consisting in the equivalent value of the annual land use affected by the exercise of the legal easement.

Clarifications: By Conclusion no. 71/09.03.2021 Vrancea Tribunal Civil Section I declines jurisdiction to hear the case in favour of the Second Civil Section of the Vrancea Tribunal.
Deadline: 19.03.2024

8. Case File no. 32294/299/2020 - Bucharest District 1 Courthouse - in the course of settlement

Parties: CONPET SA – defendant - counter claimant

Bob Mihăiță - claimant-defendant

Object: Bob Mihăiță files a summons requesting the court to order:

1. The obligation of Conpet SA and NAMR to move the crude oil pipeline crossing the land owned by the claimant located in Cernavoda, plot 1, plot A6/2, Constanța county.

2. The establishment of the equivalent value of the lack of use, for a period of three years, prior to the formulation of the summons, amounting to 150,000 RON;

3. In the alternative, the obligation of Conpet SA to pay an annual rent for the use of the land owned by the claimant, from the date of filing the summons, in the amount of 5 Euro/sq.m/year for the area of 14,645 sq.m, land affected by the protection and safety area, during the existence of legal easement.

4. Payment of legal fees.

Conpet formulated the counterclaim/re conventional petition requesting the court:

1. To order the claimant to allow CONPET S.A. the exercise of the right of legal servitude established by the provisions of Art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant Bob Mihăiță located in Cernavoda, plot 1, plot A6/2, Constanța County. The exercise of the right of legal servitude is to be carried out on a 2.4 meter wide corridor located along each of the main crude oil transport pipelines that under-cross the claimant's land, respectively the F1 main crude oil transport pipeline Ø 14¾ ", F2 main crude oil transport pipeline Ø 20", and Pipeline 28 Constanța - Bărăganu of crude oil transport Ø 28", for the purpose of permanent access to pipelines for daily verification of the condition of pipelines and execution of possible repair works. The exercise of the right of legal easement is to be carried out throughout the existence of the pipelines located on the land of the claimant, but no later than the date of termination of the oil concession agreement concluded by us, the undersigned Conpet SA, with the Romanian State.

2. To establish the amount of the annual rent provided by law due by us, the undersigned, to the claimant in exchange for exercising the right of legal easement.

Conpet S.A. filed a call for Romanian State Guarantee through the Ministry of Finance and NAMR.

Conpet S.A. formulated a request of identifying the holder of the right in rem.

Clarifications: By Conclusion dated 06.08.2021, the Bucharest District 1 Courthouse rejects the exception of the lateness of the request for impleader and of the request for showing the right holder, invoked by the National Agency for Mineral Resources, as unfounded. It rejects the exception of the lack of representative capacity of the National Agency for Mineral Resources, invoked ex officio, as unfounded. It rejects the request for an impleader from the Romanian State, by the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. It rejects the request to show the right holder of the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. The conclusion can be appealed with the merits.

9. Case File no. 2323/120/2018- High Court of Cassation and Justice- pending

Trial stage: Appeal- filtering

Parties: CONPET SA- defendant - counter claimant

uzatu Florin- claimant- respondent

Object: Buzatu Florin has filed a sue petition, asking the court:

1. Order the respondent Conpet SA to pay the claimant the amount of 150,000 EUR, payable at the BNR exchange rate on the day of the payment (amount to be reassessed upon completion of the expert real estate appraisal report to be carried out in probation, we shall resize and specify the value of the claims, corroborated with the appropriate adjustment of the stamp duty), representing the fair and equitable compensation for the damage suffered by restricting the possibility of exercising its right to property on the land area of 5,980 sqm located in the urban space of Slobozia Moară, Dâmboviţa County, having the cadastral number 70618, registered with the land registry under 70618/UAT Slobozia Moară, Dâmboviţa County, on which are found the underground gas pipelines and the overground devices of the respondent, land that cannot be used for the purpose of constructing a building;

2. Order the respondent Conpet SA to pay a 1,000 EUR monthly indemnity payable at the BNR exchange rate on the payment day, starting with the delivery of the Decision throughout the existence of the underground pipelines and overhead devices on the land owned by the respondent and to bear all the costs incurred by the claimant for the pre-authorization stages of the construction;

3. In alternative, it orders the respondent to erect all the constructions built on the claimant’s property, namely the gas pipelines and the overhead devices, to bring the land to its original condition or to enable the claimant to perform the obligation to do so, at the exclusive expense of the respondent;

4. Order the defendant Conpet SA to pay the legal expenses incurred in the present legal proceedings.

Conpet has filed a counterclaim requesting that the plaintiffs be ordered to allow our company to exercise the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 and the determination of the amount of the annual annuity provided for by law due by Conpet to the applicants in exchange for the exercise of the right of legal easement.

Clarifications: By Sentence no. 602/10.03.2022 the Dâmbovița Court rejects plea of lack of passive locus standi of the defendant applicant Conpet S.A. as regards the heads of claim for compensation and annuity, raised by it. It admits the claimant Conpet S.A.'s lack of passive procedural capacity as regards the head of claim concerning the obligation to raise the above-ground pipes and devices and to restore the land to its original condition or to empower the applicant to do so, invoked by it and consequently rejects that head of claim in contradiction with the defendant-claimant Conpet S.A. as being formulated against a person without passive procedural capacity. It admits in part the summons. The court partially admits the counterclaim. It obliges the defendant claimant to demolish the construction without authorization (foundation) existing on the land belonging to him, with cadastral no. 70618, registered in the land book no. 70618 of Slobozia Territorial Administrative Unit Slobozia Moara, Dambovita county identified according to the sketch drawn up in the expertise report in the topography specialty dated 04.11.2019 (f 300, vol. I). It establishes the amount of the annual rent due by the claimant defendant to the defendant claimant for exercising the right of legal easement on the land with an area of 890 sq.m related to crude oil pipelines Ø143/4 and Ø 123/4, identified according to the sketch prepared in the expertise report dated 02.11.2019 (f. 357, vol. I), to the amount of 284.8 Ron and obliges the plaintiff defendant to pay to the defendant plaintiff from the date of the final stay of the present sentence. Dismisses the remainder of the summons and the counterclaim. It rejects the request to show the right holder formulated by the claimant defendant in contradiction with the Romanian State, through the Ministry of Public Finance and the National Agency for Mineral Resources. Orders the restitution to the plaintiff defendant of the stamp duty paid and not due in the amount of 1,143.4 Ron. It compensates the costs within the limit of 1,172.7 Ron and orders the plaintiff to pay to the defendant the uncompensated difference of 836 Ron in court costs. Buzatu Florin filed an appeal.

By Decision no. 482/09.03.2023 Ploiesti Court of Appeal rejected the appeal, as unfounded. The decision was appealed by the plaintiff.

10. Case File no. 1541/262/2023- Moreni Court – pending

Stage of trial - merits

Parties: CONPET SA – defendant - counterclaimant

Mapi Imobiliare S.R.L. - plaintiff-defendant

Object: To oblige Conpet to pay an annual annuity according to art. 7 of Law nr. 238/2004 and compensation, including for the past as of 20.01.2023.

Conpet formulated the counterclaim/re conventional petition requesting the court:

1. The obligation of the claimant Mapi Imobiliare S.R.L. to allow the company CONPET S.A. the exercise of the right of legal servitude/easement established by the provisions of Art. 7 and et seq. of Law no. 238/2004 on the land owned by her, located in the Ocnița commune, Ochiuri village, Dâmbovița county. The exercise of the right of legal easement is to be carried out in a passage of 2.4 meters wide located along the pipe buses to transport crude oil Ø 6 5/8˝ Ochiuri - Moreni for purposes of access to the pipe in order to verify the day-to-day management of the status of the pipe and the execution of any repair works. The exercise of the easement right is to be carried out throughout the existence of the pipeline located on the claimant's land, but not later than the date of the termination of the concession oil contract concluded by us, the undersigned company CONPET S.A., with the Romanian State.

2. The establishment of the amount of the annual rent provided by the law due to us, the undersigned company CONPET S.A., to the claimant Mapi Imobiliare S.R.L. in exchange for exercising the right of legal servitude/easement starting from the date of the definitive decision given in the present case, rent consisting in the value of the annual use of the plot of land affected by the exercise of servitude/easement.

At the same time, Conpet filed a warranty claim against the Romanian State, represented by the Ministry of Public Finance and the National Agency for Mineral Resources, requesting the court to be compensated by the defendants in guarantee, who will be jointly and severally liable for any amounts we will be obliged to pay to the applicant Mapi Imobiliare S.R.L., in case the request for summons filed by it will be admitted in whole or in part.

Deadline: 02.04.2024

c) Litigations related to the structure of the share capital

CONPET S.A. has pending before courts 1 litigation, respectively:

Case File no. 5212/105/2018 – High Court of Cassation and Justice – pending

Fondul Proprietatea SA filed a petition for trial requesting the court to rule the following:

1. To request CONPET to pay the amount of 734,747.04 RON representing the net value of dividends related to a percentage of 6% of Conpet’s share capital, respectively for a number of 524,366 shares held by the claimant by the registration date of the OGMS of CONPET at 25.04.2007 (i.e. 14.05.2007), related to the financial year 2006.

2. The obligation of Conpet to pay compensatory damages, namely the legal interest related to the dividends from maturity due date requested in item 1 and until the date of the introduction of the petition for trial (i.e. 09.11.2018) in the amount of 579,015.97 RON.

3. The obligation of CONPET to pay the legal interest related to the net value of the dividends, subsequently, from the date of the petition for trial and until the actual payment of the requested amounts.

4. Oblige Conpet to pay the legal expenses of the present litigation.

Clarifications: Conpet S.A. filed an impleader of the Romanian State through the Ministry of Finance and A.A.A.S.

By Conclusion of 25.06.2019, the Prahova Court rejected as unfounded the impleader of the Authority for the Administration of State Assets, formulated by the defendant Conpet S.A. Against this decision of the court, Conpet and the Romanian State through the Ministry of Public Finance filed an appeal. By the same Conclusion of 25.06.2019, the court admitted in principle the impleader of the Romanian State by the Ministry of Public Finance, formulated by the defendant Conpet S.A. and rejected as unfounded the plea of the lack of passive procedural quality of the Romanian State by the Ministry of Public Finance. The appeal was registered before the Court of Appeal Ploiesti with no. 5212/105/2018/a2. By the decision no. 515/05.11.2019 Ploiești Court of Appeal admits the plea of the inadmissibility of the appeal declared by the Ministry of Public Finance. . The court rejects this appeal as inadmissible. The court rejects the exception of the lack of interest and the exception of the inadmissibility of the appeal declared by Conpet SA invoked by Fondul Proprietatea. Final judgement.

By Conclusion of 20.09.2019, the Prahova Tribunal suspended the trial of the case until the settlement of the appeals made against the decision pronounced on 25.06.2019. This conclusion remained final by non-recurrence.

By Sentence no. 633/02.06.2021 Prahova Tribunal unfoundedly rejects the exception of the prescription of the right to action. It admits the action. It obliges the defendant CONPET to pay to the claimant the amounts of 734,747.04 RON representing the value of dividends, of 579,015.97 RON, representing dividends for the period 26.10.2007 - 09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 and until the actual payment of the main debit. It admits in part the warranty claim. It obliges the impleaded Romanian State to pay to the defendant CONPET SA, the amount of 734,747.04 RON, representing the value of dividends and the legal interest related to this amount starting with 17.12.2018 and until the date of restitution to the defendant of the amount of 734,747.04 RON. The decision was appealed by Conpet S.A. and the Romanian State through the Ministry of Public Finance.

By Decision no. 109/29.03.2023, the Ploiești Court of Appeal admits the appeal. It changes the entire sentence. It accepts the exception of the extinctive limitation of the right of action and dismisses the claim as a result of the extinctive limitation period. Rejects the warranty claim. It obliges the claimant to pay the defendant 16,943 RON in legal expenses incurred at the trial in the first instance. Orders the respondent-applicant to pay to the appellant-defendant 17,785 Ron in costs of the appeal proceedings. Fondul Proprietatea S.A. filed an appeal.

By Decision no. 814/01.07.2021 Prahova Tribunal admits the request for correction of the material error made by the claimant. It corrects the material error went unnoticed into paragraph 3 of the operative part of sentence no. 633/02.06.2021 pronounced by the Prahova Tribunal, in the sense that it is written: “It obliges the defendant CONPET S.A. to pay to the claimant the amounts of 734,747.04 RON representing the main debit, of 579,015.97 RON, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends as of 09.11.2018 until the actual payment of the main debit.” It admits the request for completion of the decision made by the claimant. It orders the completion of the civil sentence no. 633/02.06.2021 in the sense that it also provides: it reduces the fee of the claimant's lawyer to 70,000 RON. It obliges the defendant Conpet S.A. to pay the claimant the following legal expenses: 20,347.63 RON representing judicial stamp duty, 4,300 RON expert fee, 8,481.87 RON expert fee, 70 RON lawyer's fee and 1,125 RON other expenses. It obliges the summoned in guarantee the Romanian State to pay to the defendant Conpet S.A. legal expenses in the amount of 16,943 RON. The decision was appealed by Conpet S.A.

By Decision no. 245/08.12.2022 Ploiești Court of Appeal upholds the plea of inadmissibility of the appeal raised of its own motion. Dismisses the appeal as inadmissible. Final judgement.

Fondul Proprietatea S.A. filed an appeal.

On 22.11.2023, the H.C.C.J. ordered the communication to the parties of the report on the admissibility in principle of the appeal, with the mention that the parties have the right to submit their point of view to the report within 10 days of service.

By the Conclusion dated 14.02.2024, the High Court of Cassation and Justice basically admits the appeal declared by the claimant- First court S.A. against the decision no. 109/ November 23rd, 2017 issued by the Timişoara Court of Appeal – Second Civil Section. It establishes a term for judging the appeal.

Deadline: 17.04.2024

d) Litigations brought before the administrative court

CONPET S.A. has 5 litigations pending before courts, respectively:

1. Case File no. 5971/2/2022 – Bucuresti Court of Appeal – pending

Procedural status: First court on merits

Object: The court is requested, by the judgment that will be pronounced, to order:

CONPET S.A. – defendant

1. Having regard to Order No. 229/2021:

1.1. Cancellation in part of article 1 of Order 229/2021 regarding the tariffs set out in Annex 1 and Annex 3 and, accordingly, of Annexes 1 and 3 of Order 229/2021; and, as a consequence,

1.2. Ordering NAMR to issue a new order for the approval of the transport tariffs through the National Transport System of crude oil, rich gas, condensate and ethane for 2022, which would include tariffs modified accordingly in terms of domestic tariffs (Annex 1) and import tariffs for refineries in the Ploiesti Basin (Annex 3), as a result of the recalculation of the tariffs included in Order No. 229/2021 in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of primary and secondary petroleum and competition law, as set out in the present application for summons;

2. With regard to Order No. 53/2008, the annulment in part of art. 3-8 of the Annex to Order no. 53/2008, as well as the obligation of NAMR. issue a new order which should properly supplement Order no. 53/2008, by reference to the following:

2.1. the method of determining in the Methodology the operating cost lacking transparency and clarity, with regard to (i) its components, the structure of each of these elements, not specifically foreseen, together with (ii) the algorithm for calculating the operating cost by reference to these elements and (iii) by taking into account only those elements which constitute, by their nature, operating costs, so that these secondary normative provisions are aligned with the requirements of Art. 20 of the Petroleum Law;

2.2. the algorithm for determining the modernization rate which does not provide in a specific, clear and transparent manner (i) the actual percentage of the modernization rate, (ii) the basis on which it applies, (iii) the concrete investments for which the modernization quota will be paid by the beneficiaries of the transport system, (iv) how to manage the surplus amounts received as a modernization quota and not used by the end of the financial year, which have been collected for the realization of investments, by taking these amounts into account in the calculation of the modernization quota to be paid by the beneficiaries in the following year, by reference to the investments envisaged therein and such amounts available for investments carried over from previous years, as well as (v) the management of bank interests received by the holder of the concession agreement as a result of the deposit of amounts received as a modernization quota and not used by the latter, for the purpose of using interest rates for the same purpose and taking into account these amounts in the calculation of the modernization quota that beneficiaries have to pay in the following year with this title, so that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;

2.3. the algorithm not resulting in a specific, clear and transparent manner (i) how to determine the level of the profit rate considered to be reasonable, or (ii) a profitability range whose lower and upper limits are established on the basis of comparative studies, by reference to the practice of other comparable European transport operators in this field, as well as (iii) specific requirements for transparent justification by CONPET of studies substantiating any increases in profitability considered in the setting of transport tariffs such that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;

2.4. the pricing schemes that are not currently focused on similar criteria and calculations for the two subsystems regulated thereby (i.e. domestic and import) to meet the requirements of ensuring equal treatment among the beneficiaries of the public transport service for the two types of subsystems, so that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law;

2.5. the procedural elements ensuring in a clear, transparent and efficient manner the right of CONPET clients to express their point of view on the proposed tariffs advanced for approval by CONPET, on the basis of specific documentation made available thereto, respectively to the requests for revision/update of the tariffs transmitted by CONPET to NAMR and the related documentation, as well as to receive a reasoned response from the NAMR on the points of view formulated whether they are not taken into account in whole or in part by the NAMR, in such a way that these secondary normative provisions be aligned with the requirements of Article 20 of the Petroleum Law and the transparency requirements applicable to the adoption of normative acts in compliance with the general European and national principle of good administration.

3. Order the respondent to pay the court costs.

Following the notification of the summons, but before the first hearing (17.01.2023), OMV Petrom amended the summons request regarding the first petition of the application, requesting the court to order:

1. Having regard to Order No. 229/2021:

Partial annulment of Art. 1 of Order 229/2021 regarding the tariffs established in Annex 1 and Annex 3 and, correspondingly, of Annexes 1 and 3 of Order 229/2021 regarding the tariffs for the COUNTRY subsystem and the IMPORT subsystem, within the limit of the amount of the tariffs that will be established as legal as a result of their recalculation in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the primary and secondary petroleum and competition legislation, as they are submitted through this summons.

2. Regarding Order no. 53/2008: partial cancellation of art. 3-8 of the Annex to Order no. 53/2008, as well as the obligation of N.A.M.R. upon issuing a new order to properly complete Order no. 53/2008, by reference to the following:

3. Order the respondent to pay the court costs.

2. Case File no. 7035/2/2022 – Bucuresti Court of Appeal – pending

Procedural status: Merits - suspended.

Object: The court is requested, by the judgment that will be pronounced, to order:

CONPET S.A. – defendant

2. Partial annulment of the art. 1 and 4 of Additional Act no. 2, 6 and 9, respectively of art. 1 and 3 of Additional Acts 3, 4, 5, 7 and 8 by which the duration of the Transport Contract was extended for the period 01.01.2022 - 31.08.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R. and, as a consequence,

3. The obligation of CONPET to pay to the Company, as compensation as a result of the partial cancellation of the Additional Acts, but also its illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:

(i) the difference between the amount of the tariffs provided for in the Additional Act no. 2 to the transport contract, concluded as a result of the new tariffs adopted by the Order 229/2021, paid by the Company in the period 01.01.2022 – 31.08.2022 as a result of the extension of the contractual period through the Additional Acts and the amount of the tariffs that will be established as legal in the result of the administrative litigation proceedings carried out by the Company regarding them with N.A.M.R., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;

(ii) the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the domestic subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the domestic and import tariffs depending on the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the domestic subsystem was illegally calculated and paid:

- 13,905 tons from Art. 2 letter a) from Addendum no. 4 for March 2022;

- 13,171 tons from Art. 2 letter a) from Addendum no. 5 for April 2022;

- 13,307 tons from Art. 2 letter a) from Addendum no. 6 for May 2022;

- 12,633 tons from Art. 2 letter a) from Addendum no. 7 for June 2022;

- 12,072 tons from Art. 2 letter a) from Addendum no. 8 for July 2022;

- 12,900 tons from Art. 2 letter a) from Addendum no. 9 for August 2022;

(iii) any other amounts representing civil fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

4. Obligation to pay legal expenses.

The claimant OMV PETROM filed a request to change the heads of request no. 2 and 3 of the petition of the introductory action in the sense that, in addition to Addenda no. 2 – 9, the Company understands to challenge through this action the last 4 additional documents on the basis of which transport services were provided by Conpet between September and December 2022 for the benefit of the company, as follows:

- Addendum no. 10/23.08.2023;

- Addendum no. 11/22.09.2022;

- Addendum no. 12/31.10.2022;

- Addendum no. 13/22.11.2022.

Therefore, considering the request to modify the preliminary action, the claimant OMV Petrom requests the court to order, through the judgment that will be ruled:

1. Partial annulment of Art. 3 of Addendum no. 2 regarding the tariffs on the domestic subsystem and the import subsystem charged for the transport services provided by Conpet and established by Order no. 229/2021, within the limit of the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R.;

2. Partial annulment of Art. 1 and 4 of Addendum no. 2, 6, 9 and 12 respectively of Art. 1 and 3 of Additional Acts 3, 4, 5, 7, 8, 10, 11 and 13 by which the duration of the Transport contract was extended for the period 01.01.2022 - 31.12.2022 with the application of the new tariffs approved by Order no. 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R. and consequently;

3. The obligation of CONPET to pay the Company, in the form of compensation as a result of the partial cancellation of Addenda no. 2 -13, but also of her illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Addenda, of the amounts representing:

(i) the difference between the amount of the tariffs provided for in Addendum no. 2 to the transport contract, concluded as a result of the new tariffs adopted by Order no. 229/2021, paid by the Company in the period 01.01.2022 - 31.12.2022 as a result of the extension of the contractual period through the Additional Acts and the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with the N.A.M.R.., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;

(ii) the difference between the amount of the tariffs paid by the Company for the transport of crude oil, through the domestic subsystem, from the Midia Terminal, and the amount of the tariffs established proportionally, by reference to the tariffs of domestic and import according to the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid:

- 13,905 tons from Art. 2 letter a) from Addendum no. 4 for March 2022;

- 13,171 tons from Art. 2 letter a) from Addendum no. 5 for April 2022;

- 13,307 tons from Art. 2 letter a) from Addendum no. 6 for May 2022;

- 12,633 tons from Art. 2 letter a) from Addendum no. 7 for June 2022;

- 12,072 tons from Art. 2 letter a) from Addendum no. 8 for July 2022;

- 12,900 tons from Art. 2 letter a) from Addendum no. 9 for August 2022;

- 12,213 tons from Art. 2 letter a) from Addendum no. 10 for September 2022;

- 12,411 tons from Art. 2 letter a) from Addendum no. 11 for October 2022;

- 11,836 tons from Art. 2 letter a) from Addendum no. 12 for November 2022;

- 12,048 tons from Art. 2 letter a) from Addendum no. 13 for December 2022.

(iii) any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

4. Obligation to pay legal expenses.

Clarifications: By Conclusion dated 24.05.2023, the Court of Appeal of Bucharest rejects the application for revocation of the claimant from submitting the request to amend the heads of claims 2 and 3 of the request for summons as ungrounded. Based on Art. 413 Para. 1 Item 1 of the Code of Civil Procedure, it orders the suspension of the trial of the case until the final resolution of the case that is the subject of file no. 5971/2/2022 of the Bucharest Court of Appeal, Section IX of Administrative and Fiscal Litigation. With the right of appeal for the duration of the suspension.

3. Case File no. 4988/2/2023 – Bucuresti Court of Appeal – pending

Procedural status: Merits - suspended

Object: The court is requested, by the judgment that will be pronounced, to order:

CONPET S.A. – defendant

1. The partial annulment of art. 1 and art. 3 of the Addenda no. 10, no. 11 and no. 13, respectively of art. 1 and 4 of the Addendum no. 12, by which the duration of the transport contract was extended for the period 01.09.2022 - 31.12.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding tariffs with N.A.M.R. and, as a consequence,

2. The obligation of CONPET to pay the Company, in the form of compensation as a result of the partial cancellation of Addenda no. 10 -13, but also of her illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Addenda, of the amounts representing:

(i) the difference between the amount of the tariffs provided for in Addendum no. 2 to the transport contract, concluded as a result of the new tariffs adopted by Order no. 229/2021, paid by the Company in the period 01.09.2022 - 31.12.2022 as a result of the extension of the contractual period through the Addenda and the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with the N.A.M.R.., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;

- 12,213 tons from Art. 2 letter a) from Addendum no.10 for September 2022;

- 12,411 tons from Art. 2 letter a) from Addendum no.11 for October 2022;

- 11,836 tons from Art. 2 letter a) from Addendum no.12 for November 2022;

- 12,048 tons from Art. 2 letter a) from Addendum no.13 for December 2022.

iii. any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

3. To rule the obligation of the defendant to pay the court costs.

Clarifications: At the deadline of 15.11.2023, the Bucharest Court of Appeal orders the suspension of the trial of the present case until the final settlement of the case that is the subject of file no. 7035/2/2022 of the Bucharest Court of Appeal. With the right of appeal for the duration of the suspension.

4. Case File no. 5559/2/2023 – Bucuresti Court of Appeal – pending

Procedural status: First court on merits

Object: The court is requested, by the judgment that will be pronounced, to order:

CONPET S.A. - defendant

1. Partial annulment of Art. 1 of Order 364/2022 regarding the tariffs established in Annex 1 and Annex 3 and, correspondingly, of Annexes 1 and 3 of Order 364/2022 regarding the tariffs for the COUNTRY subsystem and the IMPORT subsystem, within the limit of the amount of the tariffs that will be established as legal as a result of their recalculation in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the primary and secondary petroleum and competition legislation, as they are submitted through this summons.

2. To rule the obligation of the defendant to pay the court costs.

Deadline: 18.04.2024

5. Case File no. 8213/2/2023 – Bucuresti Court of Appeal – pending

Procedural status: First court on merits

Parties: CONPET S.A. – defendant

Object: The court is requested, by the judgment that will be pronounced, to order:

OMV Petrom SA - claimant

1. The partial annulment of Art. 1 and Art. 3 of Addendum no. 14, of Art. 1 and 4 of the Addenda no. 15, no. 16, no. 17, respectively of Art. 1 and 5 of the Addendum no. 18 by which the duration of the Transport Contract was successively extended for the period 01.01.2023 - 31.12.2023, with the application of the new tariffs mentioned in the Notification no. 811/06, 01.2023 sent by Conpet regarding the change in transport tariffs through the National System for the Transport of Crude Oil, Rich Gas, Condensate and Ethane ("SNT") starting from January 1st, 2023, based on the Order 364/2022 (Annex 4), within the limit of the amount of the tariffs that will be established as legal as a result of the administration of evidence from this case;

2. The partial annulment of Art. 2 of the Addenda no. 14-18 in the sense of:

i. the elimination of the quantities of 5-417 tons mentioned in the content of Art. 2 letter a) from the Addendum no. 14 for the period January 1st-15th, 2023 that were transported from the Midia Terminal from the quantities transported through the domestic subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the import subsystem;

ii. the elimination of the quantities of 15,061 tons mentioned in the content of Art. 2 letter a) from the Addendum no. 15 for the period January 16th - February 28th, 2023 that were transported from the Midia Terminal from the quantities transported through the domestic subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the import subsystem;

iii. the elimination of the quantities of 40,859 tons mentioned in the content of Art. 2 letter a) from the Addendum no.16 for the period March 1st- June 30th, 2023 that were transported from the Midia Terminal from the quantities transported through the domestic subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the import subsystem;

iv. the elimination of the quantities of 28,811 tons mentioned in the content of Art. 2 letter a) from the Addendum no. 17 for the period July 1st- September 30th, 2023 that were transported from the Midia Terminal from the quantities transported through the domestic subsystem and inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the import subsystem;

v. the elimination of the quantities of 28,898 tons mentioned in the contents of Art. 2 letter a) from the Addendum no.18 for the period October 1st - December 31st, 2023 that were transported from the Midia Terminal from the quantities transported through the domestic subsystem and inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the import subsystem;

3. The obligation of CONPET to pay to the Company, as compensation as a result of the partial cancellation of the Additional Acts, but also its illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 364/2022 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:

(i) the difference between the amount of the tariffs provided for in Addendum no. 14 - 18 to the transport contract, concluded as a result of the new tariffs adopted by Order no. 364/2022, paid by the Company in the period 01.01.2023 - 31.12.2023 and the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with N.A.M.R., updated according to the inflation index, as and the related legal interest calculated from the date of payment of the tariff difference;

(ii) the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the domestic subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the domestic and import tariffs according to the subsystem actually used for the transport of marine crude oil, updated according to the index of inflation, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the domestic subsystem was illegally calculated and paid:

- 5417 tons from Art. 2 letter a) from Addendum no.13 for January 01 - 15, 2023;

- 15,061 tons from Art. 2 letter a) from Addendum no.15 for January16th - February 28th, 2023;

- 40,859 tons from Art. 2 letter a) from Addendum no.16 for March 01st - June 30th, 2023;

- 28,811 tons from Art. 2 letter a) from Addendum no.13 for July 01st - September 30th, 2023;

- 28,898 tons from Art. 2 letter a) from Addendum no.18 for October 1st - December 31st, 2023;

iii. any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

4. To rule the obligation of the defendant to pay the court costs.

Other aspects on the company’s tangible assets

State of the lands not included in the share capital

Currently, all the lands owned by CONPET S.A. are registered in the Integrated Cadastre System and the Land Registry.

On 31.12.2023 Conpet has registered in the patrimony of the company lands in surface of 733,677 sq.m with a fair amount of 29,999,240 Ron, held based on Land Ownership Certificates and sale-purchase contracts.

The company augmented its share capital only by a part of the land held under land ownership certificates (Ro. CADP), not being included in the share capital lands in surface of 554,537.61 sq.m (554,181 sq.m according to the latest land register update documents), which are contained in 48 CADP. The Ownership certificates for these lands have been issued between 2001-2005 and the value evaluated at the time of issuing the certificates, established according to GD no. 834/1991 is of 26,708,233 RON. These lands have been recorded in the company’s patrimony at the expense of equity. The fair value of these lands on 31.12.2023, according to the report prepared by an A.N.E.V.A.R. authorized appraiser, is 16,293,210 RON.

The Board of Directors has undertaken all steps in view of augmentation of the share capital by the value of land held based on the land ownership certificates.

Thus, based on the land appraisal reports, in compliance with the provisions of Art. 6 Para (3) of GD no.834/1991 subsequent amendments and completions, drafted by expert appraiosers, the Board of Directors has summoned the Extraordinary General Meeting of Shareholders, on 19.05.2016, in first call, namely 20.05.2016, in second call. At both EGMS meetings the quorum has not been met.

Although there have been convened two general meetings of shareholders, the Board of Directors has summoned a new EGMS for 05.07.2016, with the same Agenda. Following the cast vote by the shareholders present and represented, the proposal to augment the share capital has not been approved, due to the lack of necessary quorum for approval votes.

Subsequently, there have been undertaken all necessary steps for the augmentation of the share capital, and on 26.03.2019, the EGMS has approved the initiation of the procedure for the augmentation of the share capital and the appointment by the Trade Register Office Prahova of an expert authorized to assess the lands brought as contribution to the share capital.

Based on the new appraisal report has been convened the EGMS, on 04.07.2019 in first call and 05.07.2019 in second call, with the Agenda - Approval of the augmentation of the share capital by maximum value of 101,763,954.60 RON, representing contribution in kind (lands) in amount of 59,751,935.10 RON and cash amounting to maximum 42,012,019.50 RON, from the current value of 28,569,842.40 RON at the value of maximum 130,333,797 RON, by issuing a number of maximum 30,837,562 new, nominative, dematerialized shares, at a price of 3.3 RON/share, equal to the nominal value, without share premium.

In both EGMS meetings has not been met the attendance quorum provided by the law, needed for the augmentation of the share capital with contribution in kind.

On 24.09.2020, the EGMS issued Resolution no. 1, by which it approved the initiation of the operation to augment the share capital by the value of the lands held based on the 48 ownership certificates and the initiation of formalities to the N.R.C. with a view to appoint an authorized assessor for the valuation of the lands.

In order to comply with the EGMS Resolution, between September and December 2020, three requests were made to the Prahova Trade Register Office for the appointment of an assessor to draw up the land appraisal report in accordance with Art. 6, Para. 3 of GD no. 834/1991.

In March 2021, by Resolution no. 1 dated 10.03.2021 and Resolution no. 2 dated 11.03.2021, the EGMS did not approve the augmentation of the share capital by the value of the lands not included, as during the two meetings the attendance quorum provided by law (85%) was not met.

On 28.04.2022, the EGMS issued Resolution no.1, by which it approved the initiation of the operation to augment the share capital by the value of the lands held based on the 48 ownership certificates and the initiation of formalities to the O.R.C. Prahova in order to appoint an authorized evaluator for land valuation.

In May 2022, two requests were made to the O.R.C. Prahova for the appointment of an assessor to draw up the land evaluation report in accordance with Art. 6, Para. 3 of GD no. 834/1991.

Based on the evaluation report, prepared by the evaluator appointed by O.R.C. Prahova, Nitu Cornel, ANEVAR member with card no. 14579, by Resolution nr. 2 dated 20.09.2022 and Resolution no. 3 dated 21.09.2022, the EGMS of Conpet did not approve the augmentation of the share capital by the value of the unincluded land plots, as, at the two meetings, the quorum of attendance provided for by the law was not met (85%).

To date, the share capital has not been increased by the value of the not included land plots.

In 2023, has been adopted GEO no. 26/20 April 2023 for amending and supplementing Art. 12 of Law nr. 137/2002 on some measures to accelerate privatization, which brought a new provision regarding the value by which the share capital is increased with the lands for which CADP was obtained in the sense that "the increase of the share capital provided for in para. (4^1) with the contribution in kind of the state or of an administrative-territorial unit, as the case may be, representing the lands for which certificates attesting the ownership right have been obtained, shall be made at the fair value (subl.ns) determined no later than 90 days before the date of convening the extraordinary general meeting of shareholders for the approval of the share capital increase.”

However, for the maintenance in force of the provisions of Article 6 Para. 3 of GD no. 834/1991, the issue of the value by which the share capital is augmented requires clarifications, which leads to delays in convening again the General Meeting of Shareholders in order to increase the share capital.

In order to clarify this issue, we addressed the Ministry of Energy, the guardianship authority, in order to indicate the criterion for determining the value of land, respectively the one regulated by Art. 6 of GD no. 834/1991 (by updating with the inflation index) or the one regulated by Art.12 of Law no. 137/2002 (by fair value measurement), as amended by GD no. 26/2023.

State of the Real Estate Registration of lands and buildings belonging to CONPET

Currently, all the lands owned by CONPET S.A. are registered in the Integrated Cadastre System and the Land Registry.

Out of the total of 190 tabulable constructions, 178 were tabulated, the untabulated buildings are in the following situation:

- 10 buildings are under analysis to solve the issues in view of tabulation;

- for 2 buildings, steps have not yet been taken for tabulation, because one building is in litigation before the court, and the other cannot be tabulated because Conpet does not hold a lease/concession agreement for the land related to the construction, the land being in the private property of the City Hall of Ploiesti.

4.3 Analysis of the Financial Activity

The financial information presented in this report is taken from financial statements for the period ended December 31st, 2023, prepared in accordance with Order of the Minister of Public Finances no. 2844/2016, audited.

4.3.1 Statement of the Financial Standing

Indicators (thousand RON)	2023	2022	2021	Variation%
Indicators (thousand RON)	2023	2022	2021	2023/2022	2022/2021
ASSETS
Intangible assets
Tangible assets	670,831	607,025	512,823	▲ 10.5%	▲ 18.4%
Intangible assets	5,559	6,855	6,942	▼ 18.9%	▼ 1.3%
Financial Assets	2,523	2,537	411	▼ 0.6%	▲ 517.3%
Deferred corporate tax receivables	-	6,153	4,637	-	▲ 32.7%
Total non-current assets	678,913	622,570	524,813	▲ 9.1%	▲ 18.6%
Current assets
Inventories	6,520	6,867	5,312	▼ 5.1%	▲ 29.3%
Trade receivables and other receivables	52,981	49,187	48,922	▲ 7.7%	▲ 0.5%
Cash and cash equivalents	107,742	127,673	191,751	▼ 15.6%	▼ 33.4%
Prepaid expenses	698	1,252	624	▼ 44.3%	▲100.6%
Total current assets	167,941	184,979	246,609	▼ 9.2%	▼ 25.0%
TOTAL ASSETS	846,854	807,549	771,422	▲4.9%	▲4.7%
EQUITY AND LIABILITIES
Equities
Subscribed and paid-up share capital	28,570	28,570	28,570	-	-
Legal reserves	5,714	5,714	5,714	-	-
Revaluation reserves	49,838	17,101	18,360	▲ 191.4%	▼ 6.9%
Other reserves	547,585	533,898	517,047	▲ 2.6%	▲ 3.3%
Retained Earnings	36,971	37,149	46,289	▼ 0.5%	▼ 19.8%
Result of the year	61,617	61,664	51,929	▼ 0.1%	▲ 18.8%
Total equity	730,295	684,096	667,909	▲ 6.8%	▲ 2.4%
Long-term liabilities
Long-term trade liabilities	-	-	1,288	-	-
Liabilities to employees	25,765	23,069	16,629	▲ 11.7%	▲ 38.7%
Other long-term liabilities	2,793	2,749	3,458	▲ 1.6%	▼ 20.5%
Deferred tax liabilities	901	-	-	-	-
Total long-term liabilities	29,459	25,818	21,375	▲ 14.1%	▲ 20.8%
Current liabilities
Trade liabilities	33,092	43,915	32,148	▼ 24.6%	▲ 36.6%
Current Corporate Tax	1,808	1,997	2,049	▼ 9.5%	▼ 2.5%
Other liabilities	28,764	27,569	27,106	▲ 4.3%	▲ 1.7%
Debts to employees	14,143	14,364	12,066	▼ 1.5%	▲ 19.0%
Short-term provisions	9,293	9,790	8,769	▼ 5.1%	▲ 11.6%
Total current liabilities	87,100	97,635	82,138	▼10.8%	▲ 18.9%
Total liabilities	116,559	123,453	103,513	▼5.6%	▲ 19.3%
TOTAL EQUITIES AND LIABILITIES	846,854	807,549	771,422	▲4.9%	▲ 4.7%

Table 15-Company’s Statement of the financial standing during 2021-2023

The total assets of the company register 4.9% increase (39,305 thousand RON) compared to December 31st, 2022, mainly due to the increase in fixed assets.

The fixed assets registered an increase of 9.1% compared to December 31st, 2022, generated by inputs of fixed assets representing mainly investments in the N.T.S. whose value is higher than the value of depreciations (amortization) recorded in 2023, on the one hand, and on the other hand by increases resulting from the assessment of assets representing lands, buildings and special constructions, belonging to the company's patrimony (approximately 45,871 kRON).

The current assets decreased by 9.2% (17,038 thousand RON), from 184,979 thousand RON on 31.12.2022 to 167,941 thousand RON on 31.12.2023, due to the decrease in cash.

In their structure, the evolution of the main elements is different, receivables registering an increase of 7.7% (3,794 thousand RON), while cash availabilities decrease by 15.6% (19,931 thousand RON) from 127,673 thousand RON to 107,742 thousand RON. The cash from the modernization quota existing in bank accounts on 31.12.2023 was 32,041 thousand RON, 16,543 thousand RON less than on 31.12.2022 (48,584 thousand RON). The cash representing the modernization quota has a special use regime, provided by GD no. 168/1998, which is intended exclusively to finance the modernization and development of public domain assets.

The equities registered an increase of 6.8% (46,199 thousand RON) compared to December 31st, 2022, reaching 730,295 thousand RON, mainly driven by the increase in reserves from the modernization quota and reserves from the revaluation of fixed assets.

Total liabilities decreased by 6,894 thousand RON as of December 31st, 2023, compared to December 31st, 2022, due to a decrease in current liabilities.

Long-term liabilities register an increase of 3,641 thousand RON, compared to December 31st, 2022, as a result of the increase in debts to employees.

The current liabilities, in amount of 87,100 thousand RON, are decreasing by 10,535 thousand RON as compared to December 31st, 2022, mainly due to the decrease in liabilities to suppliers of fixed assets.

Trade liabilities and other liabilities

On December 31st, 2023 and December 31st, 2022, trade liabilities and other liabilities shall be disclosed as follows:

Liabilities	December 31st, 2022	December 31st, 2023	Maturity deadline for the balance on December 31st, 2023
Liabilities	December 31st, 2022	December 31st, 2023	Under 1 year	1-5 years	Over 5 years
Trade liabilities	43,915	33,092	33,092	-	-
Liabilities to the employees	37,433	39,908	14,143	2,879	22,886
Current profit tax	1,997	1,808	1,808	-	-
Other liabilities	30,318	31,557	28,764	2,008	785
Deferred tax liability	-	901	-	901	-
Short-term provisions	9,790	9,293	9,293	-
Total	123,453	116,559	87,100	5,788	23,671

Table 16 - Status of the trade liabilities and other liabilities on December 31st, 2023 (kRON)

On 31.03.2023, the company Conpet S.A. did not register outstanding payments.

The trade liabilities related to the purchases of goods and services intended for operating activities have a weight of 62.3% in total commercial debts, and those representing purchases of fixed assets have a weight of 37.7%

The debts to employees, in balance on 31.12.2023, also include the future debts for the benefits granted to employees upon retirement or death, for the employees share of profit, for the untaken leaves of the employees, debts that are recognized as provisions.

The statement of payroll contributions and other fiscal debt by maturity dates, shall be as follows:

Debts	December 31st, 2022	December 31st, 2023	Maturity deadline for the balance on December 31st, 2023
Debts	December 31st, 2022	December 31st, 2023	Under 1 year	1-5 years	Over 5 years
Salaries contributions	6,373	6,222	6,222	-	-
Royalty due to the State Budget	9,371	10,271	10,271	-	-
Payable VAT	2,688	4,111	4,111	-	-
Other interests and debts - Budget	1,202	1,221	1,221	-	-
Payable Dividends	5,234	5,444	5,444	-	-
Leasing related liabilities	4,458	3,347	1,179	1,669	499
Accrued revenues	833	696	82	328	286
Other liabilities	159	245	234	11	-
Total	30,318	31,557	28,764	2,008	785

Table 17 - Status of payroll contributions and other fiscal liabilities on December 31st, 2023 (kRON)

On 31.12.2023, lease liabilities comprise recognized rights of use for leases and concessions of land, buildings and wagons.

The liabilities related to the rights of use recognized for the lease and concession contracts of some lands, buildings and wagons have been assessed at the value of rent fees/royalties along the remaining contractual period, updated with the credit rate for real estate loans.

The statement of debts to employees by maturity reveals the following:

Debts	December 31st, 2022	December 31st, 2023	Maturity deadline for the balance on December 31st, 2023
Debts	December 31st, 2022	December 31st, 2023	Under 1 year	Over 1 year	Over 5 years
Salaries and assimilated debts	6,976	7,140	7,140	-	-
Liabilities for benefits granted on retirement	19,779	22,090	476	2,729	18,885
Liabilities for the benefits granted in case of death	3,891	4,156	5	150	4,001
Liabilities for the employees share of profit	6,387	6,003	6,003	-	-
Liabilities for untaken leaves	360	519	519	-	-
Debts for other benefits granted to the employees	40	-	-	-	-
Total	37,433	39,908	14,143	2,879	22,886

Table 18 - Statement of the liabilities to the employees on December 31st, 2023 (kRON)

On December 31st, 2023, the Company mainly comprises at this chapter the salaries and assimilated debts, as well as future debts for benefits granted upon retirement or death and for the employees share of profit, recognized as provisions.

4.3.2. The global result statement

The evolution of the main financial indicators of the profit and loss account and of other global result elements, during 2021-2023, is presented below:

Indicator (thousand RON)	2023	2022	2021	Variation%
Indicator (thousand RON)	2023	2022	2021	2023/2022	2022/2021
Revenues from contracts	485,114	472,233	412,787	▲ 2.7%	▲ 14.4%
Earnings from disposal of assets	612	5,402	4,915	▼ 88.7%	▲ 9.9%
Other revenues	55,208	44,425	40,684	▲ 24.3%	▲ 9.2%
Total Operating Revenues	540,934	522,060	458,386	▲ 3.6%	▲ 13.9%
Inventories Expenses	6,543	6,934	5,448	▼ 5.6%	▲ 27.3%
Expenses with energy and water	18,597	33,739	16,553	▼ 44.9 %	▲103.8%
Personnel expenses	194,395	180,923	168,219	▲ 7.5%	▲ 7.6%
Value adjustments of fixed assets, less adjustments related to rights of use resulted from lease contracts	61,485	53,075	51,939	▲ 15.9%	▲ 2.2%
Value adjustments on rights of use resulted from leasing contracts	2,051	1,987	1,673	▲ 3.2%	▲ 18.8%
Value adjustments on current assets	(239)	(767)	278	-	-
Expenses related to external services	126,936	114,242	109,776	▲11.1%	▲ 4.1%
Provisions-related adjustments	2,446	6,753	(4,144)	▼ 63.8%	-
Other expenses	62,357	62,405	50,907	▼ 0.1 %	▲ 22.6%
Total Operating Expenses	474,571	459,291	400,649	▲ 3.3%	▲ 14.6%
Operating Profit	66,363	62,769	57,737	▲ 5.7%	▲ 8.7%
Financial Revenues	6,690	9,839	3,428	▼ 32.0%	▲187.1%
Interest expenses related to leasing contracts	175	236	202	▼ 25.9%	▲ 16.8%
Other financial expenses	84	233	128	▼ 64.0%	▲ 82.0%
Financial Expenses	259	469	330	▼ 44.8%	▲ 42.1%
Financial profit	6,431	9,370	3,098	▼ 31.4%	▲ 202.5%
Profit before income tax	72,794	72,139	60,835	▲ 0.9%	▲ 18.6%
Expenses with current income tax	10,587	11,686	9,155	▼ 9.4%	▲ 27.6%
Expenses with (revenues coming from) deferred corporate tax	590	(1,211)	(249)	-	-
PROFIT OF THE PERIOD	61,617	61,664	51,929	▼ 0.1%	▲ 18.8%
Actuarial earnings (loss) benefits granted upon retirement and death	531	(1,599)	3,383	-	-
Surplus from revaluation of the tangible assets	35,055	-	-	-	-
Total other global result elements that will not be subsequently reclassified as profit or loss	35,586	(1,599)	3,383	-	-
Net increase of the modernization quota reserve	6,870	17,409	9,811	▼ 60.5%	▲ 77.4%
Total other global result elements that will be subsequently reclassified as profit or loss	6,870	17,409	9,811	▼ 60.5%	▲ 77.4%
TOTAL OTHER ELEMENTS OF THE GLOBAL RESULT	42,456	15,810	13,194	▲ 168.5%	▲ 19.8%
TOTAL GLOBAL RESULT	104,073	77,474	65,123	▲ 34.3%	▲ 19.0%
Result per share	7.12	7.12	6.00	-	▲ 18.7%

Table 19 - Statement of the global result during 2021 - 2023

The synthesis of the financial results, in evolution 2021-2023, is as follows:

Chart 17 - Synthesis of the financial results during 2021-2023 (mRON)

Operating Revenues

As compared to the approved budget and the previous period (2022 -2021), the total revenues of the operating activity and the transported volume in 2023 is as follows:

2023		Variation (%) Achieved/Budget 2023	Indicators	2023	2022	2021	Variation%
Achieved	Budget	Variation (%) Achieved/Budget 2023	Indicators	2023	2022	2021	2023/ 2022	2022/ 2021
Transport services based on tariffs approved by NAMR order - Domestic Subsystem
2,915	2,987	▼ 2.4%	thousand tons	2,915	3,046	3,234	▼ 4.3%	▼ 5.8%
343,752	352,318	▼ 2.4%	thousand ron	343,752	321,320	293,265	▲ 7.0%	▲ 9.6%
Transport services based on tariffs approved by NAMR order - Import Subsystem
3,072	3,208	▼ 4.2%	thousand tons	3,072	3,944	3,351	▼ 22.1%	▲ 17.7%
130,096	133,811	▼ 2.8%	thousand ron	130,096	144,044	113,541	▼ 9.7%	▲ 26.9%
Total quantities and revenues from transport services based on tariffs approved by NAMR order
5,987	6,195	▼ 3.4%	thousand tons	5,987	6,990	6,585	▼ 14.4%	▲ 6.2%
473,848	486,129	▼ 2.5%	thousand ron	473,848	465,364	406,806	▲ 1.8%	▲ 14.4%
Other types of operations related to the N.T.S.
307	156	▲ 96.8%	thousand tons	307	110	66	▲179.1%	▲ 66.7%
9,025	4,044	▲123.2%	thousand ron	9,025	4,493	3,671	▲100.9%	▲ 22.4%
Total general crude oil, rich gas and condensate transport activity
6,294	6,351	▼ 0.9%	thousand tons	6,294	7,100	6,651	▼ 11.4%	▲ 6.8%
482,873	490,173	▼ 1.5%	thousand ron	482,873	469,857	410,477	▲ 2.8%	▲ 14.5%
2,078	2,038	▲ 2.0%	Revenues from rents	2,078	1,966	1,633	▲ 5.7%	▲ 20.4%
163	573	▼ 71.6%	Other revenues	163	410	677	▼ 60.2%	▼ 39.4%
485,114	492,784	▼ 1.6%	Turnover	485,114	472,233	412,787	▲ 2.7%	▲ 14.4%
51,226	52,334	▼ 2.1%	Write-back to revenues of reserve established based on the expenses with the modernization quota	51,226	39,912	37,680	▲ 28.3%	▲ 5.9%
612	165	▲ 270.9%	Earnings from disposal of assets	612	5,402	4,915	▼ 88.7%	▲ 9.9%
3,982	1,702	▲134.0%	Other revenues	3,982	4,513	3,004	▼ 11.8%	▲ 50.2%
55,820	54,201	▲ 3.0%	Other operating revenues	55,820	49,827	45,599	▲ 12.0%	▲ 9.3%
540,934	546,985	▼ 1.1%	Total operating revenues	540,934	522,060	458,386	▲ 3.6%	▲ 13.9%

Table 20 - Operating income statement year 2023 compared to the Budget and compared to the period between 2021-2022

The revenues achieved from transport on subsystems in 2023, compared to the budget and the period 2021 - 2023, are as follows:

Chart 18 - The evolution of the revenues achieved from the transport on subsystems 2021 - 2023 vs. Budget 2023 (mRON)

The operating revenues recorded a decrease by 1.1% as compared to Budget. As compared to 2022 the increase in the operating revenues was 3.6% (18,874 thousand Ron).

The transport revenues hold a share of 99.5% in turnover, the difference of 2,241 thousand RON (0.5%) representing revenues from various activities such as: leases of lands and telecommunication equipment, rail shunting, etc.

Other operating revenues mainly include the revenues from the transfer of the reserve representing the modernization quota related to the depreciation of fixed assets financed from this quota recorded in expenditure in 2023. The revenues representing the modernization quota have registered an increase by 28.3% in 2023 as compared to the same period of 2022, due to depreciation related to commissioning in 2023.

Operating Expenses

The operating expenses made in 2023, as compared to the last 2 years and the budget provisions, are as follows:

Achieved 2023	Budget 2023	Variation% Achieved/ Budget 2022	Indicators (thousand RON)	2023	2022	2021	Variation%
Achieved 2023	Budget 2023	Variation% Achieved/ Budget 2022	Indicators (thousand RON)	2023	2022	2021	2023/2022	2022/2021
6,543	7,407	▼11.7%	Material expenses, out of which:	6,543	6,934	5,448	▼ 5.6%	▲ 27.3%
3,489	3,937	▼ 11.4%	- expenses with consumables	3,489	3,629	2,981	▼ 3.9%	▲ 21.7%
2,102	2,400	▼ 12.4%	- fuel expenses	2,102	2,253	1,569	▼ 6.7%	▲ 43.6%
18,597	26,323	▼29.4%	Other external expenses (with energy and water)	18,597	33,739	16,553	▼ 44.9%	▲103.8%
194,395	194,952	▼ 0.3%	Personnel expenses, out of which:	194,395	180,923	168,219	▲ 7.5%	▲ 7.6%
155,825	155,993	▼ 0.1%	- salaries expenses	155,825	143,346	133,956	▲ 8.7%	▲ 7.1%
4,157	4,321	▼ 3.8%	- expenses related to insurances, social protection and other legal obligations	4,157	4,060	3,755	▲ 2.4%	▲ 8.1%
34,413	34,638	▼ 0.6%	- other personnel expenses	34,413	33,517	30,508	▲ 2.7%	▲ 9.9%
61,485	66,132	▼ 7.0 %	Value adjustments of fixed assets, less adjustments related to rights of use resulted from lease contracts	61,485	53,075	51,939	▲ 15.9%	▲ 2.2%
2,051	2,064	▼0.6%	Value adjustments on rights of use resulted from leasing contracts	2,051	1,987	1,673	▲ 3.2%	▲ 18.8%
126,936	133,324	▼ 4.8%	Expenses with external services, out of which:	126,936	114,242	109,776	▲ 11.1%	▲ 4.1%
2,532	3,116	▼18.7%	- maintenance (maintenance, current repairs)	2,532	2,789	2,317	▼ 9.2%	▲ 20.4%
71,645	75,015	▼ 4.5%	- expenses with crude oil transport by rail	71,645	61,430	63,202	▲ 16.6%	▼ 2.8%
296	1,661	▼82.2%	- expenses with decontamination works	296	1,939	1,474	▼ 84.7%	▲ 31.5%
38,519	37,899	▲ 1.6%	- oil royalty	38,519	36,511	31,527	▲ 5.5%	▲ 15.8%
13,944	15,633	▼10.8%	- other services performed by third parties	13,944	11,573	11,256	▲ 20.5%	▲ 2.8%
(239)	(400)	-	Value adjustments on the current assets	(239)	(767)	278	-	-
2,446	259	▲844.4%	Provisions adjustments	2,446	6,753	(4,144)	▼ 63.8 %	-
62,357	63,833	▼ 2.3%	Other operating expenses, out of which:	62,357	62,405	50,907	▼ 0.1%	▲ 22.6%
58,084	59,214	▼ 1.9%	- modernization quota expenses	58,084	57,321	47,490	▲ 1.3%	▲ 20.7%
474,571	493,894	▼ 3.9%	Total operating expenses	474,571	459,291	400,649	▲ 3.3%	▲ 14.6%

Table 21 - Operating expenses statement year 2023 compared to the Budget and compared to the period between 2021-2022

The operating expenses achieved in 2023 increased by 3.3% as compared to 2022, from 459,291 thousand RON to 474,571 thousand RON. The increase in operating expenses was mainly driven by higher personnel expenses, expenses for crude oil transport by rail, value adjustments on fixed assets (depreciation), oil royalty and modernization quota expenses.

As compared to the approved budget, in 2023 were registered savings for the following types of expenses: electricity and gas (7,726 thousand Ron), value adjustments on assets (depreciation) 4,660 thousand Ron, decontamination works (1,365 thousand Ron), maintenance expenses (584 thousand Ron), material expenses (864 thousand Ron), personnel expenses (557 thousand Ron).

Statement of the personnel expenses achieved in 2021 - 2023, is as follows:

Indicators (thousand RON)		2023	2022	2021
Total personnel expenses, out of which:		194,395	180,923	168,219
a).	Salary expenses	155,825	143,346	133,956
b).	Bonuses awarded as per the CLA	25,284	21,171	20,495
c).	Expenditure on severance payments related to personnel layoffs	40	3,912	1,798
d).	Expenses related to the mandate contracts of the Board of Directors and the Directors with a mandate contract	5,251	4,848	4,892
e).	Labor insurance contribution expenses	3,838	3,585	3,322
f).	Company's contribution to voluntary pension schemes	2,774	2,872	2,259
g).	Company’s contribution to voluntary health insurance premiums	1,383	1,189	1,497

Table 22 - Statement of personnel expenses in 2021 -2023

The operating profit achieved in 2023, of 66,363 thousand Ron increased by 25% (13,272 thousand Ron), as compared to the budgeted amount.

The financial profit achieved in 2023 is higher by 3,872 thousand RON compared to budget. Compared to 2022, the financial profit decreased by 2,939 thousand Ron as a result of lower interest income received from cash placements in deposits.

The net profit amounting to 61,617 thousand RON, is 13,678 thousand RON higher than budgeted and 47 thousand RON below the level recorded in 2022.

Financial Result

Indicator (thousand RON)	2023	2022	2021	Variation%
Indicator (thousand RON)	2023	2022	2021	2023/2022	2022/2021
Revenues from interests	6,653	9,737	3,402	▼ 31.7%	▲186.2%
Other financial revenues	37	102	26	▼63.7%	▲ 292.3%
Total financial revenues	6,690	9,839	3,428	▼32.0%	▲187.1%
Total financial expenses	259	469	330	▼44.8%	▲ 42.1%
Financial Result	6,431	9,370	3,098	▼ 31.4%	▲ 202.5%

Table 23 - Financial result during 2021-2023

The financial revenues decreased by 32% in 2023, compared to the same period of the previous year, due to a decrease in interest income received by the Company.

The financial expenses decreased by 210 thousand Ron in 2023 compared to 2022.

Based on this trend, the financial result lowered by 31.4% in 2023, as compared to 2022 (from 9,370 thousand RON to 6,431 thousand RON).

The company ended in 2023 with a net profit amounting to 61,617 thousand RON, 28.5% over the budgeted level, and as compared to 2022 records a 0.1% decrease.

4.3.3 Economic-Financial Indicators

Name of the indicator

Calculation formula

2023

2022

2021

Variation%

2023/2022

2022/2021

Profitability indicators

Gross sales margin

EBIT (operating profit)

13.7%

13.3%

14.0%

▲0.4 p.p.

▼0.7 p.p.

Turnover

Operating profit margin

EBIT (operating profit)

12.3%

12.0%

12.6%

▲0.3 p.p.

▼0.6 p.p.

Operating Revenues

EBITDA in total sales

EBITDA

26.4%

24.5%

26.6%

▲1.9 p.p.

▼2.1 p.p.

Turnover

EBITDA adjusted in total sales

Adjusted EBITDA

27.8%

28.2%

28.9%

▼0.4 p.p.

▼0.7 p.p.

Turnover

EBITDA in equity

EBITDA

17.5%

16.9%

16.4%

▲0.6 p.p.

▲0.5 p.p.

Total Equities

EBIDTA adjusted in equity

Adjusted EBITDA

18.4%

19.5%

17.9%

▼ 1.1 p.p.

▲1.6 p.p.

Total Equities

Gross Profit Rate

Gross result

15.0%

15.3%

14.7%

▼ 0.3 p.p.

▲0.6 p.p.

Turnover

Liquidity Indicators

Current liquidity indicator (times)

Current assets

1.9

3.0

▼36.7%

Current liabilities

The quick ratio indicator (acid test)

Current assets - Inventories

1.9

1.8

2.9

▲ 5.6%

▼ 37.9%

Current liabilities

Profitability indicators

Return on Assets (ROA)

Net result

7.3%

7.6%

6.7%

▼ 0.3 p.p.

▲0.9 p.p.

Total assets

Return on Equity (ROE)

Net result

8.4%

9.0%

7.8%

▼ 0.6 p.p.

▲1.2 p.p.

Total Equities

Return on Sales (ROS)

Net result

12.7%

13.1%

12.6%

▼ 0.4 p.p.

▲ 0.5 p.p.

Turnover

Inventories turnover speed (days)

Medium inventory X360

367.1

316.0

370.7

▲ 16.2%

▼ 14.8%

Sales costs

Duration of inventory turnover (times)

Sales costs

1.0

1.1

1.0

▼ 9.1%

▲ 10.0%

Average inventory

Rotation speed of the clients debits (days)

Average stock clients X360

▼ 3.4%

▲ 3.6%

Turnover

Rotation duration of the clients debits (times)

Turnover

13.0

12.6

13.1

▲ 3.2%

▼ 3.8%

Average stock clients

Rotation speed of supplier credits (days)

Average stock suppliersX360

▲ 11.5%

Procurement from suppliers of goods and services

Rotation duration of the suppliers credits (times)

Procurement from suppliers of goods and services

12.4

13.6

13.7

▼ 8.8%

▼ 0.7%

Average supplier balance

Risk indicators

Leverage degree indicator

Borrowed capital

0.3%

0.6%

▼ 0.3 p.p.

Total equity

Table 24 – Economic-Financial indicators during 2021-2023

4.3.4 Execution of the revenues and expenditure budget

The Revenues and Expenditure Budget for the year 2023 has been approved by the OGMS in the meeting dated February 17th, 2023, as per the provisions of the Government Ordinance no. 26/2013.

During 2023, the Revenues and Expenditure Budget has been amended on several occasions in compliance with the legal provisions contained in:

- GO no.26/2013 regarding the reinforcement of the financial discipline at the level of economic operators to which the State or the administrative - territorial divisions act as unique or majority shareholders or hold directly or indirectly a majority participation, subsequent amendments and additions;

- Law no. 368 from December 28th, 2022 of the State budget for the year 2023, Art. 48;

- Order of the Ministry of Public Finance no. 3818/2019 for the approval of the format and structure of the revenues and expenditure budget, as well as the substantiation annexes thereof;

The implementation of the amended Revenues and Expenditure Budget for 2023 is presented as follows:

Table 25 - Execution of the Revenues and Expenditure budget for the year 2023

4.3.5 Cash-flow

	Elements (thousand RON)	12 months 2023	12 months 2022	12 months 2021	Variation%
	Elements (thousand RON)	12 months 2023	12 months 2022	12 months 2021	2023/2022	2022/2021
	Cash flows from operating activities:
+	Proceeds from services supply	520,121	509,861	441,809	▲ 2.0%	▲ 15.4%
+	Proceeds from interests related to banking investments	6,576	9,872	3,320	▼ 33.4%	▲197.4%
+	Other proceeds	4,251	13,518	15,675	▼ 68.6%	▼ 13.8%
-	Payments to the suppliers of goods and services	140,226	140,569	121,740	▼ 0.2%	▲ 15.5%
-	Payments to and on behalf of the employees	192,207	176,585	166,735	▲ 8.8%	▲ 5.9%
-	VAT payments	54,309	42,222	51,158	▲ 28.6%	▼ 17.5%
-	Expenses with corporate tax and specific tax	10,776	11,738	7,869	▼ 8.2%	▲ 49.2%
-	Other payments regarding the operating activities	45,178	45,623	43,857	▼ 1.0%	▲ 4.0%
A	Net cash from operating activities	88,252	116,514	69,445	▼24.3%	▲ 67.8%
	Cash flows from investment activities:
+	Proceeds from sale of tangible assets	621	303	302	▲ 105.0%	▲ 0.3%
+	Proceeds from modernization quota	58,084	57,321	47,490	▲ 1.3%	▲ 20.7%
-	Payments for purchase of tangible/intangible assets	104,205	172,138	63,416	▼ 39.5%	▲171.4%
B	Net cash from investment activities	(45,500)	(114,514)	(15,624)	-	-
	Cash flows from financing activities:
-	Paid dividends	59,301	62,865	57,690	▼ 5.7%	▲ 9.0%
-	Payments on the lease debt account	3,196	3,015	2,430	▲ 6.0%	▲ 24.1%
-	Interest payments	185	199	207	▼ 7.0%	▼ 3.9%
C	Net cash from financing activities	(62,682)	(66,079)	(60,327)	-	-
	Net increase of the cash and cash equivalents =A+B+C=D2-D1	(19,930)	(64,079)	(6,506)	-	-
D1	Cash and cash equivalents at the beginning of the period	127,672	191,751	198,257	▼ 33.4%	▼ 3.3%
D2	Cash and cash equivalents at the end of the period	107,742	127,673	191,751	▼ 15.6%	▼ 33.4%

Table 26 - Statement of cash flows for the period 2021 -2023

Cash and cash equivalents on 31.12.2023 decreased by 15.6% as compared to December 31, 2022 (107,742 thousand Ron compared to 127,673 thousand Ron) due to payments of fixed assets (investments) and dividends, higher than the surplus of cash obtained from the operating activity and cash inflows from the investment activity (cash representing the modernization quota).

Out of the total of 107,742 thousand Ron availabilities in balance on 31.12.2023, the share of the modernization quota is 32,041 thousand Ron.

The effects of the three activity areas (operation, investment and financing) over the cash in the 12 months period of 2023 reveal the following:

- the operating activity triggered a cash-flow in amount of 88,252 thousand Ron (+);

- the investment activity ended with a negative cash-flow in amount of 45,500 thousand Ron;

- the financing activity decreased the total cash flow by 62,682 thousand Ron (-).

The value of net cash flows from the operating activity is lower than the one recorded in the similar period of the previous year with the amount of 28,262 thousand RON due to the increase in payments to employees and the state budget and the decrease in interest collections.

The net cash from the investment activity registers a negative value, lower by 69,013 thousand RON, due to the decrease of the cash outputs for the investment activity as compared to the level registered in the same period of 2022.

The net cash from the financing activity registers in both compared periods negative amounts determined by the payment of dividends to the shareholders and the amounts related to leasing.

4.3.6. The internal control and the risks management systems in the financial reporting process

The internal control and the risks management systems in the financial reporting process have the following main objectives:

- Compliance with the financial-accounting legislation in force and the reporting standards;

- The application of the accounting standards approved and of the instructions drafted by the management with regards to the financial information;

- Ensuring the reliability of the financial information. The objective aims to ensure that accounting, financial and management information communicated or published are complete and accurately reflect the activity and situation of the entity;

- Prevention and detection of frauds and accounting and financial irregularities.

The fulfillment of these objectives is being supported by:

-Personnel recruitment with an adequate level of competence, in compliance with the company’s needs and the existence of a continuous professional development plan to enable the upgrade of knowledge related to the accounting and fiscal legislation;

- Clear definition of the responsibilities related to each person involved in the financial reporting process, respectively the separation of attributes, so that the approval, audit and registration attributions be, in a fair measure, awarded to different persons (as per the company’s organization chart).

- Design and implementation of several internal procedures regarding the counting and control of the accounting-financial operations, settlement of the information circuits and the related audits thereof, to ensure the quick, fair and complete centralization of the financial information, as per the internal procedures manual;

- The financial preventive audit system;

- Identification of risks in relation to the financial reporting process, the assessment of the effectiveness and efficiency of the application of the internal procedures regarding the processes relevant to the financial reporting by the internal audit department and communication of the identified shortcomings to the Board of Directors;

- The accounting policies manual drafted as per the legislation in force, approved by the Board of Directors;

- The existence of a calendar and a well-defined process with regards to the elaboration of accounting and financial information compliant with the financial-accounting and capital market reporting requirements, as well as the checking and appropriate approval thereof by the Board of Directors, in view of publication thereof.

4.3.7 Related Parties

In 2023, the Company performed the following significant transactions with related parties:

Procurement from affiliated parties

Partner	Unsettled amounts on December 31, 2021	Procurements during 01.01.2022-31.12.2022	Settlements during 01.01.2022-31.12.2022	Unsettled amounts on December 31, 2022	Procurements during 01.01.2023-31.12.2023	Settlements during 01.01.2023-31.12.2023	Unsettled amounts on December 31, 2023
S.N.T.F.M. CFR MARFĂ S.A.	5,793	73,827	70,611	9,009	18,394	27,374	29
ELECTRICA FURNIZARE S.A.	-	17,314	13,917	3,397	542	3,939	-
SPEEH HIDROELECTRICA S.A.	-	12,593	12,593	-	20,377	13,844	6,533

*The amounts include VAT as well

Table 27 - Purchases from affiliated parties (thousand RON)

Partner	31.12.2023		31.12.2022
Guarantees granted to affiliated parties
SPEEH HIDROELECTRICA S.A.	1,989		1,989
ELECTRICA FURNIZARE S.A.	277		1,541
Guarantees received from affiliated parties
SNTFM CFR Marfă S.A.		-		500

Table 28 - Guarantees granted/received with/from related parties (thousands of RON)

4.4 Analysis of the corporate activity

4.4.1 Capital market business

Evolution of “COTE” shares

The shares issued by CONPET S.A. are traded on the regulated market administered by the Bucharest Stock Exchange, on the Principal segment, at Equity sector - category Premium, under “COTE” symbol.

At the end of 2023, the trading price of CONPET shares recorded an increase by 20.7 % compared to the closing price of the last day of the previous year.

In summary, the transactions recorded with CONPET shares on Bucharest Stock Exchange in 2023 are as follows:

- 13,961 transactions have been performed, approx. 30% less than in 2022 (19,971 transactions);

- the total volume of traded shares amounted to 509,910 shares, 48.5% lower than the volume recorded in 2022 (990,838 shares);

- the total value of trades amounted to 38,961,152 Ron, 46.6% lower than the value recorded in 2022 (72,984,780 Ron);

- the average trading price was 75.50 RON/share, higher by 4.29 RON/share versus the average price of the shares registered during 2022 (71.21 RON/share);

- the trading price registered the maximum value, respectively 82.20 Ron/share at the end of December;

- the market capitalization at the end of December 2023 was 708,185,790 RON, increasing by 20.7% as compared to the value recorded at the end of 2022 (586,980,398 RON).

The main trading indices of 2023 for the shares issued by CONPET S.A. are presented in the following table:

Indices	Average price (RON/share)	No. of trades	No. of traded shares	Value of trades (RON)
Month	Average price (RON/share)	No. of trades	No. of traded shares	Value of trades (RON)
January	73.15	1,546	46,898	3,415,075
February	74.59	1,020	22,465	1,672,838
March	74.87	1,167	33,964	2,534,892
April	77.51	752	31,225	2,427,954
May	77.76	1,978	88,967	6,942,303
June	72.36	1,347	27,536	1,979,267
July	74.32	1,243	43,126	3,181,849
August	73.37	1,102	31,181	2,276,681
September	74.34	947	28,468	2,117,957
October	76.30	913	26,406	2,011,821
November	76.76	864	21,823	1,672,586
December	80.67	1,082	107,851	8,727,929
Cumulated	75.50	13,961	509,910	38,961,152

Table 29 - Main trading indices

Currently, CONPET S.A. is included in 7 indices of the total of 9 of the Bucharest Stock Exchange, namely BET, BET-TR, BET-XT, BET-XT-TR, BET-BK, BET-NG and BET Plus.

Graphically, the evolution of the trading price of CONPET S.A. shares, along 2023 is the following:

Stock Market indicators	Period
Stock Market indicators		2019	2020	2021	2022	2023
PER		11.36	11.20	12.13	10.00	12.42
P/BV		1.04	1.01	1.09	0.91	1.07
EPS		7.01	6.80	6.51	6.78	6.59
DIVY (dividend yield)		9.38	9.26	8.73	10.74	8.40

Table 30 - Main stock performances indicators

On 31.12.2023, according to the TOP 30 Issuers by capitalization, CONPET ranked 33rd, with a market capitalization of 708,185,790 Ron (142.36 mEUR), which holds a share of 0.24% in the total market capitalization.

The Dividend Policy

Within the last 5 years, CONPET has fulfilled its commitment to award a return on investment to its shareholders by means of a sustainable dividend policy and distributed dividends in a quota comprised between 94% and 98% of the net accounting profit.

The dividend policy of the company CONPET S.A. was approved by the Board of Directors in January 2021.

The net profit distribution decisions concern the company’s options between partial or full reinvestment of the net profit and/or distribution in the form of dividends.

Depending on the situation prevailing at the time of the proposed profit allocation, deviations from the policy may occur as a result of certain specific legal requirements applicable at that date, changes in the tax framework, depending on capital requirements for investments, etc.

The rate of distribution of dividends, set out in the dividend policy, which the Board of Directors will consider in the formulation of the proposal to the General Meeting of Shareholders of CONPET S.A. will be between 85 % and 100 % of the net accounting profit.

The gross dividend per share is the share of the company’s net profit that is calculated and paid to shareholders for each share held.

The evolution of the dividends distributed from the net profit for the period 2020 - 2022 is as follows:

Share of profit	GMS date	Registration Date	Total gross dividends due - RON-	% of net profit	Gross dividend/share - RON-	Paid gross dividends - RON-	Net dividends accumulated on 31.12.2023
2020-Dividend from the profit of the year, from reserves and retained earnings	28.04.2021	08.06.2021	59,707,439	97.48%	6.89	58,098,820.74	1,608,618.26
2021-Dividend from the profit of the year, from reserves and retained earnings	28.04.2022	25.05.2022	63,057,849	97.14%	7.28	61,315,778.24	1,742,070.76
2022-Dividend from the profit of the year, from reserves and retained earnings	27.04.2023	25.05.2023	59,510,161	94.89%	6.87	57,416,516.78	2,093,644.22

Table 31 - Evolution of dividends distributed in the period 2020-2022.

The return on investment and dividend yield in the period 2019-2023 are shown in the chart below:

The total dividend per share was 6.87 RON, thus offering its shareholders a dividend yield of 8.4%, therefore ranking first in the top of dividends awarded by a company listed on the Bucharest Stock Exchange, Premium category.

Own shares, issuance of bonds or other debt instruments

CONPET did not perform transactions having as scope purchase of own shares and does not hold own shares at the end of 2023.

CONPET has no subsidiaries and there are no shares issued by the parent company and owned by the branches.

CONPET has not issued bonds or other debt instruments.

4.4.2. Corporate Governance

The Corporate governance continues to be in a process of adapting to the demands of a modern economy, to the obvious globalization of social life as well as to the information needs of investors and third parties interested in the activity of the companies.

The corporate governance at the level of CONPET company is organized and conducted in accordance with the Romanian legislative framework, namely the Companies Law no. 31/1990 and the Government Emergency Ordinance no. 109/2011 on corporate governance of the public enterprises.

CONPET shares are traded starting September 5th, 2013 on the regulated market managed by the Bucharest Stock Exchange (BVB),Ist Tier, under the COTE symbol.

Starting January 5th, 2015, CONPET S.A. is included in the PREMIUM category of the regulated market managed by the Bucharest Stock Exchange.

The Corporate Governance system of CONPET is being constantly improved, so as to be compliant with the rules and recommendations applicable to a company listed at the BVB.

Among the measures already implemented, please note:

- the inclusion in the administrators’ annual report of a chapter devoted to corporate governance with reference, inter alia, to the information related to the Board of Directors and the established consultative committees, namely: the Audit Committee, the Nomination and Remuneration Committee, the Development and Investors and Authorities Relation Committee and the Risks Management Committee;

- diversification of communication with shareholders and investors through the inclusion on the web page of the releases addressed to market participants, bi-year and quarter financial statements, annual reports, procedures to be followed in order to access and participate to the GMS;

- the establishment of a specialized entity dedicated to the relationship with investors and shareholders.

The Corporate Governance Rules

As an issuer listed on the Bucharest Stock Exchange, CONPET has promoted the CONPET Corporate Governance Rules. This document represents the voluntary assumption by the Company of the corporate governance principles, taking into account the characteristics and its specific activity in accordance with the principles set out in the Corporate Governance Code of Bucharest Stock Exchange. The regulation is a public document and can be read on the company’s website by accessing the following link: https://www.conpet.ro/guvernanta-corporativa/regulament-de-guvernanta-corporativa/.

4.4.3. The Company Management

By Resolution no. 6 of 19.12.2023, the General Meeting of Shareholders approved the Performance Indicators for monitoring the performance of Conpet S.A., resulting from the 2023-2027 Administration Plan.

In structure, the degree of achievement of the performance indicators in 2023 reveals the following:

Table 37 - Objectives and performance indicators for monitoring the performance of the company Conpet achieved in the period 01.01.2023 - 31.12.2023

Strategic objectives regarding the management of the company CONPET

Actions carried out in view of achieving the strategic objectives contained in the Administration Plan

The strategic objectives contained in the company's Management Plan for the period 2023-2027 are derived from the Letter of Expectations of the majority shareholder, the Romanian State, through the Ministry of Energy and aim to identify and implement solutions for:

- Optimizing the activity taking into account the future prospects from the point of view of customers and transport capacities of the NTS;

- Increasing the performance of the NTS by continuing the investment/modernization/re-engineering works:

- Modernization of non-modernized active pumping stations;

- Maintaining smart pigging programs;

- Replacement of pipeline sections that are unsafe in operation, to avoid technical breakdowns;

- Extending the implementation of the pipeline leak detection and location system;

- Continue to upgrade the pipeline network and storage capacities;

- Completing the implementation of the cathodic protection system;

- Modernization of the integrated IT system and the SCADA system;

- Electricity production from renewable resources.

- Ensuring effective administration in the management of human resources

- The optimization of the organizational structure and the permanent adaptation of human resources in correlation with the requirements and the technical-economic realities of society, the optimal dimensioning of the need for human resources in relation to the real activity and development needs of society;

- The development of the specific competencies and basic skills of the human capital.

- Labor productivity growth;

- Continuing efforts to identify new opportunities for growth and diversification:

- Development of activities related to the core activity (providing storage services of crude oil and petroleum products, etc.) and non-related activities;

- Continuation of steps to access European funds and other forms of non-reimbursable financing.

- Development and improvement of the internal managerial control system;

- Continuous improvement of the integrated management system (quality-environment-health and safety at work-energy-anti-bribery) and the railway safety management system, implemented and certified in CONPET S.A.;

- Maintaining and improving risk management (identifying risks that may affect the achievement of objectives, establishing and implementing risk control measures);

- Improving the monitoring and operational control of transport processes, to increase energy performance (measurement, monitoring and control through remote management) in order to improve energy efficiency to reduce specific consumption per ton of transported crude oil;

- Compliance with the requirements of environmental authorizations and establishing appropriate measures for significant environmental aspects, limiting environmental impact;

- Maintaining and observing the principles of corporate governance and the values and principles of integrity defined in the Code of Ethics and Integrity of CONPET S.A.;

- Responsible and active involvement in corporate social responsibility actions.

The strategic objectives for the period 2023-2027 are:

- Boost efficiency and improve the activity performance;

- Development of new activities, related and non related to the core business;

- Ensuring effective management in the management of human resources;

- Selection of company directors based on criteria of professionalism and integrity;

- Ensuring modern management by implementing and maintaining risk management, control, ethics, integrity and corporate governance processes;

- Ensuring a balance between the dividend policy and that regarding the provision of the necessary funds for the investment programs undertaken by the company for development and modernization.

To the strategic objectives mentioned above, the general objectives of the organization established according to the requirements of the Order of the Secretary General of the Government no. 600/ 2018 regarding the approval of the Code of Internal Managerial Control of Public Entities and the National Anti-Corruption Strategy 2021 - 2025, as well as according to the requirements of the reference standards for the quality-environment-OHS-energy-anti-bribery integrated management system and the regulations applicable to the management system of railway safety.

Strategic objectives- Boosting efficiency and improvement of the activity performance

Measure - Optimization of the operation and administrative costs

Cost optimization is one of the basic management directions for increasing activity efficiency. A first action in this regard is the control of operating and administrative costs. This control was carried out in the two determining stages, respectively at the time of establishing the budget and at the time of its execution. In the stage of planning the activities for the following year, the resources consumed in the current year for the realization of each activity were analyzed and the types of expenses that can be reduced by optimizing the processes were determined. The result of this analysis in the planning stage was to cover the material price increases by decreasing consumption. Through the budgeting managers, the execution of expenses on each cost center is monitored monthly, they are responsible for taking measures to ensure that the costs fall within the planned limits. Also, through the monthly presentation of the table of expenses, those responsible for budgeting have the opportunity to carry out periodic analyses and to discuss within the Steering Committee the proposals for cost efficiency measures.

Another direction of action in order to optimize costs was the efficiency of the pumping scenarios on the two transport subsystems, Domestic and Import, with the aim of establishing, as far as possible, for each transport a pumping scenario with the lowest consumption electric power.

Measure - Making investments aimed at reducing technological consumption in the transport process, reducing energy consumption

Another approach to encourage cost efficiency was to support and stimulate the implementation of investment objectives based on new technologies, with longer life, with lower electricity consumption and reduced maintenance costs.

An important investment project that meets the above requirements is the implementation of a Tele management System for tracking energy consumption.

By carrying out this project several benefits are obtained, among which we list the following:

- ensures the operation and maintenance of the pipeline network in conditions of increased efficiency, with the reduction of operation and maintenance costs;

- making subsequent optimizations in the configuration of own installations, based on the analysis of the information provided by the system.

The Tele Management System will be installed in 15 CONPET workplaces, with the completion date being in May 2024.

During 2023, the installation works of the remote management system were finalized in 8 locations.

Other projects with operational efficiency and cost optimization impact are: the modernization of the pipeline network, a project aimed at reducing technological consumption, but also reducing energy consumption and modernizing pumping systems, with a positive effect on energy consumption.

In 2023, works were executed for the realization of these projects in the amount of approximately 25 million RON.

Measure - Increasing the performance of the NTS by continuing the investment/modernization/revamping works

In 2023, the investment/modernization/revamping works were continued, primarily aimed at increasing the performance of the National Transport System, with the aim of achieving the commitments assumed through the minimum development/revamping programs, annex to the Concession Agreement concluded with NAMR.

The 2023 investments program included investments aimed at improving the performance of the national transport network.

The investment program related to 2023 included rehabilitation works of major transport pipelines and investment works for installations and related equipment to the Crude Oil National Transport System.

The investment projects within CONPET target, mainly, enhancing efficiency of the transport activity as well as the operation, under safe conditions, of the National Transport System.

From the modernization quota, CONPET finances investments provided in the rehabilitation, modernization and development programs, agreed with the National Agency for Mineral Resources, according to the “Oil concession agreement for the operation of the national transport system of crude oil, rich gas, condensate and ethane, including the main pipelines and the ancillary installations, endowments and facilities”.

In 2023, have been achieved investments amounting 83,062 thousand RON, as compared to a program of 112,000 thousand RON, reaching 74.2% degree of achievement.

Investments (thousand RON)	2023		Degree of achievement
	Program	Achieved	Degree of achievement
Total investments, o/w:	112,000	83,062	74.2%
Public domain	90,000	71,580	79.5%
Operating domain	22,000	11,482	52.2%

Table 38 – Investments achieved in 2023 vs. program

Significant investment objectives completed in 2023

- Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm;

- Replacement of crude oil transport pipeline F1 Ø 8 ⅝ ʺ Țicleni Bărbătești, in the water access road site Primăria Bărbătești, approximately 200 m;

- Replacement of a crude oil section Ø 6 ⅝ʺ Urziceni-Albești area, Parepa locality, 1500 linear meters;

- Replacement of a section of about 500 m length pipeline Ø 5 9/16 Copăceni - Vega Refinery and smart pigging;

- Replacement of Ø C4- C4 Bărăganu crude oil transport pipeline along 3 lines, C2-C3 along 6 lines, Ialomita county;

- Replacement of Ø 20ʺ Bărăganu-Călăreți crude oil transport pipeline along 6 lines, Călărași County;

- Condensation tank Barbatesti station;

- Moreni crude oil tanks;

- Constanța Fire Prevention and Security tank;

- Pecica Fire Prevention and Security tank;

- Modernization and monitoring of the cathodic protection system related to the NTS domestic and import;

- Modernization of Marghita ramp;

- Expanding Cyber + Telecom telecommunications locations for SCADA system and weighing system;

- Realization of an electricity production system (a photovoltaic power plant) with photovoltaic panels in the precinct of CONPET Administrative Headquarters 2;

- Transformation in LDE 700 CA- LDH CP 92 53 0850 168-1.

Significant investment objectives in progress on 31.12.2023

PUBLIC DOMAIN- Replacement of pipeline 20” Constanța county - C1 - 8 sections

- Modernization and monitoring of the cathodic protection system related to the domestic and import NTS;

- Modernization of pumping station Ochiuri;

- Rehabilitation works at Cireșu loading ramp;

- Upgrade of Moreni station;

- Upgrade of Mislea station;

- Biled Fire Prevention and Security tank;

- Independenta buffer tank;

- Tele-transmission and tele-management of the power consumptions in CONPET locations;

- Installation and initial metrological verification of four measuring skids in Petrobrazi P3, Poiana Lacului, Videle and Otesti locations;

- Extension of SCADA system - 4 ramps and 5 stations;

- Rehabilitation of the pump hall C+D+E Călăreți station and Rehabilitation of the building related to connections 6 kV, electrical distributors 6/ 0.4 kV A+B Local Dispatch, electrical distributors CDE, Călăreți station;

- Smart pigging, detection of pipeline status Ø10 ¾" L1 Bărbăți - Ploiesti West and Ø 10¾" L2 Orlesti - Ploiesti (Petrobrazi);

- Replacement of pipeline section Ø 6 ⅝"Forest II - Buda over a distance of 7,600 m, from the pig launcher Forest II to the pig receiver Buda and modernization of the smart pig launcher Forest II and receiver Buda;

- Section of the pipeline connection Ø 8” Moreni – Mija (Valea Neagrӑ) in L1, L2 Silişte – Ploieşti, about 7,200 m and pig launcher/receiver stations;

- Safe disposal of the Ø 12" and Ø 14" Cartojani-Ploiesti pipelines at the overcrossing of Cricovul Dulce;

- Replacement of Ø 8 ⅝” Lucăcești-Vermești crude oil transport pipeline - the section from Deal Măgura (Crucea Roșie) to Vermești (Vermești mine road), approx. 9 km in length;

- Upgrading the current crude oil heating system with a heating system using alternative energy sources in the Biled ramp;

- The safe disposal of the crude oil pipelines L1 and L2 Ø 10 ¾” Siliște-Ploiești, at the undercrossing of Ialomita river;

OPERATOR DOMAIN

- Transformation of the LDH 92 53 0850 130 -1;

- Replacement of pipeline section Ø 6⅝ʺ Warehouse Petrom Orzoaia de Sus – Urlați crude oil station, about 1,600 m in length.

The Commissionings achieved in 2023 amounted to 183,684 thousand RON, out of which, per financing sources:

- 173,114 thousand RON out of the modernization quota;

- 10,570 thousand RON out of other own sources;

The main investment projects started in the previous years whose execution continued in 2023 are the followings:

Modernization of non-modernized active pumping stations

Modernization of pumping stations is a significant investment project that can take place over a longer period of time. The first stage of pumping station modernization started in 1997 and ended in 2007, when 16 stations were modernized. The second stage included the partial modernization of 5 stations.

The advantages obtained from the modernization of the pumping stations are the following:

- reduced technological costs in the storage and transport process;

- minimized energy, fuel and lubricant consumptions;

- minimized operating costs and reduced operating difficulties;

- improved safety and flexibility of the system;

- reduced environmental impacts.

In 2023, work was carried out to modernize the pumping systems in 3 stations (Ochiuri, Potlogi and Mislea) in the amount of 6.2 million RON and modernization work in the Moreni station in a total amount of 4.5 million RON. At the same time, work was started on the pumping systems at the Sat Chinez, Constanța Sud and Berca work points.

The performed works aim to automate the installations in order to be included in the SCADA system. These works include the replacement of existing piston pumps with new pumps and pipe connections in pumping stations, as well as energy and automation works at existing installations.

Maintaining smart pigging programs

The purpose of the smart pigging operation is to determine the degree of wear and tear and to estimate when the pipes should be replaced, so that they be safe in transport.

In order to keep the operational risk and the risks related to environmental aspects under control, the policy of reducing these risks will be continued through the multi-year programming of internal inspections with intelligent pig in order to diagnose all the pipelines.

In the year 2023, the smart pigging operation of the crude oil transport pipelines L1 (Bărbătești- Ploiești, Orlești - Poiana Lacului, Poiana Lacului Siliște, Siliște - Ploiești Vest) was carried out over a length of 238 km and L2 (Orlești - Poiana Lacului, Poiana Lacului -Siliște, Siliște -Ploiești) over a length of 175 km with a value of approximately one million RON.

Replacement of pipeline sections which do not present safety in operation

Annually, during the development of the Investment Program, investment objectives are analyzed and prioritized for pipe rehabilitation works, respectively for the replacement of sections that are no longer safe to operate.

The prioritization is mainly based on the results obtained from smart pigging operations.

The analysis of pipeline replacement works also takes into account the information regarding the consents and consents of the landowners to determine if there could be difficulties in obtaining them.

Historical data shows that there is a significant risk related to obtaining building permits in a reasonable time, which is generated by the difficulties encountered in obtaining the consent of the landowners to allow access to the land for the execution of the works. In order to mitigate the impact of this risk, it is necessary that, based on the results obtained from the smart pigging and the level of operational risk established, a medium-term action plan regarding pipeline replacements should be drawn up, which would include: taking into account the potential risks, as well as the risks involved, the measures and actions necessary to mitigate or eliminate the risks and a multi-year planning of these investments.

In 2023, the works to rehabilitate the main crude oil transport pipelines were continued and 10.24 km of pipelines were replaced, for a total amount of 19 million RON.

The objectives finalized and put into operation in 2023 are:

- Replacement of connection lines Danube crossing C1-C2 and C3-C4 Borcea arm. In April 2023 were performed the reception and commissioning, with a total value of 110.7 million RON;

- Replacement of a section of about 500 m length pipeline Ø 5 9/16 Copăceni - Vega Refinery and smart pigging stations. In June 2023 was performed the reception and commissioning, total value of 0.8 mRON;

- Replacement of the crude oil transport pipeline L1 Ø 8 ⅝ ʺ Țicleni Bărbătești, at the Bărbătești Town Hall water tank access road point, approx. 200 m. In February 2023, the reception and commissioning were completed, with a total value of 0.8 million RON;

- Replacement of Ø C4- C4 Bărăganu crude oil transport pipeline along 3 lines, C2-C3 along 6 lines, Ialomita county; In July 2023 were performed the reception and commissioning, with a total value of 14.1 million RON;

- Replacement of Ø 20ʺ Bărăganu-Călăreți crude oil transport pipeline along 6 lines, Călărași County; In November 2023 were performed the reception and commissioning, with a value of 21.5 million RON;

--Replacement of a crude oil section Ø 6 ⅝ʺ Urziceni-Albești area, Parepa locality, 1500 linear - eters in length; In December 2023 were performed the reception and commissioning, with a value of 0.9 million RON;

Also in 2023, the execution of the works for the replacement of the Ø 20" pipeline Constanța - C1 - 8 sections were started, with works worth 7.5 million RON being carried out.

Extending the implementation of the pipeline leak detection and location system

The benefits of implementing a system to detect and locate crude oil leaks from pipelines consist of reducing losses in the event of breakdowns, greening costs and reducing the compensation that the company has to pay to the owners of the lands affected by these breakdowns.

The leak detection system is currently being implemented on the Poiana Lacului-Siliște-Ploiesti pipeline subsystem (pilot project) and the benefits obtained post-implementation are being monitored to be compared with those initially estimated by the study, after which a decision will be made on when installing the system on the remaining operational pipelines of the NTS

In order to make the decision to continue implementing the system on the rest of the pipelines, the results obtained will be compared with the expected ones and the cost-benefit analysis will be updated based on the evaluation results. In order to make the decision to continue the implementation of the system, it is important to take into account the results obtained in the process of intelligent pigging.

In this sense, in March 2023, the contract was signed for "Internal inspection services (expertise) of main crude oil transport pipelines:

L1 Bărbătești - Ploiesti West and L2 Orlesti-Ploiesti (Petrobrazi)". L1 Bărbătești - Ploieşti Vest and L2 Orlești-Ploiești (Petrobrazi)”.

At the end of 2023, the internal inspection of the following sections was completed: Line I Orlesti-Poiana Lacului stage I and II, Line I Poiana Lacului-Siliște stage I and II, Line II Orlesti-Poiana Lacului stage I and II, Line II Poiana Lacului-Siliște stage I and II, Line II Siliște-Ploiesti stage I and the following sections are in progress: Line I Bărbătești-Orlesti stage I, Line I Siliște-Ploiesti stage I, Line II Siliște-Ploiesti stage II.

Continue to upgrade the pipeline network and storage capacities

In recent years, several crude oil tanks, of different capacities, as well as P.S.I. tanks have been built and rehabilitated. located at different work points.

At the level of the transport operations and development-maintenance departments, an analysis was carried out in order to establish the work points where it is appropriate to build tanks of smaller capacity, adapted to the quantities of crude oil transited through those work sites. On the occasion of the analysis, it was established that the type of reservoir built in the Moreni station should also be built in other working points of the company (Independenza Buffer Tank, Poiana Lacului Pumping Station).

In 2023, the following objectives were completed and put into operation:

- Moreni crude oil tanks. In May 2023 was performed the reception and the commissioning, with a total value of 10.88 million RON;

- Constanța Fire Prevention and Security tank. In July 2023 were performed the reception and commissioning, with a total value of 1.03 million RON;

- Pecica Fire Prevention and Security tank. In July 2023 were performed the reception and commissioning, with a total value of 1.15 million RON;

- Condensation tank Barbatesti station. In February 2023 was performed the reception and the commissioning, with a total value of 1.76 million RON;

Also in 2023, execution works were started at PSI Biled Tank, carrying out works worth 2.5 million RON.

Completion of the implementation of the cathodic protection system

Modernization and monitoring of the cathodic protection system for the crude oil transport system via pipeline aims at slowing down or even stop the corrosion process occurring at the surface of metal pipes underground with effect in:

- reducing the maintenance costs associated with both the metal losses and decommissioning of installations;

- increasing safety in the operation of the pipelines;

- avoiding environmental contamination with corrosion/transported product

- reducing the consumption of electricity.

CONPET is running an extensive program to modernize the cathodic protection system of pipelines and tanks, which started in 2017 and continues, being expected to be completed in 2024.

In the first stage, a number of 53 SPCs were created and put into operation by the end of 2019.

In the second stage, a number of 16 SPCs were created and put into operation by the end of 2020.

In the ongoing third stage, out of a total of 31 SPCs (the contract with 2 SPCs was added and one SPC was abandoned) a number of 24 SPCs were made and put into operation.

Out of the other 7 SPCs, 2 SPCs are being executed and in 5 locations construction permits are being obtained.

Completion of the third stage is scheduled for the first semester of 2024.

Modernization of the integrated IT system and the SCADA system

The Investments objective Modernization of SCADA System includes:

- Expansion of SCADA monitoring in 4 rail ramps and hard and soft upgrade of the data transmission and automation system in 5 locations of the SCADA system.

After the implementation of this project, the real-time monitoring through the SCADA system of the process data (pressure, flow, level and pigging crossing sensors) will be expanded in four railway ramps, and by replacing the equipment and updating software in four work points eliminates hardware and software bottlenecks and delays caused by incompatibility between old and new equipment. The benefits obtained by extending the monitoring through SCADA consist in: reducing the time and costs for interventions caused by failures; reducing maintenance costs; increased cyber security in accordance with European Directives; "remote" diagnosis and intervention.

In 2023, the design and execution contract were concluded and the design was completed.

- Design, execution, installation and initial metrological verification of four measuring skids in Petrobrazi P3, Poiana Lacului, Videle and Otești locations.

After the implementation of this project, the fiscal and unitary metering of the crude oil pumped to the Petrobrazi refinery will be allowed; increasing the accuracy of fiscal measurement of skids in Poiana Lacului, Videle and Otești; significant reduction of maintenance costs and times; increasing the quality of the sampling process for laboratory determinations; online tracking of pumped quantities.

The project is under construction, with the design and construction contract ending at the end of February 2023. During 2023, the technical project was carried out, with the deadline for the completion of the project being in December 2025.

- Update of hardware and software related to SCADA work stations inside Central Dispatch and Local Dispatch Centers

From the point of view of cyber security, reliability of existing equipment, as well as compatibility between the operating systems and different software used for the safe operation of the crude oil transportation network through pipelines, it is necessary that these systems be replaced with tested systems of the latest generation. The project on upgrading hardware and software in SCADA workstations in the central dispatch center and in local dispatch centers is proposed in the investment program in the period 2025-2027.

In order to implement the Modernization of the integrated IT system project, at the end of 2019, the interdisciplinary analysis regarding the determination of the new business requirements of CONPET S.A. was completed.

In the course of 2021, the tender for the analysis and reconfiguration of business processes and the ERP system took place and ended, the contract being signed, and in November 2022 the requirements analysis stage was completed.

In January 2023, the scope of work was finalized.

In 2023 H1 was approved in the Steering Committee. The Substantiation Note for the modernization of the E.R.P. system and in June, the Scope of Work was approved for the modernization of the E.R.P. System.

Later, the project was analyzed in detail in the Board of Directors meeting, which requested additional clarifications, which were presented in the October 2023 meeting.

The procurement procedure is to be started in the first quarter of 2024.

Strategic objective- Development of new activities, related and non related to the core business

Measure - Electricity production from renewable resources

In 2022 Q3 for the objective “"Realization of an electricity production system (a photovoltaic plant) with photovoltaic panels in the premises of the Administrative Headquarters 2 CONPET S.A." the contract for design and execution services was signed.

At the level of the first quarter of 2023, the first three contractual stages were completed, and the installation works of the photovoltaic panels (stage IV) began.

In the third quarter of 2023, the reception of the works was carried out for the objective of creating an electricity production system (a photovoltaic plant) with photovoltaic panels in the premises of the Administrative Headquarters 2 CONPET S.A.

Measure - Monitoring of the Operational Programs and Priority Axis in view of accessing European Funds and other non-refundable financing forms

CONPET continued its efforts to identify funding opportunities from European funds, monitoring operational programs and priority axes that may target possible access to structural funds.

In the first quarter of 2023, the opportunity to implement with non-refundable financing the objective "Development of high-power Photovoltaic Park: 20-40MW.

Within the same field, in the third quarter of 2023, another objective was analyzed: "Electricity production from renewable sources - photovoltaic plants - in CONPET S.A. stations. with a minimum self-consumption of 70%" from the European Programs Office.

Also, in 2023 the financing programs through different mechanisms have been monitored and analyzed, which could concern the modernization/revamping/development of the National Transport System.

At the CONPET level, a working group was set up in the third quarter of 2023 to identify new activities that can be financed from European funds.

Strategic Objective - Ensuring effective management in the management of human resources

The measure: The optimization of the organizational structure and the permanent adaptation of human resources in correlation with the requirements and the technical-economic realities of society, the optimal dimensioning of the need for human resources in relation to the real activity and development needs of the company in view of enhancing work productivity;

In order to fulfill its role as a management tool subordinate to the achievement of the organization's general objectives, the organizational structure is designed in such a way as to respond to the specific objectives aimed at:

- Optimizing the use of resources and obtaining the organization's specific performances;

- Monitoring the activities carried out throughout the organization;

- Coordinating the various components to achieve both specific and general objectives;

- Flexibility, by components and as a whole, so that it does not remain at the level of past achievements, but corresponds to the current and future requirements of the environment and the development of the organization.

The human resources policy had in mind:

Permanently ensuring a balance between the need for human resources and the technical-economic and administrative needs of the company;

- Anticipation of possible fluctuations in staff deficit or surplus;

- Identifying and removing the possible restrictive limits of the available human resources which, by their nature, could affect the performance of the activity;

- Optimizing employee costs through efficient use of working time;

- Establishing staff tasks and responsibilities so that management has all the necessary levers to achieve the assumed objectives and performance indicators;

- The allocation of appropriate human resources for the execution of the operations and the provision of the necessary technical skills in the various stages of these operations;

- The distribution of tasks so that each structure has specific responsibilities and does not perform any of the tasks corresponding to another structure.

Particular attention was paid to the process of continuous dimensioning of the resources necessary to achieve the established objectives, by applying managerial measures in order to reduce expenses, which achieves, in addition to the economic effects, the optimization and adaptation of the functional structures in accordance with the current needs of the company, by permanently ensuring a balance between the number of personnel and the real technical-economic and administrative needs of the company.

Continuous monitoring and analysis are carried out for:

- Identifying the positions that can be consolidated or eliminated, for the purpose of their design or redesign, by clearly understanding the responsibilities and expectations for each position, the role, position, duties and functional links between them.

- The continuous sizing of the human resources requirement according to the real needs of the activity and development of the company, considering investment/modernization/re-engineering projects, the development of activities related to the basic activity and non-related or other factors such as: the frequency of pumping, the volume of transported quantities, the change in legislation, the seasonality of some activities, etc.

- Optimizing the organizational structure to facilitate work flows, improve communication and maximize productivity, in accordance with the real activity needs and development projects of the company, as well as updating the Organization and Operation Regulation in accordance with the organizational structure.

- The redistribution of the positions/employees - to ensure the continuity of the work process or to cover a real new need arising as a result of the increase/decrease in the volume of activity, as well as the most efficient use of staff.

The measure: The ongoing development of the specific competencies and basic skills of the human capital

In order to maintain and/or develop the specific skills and basic skills of human capital, professional training activities are carried out continuously and planned, based on the company's annual professional training and authorization programs, developed following the identification and prioritization of training needs of the staff of CONPET S.A.

Through the trainers within the company, both receivers teaching fluid products, as well as employees with operating duties in the field of micro-SCADA can be trained/retrained/qualified internally.

The training of the employees has two components: professional (technical, economic and other specialties) necessary to perform duties in the job description and a general one on training and/or professional licensing in various fields.

The training of the employees has two components: a professional one (technical, economic and other specialties) necessary to perform duties in the job description and a general one on training and professional licensing in various fields.

CONPET S.A. management assures annually, by the Revenues and Expenditure Budget, sources for the provision of training. Special attention is paid to the training of technical staff (maintenance and operations), mainly for acquiring new skills necessary to carry out the safe operation of the National Transport System.

In 2023, 2,698 participations in the following types of training/professional authorization were registered:

- 106 Various fields authorizations (specific per activity);

- 376 rail permits;

- 464 professional training courses;

- 407 internal authorizations;

- 1,345 Qualifications/internal authorizations.

Strategic Objective- Selection of the company directors based on criteria of professionalism and integrity

The selection procedure of the directors with a mandate contract was carried out in accordance with the provisions of the GEO no. 109/2011 on the corporate governance of public enterprises based on criteria regarding training and professional experience and those of integrity.

On 19.10.2023, the company CONPET S.A. sent to the Bucharest Stock Exchange and to the Financial Supervisory Authority current report no. 41/2023 regarding the appointment of directors with a mandate contract. At the same time, it was also posted on the Conpet website at https://www.conpet.ro/relatia-cu-investitorii/raportari/rapoarte-curente-

Strategic objective - Ensuring modern management by implementing and maintaining risk management, control, ethics, integrity and corporate governance processes

The measure: Maintaining and observing the principles of corporate governance and the values and principles of integrity defined in the Code of Ethics and Integrity of CONPET S.A.;

Through the way of carrying out its processes, CONPET S.A. complies with all applicable legal requirements and responds to all requirements of relevant stakeholders, and through the projects and social responsibility actions carried out ensures financial support for the community, constantly involving itself in humanitarian actions, education, art and culture, sports and environmental protection.

Taking into account the fact that the company Conpet S.A. has important duties in a field of national, regional and local interest, being declared of strategic interest, and maintaining the company's reputation is a priority for the administrators and management of Conpet S.A., so that they preserve the company's reputation as a reliable partner in all relationships and with all the relevant stakeholders they come into contact with.

The management of privileged information was carried out ensuring equal treatment for all the company's shareholders.

Transactions with related parties represent another important aspect related to ethics, and within CONPET S.A., internal regulations have been adopted regarding both these and the management of conflicts of interest and the granting of sponsorships.

The elements of corporate governance that have been permanently monitored are:

1) The way in which, at the level of Conpet S.A. the principles and recommendations of the Corporate Governance Code are implemented and respected;

2) Compliance with financial and corporate reporting deadlines to authorities and institutions with an impact on the company's activity;

3) Efficiency of the risk management system and internal managerial control;

4) List of Persons with Access to Inside Information;

5) Respecting the principle of equal treatment towards all stakeholders.

The list of persons who have access to privileged information is drawn up in accordance with the legal provisions in force regarding issuers of financial instruments and market operations. This list is updated whenever changes occur in relation to the inside information and the people who have access to it.

Priority is also given to respecting the rights and fair treatment of shareholders, as well as the rights and interests of stakeholders (interest holders).

At the same time, they take into account:

- compliance with the allocation of powers and responsibilities established by the Rules on the organization and functioning

- permanent, real collaboration between the executive management and the Board of Directors;

- the efficiency of the risk management system and internal managerial control;

- avoidance of Conflicts of Interest;

- Responsible and active involvement in corporate social responsibility actions;

- compliance with the principles of ethics and integrity mentioned in the legislation applicable to commercial companies, in general, and public enterprises, in particular;

- maintaining the company's reputation as a priority, the management of CONPET S.A. must maintain the company's reputation as a reliable partner in all relationships and with all relevant stakeholders with whom it comes into contact.

The measure: Development and improvement of the internal managerial control system

The continuous improvement of the integrated management system involves a number of actions, starting with the periodic evaluation of its performance through internal and external audits, management reviews and feedback from stakeholders.

Following these evaluations, opportunities for improvement were identified and steps were taken to improve the efficiency and effectiveness of the system.

The company CONPET S.A., defined as a public entity in accordance with the provisions of the Order of the Secretary General of the Government no. 600/ 2018, applies the Code of Internal Managerial Control of Public Entities, approved by the aforementioned regulation.

CONPET S.A. does annual self-assessments of the degree of implementation of the internal control management standards and reports in accordance with the legal requirements.

The continuous development of the internal managerial control system is a priority of the management team, through the efficient and effective implementation of all actions in the Development Program of the internal managerial control system, elaborated and updated annually by the Monitoring Commission.

The measure: Maintaining and improving risk management (identifying risks that may affect the achievement of objectives, establishing and implementing risk control measures)

Effective risk management is very important to ensure the long-term viability and success of the company.

During 2023, a rigorous risk identification and assessment process was maintained, a process manifested by rigorous documentation and consistent application of the provisions of the specific documents of the "Risk Management" process.

During each year, the risks that have the potential to affect the achievement of the established objectives were identified, evaluated and prioritized. This process is documented in the Risk Register, thus ensuring a clear and accessible record of all potential threats.

Risk management is maintained as an essential component of each project in prioritizing actions and investments. Also, the management of risks and vulnerabilities to corruption ensures the avoidance of integrity incidents, the management of the company being concerned with maintaining and improving the anti-bribery management system.

The measure: Continuous improvement of the integrated management system (quality-environment-health and safety at work-energy-anti-bribery) and the railway safety management system, implemented and certified in CONPET S.A.

Certification of the Integrated Management System quality - environment - occupational health and safety was held for the first time in September 2007 with recertification every three years.

Between August 28 and September 1, 2023, the external surveillance audit took place for the management systems of quality, environment, health and safety at work, energy, according to the requirements of ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 50001:2018, audit performed by the BUREAU VERITAS certification body. Following the external surveillance audit for the management systems of quality, environment, health and safety at work, energy, no non-conformities were identified.

The audit team of the BUREAU VERITAS body concluded that the organization CONPET S.A. established and maintained an integrated management system in accordance with the requirements of the reference standards and demonstrated its ability to meet the requirements according to the organization's policy, objectives and scope. As a result, the BUREAU VERITAS certification body recommended maintaining the certificates for the management systems of quality, environment, health and safety at work and energy, issued for the organization CONPET S.A.

Starting from 2010, within the organization CONPET S.A. the Railway Safety Management System is implemented and maintained, in accordance with the national legal requirements on railway safety and the reference European Directives. The field of application of this system includes railway ramps where CONPET carries out railway shunting, for which the company holds the “License for the performance of rail transport services (railway shunting)”, granted by the Romanian Railway Authority (AFER)

Also, for the railway ramps where CONPET S.A. only performs railway shunting in its own interest/ for third parties/ on an industrial railway line that is not the property of the company, the Romanian Railway Safety Authority (A.S.F.R.) issued the Single Safety Certificate, in accordance with the provisions of the Order of the Minister of Transport, Infrastructure and Communications no. 743/ 2020 for the issuance of the single safety certificate to operators who only carry out railway shunting on Romanian railways. The certificate is updated whenever CONPET S.A. requests the amendment of Annex B containing the list of motor railway vehicles with which the company carries out the railway shunting.

On 31.12.2023, the Single Safety Certificate no. O.M.F. 2023008, valid until 20.09.2025, subject to periodic one-year visas.

Starting from January 2021, in the organization CONPET S.A. the anti-bribery management system implementation program was carried out according to SR ISO 37001:2017 requirements, program completed in June 2022.

In July 2022, following the external audit carried out by the SRAC CERT certification body,

the following certificates have been issued:

- SRAC nr.28/13.07.2022;

- IQNet nr. RO-0028/13.07.2022,

asserting compliance with the requirements of the anti-bribery management system implemented by CONPET S.A. in compliance with the requirements of ISO 37001 standard.

Following the external surveillance audit of June 2023, the SRAC CERT certification body recommended maintaining the compliance certificate no. 28/13.07.2022 for the anti-bribery management system implemented in the CONPET S.A. organization

In order to determine the effectiveness of the integrated quality - environment - health and safety - energy –- and railway safety management system, in May 2023, the Conducted Management Analysis no. 31. Following the carried-out analysis, actions were established to increase the effectiveness of the management systems.

The actions agreed following such analysis refers mainly to the following:

- Meeting of the energy management team to update the list of locations with significant primary energy consumption, which determines approx. 80% of the organization's registered consumption;

- Revision of the system procedure "Operational control, monitoring, measurement and evaluation of energy performance" and of the work instruction "Calculation of significant deviations and their analysis", in order to establish the way of analyzing the deviations of the energy performance indicators achieved against the planned ones, monthly only for locations with significant primary energy consumption and semi-annually for other locations;

- The re-analysis and re-evaluation by the Monitoring Commission of the internal managerial control system, of the significant risks at CONPET S.A. level. and related control measures, considering the damage caused on 17.04.2023 whose environmental impact was the pollution of the Lopatna stream;

- Review of Measurement and Monitoring Plans and Operational Control Plans for water consuming locations to include actions related to energy target O5/T1 from the List of Energy Objectives and Targets 2023;

- Revision of the operational procedure "Identification and control of sensitive functions at the level of CONPET S.A.", for completion with responsibilities regarding the development/updation of the list of personnel (name and surname) occupying sensitive functions and ensuring the availability of the updated list for the anti-bribery compliance function.

All the actions included in the Action Plan of AEM 31 have been implemented.

Within the energy management system, the energy objectives and targets for the year 2023 were established as follows:

Energy objective 2023	Energy target 2023
O1: Maintaining energy efficiency for electricity use.	O1/T1: Maintaining the electricity annual average specific technological consumption at a level of maximum 3.3 Kwh/product ton O1/T2: Maintaining the electricity annual average consumption in Conpet administrative buildings as compared to the reference period 2019.
O2: Increasing energy efficiency for uses of natural gas.	O2/T1: Reducing natural gas consumption at CONPET compared to the reference period 2019.
O3: Increasing energy efficiency for uses of diesel.	O3/T1: Reduction of specific diesel consumption for the rail shunting within CONPET as compared to the 2019 reference period
O4: Increasing energy efficiency for the uses of automotive fuels.	O4/T1: Maintaining the auto fuel consumption in CONPET compared to the reference period 2019.
O5: Increasing energy performance for the uses of water	O5/T1: Maintenance of the water consumption at CONPET level, for every location by the observance of the Water Management Rights Permit

Table 39 – 2023 Energy objectives and targets

In order to meet these targets, was developed and approved document: “Action plan for achieving 2023 energy objectives and targets”.

The internal audits were conducted in accordance with the approved program for the year 2023 and the audit criteria established in the audit plans. The results were communicated to the audited persons by distributing the audit reports, to which were attached reports of non-compliance and corrective action opened during audits. The company annually provides resources to develop adequate internal audit, mandatory requirement of the reference standards SR SR EN 9001:2015, SR EN ISO 14001:2015, SR ISO 45001:2018, SR EN SR 50001: 2019 EN ISO 37001:2017, as well as the regulations on railway safety.

The measure: Compliance with the requirements of environmental authorizations and establishing appropriate measures for significant environmental aspects, limiting environmental impact;

CONPET activity is regulated according to the provisions of GEO. no. 195/2005 on environmental protection and according to the provisions of the Water Law no. 107/2005, both with subsequent additions and amendments. They establish the legal framework for the prevention of damage to the geological environment, through accidental pollution, and for the management of natural resources

Compliance with the requirements of environmental authorizations and establishing appropriate measures for significant environmental aspects, are key components for the company’s strategy regarding the limitation of environmental impact. As part of the company's commitment to sustainable development, compliance with environmental legislation is not only a legal obligation, but also an ethical responsibility.

Fulfilling the requirements of environmental authorizations implies, first of all, the implementation of technical measures to prevent damage to the geological environment.

To further strengthen the company's commitment to protecting the environment, action was taken to:

- Improve compliance with best practices for sustainability;

- Strengthen internal pollution prevention policy, including through an employee training program;

- Continuing investments in clean and energy efficient technologies;

- Periodic monitoring and evaluation of environmental performance to identify opportunities for continuous improvement.

The measure: Elements of ethics and integrity

The Code of Ethics and Integrity of Conpet S.A. was developed in 2012 and last revised in 2022, in accordance with the provisions of the National Anti-corruption Strategy (S.N.A.), with the requirements of the ISO 37001 Standard (implemented and certified within the organization in the summer of 2022) and the provisions of other legislative regulations specific to integrity. The management of Conpet S.A. ensured that the measures below are still maintained or implemented as follows:

- the values, principles and norms of behavior established by the Code should be periodically reminded to the organization so that it is continuously promoted among the employees;

- ensuring the necessary levers regarding compliance with the Code that do not allow violations of the principles of ethics and integrity, at any level in the company, with reference to management, employees, legality, abuses: campaign to promote the ethics and integrity advisor, with the aim of strengthening the status and mandate to him; campaign to promote the communication channel regarding the whistleblower in the public interest;

- the presentation in the organization of confirmed cases of violations of ethical behavior to emphasize the importance of respecting ethical behavior;

- periodic monitoring of the application of the provisions of the Code;

- revising and disseminating the Code, with the approval of the internal auditor and within the term stipulated in the specific legislation.

Through the Integrity Plan of Conpet S.A. and the Declaration regarding the assumption of the organizational integrity agenda in the coordinates of the National Anticorruption Strategy (Ro.SNA) 2021 - 2025 - adopted in 2022, which include objectives and measures to act as remedies for the risks and vulnerabilities to corruption identified within the company, the management of Conpet S.A. ensured all material, financial and human resources so that all anti-corruption measures are implemented.

The Integrity Plan contains a varied set of measures aimed at achieving the following specific objectives:

- implementation of integrity measures in the organization in the coordinates of S.N.A. 2021-2025;

- streamlining preventive anti-corruption measures by remedying legislative gaps and inconsistencies, as well as ensuring their effective implementation;

- improving the ability to manage management failure by correlating the tools that have an impact on the early identification of institutional risks and vulnerabilities by strengthening the own integrity plan, as a managerial tool for promoting integrity in the organization;

- increasing integrity, reducing vulnerabilities and corruption risks by: respecting and applying integrity standards; avoiding the conflict of interests and incompatibilities, as well as for the consideration of the public interest, in accordance with the observance of the principle of transparency of the decision-making process unrestricted to information of public interest; publication in open format of economic indicators, as well as other information of public interest.

In this context and taking into account the efficiency achieved by implementing the measures up to this point in the Integrity Plan, the quarterly and annual evaluation of the implementation of the measures provided for in the approved Integrity Plan and its adaptation to newly emerging risks and vulnerabilities was a priority management in order to achieve the objectives in the field of anti-corruption.

The registry of corruption risks was developed in 2018 and revised for the last time in 2022. The identification, evaluation and periodic monitoring of corruption risks, as well as the establishment and implementation of prevention and/or control measures are carried out in accordance with the methodology reflected internally by operational procedure and must be maintained, be a priority in prevention and combat corruption.

In order to strengthen this risk identification system, as well as to promote institutional integrity, Conpet S.A. obtained the ISO 37001 certificate in 2022, which certifies compliance with the anti-bribery management system. At corporate level, reasonable measures have been undertaken in what concerns the identification of the risk of bribery and for the control/prevention of their occurrence. The risk of corruption assessment is being communicated and documented and any change occurred at organizational level triggers a revaluation. The anti-bribery compliance function (as per ISO ISO37001:2017) has accountability and authority to report to the management body Board of Directors and management at the highest level, in respect of the performance of the anti-bribery management system.

Increasing the level of education and awareness of employees achieved through training and professional training actions at the company level is the most accessible way for employees to determine behavioral change, thus limiting deviations from anti-corruption norms, internal conflicts, the use of company resources in purposes other than the interests of society. The management of the company has created a functional and transparent organizational framework of integrity, which contributes to the employees' sense of security, to their identification with the company's values.

The measure: The communication with shareholders and other stakeholders

The management ensured full compliance with the reporting obligations related to the capital market, drawing up and transmitting the periodic, current and communicated reports in accordance with the legislative provisions in force. The company also published and complied with the annual financial reporting calendar.

For good communication and transparent information to all interested parties, the public information provided by the legislation was published on the website of CONPET S.A.

Strategic Objective - Ensuring a balance between the dividend policy and that regarding the provision of the necessary funds for the investment programs undertaken by the company for development and modernization

The dividend policy of the company CONPET S.A. was approved by the Board of Directors in January 2021.

The net profit distribution decisions concern the company’s options between partial or full reinvestment of the net profit and/or distribution in the form of dividends.

The gross dividend per share is the share of the company’s net profit that is calculated and paid to shareholders for each share held.

Along 2023, there have not been distributed dividends based on the interim financial statements.

The proposal to distribute the net accounting profit to the legal destinations, in the amount of 61,616,539 RON, includes the distribution in the form of dividends of the amount of 55,891,137 RON, which represents 90.7% of the net accounting profit.

The Executive Management

Between 01.01.2023– 31.12.2023, the executive management had the following composition:

Directors:
Position:	Name and Surname	Observations
Director General	Eng. TUDORA Dorin	As per the BoD Decision dated 20.04.2021, following the carrying out of the procedure for the recruitment and selection of the Director General, as per the provisions of GEO no. 109/2011 on corporate governance of public enterprises, appointment based on contract of mandate with a duration of 4 years, respectively as of 21.04.2021, until 20.04.2025 (inclusive of). For the correlation of the mandate contract of the General Director with the duration of the mandate contracts of the new administrators appointed for a period of 4 years by the OGMS Resolution no. 4/ 18.08.2023, following the proposals and discussions from the BoD meeting dated 22.08.2023, with the agreement of the Director General the duration of his mandate contract was reduced until 06.11.2023 (inclusive) or until the completion of the selection procedure of the Director General, if this will take place earlier dated 06.11.2023. Following the completion of the selection procedure for the Director General, Deputy Director General and Economic Director, the mandate ended on 19.10.2023. According to the Decision of the BoD from 19.10.2023, following the selection procedure, a new mandate contract was concluded for a period of 4 years, starting from 20.10.2023 until 19.10.2027 (inclusive).
Deputy Director General	Jurist DUMITRACHE Mihaela – Anamaria	Mandate contract for 4 years between 18.02.2019 – 17.02.2023 (inclusive), according to the BoD Decision dated 18.02.2019. Provisional appointment mandate contract, 4 months, for the period 18.02.2023 – 18.06.2023 (inclusive), extended starting from 19.06.2023 until 19.08.2023 (inclusive). Provisional appointment mandate contract, 4 months, for the period 20.08.2023 – 20.12.2023 (inclusive), according to the BoD Decision dated 09.08.2023. Following the completion of the selection procedure of the Deputy Director General, the mandate ended on 20.10.2023 according to the BoD Decision dated 19.10.2023. 4-year mandate contract, starting from 20.10.2023 until 19.10.2027 (inclusive), according to the BoD Decision dated 19.10.2023.
Economic Director	Econ. TOADER Sanda	Provisional appointment mandate contract 07.11.2022 – 07.03.2023 (inclusive) according to the Decision of the BoD from 28.10.2022. Provisional appointment mandate contract, 2 months, 08.03.2023 – 08.05.2023 (inclusive) according to the BoD Decision dated 07.03.2023. Provisional appointment mandate contract, 4 months, for the period 09.05.2023 – 09.09.2023 (inclusive) according to the BoD Decision dated 05.05.2023. According to the Decision of the BoD dated 05.09.2023, the mandate contract was extended for a period of 2 months, starting from 10.09.2023 until 10.11.2023 (inclusive). Following the completion of the selection procedure for the Economic Director, the mandate ended on 20.10.2023. 4-year mandate contract, starting from 20.10.2023 until 19.10.2027 (inclusive), according to the BoD Decision dated 19.10.2023.
Deputy Director General 2	Jurist LUPEA Ioana Mădălina	According to the decision of the director general dated 4.06.2021, appointed as Deputy General Director 2, starting from 15.06.2021 until the termination of the mandate contract of the Director General no. 2/21.04.2021, but no later than 17.02.2024 (inclusive). On 07.11.2023 the individual labor agreement ended as per art. 56 paragraph 1) letter i. of the Labor Code, and, starting from the same date, she was appointed as Deputy General Director 2 until the termination of the mandate contract of the Director General concluded on 19.10.2023, but no later than 06.11.2026 (inclusive).
Deputy Director General 3	Eng. NECŞULESCU Radu Florentin	As per Decision of the Director General no. 271/13.05.2022, indefinite period.

Heads of Units and Chief Engineers:
Position:	Name and Surname
Head of Transport Operations Unit	Eng. STOICA Narcis Florin
Head of Maintenance Development Unit	Eng. BUZATU Dan
Head of Commercial Unit	Jurist MANOLACHE Dan
Head of the H.S.E. Unit	Eng. MARUSSI Mădălina Mihaela
Head of Communication and Corporate Governance Unit	PATRICHI Bianca Maria
Investment Development Chief Engineer	Eng. CÎRLAN Florentina – Anca

Table 40 - The Executive Management

On 31.12.2023, Mr Buzatu holds a number of 40 Conpet shares.

Disputes or administrative proceedings

In the last 5 years there have been no disputes or administrative proceedings involving the management of CONPET.

5. THE NON-FINANCIAL STATEMENT FOR THE YEAR 2023

The non-financial statement presents information through which the company’s management wishes to communicate transparently to the business partners, employees, investors, the community in general and any other interested parties the actions taken and the progress achieved by CONPET SA in terms of assurance and continuous improvement of quality of the services provided, environmental protection, occupational health and safety, aspects related to staff and social field, prevention of abuses in human rights matters, ethics and integrity in business and corruption prevention and combating.

Company’s profile

CONPET SA is the operator of the crude oil, rich gas, condensate and ethane National Transport System (NTS). As presented at large in the Report of the Administrators, CONPET SA provides transport services to its customers through both the National Transport System, leased based on the Oil Concession Agreement and by rail, from the loading ramps to refineries.

The operation of the system is being performed by the local dispatchers coordinated by the central dispatcher of the company. The National Transport System consists of the following components:

- Import Crude Oil Transport System;

- Domestic Transport System, which in turn includes:

- The crude oil and condensate transport subsystem;

- The rich gas transport subsystem;

- The ethane transport subsystem.

The powers of each entity within the organizational structure are established by the Rules of Organization and Operation of the company.

Quality, Environment, Occupational Health and Safety Policy

In accordance with the strategic development direction of COPET SA, the Quality, Environment, Occupational Health and Safety Policy aims at satisfying the requirements of the customers and of other relevant stakeholders, complying with the legal requirements concerning the transport of crude oil, rich gas, ethane and condensate and ensuring a healthy and safe work environment for the entire staff, targeting the following lines of action:

- Ensuring the availability and timeliness of the crude oil, rich gas and condensate transport services;

- Solving operative interventions to transport facilities without affecting the interests of customers and other stakeholders;

- Optimizing technological consumption of transported product;

- Compliance with legal and other requirements relating to occupational safety and health;

- Continuous improvement of performance in environmental protection activities in particular by adopting measures to prevent pollution, technological risks and accidents that can have a negative impact on the environment;

- Awareness of the company’s personnel and the one working on behalf of the organization and improvement of communication in order to ensure active participation in achieving the goals;

- Eliminating hazards and reducing risks related to health and safety;

- Consultation and involvement of workers on any issue related to health and safety at work;

- Ensuring appropriate organizational framework for setting the objectives of the integrated management system quality - environment - health and safety;

- Permanent assessment of the risks/opportunities arising from the current organization evolution and the risks/opportunities related to processes and establishment of actions to process them, correlated with the actions established at local/national level.

The company’s management pursues consistently the performance concerning quality, environment, occupational health and safety, by maintaining and continuously improving the Management Systems in accordance with the reference standards for these areas.

The certification body BUREAU VERITAS issued certificates for management systems implemented in CONPET S.A. according to the requirements of ISO 9001, ISO 14001 and ISO 45001 standards, following the external re-certification audit in September 2022. The certificates are valid 3 years, with annual surveillance. Following the surveillance audit of August 2023, the BUREAU VERITAS certification body recommended maintaining the certificates for the management systems of quality, environment, health and safety at work, issued for the organization CONPET S.A.

The quality of transport services

CONPET aims at fully satisfying customers’ requirements and expectations, fulfilling the obligations undertaken under the Oil Concession Agreement and complying with the regulations and legal provisions at all times.

The main goals pursued by the company in order to ensure an adequate level of quality of the transport services are:

- Ongoing strengthening and development of the National Transport System by implementing the best technologies for the rehabilitation and modernization of the oil transport infrastructure, so as to ensure the present and future conditions of continuity and quality of the transport services;

- Increased safety in operation and reduced technological consumptions;

- Continuous improvement of the operational processes to ensure the high level of customer satisfaction through prompt, timely and cost-effective execution of the transport services;

- Maintenance of the Integrated Management System certifications according to the reference standards.

The main lines of action relating to service quality are the following:

- Ensuring the availability and timeliness of the transport services;

- Efficient solving of interventions on the transport installations without affecting customers and other stakeholders’ interests;

- Optimization of technological consumptions of transported product.

The potential risks identified in this regard are as follows:

- the degradation of the National Transport System, reduced transport capacity, delays in delivery, decreased customer satisfaction, complaints;

- identification of major non-conformities following the certification or surveillance audits and suspension/cancellation of certificates, which could have a negative impact on the image of the organization.

As a result of the measures taken by the company, the risks mentioned have been maintained at a low impact level. The efficient control of the risks was materialized by:

- documentation, implementation and procedure compliance measures;

- reviews and internal audits of the integrated management system;

- planning and execution of investment and repair works to the National Transport System;

- ensuring human resources with appropriate skills for conducting the main processes.

No major non-conformities have been identified as a result of the external audits for the surveillance of the integrated management system.

The indicators corresponding to the general quality goals, which refer to the increase of customer satisfaction and responsiveness in providing the transport service are:

- the achievement of the transport program by framing within the contracted technological consumptions;

- the number of complaints received from customers in a year with regards to the conformity of the transport service, with zero target value.

- carrying out the transport of crude oil with the specific electricity consumption of max. 3,3 kwh/transported ton;

- the number of railway events during the railway maneuver carried out with CONPET's own staff, in the railway ramps, with a target value of zero.

In 2023 the indicators have reached the target values laid down as follows:

- the transport program was made without exceeding the contractual limits of technological consumption;

- there were no complaints from customers;

- the specific consumption of electricity for crude oil transportation fell within the margin of max. 3,3 kwh/transported ton;

- no railway events were recorded during the railway maneuver carried out with CONPET's own personnel.

Environment

In the field of environmental protection, CONPET management has adopted an environmental policy integrated with the policy on quality and health and safety at work, specific to the company's activity, size and impact on the environment, which would provide the framework for establishing and analyzing general objectives and specific environmental objectives.

Special emphasis was placed on issues related to the needs and expectations of stakeholders (including the demands of the authority) and local environmental conditions or regional that can affect or be affected by the organization, the way the risks and opportunities are treated related to environmental issues for prevention and limitation of their consequences on human health and the environment.

Being aware that the responsibilities towards the environment and the community in which it operates are inextricably linked to the performance it wants to achieve in its own activity and in accordance with the principles of sustainable development, CONPET has committed, through its environmental policy, to:

- ensuring compliance with legal and other requirements relating to environmental matters.

- the continuous improvement of the performance in environmental protection activity, in particular by adopting prevention measures for pollution, technological risks and accidents which can have negative repercussions on the environment.

- permanent assessment of the risks/opportunities generated by the context in which the organization evolves and of the risks/opportunities related to the internal processes and the establishment of actions for their treatment.

- awareness of the company’s personnel and of the personnel working on behalf of the organization and improvement of communication in order to ensure active participation in the achievement of the goals and the environmental management program.

According to the Ministry of Environment and Sustainable Development Order 1798/2007 approving the procedure for issuance of the environmental permit, the activity carried out by CONPET is an activity with significant environmental impact. The environment permits issued by CONPET remain valid all through the period the company has been issued annual visa permit - amendment brought by Order 1150/2020.

The identification of environmental aspects and the assessment of their associated impact within the company is carried out for:

- all the activities performed, included in the area of application of the environment management system;

- materials, goods and services that can generate environmental impacts that are supplied/manufactured by suppliers/providers;

- new projects and developments/upgrades;

- facilities/equipment from a workstation whose operation has been partially or permanently stopped as a result of preservation, respectively of dissolution of work site and that generated or generate impacts on the environment.

Following the identification of environmental aspects for activities, products and services of the company significant environmental aspects have been retained, which are input for the environmental management program.

The update of the lists of environmental aspects and the associated impacts thereof, as well as their centralization is made whenever changes occur, such as:

- technology changes;

- upgrading or introducing new plant, equipment, use of other raw materials;

- occurrence of new requirements, environmental regulations or amendment of the existing ones;

- decommissioning of installations and equipment;

- preservation/restarting, dismantling of workstations after completion of actions to deal with significant environmental aspects.

During 2023 were reviewed environmental issues at the sites, significant environmental aspects being included in the "List of significant environmental aspects and associated impacts".

Given the significant environmental aspects identified at company level, the measures of inspection reports/minutes - authorities, concerning compliance with legal and other requirements, etc., during 2023 have been reviewed:

- Environmental Management Program and actions to achieve environmental objectives;

- Register of environmental opportunities.

The status of achievement of the objectives and targets set and the stage of the implementation of the actions set for the achievement of the environmental objectives are analyzed annually by the executive management, in the framework of the analysis carried out by the management.

Occupational Health and Safety

For the organization of the prevention and protection activity within the company, according to art. 14, letter. c and in conjunction with art. 19 para. 1, from GD no. 1425/2006 with subsequent amendments and additions, the internal prevention and protection service is established. In each sector, there are persons responsible for health and safety at work, appointed by the Director General 's decision.

Safety and health at work are today the joint concerns of technical and engineering disciplines, interested in finding the most appropriate ways and means of optimizing the human integration into the professional applications system.

The ultimate goal of work safety and health at work is:

- protecting the life, integrity and health of workers against the risks of accidents and professional diseases that can occur in the workplace;

- creating working conditions to provide them stable physically, mentally and socially comfort;

Specific training programs are run to address specific issues, such as those related to safety risks. Permanently, through medical checks, a healthy, active lifestyle, first aid courses, body immunization programs are promoted, especially for employees who work in conditions of isolation, work at height and night shift.

The main action lines of the top management concerning health and safety are as follows:

- Prevention and reduction of occupational diseases and accidents at work;

- Consultation and participation of the employees on any aspect of health and safety at work.

During the checks carried out by the representatives of the service, the "Conpet S.A. employee satisfaction evaluation questionnaire" was filled in by the employees regarding the safety and health at work" and reports were drawn up with reported problems and their remediation.

- Ensuring appropriate organizational framework for setting the objectives of the integrated management system quality- environment- health and safety;

- Permanent assessment of the risks/opportunities posed in the context the organization evolves in and of the risks/opportunities related to the processes and determining the actions for their treatment.

According to the occupational health and safety law and regulations (S.S.M.), every employer with at least 50 employees in an establishment is obliged to establish an occupational health and safety committee, in order to consult and ensure employee participation in the development of all labor protection rules. The occupational health and safety committee is a mixed group, made up of both employer representatives and worker and medical staff representatives.

Beyond our duty to ensure that our people will be fully satisfied with their careers and excellent opportunities for growth and personal development, our priority is to provide them with a safe place to work.

Health and safety matters are discussed in Occupational Health and Safety Committee meetings held quarterly or whenever necessary.

From the perspective of the obligations and responsibilities arising from the Law no. 319/2006 on safety and health at work and GD 1425/2006 approving the Methodological norms for the application of the provisions of the Law on safety and health at work no. 319/2006, the conditions for health and safety at work and occupational accident and diseases prevention are ensured:

- prevention and protection activities are organized internally through the Prevention and Protection Department;

- the duties and responsibilities for safety and health at work are set out incumbent upon the workers, corresponding to the functions exercised, which are specified in the job description;

- the areas that require Occupational Safety and Health signage and the type of signage required according to H.G. no. 971/2006 regarding the minimum requirements for safety and/or health signage at the workplace;

- occupational health and safety clauses are established upon the conclusion of the service contracts with other employers, including those concluded with foreign employers;

- authorization is organized for the exercise of trades and professions provided for by the specific legislation;

- the health of the workers is monitored through in-house medical practices and by contracting occupational medicine services;

In 2023, external controls were carried out by the labor inspectors of Giurgiu and Brăila counties, without any irregularities being identified at the level of the checked work points, an improvement measure being ordered, drawing up an own instruction for travel to and from the place for work. In the framework of the scheduled internal controls, all the locations established by the approved control schedule were checked, no serious deviations were found, possibly causing injury and/or occupational illness of workers; the non-conformities found were remedied by carrying out the corrective measures ordered at no additional cost.

The starting point for optimization of efforts to prevent accidents and occupational disease at work is "Risk Assessment".

In 2023, the committee set up within the company for this purpose analyzed and reassessed the risks for each workplace/work station.

By implementing the technical measures, organizational and sanitary from the Prevention and Protection Plan, the level of risk within the company is 2.87, value below the maximum allowed limit of 3.50.

Within the organization CONPET S.A. an occupational health and safety management system is implemented and certified in accordance with the requirements of the ISO 45001 standard.

During 2023, the occupational health and safety management system, part of the Quality - Environment - OSH Integrated Management System, was maintained and improved, a fact confirmed following the external surveillance audit of August 2023.

The employer permanently allocates resources to maintain and improve the working conditions and health of the employees, the results of these obligations being reflected in the results presented and in the medical reports presented by the contracted occupational medicine doctor.

In the light of the obligations and responsibilities arising from fire defense and civil protection legislation, with implications for the safety and health at work of workers, prevention and intervention measures shall be ensured by meeting/complying with the applicable legal requirements and fire defense activity shall be organized at company level, therefore:

- is established the Emergency Situations Office - structure with responsibilities in emergencies, specialized in risk prevention of occurrence of emergencies through guidance and control activities;

- is organized defense against fire for all work places;

- is organized the intervention of firefighting for all work places;

- is ensured the organization of rescue and evacuation of employees and material goods;

- private service for Emergency Situations is set, in accordance with the law;

- are identified, monitored and evaluated specific risk factors, generators of hazardous events; are identified types of risks generating natural and technological disasters; is provided assessment and analysis of potential risks on the possibility of their occurrence and consequences on people's lives, the environment and property;

- is established the Cell for Emergency Situations;

- are provided information and training activities on the means of knowledge, compliance and enforcement of the norms, of the technical regulations and provisions concerning fire safety and civil protection for all company personnel;

- is ensured the organization of training of employees and emergency teams within SPSU in emergency situations; participation in exercises and applications alarm, evacuation, intervention, limitation and elimination of consequences of fires or other disasters.

From the point of view of the obligations and responsibilities arising from Law no. 59/2016 on the control of major accident hazards involving dangerous substances are provided prevention/action measures by performance/compliance with the applicable legal requirements:

- are established and provided measures to prevent major accidents involving dangerous substances and limit their consequences on human health and the environment;

- "Security Reports" and "Internal Emergency Plans" are developed for each location of the company classified as a "higher level site", respectively "Major Accident Prevention Policy" for the locations classified as a "lower level site";

- the staff employed in these locations is periodically trained on the relevant parts of that documentation;

- at the site level a responsible in charge with security management was appointed, by decision of the Director General.

In order to maintain and continuously improve the safety and health of workers in every aspect related to work, CONPET SA has developed and established the following plan on short, medium and long term:

1. Achievement of all necessary lines regarding Safety and Health at Work contained in the Plan for Prevention and Protection and in the Programs of measures resulting from checks/internal and external audits.

2. Permanent compliance with OHS legislation and other requirements/regulations to which the company subscribes, by implementing innovations in the field.

3. Creating an OHS culture through training and raising awareness of employees about the need to respect the rules of safety and health at work by:

- using interactive teaching methods, accompanied by practical demonstrations;

- empowering all staff in identifying, reporting and eliminating/reducing the dangers of accidents and professional diseases;

- support and promote preventive thinking and behavior;

- involving all personnel in adopting measures to continuously improve the working environment.

4. Continuous improvement of occupational health and safety by:

- eliminating/reducing ongoing risks of accidents and occupational diseases;

- conclusion of an occupational medicine contract with a specialized clinic;

- integrating new employees in all the prevention and protection actions specific to the workplace;

- developing programs to educate employees on occupational health, by adopting a healthy lifestyle;

- improving internal communication and consultation on issues of safety and health at work;

- implementation of thematic programs of information on health and safety risks, use of modern methods, efficient and effective training.

In 2023, no work-related accident/incident was registered within CONPET S.A.

During 2023, sanitary materials and personal protective equipment were provided for all employees.

Informative materials were developed and displayed, including the rules and measures that must be followed, regarding wearing the protective mask, washing/disinfecting hands, ventilating and disinfecting the workspaces.

Energy Policy

The Energy policy of CONPET SA promotes the objectives of continuous improvement of energy performance by maintaining and improving the energy management system, by ensuring compliance with the legal provisions and other applicable requirements in terms of energy consumption and energy efficiency, minimizing the loss of electricity and fuel for the production of heat energy, motor vehicles and rail maneuvering on CF ramps, energy cost reduction, purchase and use of energy-efficient products and services.

The company carries out actions to raise personnel awareness and improve communication in order to ensure active participation in the achievement of the energy goals and targets. In order to achieve the goals of this policy, the management and personnel of the company are fully committed to maintaining and improving the energy management system in accordance with the provisions of the ISO 50001 standard.

The certification body BUREAU VERITAS issued the certificate for the management system implemented in CONPET S.A. according to the requirements of ISO 50001 standards, following the external re-certification audit in September 2022. The certificates are valid 3 years, with annual surveillance. Following the surveillance audit of August 2023, the BUREAU VERITAS certification body recommended maintaining the certificates for the management systems of quality, environment, health and safety at work, issued for the organization CONPET S.A.

Railway Safety Policy

Starting 2010, within CONPET S.A. the Railway safety management system is implemented and maintained. The application area of this system includes ramps where CONPET performs railway shunting operations.

Through the railway safety policy of CONPET S.A. the company declares its will and firm commitment to maintain and improve a railway safety management system according to the requirements established by the national and European Union regulations. The main lines of action are:

- Compliance with existing legal requirements and other relevant stakeholder requirements relating to the development of railway shunting operations;

- Ensuring the appropriate organizational framework for setting objectives and assessing the performance of the safety management system;

- Identification of hazards, assessment and evaluation of risks associated with railway operations, including those arising from external factors;

- Establishing appropriate safety measures to be implemented to mitigate these risks, with a view to preventing accidents/incidents by rail and cooperate with relevant stakeholders on the implementation of appropriate safety measures in case of common risk identification;

- Assuming the coordination of the safety management system activities at the level of the management and delegation of responsibilities within the organization;

- Provision of programs to train the personnel and maintain their competence in performing tasks both for personnel in charge of management, training and control tasks and for personnel performing railway safety-related activities.

The Romanian Railway Authority (A.F.E.R.) granted the company the License for the performance of railway transport services (railway shunting), and the A.S.F.R. (Romanian Railway Safety Authority) issued the Single Safety Certificate for the railway safety management system implemented in CONPET S.A..

The Social and Personnel Policy

The company’s management develops and implements internal regulations used to establish the organization of the activity within the company by which the necessary resources are allocated effectively. The risks associated to the social and personnel field are identified and their potential adverse effects are kept to an acceptable level through appropriate measures for cancellation or mitigation.

The legal requirements in the HR and OHS areas at the level of the company are also complied with by the implementation and certification of the integrated management system. In addition, certain requirements are included in the Internal Regulations and the Code of Ethics.

Competent, motivated and honest employees represent the essential element for the successful completion of the company’s goals, being the most important resource for the proper conduct of the business.

The main actions taken with respect to these issues are materialized by:

- the provision of optimal work conditions;

- transparent processes for recruitment based on professional competence and experience;

- promotion of employees that behave ethically and have proved integrity;

- assessment of professional performance based on professional and personal skills criteria;

- allocation of sufficient resources for the training and continuous improvement of the personnel;

- health care (regular medical checks and assessments, monitoring the health status of the employees, insurance contracts for medical services for the benefit of the employees);

- providing additional wage benefits in the form of voluntary health insurance, as regulated in art. 221 alin.9 of the Collective Labor Agreement, the ultimate goal being to prevent loss of working capacity of employees;

- social facilities provided for in the Collective Labor Agreement (meal vouchers, covering part of the cost of tickets for rest and treatment, financial support to the employees and, in exceptional circumstances, to the members of their families (husband, wife, children supported by them), who have special medical problems, as well as to the employees who suffered significant damage from earthquakes, landslides or floods or other natural phenomena, fires,,);

- supporting trade union activity, communication and ongoing consultation with the trade union organization.

The main potential risks in the social and personnel field relate to:

- high personnel fluctuation, decreased rate of retention of newly hired personnel or occupying key positions;

- insufficient financial resources allocated for maintaining and improving working conditions or for preventive medical actions and measures;

- constraints and budget limitations that can restrict the initiation/development of projects in the field of human resources;

- improperly managed communication;

- lack of qualified personnel in order to ensure the continuity of certain activities (e.g. personnel with responsibilities in traffic safety) in the case of departures from the system.

The effects of these potential risks may consist in the increase of the medical leave expenses incurred by the company, increased absenteeism, decreased quality of the transport services, decreased efficiency, increased recruitment costs, adverse incentive of the employees or trade union conflicts. The company has managed, through the measures taken, to maintain the social and staff risks at a low level.

To manage the risks in this field, the company has taken the necessary measures to ensure the security and protection of the employees’ health, to prevent occupational risks, to inform and train the of employees and to ensure the organizational framework and the necessary means for occupational health and safety, including for specific risk-sensitive groups.

Therefore, in-house instructions have been developed for the application of the regulations concerning safety and health at work, taking account of the particularities of the activities and of the jobs in the company. Furthermore, labor protection measures have been taken, specific for certain occupations or activities.

In drawing up measures for safety and health at work, the company’s management shall consult with the Trade Union or, as appropriate, with the representatives of the employees and with the Occupational Health and Safety Committee.

The personnel is informed and trained about the risks to the safety and health of the employees and to the protection and prevention measures specific to the workplace.

In terms of gender equality, each employee of the company is free to develop their own skills and to express their choices without being influenced by the peculiarities of their gender.

The different behaviors, aspirations and needs of women and men enjoy equal appreciation and promotion within CONPET S.A.

The Internal Regulations of the company include provision for the prohibition of all forms of discrimination.

From the total number of personnel with higher education, 14.5% is represented by women. At the same time, women account for a percentage of 32.5% in total personnel with management positions and a percentage of 34.5% in total personnel with management and coordination positions in the company. Achieving this weight ensures women's participation in decision-making and management at all levels and in key areas of activity of the company.

Thus, according to the organization chart in force at 31.12.2023, the entities Deputy Director General, Deputy Director General 2, Economic Directorate and Maintenance Development Chief Engineer are led by women. Promoting equality at work is synonymous with significant economic benefits.

By eliminating all forms of discrimination within the company, women are free in the choice of their occupation upon their employment on any vacant job and at all levels of the professional hierarchy. This creates non-discriminatory conditions for career advancement, for work remuneration in relation to the professional skills and the quality of the work carried out and for the participation in professional qualification/re-qualification, improvement and specialization programs.

The company guarantees for all employees, regardless of sex, the application of the principle of equal pay and the right to other benefits paid by the employer to employees, directly or indirectly, in cash or in kind, according to their place of employment.

The Conventions of the International Labor Organization (., considered as fundamental labor principles and rights, relate to trade union freedom and trade union right protection, the effective recognition of the right of collective organization and bargaining, the elimination of all forms of forced or compulsory labor, the abolition of child labor and the elimination of discrimination in respect of employment and occupation, and represent guidelines and useful tools for the preparation of the internal policies of the company concerning employment, work, social dialogue, etc.

The company informs employees consistently and permanently on the provisions of the Collective Labor Agreement, the Code of Ethics and Integrity and the Internal Regulations, a document containing special chapters on the rights they have in connection with the compliance with the equality of opportunities and treatment between men and women in labor relations.

Trade union freedom and collective negotiations ensure good cooperation and consultation between the workers and the employer, leading to a decrease in the number of labor conflicts and a higher social stability.

The employees of CONPET SA receive adequate protection against any discriminatory acts that might infringe trade union freedom.

The practice of collective bargaining in CONPET SA guarantees that the worker and the employer have an equal share in the negotiations and that the decisions made will be fair and equitable. Starting from the premise that social dialog is an important factor for socio-economic progress, considered as one of the pillars of the European social model, essential for: the promotion of decent working conditions, transparent regulations regarding working rules, respect for employees and performance, productivity and profit for employers, collective bargaining has allowed the social partners to negotiate a fair employment relationship and to prevent labor disputes.

The activities and actions for entertainment and networking for employees have been conducted between the trade union and employees, between the employees and family members, activities in partnership with public educational institutions, culture, various events at which personalities have been invited, etc.

CONPET SA promotes a transparent business climate, communication and cooperation with all the parties involved in the conduct of its business, with respect for the community and the environment. CONPET S.A. supported, through sponsorship actions, projects of tradition or with significant impact on the community, but also request of less amplitude targeting ideas, actions or individual performance.

Ethics and Integrity in business, fighting corruption

CONPET SA promotes fair business relationships and pursues legal compliance in all commercial transactions and activities carried out, acting for the deterrence, prevention and combating of corruption deeds.

By the Code of Ethics and Integrity the company has established the rules of conduct and integrity, which regulate the values and principles of anti-corruption strategy, corporate values, responsibilities, obligations and business conduct, mandatory rules, applicable to all employees, from all organizational structures of CONPET S.A., directors and administrators with mandate contract.

The Code of Ethics and Integrity defines honest conduct and behavior, prohibits participation of employees in decision-making process in situations where there is a conflict of interest,, Incompatibilities, imposes restrictions in terms of offering/accepting gifts, favors or services, establishes the obligations of the employees with regard to the protection of the company’s assets and resources, specifies how to relate with the authorities based on the principles of fairness, transparency and good collaboration and mentions the rules of conduct during national and international trips. There are also clear rules for dealing with shareholders regarding equal treatment and inside information, as well as the use of honest and legal practices in relations with business partners.

In view of implementation of the National Anti-Corruption Strategy 2021-2025(SNA), to which CONPET S.A. has adhered, in 2017 has been approved the Integrity Plan, document upgraded in 2022 by decision of the Director General of CONPET S.A. - which details, in a personalized manner, the measures applicable to CONPET S.A., subsumed to the general and specific objectives provided in NAS for the identification of risks, vulnerabilities and specific intervention needs. All measures to prevent corruption, with a deadline of 2023, have been implemented.

The recurrent staff awareness activity had an amplitude at the level of the entire company in the field of integrity, through the actions undertaken during 2023. Thus, a significant number of employees, with relevant functions within the company, participated in the external training course "Audit of the corruption prevention system". Internally, the staff was trained on the provisions of the Code of Ethics and Integrity, the Criminal Code regarding acts of corruption related to gifts/goods received or offered free of charge as part of protocol actions, as well as the provisions related to asset declarations and interests, conflicts of interest and incompatibilities.

At the same time, throughout the year various informative materials related to the integrity standards promoted by S.N.A. were disseminated and published, both within the organization and on the Conpet S.A. website. with the aim of preventing corruption and promoting organizational integrity.

Following the training on conflict-of-interest rules and incompatibilities, in 2023, there was also an assessment/verification of the knowledge acquired by the management staff and TESA. Consequently, the awareness and anti - corruption education program in what concerns the internal norms in terms of conflict of interests and the incompatibilities, which took place during 09.10.2023 - 20.12.2023 materialized in higher results from our employees, respectively:

- 98.2% of the total TESA staff were trained and tested, 1.8% of them to be evaluated in order to know the rules, at the start of the activity (after the end of the suspension periods) during the year 2024;

- the degree of knowledge of the norms regarding the conflicts of interest and incompatibilities is 100% (no. of employees who obtained qualifier very good and good/no.of tested employees*100).

As per GEO no. 109 dated November 30, 2011 on the corporate governance of public enterprises, further amendments and additions and within the Program for the development of the internal control management system, elaborated in compliance with the O.S.G.G. no. 600/2018, considering the necessity of building an integrity culture inside CONPET S.A., has been revised and approved by the Board of Directors (in the meeting dated 23.10.2023), the Code of Ethics and Integrity.

The entire personnel of CONPET S.A. has been trained with regards to the company's institutional strategy, related to the expectations in conduct matters as per the Code of Ethics and Integrity, as well as related to the rights and obligations of the personnel in ethics and compliance matters.

The Ethics Advisor monitored the compliance, by the organization's staff with the principles and rules of conduct and provided advice and assistance in the field of ethics in accordance with CONPET S.A. Ethics Advisor's Work Regulation, in force.

The Anti-Bribery Policy

For CONPET S.A., doing business and process deployment by the observance of the highest standards of ethics and integrity stands for a constant preoccupation.

Acting as an operator of the crude oil, rich gas, condensate and ethane National Transport System, CONPET S.A. acceded to the anti-bribery national strategy and implemented proper integrity plans.

By the anti-bribery policy, CONPET S.A. commits not to tolerate any bribery act, not to manifest any type of sanction or retaliation against any relevant employee or third party for the refuse to be part of a bribery act and to observe the anti-bribery legislation applicable to the organization.

Following the external audit carried out in July 2022, the SRAC CERT certification body certified the anti-bribery management system implemented in CONPET S.A. organization in accordance with the requirements of ISO 37001. The certificate is valid for 3 years, with annual surveillance. Following the external surveillance audit of June 2023, the SRAC CERT certification body recommended maintaining the compliance certificate no. 28/13.07.2022 for the anti-bribery management system implemented in the CONPET S.A. organization.

CONPET SA is a company listed on the Bucharest Stock Exchange and, according to the capital market legislation, the decision for the appointment of the members of the Board of Directors belongs to the shareholders. For this reason, the company is not in a position where it can influence issues of diversity and could not adopt a policy on diversity in terms of administrative and management bodies.

However, the proposals for candidates and the result of the vote in elections have provided each time an appropriate degree of diversity in terms of profile of administrators, coverage of professional expertise areas or age thereof.

The current Board of Directors includes 2 women and five men with professional experience in economics, engineering and law.

Report as per Article 8 of EU Regulation 2020/852 of the European Parliament and of the Council

1.Introduction

In addition to respecting human rights and social rights, sustainable development involves activities and projects that ensure both the limitation of climate change and the conservation of natural resources. The member states of the European Union have committed themselves to gradually reduce greenhouse gas emissions. The European Green Deal sets the goal of net zero emissions by 2050.

The European Union is the initiator of an ambitious action plan to ensure sustainable economic growth, a plan for which it formulated three precise objectives: directing capital flows to environmentally friendly investments, integrating sustainability into risk management and promoting transparency and long-term planning in financial and economic activities.

One of the measures taken as part of this plan was the implementation of the Taxonomy Regulation (EU Regulation 2020/852), a homogenous, credible, science-based legislative framework for determining activities that can be considered sustainable. The development of this classification system, a priority at the level of the European Union, was based on the extensive input of large teams of experts and included an extensive consultation process with interested parties.

The European taxonomy defines the activities considered to be durable (or "sustainable", or "green"), establishes the reporting requirements and provides, through the delegated regulations, the methodology for calculating the extent to which a company proves to be sustainable from a turnover, capital expenditure and operating expenditure perspective.

The taxonomy provides clarity and helps relevant financial market actors and government entities to identify sustainable companies and facilitate access to private sector finance for the transition to climate neutrality. At the same time, taxonomy contributes to the prevention of the "green washing" phenomenon, by easier identification of phony projects, which are "green" only in name.

By stating the environmental objectives that determine the classification of an activity as sustainable, the EU Taxonomy contributes to the decarbonization of sectors with high emissions and the growth of sectors with low carbon emissions, thus contributing to the achievement of the objectives assumed by the EU Green Deal.

The six environmental goals set out in the Taxonomy are: mitigation of climate change, adaptation to climate change, sustainable use and protection of water and marine resources, transition to a circular economy, prevention and control of pollution, and protection and restoration of biodiversity and ecosystems.

The regulation establishes the following four criteria that must be met to determine whether an economic activity is environmentally sustainable:

i)The activity substantially contributes to one or more of the six environmental objectives;

ii)The activity does not significantly harm any of the environmental objectives;

iii)The activity is carried out in accordance with the minimum guarantees* established in the regulation;

iv)The activity complies with the technical examination criteria established by delegated regulations.

(*) Note: Minimum guarantees are procedures applied by an enterprise carrying out an economic activity to ensure alignment with the OCDE guidelines on multinational enterprises and with the UN Guiding Principles regarding business and human rights, including the principles and rights enshrined in the eight fundamental conventions identified in the International Labor Organization's Declaration on Fundamental Principles and Rights at Work and those established in the International Charter of Human Rights - Art. 18 of Regulation 2020/852

Activities that meet the four conditions above are considered environmentally (ecologically) sustainable. If one of the four conditions is not met, the activity subject to evaluation can be considered eligible, but not aligned.

Economic activity aligned to the taxonomy is an activity that meets the four conditions that allow it to be classified as environmentally sustainable according to the EU taxonomy.

The eligible economic activity from the point of view of the taxonomy is defined as being an economic activity described in the adopted delegated acts, regardless of whether or not the said economic activity fulfills all the technical examination criteria provided in the delegated acts.

The ineligible economic activity from the point of view of the taxonomy represents, according to the definition in the Delegated Regulation, an economic activity that is not described in the adopted delegated acts.

The concrete requirements that must be taken into account in the evaluation of the substantial contribution, namely the absence of significant damages, are established by the so-called "technical selection criteria". The technical screening criteria define the specific requirements and thresholds that each activity must meet in order to be considered as significantly contributing to one environmental objective and not significantly harming others. The technical examination criteria are elaborated in the secondary legislation (delegated acts).

Starting from 2022, non-financial enterprises have the obligation to calculate the degree of alignment with the taxonomy of their performance indicators and to make available to interested parties’ information related to the degree of alignment with the taxonomy.

In 2021, the European Commission adopted the EU Delegated Regulation 2021/2139 (Climate Delegated Act) which defined the lists of eligible economic activities and the technical examination criteria for economic activities that substantially contribute to the objectives of mitigating climate change and adaptation to climate change respectively (applies from 01 January 2022).

The EU Delegated Regulation 2021/2178 (Delegated Act on the provision of information) complements Article 8 of Regulation 2020/852 (Taxonomy) and specifies the content, calculation methodology and presentation of information regarding the key performance indicators with respect to which non-financial enterprises must provide information (applies from 01 January 2022).

Starting from 01 January 2023, the provisions of the EU Delegated Regulation 2022/1214 (Complementary Climate Delegated Act) will also apply, which amend the EU Delegated Regulations 2021/2139 and EU 2021/2178, by including, under strict conditions, the specific activities regarding nuclear energy and gas-based in the list of economic activities approved by the EU Taxonomy.

2.Article 8 of EU Regulation 2020/852 (Taxonomy Regulation)

This report is drawn up in accordance with Article 8 of EU Regulation 2020/852 (“Taxonomy Regulation") and contains the information that must be included in the Non-Financial Statement of the company CONPET SA for the financial year 2023.

This report also ensures compliance with the provisions of the OMFP no. 2844/2016 for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards, modified by OMFP no. 1239/2021 for the amendment and completion of the accounting regulations applicable to economic operators and OMFP no. 85/2024 for the regulation of sustainability reporting issues.

The information complies with the reporting requirements established by EU Regulation 2020/825, supplemented by EU Commission Delegated Regulation 2021/2178 and respectively by subsequent amending acts: EU Delegated Regulation 2021/2139 and EU Delegated Regulation 2022/1214.

Article 8 of the Taxonomy Regulation requires non-financial enterprises to provide the following information:

(a) the proportion of turnover obtained from products or services associated with economic activities that qualify as environmentally sustainable, and

(b) the proportion of capital expenditure (CAPEX) and the proportion of operating expenditure (OPEX) related to assets or processes associated with economic activities that qualify as environmentally sustainable.

For the 2023 financial year, the three performance indicators associated with the eligible economic activities and aligned to the taxonomy are presented in the following sections, in correspondence with the six environmental objectives defined by the taxonomy.

3.Key Performance Indicators

Key performance indicators are calculated and presented in accordance with EU Delegated Regulation 2021/2178 - Annex I and II.

3.1.Key performance indicators regarding turnover

The key performance indicator regarding turnover represents the share of revenues generated from eligible/taxonomy-aligned activities in total turnover.

In order to analyze the degree of alignment of the turnover with the EU Taxonomy, the company proceeded to identify the economic activities that generate income and to their comparative analysis with the activities described in the annexes to the delegated regulations.

The main activity of the company CONPET is the transportation of crude oil, rich gas, condensate and ethane through pipelines, NACE code 4950. This activity generates 99.5% of the income included in the turnover.

The transport of crude oil by pipeline is not explicitly mentioned in the lists of taxonomically eligible activities detailed in the delegated regulations.

In the EU Delegated Regulation 2021/2139, in the list of taxonomically eligible activities, the activity called "Transport and distribution networks for gases from renewable sources and with low carbon dioxide emissions" is mentioned, in position 4.14 of the annexes. When describing this activity, the regulation specifies that economic activities in this category could be associated with several NACE codes, including H49.50 – Pipeline transport (equivalent to NACE code 4950).

For this reason, for the analysis of eligibility from a taxonomical standpoint, the possibility of assimilating the activity of transporting crude oil through pipelines with that described in point 4.14 of the annexes of the regulation was taken into account.

The products transported through CONPET’s pipelines are part of the category of fossil fuels (non-renewable) and, for this reason, cannot be assimilated with the activity specified in the taxonomy under the name "Transport and distribution networks for gases from renewable sources and with low carbon dioxide emissions", which refers exclusively to gases from renewable sources (biogas, hydrogen).

Thus, following the analysis of the economic activities carried out by CONPET in 2023, by comparison with the list of activities described in the delegated regulations, no eligible activities were identified from a taxonomical standpoint. The company's core business, which generates almost all of CONPET's turnover, namely the transportation of crude oil, rich gas, condensate and ethane, is not among the activities listed in the taxonomy, therefore does not fulfill the eligibility condition.

In conclusion, the turnover generated from taxonomy-aligned activities is zero, and the proportion of taxonomy-aligned turnover is consequently zero.

According to EU Delegated Regulation 2021/2178, non-financial enterprises provide contextual information on the key performance indicator on turnover.

Thus, in the table below, a breakdown of the turnover for the years 2022 and 2023 is presented, highlighting the income obtained from various economic activities.

	2022 thousand RON		2023 thousand RON
Revenues – crude oil transport	469,857	99.50%	482,873	99.54%
Revenues from rent	1,966	0.42 %	2,078	0.43%
Other revenues	410	0.09 %	163	0.03%
Turnover	472,233	100.00%	485,114	100.00%

Table 41 - Breakdown of turnover for the period 2022-2023

Table 42 – The proportion of turnover generated by economic activities aligned to the taxonomy

3.2 Key performance indicators regarding capital expenditures (CAPEX)

This indicator is defined as ratio between the value of the eligible investment (aligned to the taxonomy) works and the total value of the investments made in 2023.

The investment activity mainly refers to the execution of the modernization and securing of the national crude oil, rich gas, condensate and ethane transport network, the operation of which is considered, according to the analysis above, as representing an ineligible activity, therefore not aligned to taxonomy.

Thus, when calculating the performance indicator regarding capital expenditures, no expenditures related to assets or processes associated with economic activities aligned to the taxonomy were identified.

In the analysis of the degree of CAPEX alignment with the EU Taxonomy, the company also proceeded to identify those investment projects that are not directly related to the transport infrastructure, but which are found in the lists of activities defined in the delegated regulations as eligible, and which could meet the technical examination criteria imposed.

Thus, projects similar to the activities described in points "7.2. Renovation of existing buildings", "7.3 Installation, maintenance and repair of energy efficiency equipment" and respectively "7.6. Installation, maintenance and repair of renewable energy technologies', taxonomically eligible activities.

The projects that meet the taxonomy alignment conditions represent photovoltaic system installation works, which are considered to have a substantial contribution to the environmental objective "climate change mitigation" and fall into the category of facilitation activities.

For investment works that refer to the installation, maintenance and repair of energy efficiency equipment or renovation works of existing buildings, the technical examination criteria regarding the substantial contribution to an environmental objective or “to not bring significant damage", so alignment to the taxonomy could not be confirmed.

The results of the analysis related to the CAPEX key performance indicators are showcased in the following table.

Table 43 – The proportion of turnover generated by economic activities aligned to the taxonomy

3.3 Key performance indicators regarding capital expenditures (OPEX)

This indicator is calculated as a ratio between eligible/taxonomy aligned OPEX and total OPEX, as defined in the Regulation.

According to the definition in point 1.1.3.1 of Annex I to EU Delegated Regulation 2021/2139, the operating expenses considered for the taxonomy alignment analysis are limited to research and development activities, building renovation, short-term leasing contracts, maintenance and repair work, as well as any other direct expenses related to the current maintenance of tangible assets necessary to ensure the continuous and efficient operation of these assets.

For the calculation of the performance indicator regarding operating expenses, the part of the above operating expenses that is related to economic activities aligned to the taxonomy is taken into account.

As previously mentioned, the core activity of CONPET is represented by the transportation of crude oil, rich gas, condensate and ethane. This activity is considered ineligible from a taxonomical standpoint, since, as shown above, it is not included as such in any of the lists of activities annexed to the delegated regulations, nor is it assimilated to any other activity in those lists, which is why it is not covered by any of the six environmental objectives.

The expenses mentioned above, considered for the calculation of the denominator of the performance indicator regarding operating expenses, represent less than 1% of the total operating expenses recorded by the company in 2023.

Due to CONPET's specific business model, operating expenses are practically entirely associated with crude oil transportation, which is an ineligible activity.

Consequently, the expenses specified in point 1.1.3.2 of Annex I to the EU Delegated Regulation 2021/2139 for the calculation of the numerator, which could be associated with taxonomically eligible activities other than pipeline transport, are considered insignificant in relation with the total operating expenses, as can be seen in the table below

Table 44 – OPEX proportion in the total operating expenses

Considering the provisions of the same point 1.1.3.2, the company can report the zero value for the OPEX indicator, having only the obligation to present the total operating expenses, which for the year 2023, calculated according to the definition in point 1.1.3.1., had the value of approximately 4.2 million RON.

6. PROPOSAL OF THE BOARD OF DIRECTORS

6.1 Approval of the financial statements concluded on 31.12.2023

6.2 Approval of the allocation of net profit related to the financial year 2023

The distribution proposal of the remaining accounting profit after deduction of the corporate tax on December 31, 2023:

Throughout 2023, no dividends were distributed based on the interim financial statements.

The remaining accounting profit after the deduction of the corporate tax, on December 31, 2023 amounted to 61,616,539 RON.

The proposal for distribution of the remaining accounting profit after deducting the corporate tax to pe distributed, to which was added the provision for the employees’ share of profit in the amount of 6,000,000 RON resulting in a total distributable amount of 67,616,539 RON, is as follows:

No.	Element	GO Provision no. 64/2001	Amount - RON-
1	The net profit of the financial year 2023, reported based on the annual audited financial statements	-	61,616,539
2	The employees’ share of profit within the limit of 10% of the net profit but not more than the monthly average base salary achieved at the level of the company in the financial year 2023, recognized in the provisions account	-	6,000,000
3	The net profit, reinstated with the provision for the employees’ share of profit (1+2):	-	67, 616,539
a	Other distributions provided by law - exemption from paying tax on reinvested profit (account 1068), art. 22 of Law no. 227/2015 on the Fiscal Code	art. 1 para. (1) letter b)	3,725,402
b	The employees’ share of profit within the limit of 10% of the net profit, but no more than the level of a monthly average basic salary achieved at the level of the company in the reference financial year	art. 1, para. (1), letter e)	6,000,000
c	Dividends due to shareholders	art. 1, para. (1), letter f)	55,891,137
d	Other reserves - own financing sources	art. 1, para. (1), letter g)	2,000,000

Table 45 Proposal for the allocation of net profit for the year 2023

The retained earnings which can be allocated, in amount of 862,397 RON, is proposed to be allocated for distribution as dividends. The statement of distributable retained earnings and its distribution shall be as follows:

No.	Destination	Amount (RON)
1.1	The retained earnings representing surplus achieved out of revaluation reserves	862,397
1	Total retained earnings, distributed for:	862,397
a	Dividends due to shareholders	862,397

Tabel 46 – Proposal for the allocation of the retained earnings

Chairman of the Board of Directors

GHEORGHE Cristian - Florin

Director General

Eng. TUDORA Dorin

Deputy Director General

Jr. DUMITRACHE Mihaela Anamaria

Economic Director

Econ. TOADER Sanda

ANNEXES

1).Transactions concluded as per Article 52 of GEO no. 109/2011, in the second semester of 2023

2).Financial and non-financial key performance indicators for 2023 of the directors with contract of mandate for the period 01.01.2023-19.10.2023

3).Financial and non-financial key performance indicators for 2023 of the directors with contract of mandate for the period 20.10.2023-31.12.2023

4).Report on the internal/management control system on 31.12.2023

5).List of the important contracts concluded by the company in 2023

6).List of litigations on 15.03.2024.

7).The Articles of Incorporation in force, updated on the date of 27.04.2023

8) C.V.s of the current administrators

								Annex no. 1
Transactions concluded under Art.52 of GEO no.109/2011 in the second semester of 2023
Crt. No.	Contract no.	Date	Partner	Scope of the contract	Value -RON-	Established guarantee -RON-	Type of payment Payment term	Penalties
1	2023/EN 119	07 July 2023	S.N.G.N. ROMGAZ S.A.	Electricity supply ROMGAZ IERNUT -	37,500.00	N/A	bank transfer 15 days from the date of issue	0.02% /day
2	2023/RPS 124	17 July 2023	OIL AND GAS UNIVERSITY	Sponsorship of the event of 75 years of performance in education and research	15,000.00	N/A	bank transfer up to 12.08.2023	N/A
3	2023/RPS 125	17 July 2023	MAICA PRECISTA PARISH	Sponsorship of works consisting in restoration of iconostasis and construction of chapel	20,000.00	N/A	bank transfer up to 12.08.2023	N/A
4	2023/RPS 126	17 July 2023	"ION POPESCU" SECONDARY SCHOOL BĂRBĂEȘTI	Sponsorship of color printer purchase	7,000.00	N/A	bank transfer up to 12.08.2023	N/A
5	2023/CCA 136	01 August 2023	MUSEUM OF NATIONAL HISTORY AND ARCHEOLOGY CONSTANTA	Intrusive archaeological diagnostic services 3,22 HA	4,836.00	N/A	cash or transfer 25 days from the issue of the invoice	N/A
6	2023/CCA 137	01 August 2023	MUSEUM OF NATIONAL HISTORY AND ARCHEOLOGY CONSTANTA	Preventive archaeological research services 8868 sqm	216,700.00	N/A	cash or transfer 25 days from the issue of the invoice	N/A
7	2023/CCA 138	01 August 2023	MUSEUM OF NATIONAL HISTORY AND ARCHEOLOGY CONSTANTA	Preventive archeological research services 32.110 sqm	128,000.00	N/A	cash or transfer 25 days from the issue of the invoice	N/A
8	2023/S-CA 140	07 August 2023	OIL AND GAS UNIVERSITY	Design and elaboration of technical and economic efficiency calculation for replacing the current crude oil heating system in CONPET tanks - Biled ramp, Timis county	298,500.00	29,850.00	invoice 30 days from the invoice registration	0.1% /day
9	2023/RPS 143	16 August 2023	TURNU MONASTERY	Sponsorship contract	5,000.00	N/A	bank transfer up to 08.09.2023	N/A
10	2023/RPS 155	26 September 2023	FLOREȘTI PNEUMOPHTHISIOLOGY HOSPITAL	Sponsorship Pulmonology Hospital Florești	50,000.00	N/A	bank transfer up to 24.10.2023	N/A
11	2023/RPS 163	18 October 2023	CHAMBER OF COMMERCE AND INDUSTRY	Participation in the event top of Prahova companies 2023	5,752.10	N/A	bank transfer up to 20.10.2023	N/A
12	2023/RPS 165	24 October 2023	"SFINȚII TREI IERARHI" CHURCH	Sponsorship "Sfinții Trei Ierarhi" church	10,000.00	N/A	bank transfer up to 22.11.2023	N/A
13	2023/RPS 166	24 October 2023	CHILDREN'S BALNEARY SANATORIUM	Sponsorship of the Balneoclimateric Sanatorium for Children Bușteni	15,000.00	N/A	bank transfer up to 22.11.2023	N/A
14	2023/RPS 168	24 October 2023	PLOIEȘTI MUNICIPAL HOSPITAL	Sponsorship of Ploiesti Municipal Hospital	50,000.00	N/A	bank transfer up to 22.11.2023	N/A
15	2023/S-CA-CD 181	31 October 2023	NATIONAL INSTITUTE FOR RESEARCH & DEVELOPMENT IN INFORMATICS - ICI Bucharest	IT infrastructure security and monitoring services	107,520.00	10,752.00	invoice 30 days from the invoice registration	0.3%/day
16	2023/EN 185	02 November 2023	BILED CITY HALL	Water supply Biled station	12,500.00	N/A	invoice 30days from the invoice registration	the level of interest due under budgetary obligations
17	2023/CCA 188	08 November 2023	POARTA ALBĂ AGRICULTURAL HIGH SCHOOL	Temporary lease of land 8,854 sq.m.	15,052.00	N/A	bank transfer 30 days from the signing of the contract	N/A
18	2023/RPS 192	14 November 2023	"SFÂNTUL VASILE” SECONDARY SCHOOL	Sponsorship contract	20,000.00	N/A	bank transfer up to 10.12.2023	N/A
19	2023/RPS 193	14 November 2023	PLOIEȘTI PEDIATRIC HOSPITAL	Sponsorship contract	50,000.00	N/A	bank transfer up to 10.12.2023	N/A
20	2023/BSP 200	22 November 2023	ȚĂNDĂREI CITY HALL	Rental of a part of the city building Țăndărei	23,715.00	474.30	bank trasfer 30 days from the invoice registration	0.1%/day
21	2023/BCF 213	12 December 2023	C.N.C.F. CFR S.A.-REGIONALA DE CĂI FERATE TIMIȘOARA	Operation of industrial lines Biled station	19,851.28	N/A	invoice 30 days from the invoice registration	0.03% /day
22	2023/CCA 224	15 December 2023	BUCȘANI CITY HALL	Temporary lease of land 3,118 sq.m.	9,354.00	N/A	acc. To Art. 9, letter. b of Law no. 238/ 2004 - Petroleum Law	N/A
23	2023/RPS 228	19 December 2023	"SFÂNTUL VASILE” SECONDARY SCHOOL	Sponsorship contract "Sfântul Vasile" school Ploiești	25,000.00	N/A	bank transfer up to 31.12.2023	N/A
24	2023/RPS 229	19 December 2023	DRAJNA PNEUMOPHTHISIOLOGY HOSPITAL	Sponsorship contract DRAJNA Hospital	25,000.00	N/A	bank transfer up to 31.12.2023	N/A
25	2023/RPS 230	19 December 2023	PLOIEȘTI RAIL GENERAL HOSPITAL	Sponsorship contract C.F. hospital Ploiești	20,000.00	N/A	bank transfer up to 31.12.2023	N/A

OBJECTIVES AND FINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS FOR DIRECTORS WITH MANDATE CONTRACTS (mandate duration 01.01.2023-19.10.2023) for 2023
Annex no. 2
Crt.no.	Performance indicators	Performance objective	MU	YEAR 2023			Degree of achievement KPI (%)	KPIs weights for the settlement of the remuneration	Degree of achievement KPIs (%)
Crt.no.	Performance indicators	Performance objective	MU	Approved target values		Achieved values	Degree of achievement KPI (%)	KPIs weights for the settlement of the remuneration	Degree of achievement KPIs (%)
A. FINANCIAL KEY PERFORMANCE INDICATORS: 50%
1	Outstanding payments	Level zero	thousand RON	0		0	100.0%	5.0%	5.0%
2	The decrease of the operating expenses = (Operating expenses – Value adjustments of assets and provision adjustments)/Turnover	The maintenance of the share of expenses in the turnover at the level assumed by the Administration Plan	%	85.7%		84.7%	101.2%	20.0%	20.2%
3	Adjusted EBITDA = Operating profit - write-back of the reserve out of the modernization quota + Expenses regarding the settlement of the modernization quota + Impairments of tangible and intangible assets, here included the revaluation differences).	The realization of adjusted EBITDA target assumed by the Administration Plan	thousand RON	110,216		134,706	122.2%	20.0%	24.4%
4	Labor Productivity	Achievement of the labor productivity level provided in the annual approved Budget	thousand RON/person	379		383	101.1%	5.0%	5.1%
B. NON- FINANCIAL KEY PERFORMANCE INDICATORS: 50%
B1. OPERATIONAL: 30%
5.	Framing within the specific consumptions for the crude oil transport (does not include the crude oil quantity lost during provoked breakdowns or in case of breakage resulting in contamination, where the owners do not ease access for remedy) .	The target value lower than the value of the maximal technological consumption, for crude oil	%	Țiței țară ≤ 0.361% Realizat =0.344%	0.306%	0.261%	114.5%	5.0%	5.7%
				Țiței import Lukoil ≤ 0.290% Realizat 0.194%
				Țiței import Petrom ≤ 0.143% Realizat 0.137%
				Țiței import Midia ≤ 0.108% Realizat 0.100%
6	Monitoring of the annual electricity average specific consumption for technological purposes	Maintenance of the annual electricity average specific technological consumption at a level of max 3.3 Kwh/to	Kwh/to	Max 3.3 Kwh/to	3.3	2.3	100.0%	5.0%	5.0%
7	Achievement of the investments financed out of the modernization quota	Min. achievement 95% of the annual Investments Plan financed out of the Modernization Quota	%	≥ 95 %	95.0%	123.2%	100.0%	20.0%	20.0%
B2. OF CORPORATE GOVERNANCE: 20%
8	Implementation/development of the internal control management system in compliance with the legal requirements in force	100% achievement of the actions included in the program	%	100%	100.0%	100.0%	100.0%	10.0%	10.0%
9	Duly reporting of the degree of achievement of the performance indicators of the company	Framing within the reporting due deadlines	%	100%	100.0%	100.0%	100.0%	5.0%	5.0%
10	Growth of institutional integrity by inclusion of the measures to mitigate corruption as an element of the management plan	Minimum 90% achievement of the measures assumed by the approved Integrity Plan	%	≥ 90 %	90.0%	100.0%	100.0%	5.0%	5.0%
Total degree of achievement of the performance indicators									105.4%

OBJECTIVES AND FINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS FOR DIRECTORS WITH MANDATE CONTRCATS (mandate duration 20.10.2023-31.12.2023) for 2023
Annex no. 3
Crt.no.	Performance indicators	Performance objective	MU	YEAR 2023			Degree of achievement KPI (%)	KPIs weights for the settlement of the remuneration	Degree of achievement KPIs (%)
Crt.no.	Performance indicators	Performance objective	MU	Target values		Achieved values	Degree of achievement KPI (%)	KPIs weights for the settlement of the remuneration	Degree of achievement KPIs (%)
A. FINANCIAL KEY PERFORMANCE INDICATORS: 50%
1.	Achievements of the investments	Achievement of at least 70% of the annual investment plan	%	≥70%		74.2%	106.0%	10.0%	10.6%
2.	The quick ratio indicator/acid test	Ensuring the ability to pay current liabilities from current assets adjusted with the value of the inventories		≥1		1.9	100.0%	5.0%	5.0%
3.	Inventories turnover speed	Maintaining the collection of receivables from customers within a maximum of 30 days	days	≤30		28.0	100.0%	5.0%	5.0%
4.	Operating profit margin	Maintaining the profitability of operating activities at a minimum of 7.5%	%	≥7.5%		13.7%	182.4%	5.0%	9.1%
5.	Outstanding payments	Level zero	thousand RON	0		0	100.0%	5.0%	5.0%
6.	Adjusted EBITDA = Operating profit – Write-back to revenues of the reserve out of the modernization quota + Expenses regarding the modernization quota +Impairments of tangible and intangible assets, here included the revaluation differences	Achieving planned adjusted EBITDA minimum 95%	%	≥95%		106.8%	112.3%	10.0%	11.2%
7.	Labor Productivity	Achievement of the labor productivity level provided in the annual approved Budget	thousand RON/person	379		383	101.1%	10.0%	10.1%
B. NON- FINANCIAL KEY PERFORMANCE INDICATORS: 50%
B1. OPERATIONAL KEY PERFORMANCE INDICATORS: 20%
8.	Monitoring of the annual electricity average specific consumption for technological purposes	Maintenance of the annual electricity average specific technological consumption at a level of max 3.2 Kwh/to	Kwh/to	Max 3.3 Kwh/to	3.2	2.3	100.0%	5.0%	5.0%
9.	Framing within the specific consumptions for the crude oil transport (does not include the crude oil quantity lost during provoked breakdowns or in case of breakage resulting in contamination, where the owners do not ease access for remedy) .	The target value lower than the value of the maximal technological consumption, for crude oil	%	Țiței țară ≤ 0.361% Realizat =0.344%	0.306%	0.261%	100.0%	5.0%	5.0%
				Țiței import Lukoil ≤ 0.290% Realizat 0.194%
				Țiței import Petrom ≤ 0.143% Realizat 0.137%
				Țiței import Midia ≤ 0.108% Realizat 0.100%
10.	Ensuring the NTS maintenance	Achieving at least 90% of the Annual Program of planned technical revisions	%	≥90 %	90.0%	100.0%	100.0%	5.0%	5.0%
11.	Average number of training hours per employee (Total number of training hours/ Total number of employees	Development of professional abilities and competencies	hours/employee	≥ 5 hours	5	12.5	100.0%	5.0%	5.0%
B2. CORPORATE GOVERNANCE KEY PERFORMANCE INDICATORS: 25%
12.	Implementation of the actions set out in the Program for the development of the internal control management system	Development of the management control system Implementation in compliance with the legal requirements in force	%	≥90 %	90.0%	100.0%	100.0%	10.0%	10.0%
13.	Number of measures from the Integrity Plan in force duly implemented/ Total number of due measures from the Integrity Plan in force x100	Boost institutional integrity by inclusion of the measures to mitigate corruption	%	≥90 %	90.0%	100.0%	100.0%	5.0%	5.0%
14.	Number of meetings of the Steering Committee	Minimum 2 meetings/month (in correlation with the term of office)	no./month	min.2	6	6	100.0%	5.0%	5.0%
15.	Female management rate	Maintaining the rate of female managers at least	%	≥30 %	30.0%	32.5%	100.0%	5.0%	5.0%
KEY PERFORMANCE B3.INDICATORI ORIENTED TO PUBLIC SERVICES: 5%
16.	Satisfaction score of the customers from the Crude oil and derivatives transport business (Number of replies of 4 and 5 scoring in total number of customer replies)	Satisfying the customers in the crude oil and derivatives transport activity (Number of replies of 4 and 5 scoring in total number of customer replies at least. 90% *)	%	≥90 %	90.0%	100.0%	100.0%	5.0%	5.0%
Total degree of achievement of the performance indicators									106.0%

Anexa 4

REPORT

on the internal control management system on 31.12.2023

Pursuant to Art. 4 Para. (3) of Government Ordinance no.119/1999 concerning the internal control management and the preventive financial audit, republished, further amendments and supplementations, the undersigned Tudora Dorin, in the capacity of DIRECTOR GENERAL, hereby declare that the company CONPET S.A. Ploiesti has an internal control management system whose design and implementation allow the Board of Directors and the executive management provide reasonable assurance that the funds managed in order to achieve the general objectives and targets have been used in conditions of legality, regularity, effectiveness, efficiency and economy.

This declaration is based on a realistic, accurate, complete and reliable assessment on the internal control management system of the entity, formulated based on the self-evaluation thereof.

The internal control management system includes self-control mechanisms and the application of the measures meant to improve its effectiveness is based on risk assessment.

In this case, I mention the following:

- The monitoring commission is functional;

- The development program of the internal control management system is annually implemented and updated;

- The risk management process is organized and monitored;

- The documented procedures are prepared 100% of the total procedural activities regularly inventoried, as per the List of the effective activities of CONPET S.A.

- The performance monitoring system is established and evaluated for the objectives and activities of the entity, by performance indicators.

Based on the results of the self-assessment, I reckon that, on December 31st, 2023 the internal control management system of CONPET SA Ploiesti complies with the standards contained in the Code of the internal control management.

I hereby mention that the statements contained in this report are formulated by assuming managerial responsibility and are based on data, information and findings recorded in the documentation related to the internal control system management self-assessment.

Analyzed and endorsed by the Monitoring committee of the internal control management system on 30.01.2024.

					Annex no. 5
List of important contracts concluded by the company in 2023)
1	List of procurement contracts concluded by the company in 2023 (with value higher than 100.000 RON
Crt. no.	Number of the contract	Date of the contract	Partner	Scope of the contract	Value of the contract (RON, VAT excluded)
Crt. no.	Number of the contract	Date of the contract	Partner	Scope of the contract	Value of the contract (RON, VAT excluded)
1	2023/S-CA 26	23-FEB-23	GRUP FEROVIAR ROMAN SA	Transport services by rail of the crude oil and rich gas from the loading ramps to the destinations set by CONPET	298,616,366.00
2	2023/L-CA 27	28-FEB-23	EIFFAGE ENERGIE SYSTEMES MECI	Design, execution, installation and initial metrological verification of four measuring skids in Petrobrazi P3, Poiana Lacului, Videle and Otești locations	98,982,299.47
3	2023/L-CA 156	28-SEP-23	TALPAC SRL	Execution of works to replace the 20 inch Constanța C1 pipeline along 8 sections	39,526,916.81
4	2023/P-CA 197	15-Nov-23	TINMAR ENERGY SA	Electricity procurement - 15 months	24,610,988.99
5	2023/P-CA 235	20-DEC-23	EYE MALL SRL	Electricity supply to CONPET consumption locations	17,680,579.21
6	2023/S-CA 73	04-May-23	RELOC SA	Planned repair type RR and converting into LDE 700 HP with CA-CA electric transmission of the locomotive LDH 700 HP with circulation number 92530850130-1	5,000,000.00
7	2023/L-CA 206	28-Nov-23	STRAL BIG SRL	Relocatable PSI tank execution with R1 tank cooling ring Independence buffer storage	4,930,392.38
8	2023/L-CA 174	24-OCT-23	STRAL BIG SRL	Rehabilitation works for CONPET buildings related to Calareti Pumping Station	4,439,630.54
9	2023/S-CA 152	06-SEP-23	ENVIROTECH SRL	Framework agreement for services for the restoration of the geological environment and water courses polluted as a result of damages produced on the route of the crude oil, rich gas and ethane transport pipelines or in the technological premises of CONPET S.A. Ploiesti, taking over land contaminated with crude oil (waste code 191301), as well as taking over land and stones containing dangerous substances (waste code 170503)	4,097,754.00
10	2023/L-CA 144	18-AUG-23	PRODREP STAR SRL	Execution of pumping group replacement Satchinez warehouse	4,033,779.48
11	2023/L-CA 210	07-DEC-23	SITAN GRUP SRL	Additional design and execution with 2 pumping units Constanta South Station - rel.	3,610,000.00
12	2023/L-CA 54	21-APR-23	STRAL BIG SRL	Execution of PSI water tank - Biled crude oil loading ramp, Timiș County	2,965,000.01
13	2023/L-CA 223	15-DEC-23	RUXO SERVICE CONSTRUCT	Execution of replacement works for the section of crude oil transport pipeline 6 5/8 Petrom Warehouse Orzoaia de Sus - Urlați crude oil station CONPET, on a distance of approximately 1,600 m	2,500,152.86
14	2023/S-CA 150	01-SEP-23	DIRECTOR SPECIAL TROOPS - D.S.T. SRL	Security, protection and intervention services at five objectives of the company Conpet S.A. (Central Dispatch Headquarters, Administrative Headquarters 2, Voința Sports Base, Ipotești Materials Warehouse and Headquarters located on Bulevardul Independenţei, No. 7, Ploiesti)	2,398,880.00
15	2023/S-CA 29	08-MAR-23	LIN SCAN ADVANCED PIPELINES & TANKS SERVICES	In-line inspection (expertise) of the major crude oil transport pipeline: 10 3_4 in L1 Bărbătești - Ploiești Vest and 10 3_4 in L2 Orlești - Ploiești (Petrobrazi)	2,114,497.92
16	2023/S-CA 153	06-SEP-23	ENVIROTECH SRL	Subsequent contract 1 to the Framework Agreement for services for the restoration of the geological environment and water courses polluted as a result of damages produced on the route of crude oil, rich gas and ethane transport pipelines or in the technological premises of CONPET S.A. Ploiesti, taking over land contaminated with crude oil (waste code 191301), as well as taking over earth and stones containing dangerous substances (waste code 170503)	2,048,877.00
17	2023/L-CA 97	07-JUN-23	ROCONSULT TECH SRL	Extension of SCADA monitoring in 4 ramps and 5 stations and hard and soft upgrade of the data transmission system in 5 locations of the SCADA system	1,943,078.76
18	2023/S-CA 30	10-MAR-23	ASITO KAPITAL SA	Voluntary health insurance services for CONPET SA employees	1,403,895.30
19	2023/L-CA 195	14-NOV-23	PRODREP STAR SRL	Relocation of CONPET objectives following the modernization of OMV Petrom's Satuc crude oil treatment deposit (PS3)	1,347,129.61
20	2023/P-CA 48	10-APR-23	MOL ROMANIA PETROLEUM PRODUCTS SRL	Supply of 174,600 liters Euro Diesel 5 diesel for locomotives	1,103,005.82
21	2023/L-CA 100	08-JUN-23	ICS NET ADVANCED TECHNOLOGY SRL	Extension of Telecom+Cyber locations for SCADA system and centralized weighing monitoring system Resumed in 2023	999,645.00
22	2023/S-CA 175	25-OCT-23	CON METAL CF SRL	Overhaul, current maintenance and repair of industrial rail lines - CONPET SA	995,930.02
Crt. no.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
Crt. no.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
23	2023/L-CA 145	28-AUG-23	TALPAC SRL	Replacement works of a section of the crude oil transport pipeline 6 5/8 Urziceni-Albesti, on a length of 1500 lm, Parepa locality area, Prahova county	897,965.36
24	2023/S-CA 74	09-MAI-23	IAT ENGINEERING & DESIGN SRL	Design services to achieve the objective: Solution study and design of the new oil pipeline route around/inside Ploiesti	845,000.00
25	2023/L-CA-CD 101	09-JUN-23	ROENGG CONSULTING SRL	Design and execution of leak collection tank equipped with liquid drain pump in Constanta South Automated Station	700,000.00
26	2023/L-CA 84	17-MAY-23	PRAGMA COMPUTERS SRL	Works for implementing printing and copying solution	698,220.00
27	2023/S-CA 158	03-OCT-23	ROMFLEX SISTEM SRL	Maintenance and technical support services for the Integrated Information System (Ro. S.I.I.)	679,500.00
28	2023/P-CA 131	25-JUL-23	KIT METAL SRL	Supply of godeviles (pistons) for cleaning and tracking and locating godeville in crude oil pipelines	647,941.65
29	2023/P-CA 159	05-OCT-23	MAGUAY COMPUTERS SRL	Equipment for wireless solution	525,000.00
30	2023/P-CA 242	21-DEC-23	ESTICO SRL	Consumables framework agreement for printers and MFPs	523,700.00
31	2023/P-CA 242	21-DEC-23	MEDA CONSULT SRL	Consumables framework agreement for printers and MFPs	523,700.00
32	2023/P-CA 242	21-DEC-23	JUNIOR DIVISION SOCIETY SRL	Consumables framework agreement for printers and MFPs	523,700.00
33	2023/P-CA 242	21-DEC-23	MIDA SOFT BUSINESS SRL	Consumables framework agreement for printers and MFPs	523,700.00
34	2023/S-CA 243	22-DEC-23	SERVICE IMPLEMENTARE PRODUCTIE SA	Ex 39 attestation services CONPET locations 2024	359,970.00
35	2023/123	31-OCT-23	INTERGRAPH COMPUTER SERVICES SRL	GIS software upgrade and maintenance services and technical support, training and development services CANCELLED by Procedure Report 84/22.12.2023	326,810.00
36	2023/L-CA 199	21-NOV-23	POWER NET CONSULTING SRL	Data Loss Protection softwaresolution implementation	320,165.26
37	2023/S-CA 140	07-AUG-23	OIL AND GAS UNIVERSITY	Design and elaboration of technical and economic efficiency calculation for replacing the current crude oil heating system in CONPET tanks - Biled Ramp, Timis County	298,500.00
38	2023/S-CA 78	15-MAY-23	OIL DEPOL SERVICE SRL CONSTANTA	Sludge cleaning services of the R1 crude oil storage tank within Orlesti Crude Oil Pumping Station, Valcea County, with all cleaning operations, transport of the resulting sludge, and environmentally safe recovery/disposal Unit price 499.25 lei/1 cubic meter slurry	297,263.43
39	2023/EN 105	20-JUN-23	DISTRIBUTIE ENERGIE ROMANIA SA	connection installation - Ochiuri pumping station -Dambovita to be paid to the contractor SWISO according to L-CA 323_2022 260,000.00 EN 105_20.06.2023 12,000.00 Assoc	272,160.00
40	2023/S-CA 204	28-NOV-23	OMNIASIG VIENNA INSURANCE GROUP SA	Compulsory insurance of civil auto liability (R.C.A.) for damages caused to third parties by accidents, for vehicles belonging to CONPET S.A. Ploiesti	269,869.47
41	2023/L-CA 212	11-DEC-23	ROMFLEX SISTEM SRL	ERP Application Server Replacement	242,500.00
42	2023/L-CA-CD 216	13-DEC-23	DEMO TECH INVEST SRL	Elaboration of the necessary documentation in order to obtain the dismantling permit (DTAD) and the execution of demolition/decommissioning works with tank recovery (building C3) - inventory no.121001 and pumps room (building C5) - inv.no.110461 from Mircea Voda crude oil pumping station, Constanta county	237,829.17
43	2023/EN 75	10-MAY-23	DISTRIBUTIE ENERGIE ELECTRICA ROMANIA S.A.(F.D.E.E. ELECTR DISTRIB TRANSILVANIA NORD SA)	Potlogi Station electricity connection	227,057.41
44	2023/CCA 137	01-AUG-23	MUSEUM OF NATIONAL HISTORY AND ARCHEOLOGY CONSTANTA	preventive archaeological research services 8868 sqm	216,700.00
45	2023/P-CA 120	12-JUL-23	FLEXON-ALL SRL	Supply of helical pump TIP GPEO-100X24-R for Moreni pumping station	211,420.50
Crt. no.	Number of the contract	Date of the contract	Partner	Scope of the contract	Value of the contract (RON, VAT excluded)
Crt. no.	Number of the contract	Date of the contract	Partner	Scope of the contract	Value of the contract (RON, VAT excluded)
46	2023/P-CA 103	12-JUN-23	FLEXON-ALL SRL	Supply of spare parts screw pumps TYPE GPEO- 60X36-R for Moreni, Madulari, Oprisenesti: stator FLX-GPEO-60X36-R-20.02.0 4 pcs, impeller FLX-GPEO-60x36-R-20.01.0 2 pcs, drive shaft pump FLX-GPEO-60X36-R-11.00.0 2 pcs	203,958.60
47	2023/S-CA 128	21-JUL-23	REVAG SRL	Maintenance and remediation of accidental defects in tank containers and loading-unloading equipment of wagons of 60 cubic meters, 80 cubic meters owned by CONPET S.A.	198,213.00
48	2023/S-CA 112	29-JUN-23	EOS CORPORATION SRL	Services for maintenance and repair of ventilation and air conditioning system equipment and accessories within Central Dispatch Conpet S.A., Ploiesti , no. 1-3 Anul 1848 street.	195,000.00
49	2023/S-CA 139	02-AUG-23	OIL DEPOL SERVICE SRL CONSTANTA	Sludge cleaning services of R5 tank Barbatesti pumping station,Gorj county, with all cleaning operations, transport of the resulting sludge, and environmentally safe recovery/disposal	194,362.56
50	2023/S-CA-CD 201	28-SEP-23	KEEP IT MOBILE DEVELOPMENT	Support and development services for the maintenance management system of CONPET S.A	194,009.40
51	2023/75	10-AUG-23	UNATRAC GEOSYSTEMS SRL	GPS RTK GNSS receivers package supply	186,547.50
52	2023/S-CA 241	21-DEC-23	ROMANIAN INSURANCE-ASIROM SA	CASCO Insurance services	186,361.00
53	2023/BSP 68	02-MAY-23	ADJUD MUNICIPALITY	space rental Adjud 146 sqm	180,000.00
54	2023/SPP 52	11-APR-23	ADJUD MUNICIPALITY	rental of 146 sqm Stadionului str -Adjud municipality for a period of 5 years (3000 RON/MONTH*60 months)	180,000.00
55	2023/S-CA-CD 218	14-DEC-23	ROMANIAN INSURANCE-ASIROM SA	Professional liability insurance services for members of the Board of Directors and for Directors with mandate contract (Director General, Deputy Director General and Economic Director) within the Company Conpet	169,136.40
56	2023/124	01-NOV-23	GEFIL	Services for checking, maintenance, charging and repairing fire extinguishers existing in the working sites belonging to CONPET S.A. PLOIESTI	165,938.00
57	2023/P-CA 96	06-JUN-23	DARIUS MOTORS SRL	Supply of 2 full electric cars	161,400.00
58	2023/S-CA 130	24-JUL-23	CARMENSIMI GRUP	Accidental defect repairs to the crude oil (60 cubic meters) and rich gas (80 cubic meters) transport rail tanks - traffic safety features	159,653.40
59	2023/S-CA 209	29-NOV-23	MULTIMODAL SERVICE SRL	Carrying out planned revisions type RT, R1, R2, 2R2 and managing maintenance on diesel hydraulic locomotives of 450, 700, 1250 - H.P. and fixing accidental defects LOT 2 - locomotives from ramps: Ciresu- Braila county, Imeci, Covasna county, Berca, Buzau county	150,750.20
60	2023/RPS 38	24-MAR-23	SPORT CLUB CONPET	Conpet Sports Club Sponsorship	150,000.00
61	2023/CCA 138	01-AUG-23	MUSEUM OF NATIONAL HISTORY AND ARCHEOLOGY CONSTANTA	Preventive archeological research services 32.110 sqm	128,000.00
62	2023/S-CA-CD 161	06-OCT-23	SERVICE IMPLEMENTARE PRODUCTIE SA	Services for Ex certification for 6 Conpet locations (Ciresu, Marghita, Potlogi, Mislea, Moreni and Ochiuri) and 3 mobile provers	125,700.00
63	2023/S-CA 80	15-MAY-23	OIL DEPOL SERVICE SRL CONSTANTA	BATCH 2 - provision of sludge cleaning services of R1 and R4 crude oil storage tanks within Baicoi crude oil Pumping Station, Prahova County, with all operations related to cleaning, transport of the resulting sludge, and environmentally safe recovery/disposal. Unit price 493,47 RON VAT excluded/1 cubic meter sludge	121,990.72
64	2023/P-CA 69	03-MAY-23	ROFAROM S.R.L.	Supply of portable digital densimeter 9 pcs - BATCH 1	120,582.00
65	2023/S-CA 87	22-MAY-23	RELOC SA	Performing RT, R1, R2, 2R2 type revisions and fixing accidental defects at LDE 700 AC-AC vehicle number 98530700001-0	119,243.00
66	2023/L-CA-CD 240	21-DEC-23	WMC GUARD SECURITY S.R.L. Buzau	Design, supply, installation, commissioning of technical/electronic security systems Salonta warehouse and ramp	108,713.50
Crt.no.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
Crt.no.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
67	2023/S-CA-CD 181	31-OCT-23	NATIONAL INSTITUTE FOR RESEARCH & DEVELOPMENT IN INFORMATICS - ICI Bucharest	IT infrastructure security and monitoring services	107,520.00
68	2023/P-CA-CD 37	23-MAR-23	RIK SRL	Stationery, school supplies and office supplies	107,010.47


Important revenue contracts concluded in 2023 (over 100,000 RON)

Crt. No.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
Crt. No.	Number of the contract	Date of the contract	Partner	Object of the contract	Value of the contract (RON, VAT excluded)
1	2020/BC OMV 108	23-MAR-20	OMV PETROM	Crude oil, rich gas and condensate transport services - Addenda nr. 14 to 18	385,369,753.00
2	2023/BC LUK 231	20-DEC-23	PETROTEL LUKOIL SA	transport of import crude oil to Lukoil	101,579,571.00
3	2023/BC LKT 47	06-APR-23	PETROTEL LUKOIL SA	transport of domestic crude oil to Lukoil	1,769,250.00
4	2023/BC 232	20-DEC-23	ROMPETROL RAFINARE CONSTANTA SA	transport of import crude oil to Rompetrol	1,060,000.00
5	2023/BC SERBIA 53	12-APR-23	NIS PETROL SRL	transport of rail crude oil on the route Biled - Stamora Moravita - Serbia	984,970.80
6	2023/CD-V 118	07-JUL-23	GRUP FEROVIAR ROMAN SA	RAIL TANKS SALE	584,822.00
7	2023/CD-D 49	11-APR-23	RMI GAS OIL SRL	Buried pipe sale	477,615.86
8	2023/CD-D 50	11-APR-23	RMI GAS OIL SRL	Buried pipe sale	460,244.40
9	2023/BC NIS 46	05-APR-23	NIS PETROL SRL	crude oil transport Biled 01.04.2023 - 31.12.2024	313,415.00
10	2023/CD-D 51	11-APR-23	RMI GAS OIL SRL	Buried pipe sale	117,740.84

	DIRECTOR GENERAL
	eng. Dorin Tudora
		Economic Director
		econ. Sanda Toader


		Head of Commercial Unit
		jr. Dan Manolache		Head of Contracts Tracking Department
				eng. Radu Albu


				Contract Tracking Department
				eng. Ciprian Sava

Annex no. 6

List of litigations on 15.03.2024

Were present here below the statement of the litigations pending before the law courts on 31.12.2023:

a) The list of litigations pending before Courts on 15.03.2024 in which the company CONPET S.A. has the status of claimant

1. File no. 19024/281/2009 - Ploiești Courthouse

Parties: Conpet S.A. - claimant

Compania de Transport Feroviar S.A. - Defendant

Subject matter: Conpet filed a lawsuit requesting the defendant to pay the amount of RON 50,511.6 representing the difference in payment from the value of the repair of the engine of the LDH 70-675 locomotive in the amount of RON 60,381.60, as well as the legal expenses.

Clarifications: By the Conclusion of 02.09.2011, the court suspended the case pursuant to art. 36 of Law 85/2006.

The file no. 31627/3/2011 is pending before the Bucharest Court, having as its subject matter the insolvency procedure of the debtor Compania de Transport Feroviar S.A. through Judicial Administrator Pro Management Insolv I.P.U.R.L. Bucharest. As a creditor, Conpet is listed on the final list of creditors with the requested unsecured debt in the amount of RON 52,769.02 which, broken down, consists of: RON 50,511.6 in compensation and RON 2,257.42 representing the judicial stamp duty paid by Conpet in the claim file no. 19024/281/2009 of the Ploiești Courthouse. The case has a trial date of 02.02.2024.

2. File no. 3033/105/2012 - Prahova Court

Vasrep Petro Construct SRL - debtor

Subject matter: Bankruptcy. By the Sentence no. 238/03.03.2014 the Prahova Court ordered the entry in the bankruptcy procedure of the debtor Vasrep Petro Construct SRL, the sealing of the assets from the debtor's fortune and the fulfillment of the other liquidation operations.

Conpet SA formulates a request for admission of the claim requesting the registration on the list of creditors Vasrep Petro Construct SRL with the amount of RON 126,877, including VAT, representing the value of material costs, costs for workmanship and equipment necessary for bringing the pipeline to the state before the unlawful act was committed by the debtor, deed consisting in the unlawful destruction and theft of two sections of 4,120 ml in length from the pipeline Ø 10¾" Iancu Jianu - Ghercești. Conpet appeals against the measure of non-registration of Conpet SA on the Preliminary List with this claim, which is the subject matter of file no. 3033/105/2012/a1. By the Sentence no. 1958/19.11.2012, the Prahova Court dismissed Conpet's appeal. Conpet appealed again. Ploiești Court of Appeal allowed the appeal, quashed the sentence on the merits and sent it for retrial.

By the sentence no. 1008/17.09.2014 (file no. 3033/105/2012/a1*) the Prahova Court admits the appeal to the preliminary title. It orders the registration of the appellant creditor Conpet S.A. in the consolidated list of creditors of the debtor with the amount of RON 1,473,628 the value of materials, workmanship and equipment as well as RON 120 judicial stamp duty appeal and RON 2500 expert fee. Vasrep appealed.

By decision no. 141 / 15.01.2015 The Ploiești Court of Appeal rejects the appeal as unfounded.

Conpet is registered in the consolidated list of creditors of the debtor Vasrep Petro Construct S.R.L. with an unsecured debt in the amount of RON 1,476,308.

3. File no. 2803/120/2013/a42 - Ploiesti Court of Appeal

Parties: Conpet S.A. - creditor

Ecprod S.R.L. - debtor

Subject matter: Insolvency. General procedure

Request for credit admission. Conpet S.A. filed a request for admission of claim on the assets of the Ecprod debtor in the amount of RON 25,728.89. Conpet is registered on the List of Creditors with the amount of RON 25,728.89. The percentage of the Conpet claim is 0.16% of the total claims entered on the table.

Clarifications: The court suspended the trial until the resolution of the case in file 2803/120/2013/a49, with appeal for the entire duration of the suspension.

4. File no. 7932/118/2013 * - Constanța Court of Appeal

Parties: Conpet SA - civil party

Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Arhire Adrian, Poenaru Marius Ciprian, Boamfa Paul, Luca Viorel, Meridicos Romeo Ovidiu, Dimofte Petronel, Matei Marius Ionut, Ahălanei Ioan - defendants

Romeo International Service Company SRL Năvodari - defendant

Romeo International Service Company SRL Năvodari represented by Nicolaidis Constantin - defendant

Ministry of Public Finance - ANAF - civil party

DGFP - civil party

Subject matter: Tax evasion offenses (Law 87/1994, Law 241/2005), art. 323 of the Criminal Code, Grand larceny (art. 208-209 of the Criminal Code). Conpet SA became a civil party for the amount of RON 928,785.94 representing the value of the amount of stolen crude oil (277 tons), pipeline remediation works and laboratory analyzes.

By decision no. 675/10.06.2016 the Constanța Court of Appeal admits the appeals made by the Prosecutor's Office attached to the Constanta Court and by the defendants Bivolaru Gabriel, Chihaia Marin, Mangalea Gheorghe, Arhire Adrian, Poenaru Marius Ciprian, Boamfă Paul, Luca Viorel, Meridicos Romeo Ovidiu, Dimofte Petronel, Matei Marius Ionut, Ahălanei Ioan and SC Romeo International Service Company SRL Năvodari. It abolishes in full the criminal sentence no. 472/17.12.2015 pronounced by the Constanța Court in file no. 7932/118/2013 and orders the case to be sent for retrial to the Constanța Court. Here it receives * and orders the case to be sent to the judge of the preliminary chamber (7932/118/2013*/a1).

By the Conclusion no. 93/28.02.2017 the Constanța Court rejects as unfounded the requests and exceptions formulated by the defendants Bivolaru Gabriel, Chihaia Marin, Merdicos Romeo Ovidiu, Arhire Adrian and Mangalea Gheorghe. It finds the legality of notifying the court with Indictment no. 569/P/2013 of 30.08.2013 issued by the Prosecutor's Office attached to the Constanţa Court of Appeal, which ordered the prosecution of the defendants. It ascertains the legality of the administration of the evidence and of the execution of the criminal investigation acts. It orders the commencement of the trial of the case. The conclusion was contested, rejected by C.A. Constanța.

Also, by the Conclusion of 28.02.2017, the Constanța Court finds the plea of non-compliance with the constitution admissible. It notifies the Constitutional Court with the settlement of the plea of non-compliance with the constitution invoked by the defendant Bivolaru Gabriel, in the file no. 7932/118/2013* of the Constanţa Court, regarding the constitutional challenge of art. 280 para.1, art. 281 paragraph 1 and art. 282 paragraphs 1 and 2 of the Code of Criminal Procedure - file no. 812D/2017. The plea was rejected as unfounded.

By the Sentence no. 192/09.05.2023 the Constanța Court admits, in part, the civil action filed by CONPET S.A. Ploiesti in opposition to the defendants BIVOLARU GABRIEL, CHIHAIA MARIN, MANGALEA GHEORGHE and AHALANEI IOAN, for the material documents dated 27.05.2013-30 tons, 31.05.2013-30 tons, 3.06.2013-30 tons, 4.06.2013 -30 tons and 05.06.2013-30 tons. It obliges the defendants BIVOLARU GABRIEL, CHIHAIA MARIN, MANGALEA GHEORGHE and AHALANEI IOAN, jointly and severally, to pay to SC CONPET S.A., Ploiești, 454,072.5 lei, to which is added the legal interest calculated from the date of the committing the acts until the date of effective payment of this amounts, the amount of 17,289 lei, for decommissioning works and pipeline repairs to bring it back to its original form, and the amount of 9,567.84 lei expenses incurred with the analysis of evidence from the criminal investigation phase. The civil action filed by the civil party CONPET S.A., Ploiești for civil damages for the amount of 20,268.11 lei is dismissed, as the damage related to the act of 03.08.2013 was covered by the defendants. It finds that the quantity of 21,934 liters of stolen crude oil, worth 70,379.15 lei (related to the act of 03.08.2013), was handed over to the civil party SC CONPET S.A., Ploiești. It rejects the rest of the civil claims made by the civil party CONPET S.A., Ploiesti. Bivolaru Gabriel filed an appeal. SC ROMECO INTERNATIONAL SERVICE COMPANY S.R.L., NĂVODARI THROUGH INSOLVENCY PRACTITIONER, TOMIS IPURL appealed.

Conpet appealed.

Procedural stage: Appeal-retrial

Deadline: 18.04.2024

5. File no. 1862/114/2014 - Buzău Court

Geluval Stor SRL - debtor

Subject matter: By the Sentence no. 621/26.10.2016, the Buzău Court orders the entry into the general bankruptcy procedure of the debtor, the sealing of all the assets from the debtor's property, their inventory and the fulfillment of the other liquidation operations. Conpet SA formulates a request for admission of the claim requesting the registration on the list of creditors of Geluval Stor SRL with the amount of RON 1,440.90, representing delay penalties due for payment over the term provided in the contract for a value of 7 invoices issued by Conpet for services provided in under Contract no. STA 101/20.03.2012 concluded with the defendant, amount to which the debtor was obliged by the sentence no. 8867 / 16.06.2014 given by the Ploiești Courthouse in the file no. 109/281/21014, remained final by non-appeal.

Conpet is registered in the consolidated list of creditors in the bankruptcy procedure for the debtor Geluval Stor S.R.L. with an unsecured debt in the amount of RON 1,440.90.

6. File no. 1510/262/2014 - Moreni Courthouse

Pîrvu Gheorghe - defendant

Pîrvu Nicolae - defendant

Grigorescu Gabriel - defendant

Zlăteanu Dragoș Marian - defendant

Dărmănești Commune, legally represented by the Mayor of Dărmănești Commune - defendant

SC Nimb Dâmbovița SA - defendant

Subject matter: Conpet filed a lawsuit requesting the court to order the defendants, jointly and severally, to pay to Conpet the amount of RON 34,944.18 as civil damages - representing the equivalent of remedial works of the Link 14 fiber optic pipeline and cable, destroyed on 03.06.2011, within the commune of Dărmănești, Dâmbovița county, works necessary to bring them to the initial state before committing the deed, i.e. in working order, amount to which is added the interest from the date on which the sentence in the present case becomes final and until the date of actual payment; payment of the legal expenses.

Clarifications: By the Conclusion of 08.01.2015, the Moreni Courthouse suspends the trial of the case in relation to the defendant SC Nimb Dambovita SA. It dismisses the case regarding the other defendants and the formation of a new file (184/262/2015 - finalized by obliging the defendants Pârvu Gheorghe, Pârvu Nicolae, Grigorescu Gabriel and Zlăteanu Dragoș Marian to pay to Conpet the amount of RON 34,944.18 and the related interests of this amount, starting with the date of finality of the Sentence no. 97 / 04.02.2016 and until the date of actual payment. The decision was executed and is the subject of the file No. 30/2018 – Bailiff’s Office Petrov Sergiu Alexandru).

Note: By the Conclusion of 14.12.2012 - file no. 9446/120/2012 - the Dâmbovița Court ordered the opening of the general insolvency procedure against the debtor Nimb Dâmbovița SA. By the Sentence no. 611 / 09.10.2014 The Dâmbovița Court orders the opening of the general procedure of judicial reorganization and the confirmation of the reorganization plan. The reorganization procedure is ongoing.

By the Conclusion of 22.06.2017 pronounced in the file no. 1510/262/2014 the Moreni Courthouse, finding that the law applicable to the insolvency proceedings of the defendant SC Nimb Dambovita SA is Law no. 85/2006 and that the suspension will last until the closing of the insolvency procedure pronounced by the syndic judge based on art. 11 para. 1 letter n of Law no. 85/2006, maintains the suspension of the trial of the case ordered by the Conclusion of 08.01.2015.

7. File no. 6819/118/2013 - Constanța Court

Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 663 representing the equivalent value of 230 kg of aluminum (RON 575) and 110 kg of scrap metal (RON 88), handed over to Tobias SRL on 04.06.2013, based on the contract of sale - purchase of waste no. 2013 / ADM / 15.02.2013 concluded between Conpet and Tobias.

Tobias SRL - debtor

The request formulated by Conpet was admitted in part by the judicial administrator, in the sense that our company was registered on the list of creditors with the amount of RON 643.11, the difference of RON 19.89 representing the 3% environmental fund and due to the Environmental Fund Administration. The percentage of the Conpet receivable is 0.014% of the total of receivables entered in the list.

8. File no. 717/105/2015 - Prahova Court

Deadline: 05.06.2024

Footbal Club Petrolul Ploiești SA - debtor

Subject matter: Bankruptcy. Conpet filed a request for admission of the claim by which it requested the registration on the list of creditors of the debtor Fotbal Club Petrolul Ploiești SA with a claim in the amount of RON 14,465.33. Conpet was registered on the list of receivables of the debtor's creditors with the requested amount.

Clarifications: By the Sentence no. 821 / 22.06.2016 The Prahova Court admits the request of the judicial administrator. It approves the conclusions of the judicial administrator's report. It orders the beginning of the general procedure of the debtor's bankruptcy. It orders the dissolution of the debtor company and the lifting of the debtor's right of administration. It orders the sealing of the debtor's assets and the fulfillment of the other liquidation operations.

Deadline: Ruling postponed to 20.03.2024

9. File no. 13386/3/2015 - Bucharest Court

Perfect Metal SRL - debtor

Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 221,189.85 representing penalties for delay, compensations, interest and legal expenses.

The request was accepted but Conpet was entered on the list in the category of unsecured creditors and not in the category of secured creditors as would have been the case considering the content of our request for registration in the preliminary list of creditors. Conpet filed an appeal against the preliminary list of creditors, which was the subject matter of the file no. 13386/3/201/a1 with a deadline on 18.09.2015. By the Decision no. 7106 / 18.09.2015 The Bucharest Court rejects the appeal as unfounded. The percentage of the Conpet receivable is 0.42625 of the total receivables entered on the list.

10. File no. 19602/3/2015 - Bucharest Court

Deadline: 12.04.2024

Top Birotica SRL - debtor

Subject matter: Bankruptcy. Conpet S.A. requested the registration on the list of creditors of the debtor with the amount of RON 2,258.72 representing delay penalties due for the delayed delivery of the equipment that was the object of the contract P-CA 438 / 17.11.2014.

Conpet was registered at the debtor's list of creditors with the amount of RON 2,258.72.

The percentage of the Conpet receivable is 0.010% of the total receivables entered on the list.

Clarifications: By the Decision of 14.12.2022, the Bucharest Court rejects the request of the judicial liquidator for the sale of the assets remaining in the debtor TOP BIROTICA SRL's patrimony, by public auction, according to the Code of Civil Procedure.

11. File no. 2899/62/2015 - Brașov Court

Deadline: 12.06.2024

Subject matter: Bankruptcy. Request for admission of the Conpet claim against the property of the debtor Condmag SA – RON 42,950.85 representing penalties.

Condmag SA - debtor

Conpet was registered on the list of creditors with the amount of RON 42,2950.85 representing an unsecured debt. The percentage of the Conpet receivable is 0.02% of the total receivables entered on the list.

12. File no. 8156/281/2014 * - Ploiești Court of Appeal

Deadline: 11.06.2024

On appeal: file no. 447/42/2020

Parties: Conpet SA - civil party

Matei Marinel - claimant for judicial review

Subject matter: Grand larceny. Revision. Matei Marinel formulates a request for revision of the criminal decision no. 1383 / 14.10.2013 pronounced by the Ploiești Court of Appeal in the file no. 19230/281/2011.

Note: By the Criminal Decision no. 1383 / 14.10.2013 Ioniță Ion, Marin Matei Georgian and Matei Marinel were obliged to pay to Conpet an amount of RON 13,259.79. The decision was enforced and is the subject of file no. 200/2016 located at the Bailiff’s Office Petrov Sergiu Alexandru.

Clarifications: By Sentence no. 1162 / 03.08.2020 The Ploiești Courthouse admits the request for revision formulated by the claimant for judicial review Matei Marinel, against the criminal sentence no. 1286 / 07.06.2013 of the Ploieşti Courthouse, abolished and finalized by the criminal decision no. 1383 / 14.10.2013 of the Ploieşti Court of Appeal. It cancels the Criminal Sentence no. 1286 / 07.06.2013 of the Ploieşti Courthouse, as well as M.E.P.I. no. 1538/2013 of 10/15/2013 issued by the Ploiești Courthouse. It orders the acquittal of the defendant Matei Marinel, under the aspect of committing the crime of grand larceny, provided by art. 208 para. (1) - art. 209 para. (1) letters a) and g) para. (3) letter a) Previous Criminal Code, with the application of art. 41 para. (2) of the Criminal Code. It finds that the defendant Matei Marinel was detained from 22.11.2013 to 12.11.2014, inclusive. The decision was appealed by the Prosecutor's Office attached to the Ploiești Courthouse.

By Decision no. 954 / 26.10.2020 The Ploiești Court of Appeal admits the appeal declared by the Prosecutor's Office attached to the Ploiești Courthouse against the criminal sentence no. 1162 of August 3, 2020 pronounced by the Ploieşti Courthouse, which it annuls in its entirety and sends the case for retrial to the first instance according to the considerations of the present decision. Final.

By the Sentence no. 799/13.05.2022 the Ploiești Courthouse admits the revision request. It annuls the Criminal Sentence no. 1286/07.06.2013 of the Ploieşti Courthouse, final by the Criminal Decision no. 1383/14.10.2013 of the Ploieşti Court of Appeal. It orders the acquittal of the defendant Matei Marinel, under the aspect of committing the crime of grand larceny. The decision was appealed.

13. File no. 8262/281/2016 - Ploiești Courthouse

Conpet Club Football Association - debtor

Subject matter: Dissolution of a legal entity. Request for admission of the claim. Conpet SA formulates a request for admission of the claim on the property of the debtor Conpet Club Football Association, against which the dissolution was ordered by the Civil Sentence no. 8683 / 04.10.2016 pronounced by the Ploiești Courthouse in the file no. 8262/281/2016, by which it requests the court to admit the application for registration on the list of creditors of the debtor Conpet Club Football Association with the amount of RON 424.94, as a certain, liquid and due receivable, born before the admission of the dissolution application, representing the penalties payment rest, according to the invoice no. 1653 / 31.05.2015, calculated for the late payment of the obligations arising from the Lease Agreement no. ADM 366 / 23.10.2012, concluded by Conpet SA with the Conpet Club Football Association. By the address 39101 / 28.09.2017 Conpet requested the completion of the value of the debt registered by the Conpet Club Football Association and with the amount of RON 1,358.84 representing delay penalties born prior to the dissolution request (total RON 1,783.78). By the addresses no. 14907/20.04.2018, no. 43508/09.11.2018 and no. 6473/17.02.2020 Conpet requested the liquidator to communicate the steps taken to recover the amount of RON 1,783.78. In 2021, by the addresses no. 14399/27.04.2021 and no. 31732/15.09.2021 Conpet requested the Liquidator to inform us if there are assets in the association's patrimony and what are the prospects for the recovery of the debt or the completion of the dissolution and liquidation procedure of the Conpet Football Club Association.

14. File no. 789/105/2017 - Prahova Court

Parties: I.C.I.M. S.A. by C.I.T.R. Bucharest administrator - debtor

Conpet S.A.- creditor

Subject matter: Insolvency proceedings. Conpet requests the registration on the list of creditors of the company ICIM SA represented by judicial administrator C.I.T.R. BUCHAREST SUBSIDIARY S.P.R.L., with the total receivable in the amount of RON 393,934.37 representing delay penalties, legal expenses, execution costs.

A) RON 50,094, 8 representing the equivalent value of the works for repairing the damage to the pipeline Ø 6 RA Moreni-Ploiești and the lost crude oil, legal interest, legal expenses and execution costs established by the enforceable title - Civil Sentence no. 1014 / 28.01.2015 pronounced in the file no. 113/281/2014 remained final and corrected by the Conclusion of correction of the material error on 06.06.2016, by which the Ploiești Courthouse admitted the request for summons filed by the claimant Conpet S.A.

B) RON 343,839.57 composed of the amount of RON 331,271.57 representing penalties for delay in accordance with the provisions of art. 8.1. from the contract 0135/1995 (modified by art. 5 of the additional act 9/2005 and the additional act no. 10/2006), as well as the amount of RON 12,568 representing judicial stamp duty, judicial stamp and expertise fee.

Conpet was entered on the list with the requested amount.

The percentage of the Conpet receivable is 0.75 & of the total receivables entered on the list.

I.C.I.M. filed an appeal which is the subject of the file no. 789/105/2017 / a1 and requested:

- mainly a partial amendment of the preliminary list of creditors in connection with the rejection of the application for entry of the claim in the amount made by Conpet

- in the alternative, a partial amendment of the preliminary list of creditors for the purpose of entering the conditional Conpet claim.

The appeal of I.C.I.M. was the subject matter of the file 789/105/2017 / a1. By the Decision 776/2018, the Prahova Court rejects the appeal regarding the preliminary list formulated by the debtor INTREPRINDEREA CONSTRUCŢII INSTALAŢII MONTAJE SA regarding the claim of the creditor CONPET SA

By the Conclusion of 11.09.2020, the Prahova Court ordered the entry into the bankruptcy procedure of the debtor.

15. File no. 8727/105/2017 - Prahova Court

Deadline: 11.09.2024

PAULUS S.R.L. - Defendant

Subject: Bankruptcy - general procedure

Subject matter: On 14.10.2019, Conpet filed a payment request with the judicial administrator CITR BUCHAREST SUBSIDIARY SPRL (art. 75 * paragraph 3 of Law no. 85/2014) for the payment of the amount of RON 32,493.44, amount due on 04.07.2019 by PAULUS SRL (CF 4000500), for not fulfilling the obligations established by the contract no. S-CA 1191 / 05.07.2017 (air conditioning maintenance). The request was granted.

Clarifications: Paulus filed an appeal against the measure of the judicial administrator file 8727/105/2017 / a13 - Appeal term 09.09.2020 (Ploiesti Court of Appeal). By Decision 213/2020, the appeal was rejected.

Conpet addressed the insolvency practitioner for the recovery of the amount of RON 2,891.95 from the performance guarantee, and to pay the difference of RON 29,601.49 with priority according to the law. On 09.06.2021, the amount of 2,891.95 was recovered from the performance guarantee (OP 06/09/2021/2021060992857782)

By the Interim Decision 163/24.03.2022, the Prahova Court orders the entry into bankruptcy of the debtor in the general procedure. It appoints a provisional judicial liquidator to the initially appointed insolvency practitioner, EUROSMART PRAHOVA SUBSIDIARY, with a remuneration of RON 2500, who will fulfill the duties provided by art. 64 of the law. It orders the dissolution of the debtor company and the lifting of the debtor's right of administration. CONPET requested the registration on the additional table of creditors with the amount of RON 29,601.49 representing late penalties owed by PAULUS S.R.L. for non-fulfillment of the obligations resulting from contract no. S-CA 1191(489)/07/05/2017 having as its subject matter "maintenance services for air conditioners in all workplaces belonging to CONPET S.A.". The claim was accepted, the amount of RON 29,601.49 being entered in the definitive consolidated list of creditors at item 13, table published in BPI no. 11975/14.07.2022. The bankruptcy procedure is currently ongoing.

16. File no. 2036/83/2019 - Satu Mare Court

Deadline: 12.06.2024

PRODREP MG S.R.L. - Defendant

Subject: bankruptcy

Subject matter: On 18.11.2019, Conpet filed an application for registration on the list of creditors of the debtor PRODREP MG S.R.L. with the amount of RON 284,496.11 representing:

- damages in the amount of RON 148,926.49 provided in art. 18.2 of the works contract L-CA 699 of 28.09.2017 (20% of the contract value provided in art. 3 of the contract);

- penalties of 0.5% / day of delay provided by art. 17.1 of the works contract L-CA 699 of 28.09.2017 applied to the value of the unexecuted works in the amount of RON 46,575 for a number of 162 days of delay calculated from 10.04.2019 to 19.09.2019 the date of termination of the contract;

- equivalent value for electricity supply in the amount of RON 16.54 for the period 01.08.2019-31.08.2019, resulting from the execution of the works contract L-CA 699 of 28.09.2017;

- penalties of 0.5% / day of delay in the amount of RON 78,644.16 provided by art. 17.1 of the works contract L-CA 537 of 27.07.2017 applied to the value of unexecuted works for a number of 168 days of delay calculated from 01.05.2019 to 15.10.2019 the date of opening the insolvency procedure;

- penalties of 0.5% / day of delay in the amount of RON 10,333.92 provided by art. 17.1 of the works contract L-CA 380 of 05.10.2016 applied to the value of the unexecuted works for a number of 114 days of delay calculated from the date set for the completion of the works until their actual completion. The claim has been accepted.

Conpet filed an application for registration on the supplementary list and for the amount of RON 18,724.8, representing the current receivable born after the date of opening the insolvency procedure. Since the opening of the bankruptcy procedure and registration with the list of creditors with the previously shown amounts, CONPET has also recorded debits from the non-execution by PRODREP MG S.R.L. of ongoing works in the amount of RON 79,403.37.

Currently, CONPET is listed on the final consolidated list with the following amounts: RON 284,496.11 and RON 98,138.68 (7th rank on the list – published in BPI no. 16899/19.10.2022). Clarifications: At the deadline on 20.10.2020, the court admitted the request of the judicial administrator and pursuant to art. 145 paragraph 1 point A letter c and point B of Law no. 85/2014 ordered the beginning of the bankruptcy procedure in the general form of the debtor PRODREP MG S.R.L. - SC 339 / F / 20.10.2020 BPI 18101 / 28.10.2020.

17. File no. 1186/223/2020 - Drăgășani Courthouse

Deadline: 23.04.2024

Subject matter: Appeal against contravention minutes no. 009540 / 07.05.2020 prepared by ITM Vâlcea by which Conpet S.A. was sanctioned with a fine of RON 8,000 for the documents in the periodic training files of Mr. Hotei Stefan.

ITM Vâlcea - respondent

Clarifications: By Sentence 582/25.05.2021 the court admitted in part the misdemeanor complaint filed by the petitioner CONPET S.A., against the misdemeanor report series VL ITM no.009540 concluded on May 7, 2020 by I.T.M. Vâlcea, in contradiction with the respondent Vâlcea Territorial Labor Inspectorate. It amends the misdemeanor report series VL ITM no.009540 concluded on May 7, 2020 by I.T.M. Vâlcea and consequently, replaces the sanction of the contravention fine in the amount of RON 8,000 applied based on art. 39 paragraph 4 of Law no. 319/2006 with the sanction “Warning”. It draws the petitioner's attention to the provisions of Article 7 of G.D. no.2 / 2001 amended. With the right to appeal within 30 days from the communication

18. File no. 16445/281/2020 - Ploiești Courthouse

Parties: Conpet SA - civil party

Drăghici Adrian Marian - defendant

Tocu Petrică - defendant

Constantin Dan - defendant

Atanasiu Ion - defendant

Subject matter: Grand larceny. Conpet was a civil party for the amount of RON 87,184.57, representing the equivalent value of 40 liters of stolen and unrecovered gasoline (84.26 RON), the equivalent value of 17,615 kg of gasoline lost after the discharge of the pipeline (in order to intervene to remedy the pipeline at the point where it was damaged) (53,930.69 RON) and the equivalent value of the remediation works for the pipeline Ø 65/8” Țicleni - Ploiești, consisting in the decommissioning of the artisanal installation, works necessary to restore the pipeline in working order (RON 28,956.81) .

Clarifications: By the Conclusion no. 690 / 09.12.2020 pronounced in the file no. 16445/281/2020 / a1 it rejects the requests and pleas invoked by the defendants DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ, CONSTANTIN DAN and ATANASIU ION, finds the material and territorial competence of the court, the legality of the referral with the indictment no. 3569 / P / 2014 of 30.06.2020 of the Prosecutor's Office attached to the Ploieşti Courthouse, of the legality of the administration of evidence and of the execution of criminal investigation acts. It orders the beginning of the trial in the case registered in the Ploieşti Courthouse under number 16445/281/2020. The Conclusion was contested by the defendants, tried at the Prahova Court. By Conclusion no. 138 / 26.03.2021 The Prahova Court admits the appeals of the defendants: DRĂGHICI ADRIAN MARIAN; TONCU PETRICĂ; CONSTANTIN DAN; ATANASIU ION. It annuls the contested decision and sends the case for retrial to the same court, the Ploieşti Courthouse, according to the provisions of the present decision. By Conclusion no. 379/12.07.2021 pronounced in the file no. 16445/281/2020 / a1 * The Ploiești Courthouse rejects as unfounded the requests and pleas invoked by the defendants DRĂGHICI ADRIAN MARIAN; TONCU PETRICĂ; CONSTANTIN DAN; ATANASIU ION, it finds the material and territorial competence of the court, the legality of the notification with the indictment no. 3569/P/2014 of 30.06.2020 of the Prosecutor's Office attached to the Ploieşti Courthouse, the legality of the administration of evidence and of the execution of criminal prosecution acts, regarding the defendants: DRĂGHICI ADRIAN MARIAN; TONCU PETRICĂ; CONSTANTIN DAN. It orders the beginning of the trial in the case bending before the Ploieşti Courthouse under number 16445/281/2020 regarding the defendants DRĂGHICI ADRIAN MARIAN; TONCU PETRICĂ; CONSTANTIN DAN and ATANASIU ION. The conclusion was appealed by the defendants. By the Conclusion no. 418 / 07.10.2021 The Prahova Court rejects as unfounded the appeals filed by the appellants-defendants DRĂGHICI ADRIAN MARIAN, TONCU PETRICĂ, CONSTANTIN DAN. By the Conclusion of 15.06.2022, the Ploiești Courthouse rejects as unfounded the request, made by the chosen defender of the defendants Constantin Dan, Drăghici Adrian Marian and Toncu Petrică, to refer the case to the preliminary chamber procedure/resumption of the preliminary chamber procedure.

By the Conclusion no. 69/20.01.2023 (16445/281/2020/a4) the Ploiești Courthouse ordered maintaining the foreclosure measure on the reference assets until a new verification.

By the Sentence no. 1788/28.09.2023 the Ploiești Courthouse admits the civil action and obliges the defendants jointly and severally to pay the amount of RON 82,887.5 as material damages. The decision can be appealed after communication.

19. File no. 6143/2/2020 - Bucharest Court of Appeal

The Insured Guarantee Fund – defendant

Subject matter: Conpet appealed against Decision no. 24238 / 25.09.2020 issued by the Insured Guarantee Fund by which the payment requests no. 79167, 79166, 79163, 81691, 81687, 81698, 82691, 82690, 88271, 88728 and 89684 were rejected.

Clarifications: CONPET S.A. formulated payment requests for the refund of amounts related to policies concluded with the Insurance-Reinsurance Company ASTRA S.A. during the years 2009-2015, but by decision no. 24238 / 25.09.2020 which is the subject matter of the appeal, the Insured Guarantee Fund did not refer to the requests made by CONPET S.A. for the refund of the amounts due. The payment requests no. 79167, 79166, 79163, 81691, 81687, 81698, 82691, 82690, 88271, 88728 and 89684 specified in the decision are not related to any documents issued by our company.

By Sentence no. 1051/30.06.2021 The Bucharest Court of Appeal admits the request. It annuls the decision no. 24238/25.09.2020 issued by the Insured Guarantee Fund. It obliges the defendant to issue an administrative act admitting the request for payment made by the claimant for the amount of RON 36,430.13. The Insured Guarantee Fund appealed.

By Decision no. 523/31.01.2024 The High Court of Cassation and Justice admits the appeal declared by the Insurance Guarantee Fund. It dismisses the contested sentence and sends the case for retrial to the same court. Final.

Procedural status of the case: Appeal - retrial

20. File no. 25520/212/2020 - Constanța Courthouse

Safir Gabriela - defendant

Subject matter: Conpet formulates a request for summons of the defendant SAFIR GABRIELA domiciled in Ovidiu locality, 101 Poporului street (or 82 A), Constanța county so that by the decision you will pronounce to order the establishment of the share due to each co-owner on the building located in Ovidiu locality, Poporului street no. 82 A, Constanța county, building located in the joint property (joint ownership) of our debtor SAFIR MARIUS (execution file 51 / 2019- Bailiff’s Office Menaef Cristian) and of the defendant SAFIR GABRIELA.

Clarifications: By the Conclusion of 13.01.2021, the Constanța Courthouse annuls the request for summons citing that it did not submit the land book extract regarding the building within 10 days.

Against the conclusion, Conpet filed a request for re-examination through which we demonstrated that the building construction jointly owned by the defendant Safir Gabriela and our debtor Safir Marius is not registered, the joint ownership right not being registered in the land book. Conpet, having knowledge of the existence of the property right in the patrimony of the defendant and the debtor from the primacy relations from the Ovidiu City Hall. At the same time, we demonstrated the court of justice that only the exclusive ownership right of the debtor over the land is registered in the land book and we have attached an extract from the land book for the land, as well as all the steps taken by Conpet and the Bailiff’s Office Menaef Cristian.

By Decision no. 5783/21.04.2021 disposed in file 25520/212/2020/a1, the Constanța Courthouse admitted the request for re-examination made by Conpet and orders the re-sending of the file to panel C31 for the continuation of the procedure.

By the Conclusion of 11.01.2022, the Constanta Courthouse, based on art. 413 para. (1) pt. 1 of the Code of Civil Procedure, suspends the trial of the present action until the final settlement of the file no. 27269/212/2021, pending before the Constanţa Courthouse. With a separate right of appeal, during the suspension of the trial.

Procedural status of the case: Merits - suspended

21. File no. 238/42/2021* - Prahova Court

Ministry of Agriculture and Rural Development defendant

Ialomița County Directorate for Agriculture defendant

National Agency for Land Registry and Real Estate Advertising defendant

Subject matter: Obligation of the defendants to pay CONPET S.A. of the amount of RON 238,300 representing the amount paid by CONPET S.A. and undue. The amount was paid in April 2017 for the removal from the agricultural circuit of a land area of 74,712 sq m, which was subsequently reduced by the restoration of the documentation to an area of 56,462 sq m. The investment objective was “Oil pipeline replacement Ø 14 '' C2 - C3 on 8 sections in Balta Ialomiței area, Ialomita County on a length of approx. 4,037 m”- Project no. 160/4993/2016 PETROSTAR.

Clarifications: By the Conclusion no. 130 / 08.09.2021 The Ploiești Court of Appeal admits the motion to dismiss for lack of jurisdiction of the Ploiesti Court of Appeal. It declines jurisdiction to settle the case in favor of the Prahova Court. At the deadline of 04.04.2022, the court rejected the plea of the lack of procedural passive quality, invoked by the defendant, as unfounded, and admitted the request and obliged the defendants to pay to CONPET the amount of RON 238,300 representing the amount paid and undue. With the right of appeal within 15 days from the communication.

By the Decision 317/ 04.04.2022, the Prahova Court rejects the plea of the lack of procedural passive quality, invoked by the defendant, as unfounded. It admits the request with claims as its subject matter, and obliges the defendants to pay the claimant the amount of RON 238,300, representing the amount paid and undue. CONPET appealed. Ialomița County Directorate for Agriculture, MADR and ANCPI appealed. CONPET filed an appeal against the grounds of the decision.

By the Decision no. 955/27.10.2023 The Ploiești Court of Appeal admitted the appeals filed by the National Agency for Land Registry and Real Estate Advertising, the Ministry of Agriculture and Rural Development and the Ialomita County Directorate for Agriculture, dismissed the appealed sentence and sent the case for retrial to the same court of merits. It rejected the appeal filed by Conpet SA as unfounded.

22. File no. 1270/229/2021 - Fetesti Courthouse

Parties: Conpet SA- Claimant

Zacon Trandafir - Defendant

Subject matter: Claims

Clarifications: File disjointed from file no. 2782/229/2018.

By the Conclusion of 22.04.2021, the Fetesti Courthouse ordered the suspension of the trial until the resolution of the merits case, from which the second head of the claim was disjointed.

Procedural status of the case: Merits- Suspended

23. File no. 3011/105/2021 - Ploiești Court of Appeal

Parties: Conpet S.A. - claimant

Tiab S.A. - Defendant

Subject matter: Conpet is suing TIAB S.A. Bucharest requesting:

1. Finding the unilateral termination of the Supply Contract no. P-CA 559 / 08.08.2017 in accordance with the provisions of art. 19.4 letter b) of the contract;

2. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of the amount of RON 109,841.24 representing damages in the amount of 20% due by the defendant according to art. 19.5 paragraph (1) of the supply contract no. P-CA 559 / 08.08.2017, as a result of the unilateral termination of the contract in accordance with the provisions of art. 19.4 letter b) of the contract;

3. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of penalties in the amount of RON 1,081,936.25, due by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 559 / 08.08.2017, for non-execution in time of the obligations of supply, installation and commissioning of a technical system of Security at Marghita Platform, penalties calculated until the date of the unilateral termination of the contract (24.06.2021);

4. Obligation of the defendant to pay the legal expenses.

Subsidiarily, in so far as the court dismisses the main heads of claim, Conpet requested:

1. Termination of the Supply Contract no. P-CA 559/08.08.2017 through the fault of the defendant TIAB S.A. in accordance with Art. 19.1 of the contract, for the non-execution of the obligations consisting in the supply, installation and commissioning of a technical safety system at Marghita Platform.

2. Obligation of the defendant TIAB S.A. upon payment to CONPET S.A. of penalties in the amount of RON 917,174.39, due by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 559/08.08.2017, for non-execution in time of the obligations of supply, installation and commissioning of a Technical Security System at Marghita Platform, penalties calculated until the date of the unilateral termination of the contract (24.06.2021) as well as in continued until the date of the final decision of the court.

3. Obligation of the defendant to pay the legal expenses.

Clarifications: By the Decision no. 212/23.09.2022 The Prahova Court admits in part the request It acknowledges the termination of the supply contract no. P-CA 559 from 08.08.2017 starting from 24.06.2021. It obliges the defendant to the claimant to pay the amount of RON 109,841.24 representing damages. It rejects the rest of the request as unfounded. It rejects the counterclaim as unfounded. It obliges the defendant to pay legal expenses in the amount of RON 3500 legal expenses corresponding to the admitted claims. Conpet filed an appeal.

By the Decision no. 34/31.01.2024 The Ploiesti Court of Appeal rejects the appeal as unfounded. The decision can be appealed after communication.

24. File no. 17936/281/2021 – Prahova Court

SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL Ilfov - defendant

RECOP RECYCLING (former CĂTĂOIL PRODUCTIONS SRL) - defendant

Subject matter: Conpet is filing a summons, requesting the court:

1. Obligation, jointly and severally, of the defendants to pay CONPET S.A. of the amount of RON 29,927.68 representing delay penalties calculated for the period 12.09.2019 – 25.05.2020 inclusive, due by the defendants in accordance with the provisions of art. 16.1 (1) of the contract no. S-CA 806 / 06.12.2017, for the non-execution of the sludge cleaning services, the performance of the operations related to the cleaning of the tank as well as the transport of the resulting sludge, including the activity of recovery / disposal in safe environment, related to the R9 Crude Oil Tank within the Siliște Automated Crude Oil Pumping Station, Poiana Lacului-Siliște Sector, Division 2 South, Dâmbovița County;

2. Obligation, jointly and severally, of the defendants to pay CONPET S.A. of the amount of RON 155,792.97, representing 20% of the estimated value of the contract, due according to art. 17 of the service contract no. S-CA 806 / 06.12.2017, following the unilateral termination of the contract due to the fault of the defendant;

3. Orders the defendants jointly and severally to pay the legal expenses of the proceedings in question.

Clarifications: By the Sentence no. 3882 of 20.05.2022 the Ploiești Courthouse admits the action in part. It obliges the defendants to pay the claimant late penalties in the amount of 0.5%/day starting from 10.12.2019 and until 20.05.2020, in the amount of RON 19,523.13. It rejects the rest of the action as unfounded. It obliges the defendants to pay the claimant the sum of RON 1,081.15 as legal expenses consisting of judicial stamp duty, in proportion to the admitted claims. It forces the claimant to pay the defendant Systems of Ecological Solutions S.R.L. the amount of RON 3,000 as legal expenses consisting of lawyer's fees, in proportion to the admitted claims. The decision was appealed by Conpet SA and SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL.

Conpet SA filed a request to correct a material error in the Sentence no. 3882 of 20.05.2022 pronounced by the Ploiești Courthouse. By the Conclusion of 14.10.2022, the Ploiești Courthouse accepts the request to correct the material errors. It directs the minutes, considerations and disposition of Civil Sentence no. 3882 dated 20.05.2022 pronounced by the Ploiesti Courthouse in the file no. 17936/281/2021 in the sense that it will be read correctly: " It obliges the defendants, jointly and severally, to pay the claimant late payment penalties in the amount of 0.5%/day starting from 10.12.2019 and until 25.05.2020, in the amount of RON 19,523.13". "It obliges the defendants, jointly and severally, to pay the claimant the amount of RON 1,081.15 as legal expenses, consisting of judicial stamp duty, in proportion to the admitted claims".

By the Decision no. 933/01.09.2023 The Prahova Court admits the appeal declared by Conpet SA. It partially changes the appealed sentence in the sense that: It accepts the request in part. It obliges the defendants, jointly and severally, to pay to the claimant the late payment penalties in the amount of 0.5%/day, starting from 12.09.2019 and ending on 25.05.2020. It obliges the defendants to pay to the claiment Conpet SA the legal expenses related to the appeal in the amount of RON 751 representing the judicial stamp duty. It rejects the appeal declared by the appellant SYSTEMS OF ECOLOGYCAL SOLUTIONS SRL, as unfounded. With the right of appeal within 30 days of communication.

25. File no. 19121/281/2021 - Ploiesti Court

Subject matter: Invalidation of enforcement. Conpet requested the court to order the invalidation of foreclosure carried out on the basis of the enforceable title represented by decision no. 669 of 20.12.2011 of the Prahova Court in the execution file no. 458/2015 to the Divoiu Maria Bailiff's Office, by restoring the situation prior to the enforcement, in the sense of obliging the defendant Dobrogeanu Dumitru (pursuant to art. 723 of the Code of Civil Procedure) to pay the following amounts to the undersigned:

Dobrogeanu Dumitru

- RON 11067.41 representing the amount enforced by the Divoiu Maria Bailiff's Office illegally

- RON 800.40 as legal expenses (out of which RON 600 represent the fee of the accounting expertise and RON 200.40 represent the equivalent value of photocopies of the execution file 458/2015), amount to which the defendant was obliged by the sentence 8369 / 19.10.2017 pronounced in the file 983/281/2016 remained final by Decision no. 1239 / 26.09.2018

- RON 200.40 represents the equivalent value of the photocopies of the execution file 458/2015 (for the file 8115/281/2016) amount to which the defendant was obliged by the sentence 2448 / 26.03.2018 pronounced in the file 983/281/2016 (which ordered the completion of the operative part of the civil sentence 8369 / 19.10.2017 pronounced in the file with the same number) remained final by Decision no. 1239 / 26.09.2018 of the Prahova Court

Also, we request the updating with the penalizing legal interest of the amount of RON 11,067.41 starting with the date of 01.04.2016 and up to the date of the effective payment.

Clarifications: By the Sentence no. 1051 of 06.06.2023 the Ploiești Courthouse rejects the exception of lack of interest regarding the amount of RON 800.4, representing legal expenses and to which the defendant was obliged by the civil sentence no. 8369/19.10.2017 pronounced in file no. 983/281/2016, final by the civil decision no. 1239/26.09.2018 and the amount of RON 200.4, representing the counter value of photocopying the enforcement file no. 458/2015, amount to which the defendant was obliged by the civil sentence no. 2448/26.03.2018, pronounced in the file no. 983/281/2016, by which it was ordered to supplement the provisions of the civil sentence no. 8369/19.10.2017), final by the civil decision no. 1239/26.09.2018 of the Prahova Court, as unfounded.

It admits the summons request filed by the claimant CONPET S.A. against the defendant DOBROGEANU DUMITRU. It obliges the defendant to pay the claimant the amount of RON 1,000.4, representing legal expenses incurred by the clamant in the file no. 983/281/2016, consisting of the amount of RON 400.4, representing the cost of photocopying the execution file no. 468/2015 and from the amount of RON 600, representing the accountant's fee.

It orders the return of the foreclosure by the defendant returning to the claimant the amount of RON 11,067.41, enforced in the file no. 458/2015 of the Divoiu Maria Bailiff's Office.

It obliges the defendant to pay to the claimant the legal penalty interest calculated, according to art. 3 paragraph (2) from G.D. no. 13/2011, on the main debit, in the amount of RON 11,067.41, from 01.04.2016 until the actual payment date. It obliges the defendant to pay to the claimant the amount of RON 300, as legal expenses, representing judicial stamp duty. It orders the defendant to pay the Divoiu Maria Bailiff's Office of the amount of RON 343.91 representing photocopying expenses of the enforcement file no. 468/2015 of the Divoiu Maria Bailiff's Office. Dobrogeanu Dumitru filed an appeal.

26. File no. 5081/105/2013 / a13 - Prahova Court

Deadline: 12.06.2024

Parties: Energopetrol SA through Judicial Administrator Andrei Ioan Ipurl - respondent

Conpet SA - appellant

Subject matter: Appeal against the measures of the judicial administrator / liquidator

Clarifications: By the Decision 11 of 19.04.2022, the Prahova Court admits the appeal. It cancels the measure of the judicial administrator regarding the prescription of the right to request the payment of the amount of RON 7556.34. It finds that the amount of RON 7556.34 is included in the debtor's current debt statement in BPI no. 4717/16.03.2022.

Deadline: 08.05.2024

27. File no. 11372/94/2022-Buftea Courthouse

Parties: Conpet -claimant

Peștişor Marius Sever-defendant

Peștișor Elena Loredana-defendant

Dobre Maria-defendant

Subject matter: Conpet formulates a request to summon the defendants and for the opposition of the defendant Dobre Maria, requesting the court to order the determination of the share due to each co-owner of the building composed of a construction intended for "residential house" with a built area of 16.87 sq.m. and intra-village construction land with an area of 50.72 sq.m.

28. File no. 11783/281/2022 – Prahova Court

Deadline: 12.09.2024

Parties: Conpet – claimant

Trafotech S.R.L. – defendant

Subject matter: Claims. Conpet formulates a summons requesting the court, through the decision it will pronounce, to order the obligation of the defendant TRAFOTECH S.R.L. upon payment to Conpet S.A. of the amount of RON 55,257, consisting of:

- RON 35,697 representing late penalties calculated for the period 14.02.2021 – 27.04.2021 inclusive, owed by the defendant in accordance with the provisions of art. 18.1 of the contract no. P-CA 391/15.12.2020,

- RON 19,560, representing 20% of the contract value, due according to the art. 19.2 of the supply contract no. P-CA 391/15.12.2020, following the unilateral termination of the contract due to the fault of the defendant.

Also, Conpet requests the obligation of the defendant TRAFOTECH S.R.L. to pay the legal expenses that it will incur in this case.

Clarifications: By the Civil Sentence of 27.10.2022, the Ploiești Courthouse admitted the action in part. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 25,917, representing late payment penalties calculated for the period 14.02.2021 –27.04.2021 inclusive according to the art. 18.1 of the supply contract no. P-CA 391 of 15.12.2020. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 19,560 representing compensatory damages according to the art. 19.2 of the supply contract no. P-CA 391 of 15.12.2020. It rejects the rest of the action, as unfounded. It obliges Trafotech SRL to pay to Conpet SA the amount of RON 1,969 as legal expenses, representing the stamp duty. The decision was appealed by Trafotech SRL.

29. File no. 2854/105/2022 – Prahova Court

Deadline: 21.05.2024

Eurosting AAW Industry S.R.L. defendant

Subject matter: Obligation of the defendant EUROSTING AAW INDUSTRY SRL. upon payment to CONPET S.A. of the total amount of RON 747,937.80 consisting of the amount of RON 83,640 representing damages in the amount of 20% due according to the art. 19.2 of the works contract no. L-CA 252/06.08.2019 and the amount of RON 664,297.80 representing late payment penalties calculated until 29.04.2021, owed by the defendant in accordance with the provisions of the art. 18.1 of the works contract no. L-CA 252/06.08.2019, for the non-execution of the obligations assumed by the contract. Obligation to pay legal expenses.

Clarifications: By the Conclusion of 26.01.2023 the Prahova Court admits the request for suspension of the trial of the case made by the defendant and it disposed the suspension of the case until the final settlement of File no. 4372/105/2022 pending before the Prahova Court. With the right of appeal throughout the suspension.

Procedural status of the case: Merits - suspended

30. File no. 17365/281/2022 – Ploiesti Courthouse

Eurosting AAW Industry S.R.L. defendant

Subject matter: Obligation of the defendant EUROSTING AAW INDUSTRY S.R.L. upon payment to CONPET S.A. of the total amount of RON 69,141.30 consisting of the amount of RON 24,949.98 representing damages in the amount of 20% due according to the art. 18.2 of works contract no. L-CA 366 of 16.11.2020 and the amount of RON 44,191.32 representing late payment penalties calculated until 06.08.2021, owed by the defendant in accordance with the provisions of the art. 17.1 of the works contract no. L-CA 366 of 16.11.2020, for the non-execution of the obligations assumed by the contract. Obligation to pay legal expenses.

Clarifications: By the Decision no. 2083/30.03.2023 the Ploiești Courthouse admits the motion to dismiss for lack of jurisdiction of the Ploiești Courthouse, invoked ex officio. It declines the jurisdiction to resolve the request in favor of the Prahova Court.

By the Decision no. 177/02.11.2023 The Prahova Court admitted the exception of lack of jurisdiction and declined the jurisdiction to resolve the case with the subject matter of claims in favor of the Ploiesti Courthouse. The negative conflict of jurisdiction between the Prahova Court and the Ploieşti Courthouse is evident. It suspends ex officio the judgment of the case and immediately sends the file to the Ploiesti Court of Appeal, in order to resolve the negative conflict of jurisdiction.

By the Sentence no. 45 CC of 06.12.2023, pronounced in the file 1221/42/2023, the Ploiești Court of Appeal establishes the jurisdiction to solve the action in favor of Ploiești Courthouse.

31. File no. 23320/281/2022 – Prahova Court

Ministry of Agriculture and Rural Development defendant

Ialomița County Directorate for Agriculture defendant

National Agency for Land Registry and Real Estate Advertising defendant

Subject matter: Jointly and severally obliging the defendants to pay to CONPET S.A. of the amount of RON 81,176.8 representing the amount paid as a guarantee.

The total amount of 81,176.8 was paid as a guarantee in October 2016 and August 2017 in order to temporarily remove the 22,586 square meter land area from agricultural use (category of arable use). Investment objective "Replacement of crude oil pipeline Ø 10¾'' Ghercești - Icoana - Cartojani on the sections: SPC Bârla, Bârla commune, Argeș County approx. 850 m, agricultural lands Bârla – Mirosi, Arges County, approx. 2,400 m and agricultural land in Negreni – Clanița village, Teleorman County, approx. 1,500 m, total 4,750 m"

Clarifications: By the Sentence 4650/08.09.2023 the Ploiești Courthouse admits the plea of the lack of passive procedural status against the defendant A.N.C.P.I. It rejects the request made by the claimant CONPET S.A. against the defendant A.N.C.P.I as being brought against a person lacking passive procedural status. It rejects the summons filed by the claimant CONPET S.A. against the defendants, the Ministry of Agriculture and Rural Development, the Teleorman County Directorate for Agriculture, as unfounded. Conpet filed an appeal.

32. File no. 331/90/2016 – Vâlcea Court

Parties: Conpet SA – creditor

REMAT Vâlcea SA - debtor

Subject matter: Conpet submitted a request for admission of the claim and registration in the additional list of the creditor Remat Vâlcea SA with the amount of RON 4,538.61 (4,331.61 late payment penalties CON FA 6291/16.10.2017 + 200 RON legal expenses)

33. File no. 2466/118/2023 – Constanța Courthouse

Deadline: 23.04.2024

Parties: CONPET S.A. – petitioner

The Prosecutor's Office attached to the Constanța Court - respondent

Subject matter: CONPET S.A. formulates a complaint against the classification Ordinance ordered on 29.12.2022 by the first prosecutor of the Prosecutor's Office attached to the Constanța Court in the file no. 832/P/2014, regarding committing of the crime of grand larceny requesting the abolition of the classification Ordinance ordered on 29.12.2022 by the first prosecutor of the Prosecutor's Office attached to the Constanța Court in the file no. 832/P/2014, the continuation of the criminal prosecution and investigations with a view to bringing to criminal responsibility the defendants Mițiş Dănuț, Nicolae Vasile and Cozmescu Viorel – Marcel for the embezzlement of petroleum products with the help of an artisanal installation mounted on the Ø 24" import crude oil transport pipeline Constanța - Midia, DN 2C area, in the appropriation of the Gheorghe Hagi Academy in the city of Ovidiu, Constanța county, a deed committed between June and the beginning of July 2014, as well as in order to recover the damage caused to our company [RON 4,688.50 (RON 1,897.37 representing the value of the remedial works of the damaged pipeline and RON 2,791.13 representing the value of the quantity of 1,000 liters of REBCO type crude oil) plus the value of the quantity of 62,674 kg of crude oil].

Clarifications: By the Conclusion no. 652/07.12.2023 The Court of Constanța admits the motion to dismiss for lack of jurisdiction of the Court of Constanța. It declines the competence to settle the complaint formulated by the petitioner CONPET S.A. in favor of the Constanța Courthouse. Final.

Deadline: 19.03.2024

34. File no. 6722/281/2023 – Ploiesti Courthouse

Parties: CONPET S.A. - claimant

Thermoficare Prahova S.A. and the Popescu Silviu Andrei Bailiff's Office - defendant

Subject matter: CONPET filed an appeal against the enforcement documents drawn up by the Popescu Silviu Andrei Bailiff's Office in the enforcement file no. 263/2022, as follows: the conclusion pronounced on 08.12.2022 by the Ploiești Courthouse in the file no. 25160/281/2022 by which the foreclosure was approved; the summons issued on 09.03.2023 for the payment of the amount of RON 7,003.40, the conclusion no. 1 issued on 09.03.2023 establishing the enforcement expenses in the amount of RON 1,259.51; the decision issued on 20.03.2023 ordering the termination of foreclosure.

The appeal requested the annulment of the decision pronounced on 08.12.2022 by the Ploiești Courthouse in the file no. 25160/281/2022 by which the foreclosure of all the documents issued by the Popescu Silviu Andrei Bailiff's Office in the enforcement file no. 263/2022, respectively of the Security Summons issued on 09.03.2022 for the payment of the amount of RON 7,003.40, of the conclusion no. 1 issued on 09.03.2023 establishing the enforcement expenses in the amount of RON 1,259.51 and the conclusion issued on 20.03.2023 ordering the termination of enforcement and the return of enforcement for the amount of RON 3,856.65 representing amounts additionally paid by CONPET S.A. following the transmission of the summons by the Popescu Silviu Andrei Bailiff's Office in the enforcement file no. 263/2022, composed of RON 3,446.52 representing amounts invoiced in addition and not owed through the invoices put into execution as enforceable titles and RON 410.13 representing the difference in unpaid bailiff's fees.

Clarifications: By the Decision of 20.10.2023, the Ploiești Courthouse suspends the trial of the challenge to foreclosure formulated by the appellant CONPET S.A. contrary to the respondent TERMOFICARE PRAHOVA S.A. With the right of appeal for the duration of the suspension

35. File no. 1310/116/2021 – Calarasi Court

Parties: CONPET S.A. - creditor

Agroland Future S.R.L. - debtor

Subject matter: Conpet filed a request for admission of the claim and registration in the list of creditors of Agroland Future S.R.L. with the amount of RON 8,831.15, as the debtor was obliged by the enforceable Civil Sentence no. 1058/20.12.2019 pronounced by the Lehliu-Gara Courthouse in the file no. 2149/249/2019, to which are added the legal expenses related to Law no. 85/2014 [RON 8,631.15 (RON 8,120.14 + RON 511.01) + RON 200= RON 8,831.15].

36. File no. 671/1285/2022 – Cluj Specialised Court

Deadline: 26.03.2024

Parties: CONPET S.A. - creditor

Tirrena Scavi SpA - debtor

Subject matter: Secondary insolvency proceedings in the form of bankruptcy

Conpet filed a claim admission request asking the court to register the company CONPET S.A. on the list of creditors of TIRRENA SCAVI SpA with the amount of RON 54,601.02 composed of:

- the amount of RON 48,402.43 representing the counter value of the damage suffered by CONPET S.A. as a result of the damage caused by the debtor TIRRENA SCAVI SpA – Cluj Branch on 04.04.2022 to the crude oil transport pipeline Ø 10¾" Ghercești – Icoana, Gârlești village area, Ghercești commune, Dolj county;

- the amount of RON 5,998.59 representing the update of the counter value of the damage with the legal interest from the date of the act (04.04.2022) until the date of the opening of the procedure (03.07.2023);

- RON 200 representing the judicial stamp duty related to this application for admission of the claim on the assets of the debtor TIRRENA SCAVI SpA.

Clarifications: Conpet was entered in the preliminary List of creditors of the debtor Tirrena Scavi SpA (published in BPI no. 7475/03.05.2023) with the amount requested – RON 54,601.02 (unsecured debt, art. 161 point 8 of the Insolvency Law, 0 .0735% of the category, 0.0027% of the total receivables, 0.0175% of the total with voting rights).

37. File no. 8089/281/2023 - Ploiesti Courthouse

Deadline: 21.05.2024

Parties: CONPET S.A. - claimant

Brent Oil CO SRL - defendant

Subject matter: Conpet filed a request for admission to court requesting the defendant to be obliged to pay the amount of RON 19,536.52, composed of RON 9,802.93 representing equipment rental consideration and RON 9,733.59 representing penalties calculated according to the provisions of art. 11.1 of the service contract no. STA 363/17.10.2019.

Deadline: Ruling postponed to 22.03.2024

38. File no. 3904/204/2023 - Câmpina Courthouse

Parties: CONPET S.A. – civil part

Irimia I. Mihai - defendant

Dinu G. Nicolae - defendant

Subject matter: Grand larceny consisting in the embezzlement of the quantity of 1.960 liters of crude oil from the Mislea Pumping Station Crude Oil Storage between March and July 2019 (separate case from the File No. 838/P/2019, registered under No. 2230/P/2022).

Clarifications: By the Sentence no. 411/29.11.2023 The Câmpina Courthouse ordered the restitution to the civil party Conpet of the amount of 1,960 liters of crude oil that forms the material subject of the criminal offence brought to trial and which is in the custody of the civil party, according to the minutes of 10.05.2023. It states that the damage in the amount of 3,751.92 lei was covered by the restitution of the amount of 1,960 liters of crude oil to the civil party Conpet S.A. The decision can be appealed after communication.

39. File no. 13298/215/2023 – Craiova Courthouse

Florescu Eugen - defendant

Florescu Silvia - defendant

Bodic Constantin - defendant

Subject matter: Conpet SA filed a request to summon the defendants Florescu Eugen, Florescu Silvia and Bodic Constantin to determine the share due to each co-owner of the building consisting of a construction with the destination "house with 2 rooms" and a land with an area of 1038 sq. m, identified with Cadastral no. 23, building located in Robanestii de Jos, Dolj County- landlords Florescu Silvia and Florescu Eugen, share 1/2, no. land register 33312 Robănești.

Clarifications: By the Conclusion no. 142/20.02.2024 Craiova Courthouse admits the motion to dismiss for lack of specialized jurisdiction of the First Civil Division of Craiova Courthouse, invoked ex officio. It declines the jurisdiction to resolve the case regarding the plaintiff Conpet S.A. in opposition to the defendants Florescu Eugen, Florescu Silvia and Bodic Constantin, in favor of the Second Civil Division of the Craiova Courthouse.

40. File no. 2365/105/2023 – Prahova Court

Parties: Conpet – claimant

Ministry of Agriculture and Rural Development - defendant

Argeș County Directorate for Agriculture - defendant

National Agency for Land Registry and Real Estate Advertising - defendant

Subject matter: CONPET S.A. filed a summons requesting the joint and several obligation of the defendants to pay to CONPET S.A. of the amount of RON 204,386.72 representing the amount paid as a guarantee.

41. File no. 8479/315/2023 - Târgoviște Courthouse

Deadline: 08.05.2024

Parties: Conpet - petitioner

The prosecutor's office attached to the Târgoviște Courthouse - respondent

Subject matter: Conpet filed a complaint against the dismissal ordinance ordered on 21.06.2023 by the Prosecutor's Office attached to the Târgoviște Courthouse in the file no. 2057/P/2014 regarding the criminal offence of grand larceny, requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the theft, between 2011 and 07.02.2013, of some sections of pipeline with a total length of 1,490 m, from the area of the Târgoviște-București road - sectional valve, forest Iuda/Ilfoveni village, Nucet commune, Dâmbovița county and the theft, between 2011 and 16.04.2013, of some pipeline sections with a total length of 136 m, from the Cazaci Forest area - Târgoviște-București road - sectional valve Cazaci village, Nucet commune, Dâmbovița county, as well as in order to recover the damage caused to our company (RON 81,043.05).

Deadline: Ruling postponed to 20.03.2024

42. File no. 17532/281/2023 – Prahova Court

Eurosting AAW Industry S.R.L. defendant

Subject matter: Obliging the defendant EUROSTING AAW INDUSTRY SRL to pay CONPET S.A. of the total amount of 56,444.93 representing late penalties calculated until 04.11.2022 owed by the defendant in accordance with the provisions of art. 17.1(1) of works contract no. L-CA 27/13.02.2020 for not executing the works on time.

Clarifications: --.

Deadline: 11.04.2024

43. File no. 6573/202/2023 – Calarasi Courthouse

Parties: Conpet – petitioner

The prosecutor's office attached to the Călărași Courthouse - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 29.06.2023 by the Prosecutor's Office attached to the Călărași Courthouse in the file no. 645/P/2015, regarding the criminal offence of grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the theft, between 27.02.2015 and 02.03.2015, of the cables that served the cathodic protection terminals on the import crude oil transport pipelines from the area of Jegălia neighborhood, Perisoru locality, Călărași county, as well as in order to recover the damage caused to our company (RON 10,355.51).

44. File no. 3460/317/2023 –Tg. Cărbuneşti Courthouse

Deadline: 11.06.2024

Parties: Conpet – petitioner

The prosecutor's office attached to the Târgu Carbunești Courthouse - respondent

Subject matter: Conpet filed a complaint against the Ordinance rejecting the complaint no. 75/II/2/2023 ordered by the Prosecutor's Office attached to the Târgu Carbunești Courthouse, in the file no. 1951/P/2014, regarding the criminal offence of grand larceny requesting the admission of the complaint, the abolition of Ordinance no. 75/II/2/2023 ordered on 16.08.2023 by the first prosecutor of the Prosecutor's Office attached to the Târgu Cărbunești Courthouse, of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and bring them to criminal responsibility.

Deadline: Ruling postponed to 25.03.2024

45. File no. 1653/105/2023 – Prahova Court

Termoficare Prahova - defendant

Subject matter: Bankruptcy. Application for admission of the claim in the amount of RON 4,206.6 and its entry on the list of creditors of the debtor TERMOFICARE PRAHOVA S.R.L. The claim in the amount of RON 4,206.6 is composed of: RON 3,446.52 amounts invoiced in addition by TERMOFICARE PRAHOVA S.R.L. and not owed by CONPET through the invoices executed as enforceable titles in the enforcement file no. 263/2022 pending before the Bailiff’s Office Popescu Silviu Andrei; RON 410.13 representing the unpaid bailiff's fee difference; RON 324.96 - stamp duty paid in the file 6722/281/2023; RON 24.99 - counter value for photocopying the enforcement file for the court (file no. 6722/281/2023). File 1653/105/2023/a2 - Appeal against the decision of the legal administrator.

46. File no. 3988/317/2023 – Târgu-Cărbunești Courthouse

Deadline: 09.05.2024

Parties: Conpet SA – petitioner

The prosecutor's office attached to the Târgu Carbunești Courthouse

Subject matter: Conpet filed a complaint against the Ordinance rejecting the complaint no. 88/II/2/2023 ordered on 28.09.2023 by the first prosecutor of the Prosecutor's Office attached to the Târgu Carbunești Courthouse, in the file no. 151/P/2015, regarding the criminal offences of "grand larceny attempt" and "destruction" requesting the abolition of Ordinance no. 88/II/2/2023 ordered on 28.09.2023 by the first prosecutor of the Public Prosecutor's Office attached to the Târgu Cărbunești Courthouse, of the Dismissal Ordinance, the continuation of the criminal prosecution and the investigations in order to identify the criminals and bring them to criminal responsibility for the commission of the criminal deed abovementioned.

47. File no. 5711/330/2023 – Urziceni Courthouse

Deadline: 25.06.2024

Parties: Conpet SA – creditor

Bailiff's Office Răduță Nicoleta - petitioner

Nițu Nicolae – debtor

Revolut Bank UAB Vilnius – third party seized

Subject matter: Validation of garnishment. The Bailiff's Office Răduță Nicoleta filed a request to validate the attachment on the accounts of Revolut Bank UAB Vilnius belonging to the debtor Nițu Nicolae up to the sum of RON 9,771.24 representing principal debt, interest as well as enforcement expenses based on an enforceable title represented by the Criminal Sentence no. 69 of the Călărași Court from the file no. 1032/116/2016.

48. File no. 19770/281/2023 – Ploiesti Courthouse

Deadline: 11.04.2024

INTERNATIONAL DANCOR IMOBILIARE 888 SRL – defendant

Subject matter: Action for contractual liability. Conpet filed a summons request asking the court:

- to oblige the defendant INTERNATIONAL DANCOR IMOBILIARE 888 SRL to pay the amount of RON 4,064.98 representing late penalties calculated according to art. 8.1. from the rental agreement no. STA 147/20.05.2022.

- to oblige the defendant INTERNATIONAL DANCOR IMOBILIARE 888 SRL to pay legal expenses consisting of the judicial stamp duty and other costs caused by this litigation.

Clarifications: By the Sentence no. 1137/05.02.2024 the Ploiești Courthouse admits, in part, the summons request. It obliges the defendant to pay to the claimant the contractual late payment penalties due in the amount of 0.1% per day for each day of delay calculated as follows: for invoice series: PH CON FD no. 5287/ 23.06.2022 in the amount of 4534.99 lei, starting from 26.07.2022 and ending on 24.01.2023; for invoice series: PH CON FD no. 5212/31.05.2022 on the total debit of RON 13746.56, from 06.07.2022 to 24.01.2023 inclusive, from 25.01.2023 to 01.03.2023 inclusive on the debit of RON 10,000 and from 02.03.2023 to 21.03.2023 on the debit amounting to RON 4,000. It obliges the defendant to pay to the claimant the amount of RON 285, as legal expenses consisting of judicial stamp duty proportional to the extent of the admission of the claims. It rejects the rest of the request as unfounded. The decision can be appealed after communication.

49. File no. 27248/281/2023 – Ploiesti Courthouse

Brilliant Technologies SA - defendant

Subject matter: Conpet formulates a summons requesting the obliging of the defendant BRILIANT TECHNOLOGIES S.A. upon payment to CONPET S.A. of penalties in the amount of RON 2,759.05, owed by the defendant in accordance with the provisions of art. 16.1(1) from the service contract no. S-CA 82/03.05.2022, representing the difference between the delay penalties in the amount of RON 2,898 calculated and requested by Conpet through the Termination Notice no. 28092/26.07.2022 and the amount of RON 138.94 paid by the defendant as late payment penalties. Obliging the defendant to pay legal expenses.

50. File no. 13183/311/2023 – Slatina Courthouse

The prosecutor's office attached to the Slatina Courthouse - respondent

Subject matter: Conpet filed a complaint against the classification Ordinance ordered on 12.10.2023 by the Prosecutor's Office attached to the Slatina Courthouse in the file no. 1522/P/2009, regarding the criminal offences of destruction and grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to prosecute the criminals for the theft of petroleum products with the help of an artisanal installation mounted on the crude oil transport pipeline Ø 10" F2 Orlești – Poiana Lacului, within the radius of Leleasca commune, Mircești village, Olt county, deed ascertained on 23.03.2009, as well as in order to recover the damage caused to our company (RON 5,967.13).

Clarifications: By the Conclusion no. 163/19.02.2024 the Slatina Courthouse rejects the complaint and obliges Conpet SA to pay the amount of RON 70, legal expenses advanced by the state. Final.

51. File no. 13049/311/2023 – Slatina Courthouse

The prosecutor's office attached to the Slatina Courthouse - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 18.10.2023 by the Prosecutor's Office attached to the Slatina Courthouse in the file no. 1729/P/2012, regarding two criminal offences of attempted grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations with a view to holding the criminals criminally responsible for the damage, on 17.03.2012, for the purpose of stealing petroleum products, of the Ø 10¾" crude oil transport pipeline Ghercești – Icoana, in the area of Schitu Greci commune, Lisa village, Olt county, respectively for the damage, on 17.11.2012, for the purpose of stealing petroleum products, of the crude oil transport pipeline Ø 10¾" Ghercești – Icoana, in the area of the place called Brănișoara near the Schitu Greci commune, Lisa village, Olt county, as well as in order to recover the damage caused to our company (RON 10,971.60, respectively RON 6,917.85).

Clarifications: By the Conclusion no. 136/15.02.2024 The court rejects the complaint and compels the petitioner Conpet S.A. upon payment of the amount of RON 50, legal expenses advanced by the state. Final.

52. File no. 23408/280/2023 – Pitesti Courthouse

The prosecutor's office attached to the Pitesti Courthouse - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 24.03.2023 by the Prosecutor's Office attached to the Pitesti Courthouse in the file no. 7249/P/2008, regarding the criminal offence of attempted grand larceny, requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations with a view to bringing the criminals to criminal liability for the damage, by installing an artisanal installation, for the purpose of extracting crude oil, of the pipeline passing through the commune of Vedea, the "Spata Cepturi" point, Argeș county, deed ascertained on 01/02.12.2008, as well as in order to recover the damage caused to our company.

Deadline: 27.03.2024

53. File no. 4933/259/2023 – Mizil Courthouse

The prosecutor's office attached to the Ploiești Courthouse - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 02.11.2023 by the Prosecutor's Office attached to the Mizil Courthouse in the file no. 752/P/2015, regarding the criminal offence of attempted grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the damage by installing an artisanal installation, for the purpose of stealing petroleum products, of the crude oil transport pipeline Ø 6" Urziceni – Ploiești, Ciorani locality area, Prahova county, deed ascertained on 05.08.2015, as well as in order to recover the damage caused to our company (RON 3,009.79).

54. File no. 12048/94/2019/a1 – Ilfov Court

Deadline: 20.03.2024

Parties: Conpet SA – petitioner

Subject matter: Conpet filed a request for re-examination against the Conclusion pronounced in the public hearing of 13.09.2023, by which we ask the court to rectify the fine applied and order the exoneration of Conpet S.A. from its payment. We specify that we, the undersigned company Conpet S.A., are not a party to the file no. 12048/94/2019.

Clarifications: By the Conclusion no. 76/27.02.2024 The Ilfov Court rejects, as unfounded, the request for re-examination. Final.

55. File no. 12048/94/2019/a2 – Ilfov Court

Parties: Conpet SA – petitioner

Subject matter: Conpet filed a request for re-examination against the Decision pronounced in public hearing of 13.09.2023, by which we ask the court to rectify the fine applied and order the exoneration of Conpet S.A. from its payment. We specify that we, the undersigned company Conpet S.A., are not a party to the file no. 12048/94/2019.

56. File no. 585/281/2024 – Ploiesti Courthouse

Deadline: 07.10.2024

The prosecutor's office attached to the Ploiești Courthouse - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 28.09.2023 by the Prosecutor's Office attached to the Ploiești Courthouse in the file no. 7911/P/2015, regarding the criminal offence of grand larceny requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the damage, through the installation of an artisanal installation, for the purpose of extracting crude oil, of the pipeline Ø 12" F1 Călăreți – Ploiești, Puchenii Mari locality area, Prahova county, deed ascertained on 23.06.2015, as well as in order to recover the damage caused to our company.

Clarifications: By the Conclusion no. 104/01.02.2024 the Ploiești Courthouse rejects the complaint and obliges Conpet SA to pay the amount of RON 200 to the state, as legal expenses. Final.

57. File no. 586/281/2024 – Ploiesti Court

The prosecutor's office attached to the Ploiești Court - respondent

Subject matter: Conpet filed a complaint against the Dismissal Ordinance ordered on 31.08.2023 by the Prosecutor's Office attached to the Ploiești Courthouse in the file no. 8515/P/2013, regarding the criminal offence of theft requesting the abolition of the Dismissal Ordinance, the continuation of the criminal prosecution and investigations in order to identify the criminals and hold them criminally liable for the theft of a cathodic protection terminal from the Ø 8" Boldesti import crude oil transport pipeline, East Ring zone – Lukoil SA Ploiesti, Prahova county, deed found on 18.07.2013, as well as in order to recover the damage caused to our company (RON 1,748.14).

Clarifications: By the Conclusion no. 153/19.02.2024 the Ploiești Courthouse rejects the complaint and obliges Conpet SA to pay the amount of RON 500, with the title of legal expenses advanced by the state. Final.

58. File no. 129/315/2024 – Târgoviște Courthouse

The prosecutor's office attached to the Târgoviște Courthouse - respondent

Subject matter: Conpet filed a complaint against the dismissal provisions of the Indictment issued on 20.11.2023 by the Prosecutor's Office attached to the Târgoviște Courthouse in the file no. 5597/P/2017 regarding the criminal offence of grand larceny requesting the abolition of the dismissal provisions and the referral to court of the persons against whom the dismissal of the case was ordered regarding their participation in the criminal offence of grand larceny, the act provided for and punished by art. 228 para. 1 – 229 para. 3 letter a of the Criminal Code, held in charge of the defendant Peștișor Marius Sever, consisting in the embezzlement with the help of an artisanal installation, on 21/22.12.2017, of the amount of 7000 liters of crude oil from the Ø 14" pipeline Cartojani - Ploiești, within the radius of Butimanu locality, Bărbuceanu village, Dâmbovița county.

59. File no. 321/223/2024 – Dragășani Courthouse

Deadline: 07.05.2024

Parties: Conpet SA – appellant

Filotie Adrian - respondent

Subject matter: Conpet filed an appeal against the Decision dated 09.01.2024 drawn up by the Bailiff's Office Bălan Ovidiu, communicated to our company on 15.01.2024, requesting the annulment of the Decision dated 01.09.2024 by which the Bailiff's Office Bălan Ovidiu ordered the termination of execution towards the debtor Filotie Adrian and the continuation of execution towards our debtor Filotie Adrian until the full recovery of the debt according to the enforcement title represented by the criminal sentence no. 9 pronounced on 28.11.2003 by the Pitesti Court of Appeal, which remained final on 26.06.2004.

b) The list of litigations pending before Courts on 15.03.2024 in which the company CONPET S.A. has the status of defendant

1. File no. 8296/281/2007 - Ploiești Courthouse

Parties: Cornea Rodica Aurora

Conpet S.A., Petrotrans S.A., Regionala Transgaz Bucharest, Ministry of Finance - defendants

Subject matter: Cornea Rodica Aurora claims jointly and severally that the defendants are required to pay civil damages in the amount of EUR 74,000 representing the damage caused by the presence of pipes belonging to the defendants in the basement, the property of the claimant and the payment of civil damages provisionally assessed at RON 10,000 for the period of February 2004 - February 2006 as a result of the use of pipes that crossed the property of the claimant.

Clarifications: The case is suspended based on art. 36 of Law no. 85/2006.

2. File no. 8297/281/2007 - Ploiești Courthouse

Parties: Rusu Mihaela - claimant

Conpet S.A., Petrotrans S.A., Regionala Transgaz Bucharest, Ministry of Finance - defendants

Subject matter: Rusu Mihaela claims that the defendants should be jointly and severally liable for civil damages in the amount of EUR 74,000, representing the damage caused by the presence of pipes belonging to the defendants in the basement, the property of the claimant.

Clarifications: The case is suspended based on art. 36 of Law no. 85/2006.

3. File no. 3451/108/2016 ** - Timisoara Court of Appeal

ATU Pecica Town - claimant

Subject matter: ATU of Pecica town filed a request for a summons requesting:

Mainly:

In subsidiary:

- order the defendant Conpet S.A. upon payment of an annual rent, during the existence of the pipeline, as a result of the encumbrance of the areas shown above by the right of legal easement exercised by Conpet SA; NOTE: The annual rent has not been quantified.

- order the defendant Conpet S.A. to the granting of compensations for the period 31.10.2014 – 31.05.2016 as a result of the limitation of the attributes of the property right of the 22 urban land plots and of the decrease of the circulation value of the land on the real estate market due to the restrictions imposed by Order 196/2006 of NAMR on construction;

- order the defendant Conpet S.A. that every 3 years to adapt the amount of compensation to the value of circulation at that time of similar lands and the provisions of future orders of the N.A.M.R.;

- the setting by the court of the due date on which the compensations will be paid annually, following the non-payment at the due term to attract the payment of the legal interest related to the amount received as compensation for the delay period;

- award the legal expenses incurred in the event of opposition.

Clarifications: By the Conclusion of 07.12.2016, the Arad Court finds the functional incompetence of the I Civil Division of the Arad Court and declines in favor of the Civil Division II of the Arad Court, the judgment of the action filed by the claimant Territorial Administrative Unit of Pecica Town.

By the Conclusion no. 40 / 26.01.2017 The Arad Court rejects the request to show the right holder formulated by the defendant Conpet SA in contradiction with the claimant ATU of Pecica Town and with the respondents the Romanian State through the Ministry of Public Finance and the National Agency for Mineral Resources. The decision was appealed by Conpet (File no. 3451/108/2016 * / a1 - Timisoara Court of Appeal, deadline: 14.03.2017). By the Decision no. 211 / 20.03.2017 The Timișoara Court of Appeal rejects the appeal.

By the sentence no. 336 / 18.05.2017, the Arad Court rejects the civil action filed by the claimant ATU of Pecica Town in contradiction with the defendant SC Conpet SA having as subject the obligation to act and claims. No legal expenses. The decision was appealed by the ATU Pecica Town.

By the Decision no. 761 / 23.11.2017 The Timișoara Court of Appeal admits the appeal. It annuls the appealed sentence and sends the case for retrial to the Arad Court. Conpet filed an appeal.

Through the Report of 07.06.2018, the High Court of Cassation and Justice found the inadmissibility of the Conpet appeal, it being promoted against a final decision, which does not fall within the hypothesis regulated by art. 483 para. 1 Code of Civil Procedure. The parties submitted a written opinion on the report. By the Conclusion of 10.10.2018, the HCCJ admits in principle the appeal declared by the appellant-defendant Conpet S.A.

By the Decision no. 615 / 22.03.2019 The HCCJ admits the appeal declared by the appellant-defendant Conpet S.A., it quashes the appealed decision and sends the case to a new court of the same court of appeal.

By the Decision no. 306 / 07.06.2021 The Timisoara Court of Appeal rejects the appeal declared by the appellant-claimant, the Administrative Territorial Unit of the City of Pecica.

The claimant, the Territorial Administrative Unit of the City of Pecica, filed an appeal.

By the Decision 614 of 15.03.2023 the HCCJ admits the appeal. It dismisses the appealed decision and sends the case for a new trial to the same court.

By the Decision no. 621/13.12.2023 The Timișoara Court of Appeal admits the appeal filed by the claimant-appellant the ADMINISTRATIVE TERRITORIAL UNIT OF THE CITY OF PECICA. It partially changes the appellant's sentence in the sense that it admits in part the request for summons made by the claimant the ADMINISTRATIVE TERRITORIAL UNIT OF THE CITY OF PECICA in opposition to the defendant CONPET S.A., and obliges the defendant to pay the amount of EUR 137,045.69 as compensation in favor of the claimant. It upholds the rest of the appealed sentence. It obliges the respondent to pay in favor of the appellant the amount of RON 17,579 as legal expenses. With retrial within 30 days of communication.

4. File no. 5413/204/2017* - Prahova Court

Dobrogeanu Dumitru - claimant

N.A.M.R. - defendant

Dobrogeanu Păun Ioan - claimant

Subject matter: Claims. Dobrogeanu Dumitru and Dobrogeanu Păun Ioan filed a summons requesting the court that by the decision it will pronounce to order the obligation of the defendants to:

1. Payment of an annual rent for the land areas occupied by the two pipelines transporting petroleum products (crude oil) starting with 01.07.2014 and in the future, throughout the existence of the pipelines;

2. Obligation of the defendants to pay the losses suffered by not achieving economic objectives on the area left between the two pipelines after their restriction and the area along DN1 (E60);

3. Payment of legal expenses.

The first head of the claim was estimated by the claimants at the amount of EUR 48,000 / year (RON 220,000), and the second head at the amount of RON 25,000 / year.

Clarifications: By the Decision no. 594 / 28.02.2018 the Câmpina Courthouse admits the motion to dismiss for lack of jurisdiction of solving the case of the Câmpina Courthouse, invoked by the court ex officio. It declines jurisdiction to settle the request in favor of the Prahova Court. No appeal.

By the sentence no. 2446 / 28.08.2018 the Prahova Court admits the exception of the lack of passive procedural quality, invoked by the defendant National Agency for Mineral Resources Bucharest. It dismisses the action, in contradiction with that defendant, as being brought against a person without procedural capacity. It admits the exception of the res judicata. It dismisses the claim filed against the defendant SC CONPET SA, as there is res judicata. It finds that the defendants have not applied for legal expenses. The decision was appealed by Dobrogeanu Dumitru.

By the decision no. 2804 / 11.11.2019 the Ploiești Court of Appeal rejects the appeal filed by the appellant Dobrogeanu Dumitru as unfounded. It admits the plea of inadmissibility of the cross-appeal. It dismisses as unfounded the cross-appeal declared by the appellant Dobrogeanu Păun Ioan. The decision was appealed by Dobrogeanu Dumitru and Dobrogeanu Păun Ioan.

By Decision no. 206 / 04.02.2021, the High Court of Cassation and Justice rejects the appeal filed by the claimant Dobrogeanu Păun Ioan against the civil decision no. 2804 of November 11, 2019, pronounced by the Ploieşti Court of Appeal, Civil Division I. It admits the appeal filed by the claimant Dobrogeanu Dumitru against the same decision. It quashes the appealed decision and the civil sentence no. 2446 of August 28, 2018 of the Prahova Court and sends the case for retrial to the Prahova Court. Final.

Procedural status of the case: Merits - retrial

Deadline: 21.03.2024

5. File no. 5212/105/2018 – the High Court of Cassation and Justice

Fondul Proprietatea SA - claimant

Subject matter: Fondul Proprietatea SA files an appeal requesting the court to:

1. Oblige Conpet to pay the amount of RON 734,747.04, representing the net value of the dividends related to a share of 6% of the share capital of Conpet, respectively for a number of 524,366 shares held by the claimant on the registration date of AGOA Conpet of 25.04.2007 (i.e. 14/05/2007), for the financial year of 2006,

2. Oblige Conpet to pay damages, respectively the legal interest related to the dividends from the due date of the amount requested in point 1 and until the date of filing the summons (i.e. 09.11.2018), in the amount of RON 579,015.97.

3. Oblige Conpet to pay thereafter the legal interest related to the net value of the dividends, from the date of filing the summons and until the actual payment of the requested amounts,

4. Oblige Conpet to pay the legal expenses of the present litigation. Conpet S.A. filed an impleader of the Romanian State through the Ministry of Finance and A.A.A.S.

Clarifications: By the Conclusion of 25.06.2019, the Prahova Court rejected as unfounded the impleader of the Authority for the Administration of State Assets, formulated by the defendant Conpet S.A. Conpet and the Romanian State through the Ministry of Public Finance filed an appeal against this decision of the court. By the same Conclusion of 25.06.2019, the court admitted in principle the impleader of the Romanian State through the Ministry of Public Finance, formulated by the defendant Conpet S.A. and rejected as unfounded the plea of the lack of passive procedural quality of the Romanian State through the Ministry of Public Finance. The appeal was registered with the Ploiești Court of Appeal with no. 5212/105/2018 / a2. By the decision no. 515 / 05.11.2019 the Ploiești Court of Appeal admits the plea of the inadmissibility of the appeal declared by the Ministry of Public Finance. It dismisses this appeal as inadmissible. It rejects the plea of lack of interest and the exception of inadmissibility of the appeal declared by Conpet SA. It dismisses this appeal as unfounded. Final.

By the Conclusion of 20.09.2019, Ploiesti Tribunal suspended the trial of the case until the settlement of the appeals made against the decision pronounced on 25.06.2019. This conclusion remained final by non-appeal.

By Sentence no. 633/02.06.2021 Prahova Tribunal unfoundedly rejects the exception of the prescription of the right to action. It admits the action. It obliges the defendant Conpet SA to pay to the claimant the amounts of RON 734,747.04 representing the value of dividends, of RON 579,015.97, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 and until the actual payment of the main debit. It admits in part the impleader. It obliges the summoned in guarantee The Romanian State to pay to the defendant CONPET SA, the amount of RON 734,747.04, representing the value of dividends, and the legal interest related to this amount starting with 17.12.2018 and until the date of restitution to the defendant of the amount of RON 734,747.04. The decision can be appealed within 30 days from communication.

By Decision no. 814 / 01.07.2021 Prahova Tribunal admits the request for correction of the material error made by the claimant. It corrects the material error crept into the content of paragraph 3 of the operative part of sentence no. 633 / 02.06.2021 pronounced by the Prahova Court, in the sense that it is written: “It obliges the defendant Conpet S.A. to pay to the claimant the amounts of RON 734,747.04 representing the main debit, of RON 579,015.97, representing dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 until the actual payment of the main debit.”. It admits the request for completion of the decision made by the claimant. It orders the completion of the civil sentence no. 633 / 02.06.2021 in the sense that it also provides: It reduces to RON 70,000 the fee of the claimant's lawyer. It obliges the defendant Conpet S.A. to pay the claimant the following legal expenses: RON 20,347.63 representing judicial stamp duty, RON 4,300 expert fee, RON 8,481.87 expert fee, RON 70 lawyer's fee and RON 1,125 other expenses. It obliges the summoned in guarantee The Romanian State to pay to the defendant Conpet S.A. legal expenses in the amount of RON 16,943. With the right of appeal within 15 days from communication.

Conpet and the Romanian State through the Ministry of Public Finance filed an appeal against the substantive decision no. 633 / 02.06.2021.

Conpet filed an appeal against the material error correction decision no. 814/01.07.2021.

Conpet SA also filed a request to correct the material errors in the contents of sentence no. 633 of 02.06.2021 pronounced by the Prahova Court in the file no. 5212/105/2018, device that was the object of correcting the material error pronounced by the court by sentence no. 81 of 01.07.2021. Through the Conclusion of Correction of Material Civil Error, dated 12.09.2022, the Prahova Court admitted the request to correct the material errors of the disposition of the civil sentence no. 633/02.06.2021 and no. 814/01.07.2021, pronounced by the Prahova Court, in the file no. 5212/105/2018, formulated by CONPET SA, against the claimant, FONDUL PROPRIETATEA SA, against the defendant CONPET SA, called as guarantee by the ROMANIAN STATE, through the MINISTRY OF PUBLIC FINANCES. It corrects the material errors in the content of sentences no. 633/02.06.2021 and no. 814/01.07.2021 pronounced by the Prahova Court, in the sense that it is changed: It obliges the defendant Conpet S.A. to pay the claimant the amount of RON 734,747.04 representing the net value of the dividends and RON 579,015.97, representing the legal interest related to the net value of the dividends for the period 26.10.2007-09.11.2018, and the legal interest related to the net value of the dividends from 09.11.2018 and until the actual payment of the main debit.

By the Decision no. 245/08.12.2022 the Ploiești Court of Appeal admits the exception of the ineligibility of the appeal invoked ex officio. It rejects the appeal as unfounded. Final.

By the Decision no. 109 of 29.03.2023, Ploiești Court of Appeal admits the appeals. It changes the entire sentence. It admits the statute of limitations exception and dismisses the claim as statute of limitations. It rejects the warranty claim. It obliges the claimant to pay the defendant RON 16,943 in legal expenses incurred at the trial in the first instance. It obliges the respondent-claimant to pay the appellant-defendant RON 17,785 in legal expenses in the appeal. Fondul Proprietatea S.A. filed an appeal.

On 14.02.2024 the HCCJ admits in principle the appeal declared by the appellant-claimant FONDUL PROPRIETATEA S.A. against the decision no. 109/29.03.2023, pronounced by the Ploieşti Court of Appeal - Civil Division II. It establishes a term for judging the appeal.

Procedural status of the case: Appeal – procedure of filtering

Deadline: 17.02.2024

6. File no. 4395/270/2020 - Onești Courthouse

Parties: Municipality of Onești - claimant

Local Council of Onești Municipality - claimant

Conpet SA - defendant

Subject matter: 1657

"1. The obligation of the defendant at the conclusion of the agreement for the exercise of the right of legal easement over the lands with an area of 11,474.5 sq. m., crossed and affected by crude oil transport pipelines within the municipality of Onești, equivalent to the payment of an annual rent, during the existence of the pipelines, to the local budget of Onești municipality, determined according to the principle of the least violation of the property right and calculated taking into account the circulation value of the affected real estate, established under the law, at the time of the damage.

2. The obligation of the defendant to pay material damages, representing the equivalent value of the lack of use for the land in the area of 11,474.5 sq. m. crossed and affected by the crude oil pipelines within the municipality of Onești, established according to the Market Study approved by the Decision of the Local Council no. 199 of 29.11.2018, respectively according to the Updated Market Study approved by the Decision of the Local Council no. 122 of 29.06.2020, calculated starting with 2017 and until the date of concluding the agreement for exercising the right of legal easement over these lands, to which are added late fees, interest and late payment penalties in the amount provided by the Fiscal Procedures Code applicable in this period.

3. The obligation of the defendant to pay the legal expenses of the present proceedings."

7. File no. 13053/303/2021 - Bucharest Court

Deadline: 24.09.2024

Parties: Conpet SA - respondent

Dobrogeanu Păun Ioan - appellant

Subject matter: Dobrogeanu Păun Ioan files an enforcement appeal against the foreclosure which is the subject of the enforcement file no. 16/2017 – the Bailiff's Office Răduță Nicoleta respectively the conclusion of 23.06.2021 and 25.06.2021 regarding the establishment of additional expenses, garnishment notice of 25.06.2021, address of seizure from 25.06.2021, garnishment notice of 25.06.2021.

Clarifications: At the deadline of 25.11.2021, the court decided to suspend the trial of the case until the final settlement of the file no. 17433/303/2020. Resolution of file no. 17433/303/2020 was made on 08.11.2022 by the civil decision no. 2688. At the request of CONPET S.A., the case is pending before the Court again.

By Sentence no. 3719/25.05.2023 Bucharest District 6 Courthouse admits in part the exception of the lack of passive procedural capacity of the respondent the Bailiff's Office Răduță Nicoleta, respectively only with regard to the appeal filed against the garnishment notices and to the notification of the garnishment notices. It rejects the rest of the exception of the lack of passive procedural quality invoked by the BAILIFF'S OFFICE RĂDUȚĂ NICOLETA, as unfounded. It admits the request in part. It cancels the decisions establishing the enforcement expenses issued on 23.06.2021 and 25.06.2021 in the enforcement file no. 16/2017 instrumented by the BAILIFF'S OFFICE RĂDUȚĂ NICOLETA. It rejects the appeal filed against the garnishment notices and the notification of the garnishment notices formulated in opposition to the BAILIFF'S OFFICE RĂDUȚĂ NICOLETA, as being brought against a person without capacity to pursue the proceedings. It rejects the rest of the request as unfounded and obliges the appellant to pay the BAILIFF'S OFFICE RĂDUȚĂ NICOLETA of the amount of RON 2,784.60 representing expenses caused by the communication of the foreclosure file. Dobrogeanu Păun Ioan filed an Appeal.

8. File no. 666/317/2022- Târgu Carbunești Courthouse

Deadline: 14.03.2024

Parties: Balțoi Mariana - claimant

Conpet S.A. -defendant

Subject matter: Obliging Conpet to pay the claimant the amount of RON 5,000, established only for the purpose of stamping and which may be increased depending on the conclusions of the expert report, as compensation representing the value of the lack of use related to the land with an area of 268 square meters for the years 2018 -2022 and further until the file is completed, amount that will be updated on the actual payment date.

Clarifications: By the Closing of the hearing on 25.01.2023, the court of first instance admitted in principle the request to summon the National Agency for Mineral Resources (N.A.M.R.) made by the defendant CONPET S.A. It orders the design and citation in question of the National Agency for Mineral Resources (N.A.M.R.) as a guarantor. It rejects in principle the request to call in the guarantee of the Romanian State through the Ministry of Public Finances formulated by the defendant CONPET S.A.. With the right to appeal together with the merits.

9. File no. 5971/2/2022 - Bucharest Court of Appeal

Deadline: 10.03.2024

Parties: OMV Petrom SA-claimant

Subject matter: The court is requested that, through the judgment that will be pronounced, to order:

CONPET - defendant

1. Regarding the Order 229/2021:

1.1. Partial annulment of art. 1 of Order 229/2021 regarding the tariffs established in the Annex 1 and Annex 3 and, accordingly, the Annexes 1 and 3 of Order 229/2021; and by way of consequence

1.2. Obliging NAMR to issue a new order for the approval of transport tariffs through the National System for the transportation of crude oil, gasoline, condensate and ethane for the year 2022, which includes tariffs modified accordingly with regard to tariffs in the COUNTRY (Annex 1) and tariffs in import for refineries in the Ploiești Basin (Annex 3), as a result of the recalculation of the tariffs included in the Order 229/2021 in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the primary and secondary petroleum and competition legislation, as they are exposed by means of this summons;

2. Regarding Order 53/2008, the partial cancellation of art. 3-8 of the Annex to Order no. 53/2008, as well as obliging NAMR to issue a new order to properly complete the Order no. 53/2008, by reference to the following:

2.1. the method of determining in the Methodology the operating cost lacking transparency and clarity, with regard to (i) its component elements, the structure of each of these elements, not specifically provided for, along with (ii) the cost calculation algorithm of operation by referring to these elements and (iii) by taking into account only those elements that constitute, by their nature, operating costs, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.2. the algorithm for determining the modernization quota that does not provide in a specific, clear and transparent manner (i) the effective percentage of the modernization quota, (ii) the basis on which it is applied, (iii) the concrete investments in order to carry out which pay the modernization quota by the beneficiaries of the transport system, (iv) the method of managing the surplus of amounts received as modernization quota and unused until the end of the financial year that were charged for the realization of investments, by taking into account these amounts in the calculation of the modernization quota that the beneficiaries must pay in the following year, by referring to the investments considered within it and such amounts available for investments carried over from previous years, as well as (v) the method of managing the bank interest collected by the holder of the concession agreement as a result of depositing the amounts received as a modernization fee and used by him, in the sense of using interest according to the same destination and taking into account these amounts in the calculation of the modernization quota that the beneficiaries must pay in the following year with this title, so that these secondary normative provisions are aligned with the requirements of art. . 20 of the Petroleum Law;

2.3. the algorithm from which does not result in a specific, clear and transparent manner (i) the method of determining the level of the rate of profit considered to be reasonable or (ii) of a profitability interval whose lower and upper limits should be established on the basis of comparative studies, by referring to the practice in the field of other comparable European transport operators, as well as (iii) specific requirements for transparent justification by CONPET of the studies to substantiate any increases in the profitability rates considered in the establishment of transport tariffs, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.4. the tariff systems that are not currently focused on similar criteria and calculations for the two subsystems they regulate (i.e. the COUNTRY and the IMPORT) that meet the requirements of ensuring equal treatment between the beneficiaries of the public transport service for the two types of subsystems, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.5. the procedural elements to ensure in a clear, transparent and efficient manner the right of CONPET customers to express their point of view regarding the advanced tariff proposals for approval by CONPET, based on specific documentation made available to them respectively to the revision/update requests of the rates sent by CONPET to N.A.M.R. and related documentation, as well as to receive a reasoned response from N.A.M.R. regarding the views expressed if they are not taken into account in full or in part by N.A.M.R., so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law and the transparency requirements applicable to the adoption of normative acts in compliance with the general European and national principle of good administration.

3. Ordering the defendant to pay legal expenses.

After the communication of the summons request, but before the first court term (17.01.2023) OMV PETROM amended the summons request regarding the first petition of the request asking the court to order:

1. Regarding Order no. 229/2021:

Partial annulment of art. 1 of Order 229/2021 regarding the tariffs established in Annex 1 and Annex 3 and, correspondingly, of Annexes 1 and 3 of Order 229/2021 regarding the tariffs for the COUNTRY subsystem and the IMPORT subsystem, within the limit of the amount of the tariffs that will be established as legal as a result of their recalculation in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the primary and secondary petroleum and competition legislation, as they are submitted through this summons.

2.2. The algorithm for determining the modernization quota that does not provide in a specific, clear and transparent manner (i) the effective percentage of the modernization quota, (ii) the basis on which it is applied, (iii) the concrete investments in order to carry out pay the modernization quota by the beneficiaries of the transport system, (iv) the method of managing the surplus of amounts collected as modernization quota and unused until the end of the financial year that were charged for the realization of investments, by taking into account these amounts in the calculation of the modernization quota that the beneficiaries must pay in the following year, by referring to the investments considered within it and such amounts available for investments carried over from previous years, as well as (v) the method of managing the bank interest collected by the holder of the concession agreement as a result of depositing the sums received as a modernization quota and not used by him, in the sense of using the interests according to the same destination and taking into account these sums in the calculation of the modernization quota that the beneficiaries must pay in the following year with this title, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.3. The algorithm does not result in a specific, clear and transparent manner (i) the way to determine the level of the rate of profit considered to be reasonable or (ii) of a profitability interval whose lower and upper limits should be established based on comparative studies, by reference to the practice in the field of other comparable European transport operators, as well as (iii) specific requirements for transparent justification by CONPET of studies to substantiate any increases in profitability rates considered in the establishment of transport tariffs, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.4. Tariff systems that are not currently focused on similar criteria and calculations for the two subsystems they regulate (i.e. the COUNTRY and the IMPORT) that meet the requirements of ensuring equal treatment between the beneficiaries of the public transport service for the two types of subsystems, so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law;

2.5. Procedural elements to ensure in a clear, transparent and efficient manner the right of CONPET customers to express their point of view regarding advanced tariff proposals for approval by CONPET, based on specific documentation made available to them respectively to requests for revision/update of tariffs sent by CONPET to N.A.M.R. and related documentation, as well as to receive a reasoned response from N.A.M.R. regarding the points of view formulated if they are not taken into account in whole or in part by N.A.M.R. so that these secondary normative provisions are aligned with the requirements of art. 20 of the Petroleum Law and the transparency requirements applicable to the adoption of normative acts in compliance with the general European and national principle of good administration.

3. Ordering the defendant to pay legal expenses.

Procedural status of the case: merits

10. File no. 1132/241/2022 – Horezu Courthouse

Parties: Podureanu Iordachi – claimant

Conpet SA - defendant

Subject matter: Podureanu Iordachi filed a summons request requesting the court that, through the judgment it will pronounce, order the increase of the periodic benefit to which Conpet SA was obliged by the civil sentence no. 337/14.03.2019, in the file no. 2646/241/2017 the decision remained final through manipulation, so that Conpet SA is obliged to pay the amount of RON 2200 as periodic compensation.

Clarifications: By the Sentence no. 20/11.01.2024 the Horezu Courthouse admits the summons request filed by the claimant PODUREANU IORDACHI. It orders the increase of the periodic benefit established in favor of the claimant by the Civil Sentence no. 337/14.03.2019 pronounced by the Horezu Courthouse, which remained final through non-appeal, from the amount of RON 600 per month to the amount of RON 2200 per month, starting from the date of the introduction of the action, namely 27.04.2022, until the end of the state of need. It obliges the defendant company to pay the amount of RON 2,200 /month in favor of the claimant starting from the date of the filing of the action, i.e. 27.04.2022, until the end of the state of need. It obliges the defendant company to pay the claimant legal expenses in the amount of RON 1,000, representing the attorney's fee. With appeal within 30 days of communication.

11. File no. 727/42/2022 – Ploiesti Court of Appeal

Parties: Gruia Gheorghe, Vasile Valentin, Dudaș Pavel, Tudorache Marius, Pârvu Valentin, Georgescu Anda, Manda Marin, OMV Petrom SA, SC Conpet SA, Transgaz SA National Gas Transport Company, Amuza Daniel – respondents

Ciobanu Viorel – convicted appellant

Subject matter: Appeal in annulment

Clarifications: By the Conclusion of 06.10.2022, the Ploiești Court of Appeal orders the reunification of the case that forms the subject of the file no. 727/42/2022, to the file no. 2339/120/2022.

Procedural status of the case: Appeal in annulment - Appeal

Deadline: 03.06.2024

12. File no. 2276/110/2020 – Bacău Court

Parties: Radu Marian – claimant

Radu Elena - claimant

SC E ON Romania S.A., Delgaz Grid S.A., SC Trans gas S.A. Mediaș, SC Bacău Regional Water Company S.A., SC Conpet S.A., The General Secretariat of the Government of Romania - Victoria Palace, The Romanian State - Through the Minister of Public Finance - defendants

Subject matter: action in tort liability

Clarifications: By the Conclusion of 13.07.2022, the Bacău Court ordered the splitting of the request with the subject matter of obliging the defendants to jointly pay a monthly royalty of 5000 euros and the related tax and orders the creation of a separate file in which the claimants will be considered to prove the joint payment of a judicial stamp duty in the amount of RON 6,527.3, established according to the art. 31 paragraph (4) of GEO no. 80/2013, under the penalty of canceling the request as unstamped and pursuant to the art. 200. para. (3) of the Code of Civil Procedure, canceled the action for the remaining claims. With the right of re-examination within 15 days of communication for the cancellation solution.

13. File no. 2072/110/2022 – Bacău Court

Deadline:--

Parties: Radu Marian – claimant

Radu Elena - claimant

Subject matter: Claims. Disjointed file from the file no. 2276/110/2020

14. File no. 11934/212/2022 – Constanța Courthouse

Deadline: 24.04.2024

Parties: Conpet SA – defendant

Top Vision SRL – claimant

Matei Nicolae – claimant

Subject matter: Top Vision SRL and Matei Nicolae request the obligation of Conpet SA in the form of compensation for the amount of 13,000 euros, the equivalent in RON from the date of payment, representing damage caused by their own act, respectively for the act caused by the thing under the defendant's custody, with the obligation the defendant to pay the legal expenses caused by this litigation.

15. File no. 4372/105/2022 – Prahova Court

Deadline: 19.04.2024

Parties: Conpet SA – defendant

Eurosting AAW Industry S.R.L. claimant

Subject matter: Eurosting AAW Industry S.R.L. requests the cancellation of notification no. 14658/29.04.2021 regarding the unilateral termination of the contract for works and design services no. L-CA 252/06.08.2019, the obligation of CONPET to pay Eurosting AAW Industry S.R.L. of the amount of RON 24,395 representing the counter value of the design services related to stage I of the works contract no. L-CA 252 of 06.08.2019. Obliging CONPET to pay legal expenses.

16. File no. 7035/2/2022 - Bucharest Court of Appeal

Deadline: 10.09.2024

Parties: OMV Petrom SA- claimant

Subject matter: The court is requested that, through the decision that will be pronounced, to order:

CONPET - defendant

1. Partial annulment of the art. 3 of Additional Act no. 2 regarding the tariffs on the COUNTRY subsystem and the IMPORT subsystem charged for the transport services provided by Conpet and established by the Order no. 229/2021, within the limit of the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R.; 2. Partial annulment of the art. 1 and 4 of Additional Act no. 2, 6 and 9, respectively of art. 1 and 3 of Additional Acts 3, 4, 5, 7 and 8 by which the duration of the Transport Contract was extended for the period 01.01.2022 - 31.08.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R. and, as a consequence, 3. The obligation of CONPET to pay to the Company, as compensation as a result of the partial cancellation of the Additional Acts, but also its illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing: (i) the difference between the amount of the tariffs provided for in the Additional Act no. 2 to the transport contract, concluded as a result of the new tariffs adopted by the Order 229/2021, paid by the Company in the period 01.01.2022 – 31.08.2022 as a result of the extension of the contractual period through the Additional Acts and the amount of the tariffs that will be established as legal in the result of the administrative litigation proceedings carried out by the Company regarding them with N.A.M.R., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference; (ii) the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the COUNTRY and IMPORT tariffs depending on the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid: -13,905 tons from the art. 2 letter a) from Additional Act no. 4 for March 2022; -13,171 tons from the art. 2 letter a) from Additional Act no. 5 for April 2022; 13,307 tons from the art. 2 letter a) from Additional Act no. 6 for May 2022; 12,633 tons from the art. 2 letter a) from Additional Act no. 7 for June 2022; -12,072 tons from the art. 2 letter a) from Additional Act no. 8 for July 2022; -12,900 tons from the art. 2 letter a) from Additional Act no. 9 for August 2022; (iii) any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs; 4. Obligation to pay legal expenses.

The claimant OMV PETROM filed a request to change the heads of request no. 2 and 3 of the petition of the introductory action in the sense that, in addition to Additional Acts no. 2 – 9, the Company understands to challenge through this action the last 4 additional documents on the basis of which transport services were provided by Conpet between September and December 2022 for the benefit of the company, as follows:

-Additional act no. 10/23/08/2022

-Additional act no. 11/22/09/2022

- Additional act no. 12/31.10.2022

- Additional act no. 13/22.11.2022

Therefore, considering the request to modify the preliminary action, the claimant OMV PETROM requests the court to order, through the judgment that will be ruled:

1. Partial annulment of art. 3 of Additional Act no. 2 regarding the tariffs on the COUNTRY subsystem and the IMPORT subsystem charged for the transport services provided by Conpet and established by Order no. 229/2021, within the limit of the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R.;

2. Partial annulment of art. 1 and 4 of Additional Act no. 2, 6, 9 and 12 respectively of art. 1 and 3 of Additional Acts 3, 4, 5, 7, 8, 10, 11 and 13 by which the duration of the Transport Contract was extended for the period 01.01.2022 - 31.12.2022 with the application of the new tariffs approved by Order no. 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding the tariffs with N.A.M.R. and consequently,

3. Obliging CONPET to pay the Company, in the form of compensation as a result of the partial cancellation of Additional Acts no. 2 -13, but also of her illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:

(i) the difference between the amount of the tariffs provided for in Additional Act no. 2 to the transport contract, concluded as a result of the new tariffs adopted by Order no. 229/2021, paid by the Company in the period 01.01.2022 - 31.12.2022 as a result of the extension of the contractual period through the Additional Acts and the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with the N.A.M.R.., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;

(ii) the difference between the amount of the tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs established proportionally, by reference to the tariffs of COUNTRY and IMPORT according to the subsystem actually used for the transport of marine crude oil, updated in depending on the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid:

-13,905 tons from art. 2 letter a) from Additional Act no. 4 for March 2022;

-13,171 tons from art. 2 letter a) from Additional Act no. 5 for April 2022;

13,307 tons from art. 2 letter a) from Additional Act no. 6 for May 2022;

-12,633 tons from art. 2 letter a) from Additional Act no. 7 for June 2022;

-12,072 tons from art. 2 letter a) from Additional Act no. 8 for July 2022;

-12,900 tons from art. 2 letter a) from Additional Act no. 9 for August 2022;

-12,213 tons from art. 2 letter a) from Additional Act no. 10 for September 2022;

- 12,411 tons from art. 2 letter a) from Additional Act no. 11 for October 2022;

- 11,836 tons from art. 2 letter a) from Additional Act no. 12 for November 2022;

- 12,048 tons from art. 2 letter a) from Additional Act no. 13 for December 2022.

(iii) any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

4. Obligation to pay legal expenses.

Clarifications: By the Decision dated 24.05.2023, the Bucharest Court of Appeal rejects the claimant's request for forfeiture to submit the request to amend claims 2 and 3 of the summons as unfounded. Based on art. 413 paragraph 1 point 1 of the Code of Civil Procedure, it orders the suspension of the trial of the case until the final resolution of the case that is the subject of file no. 5971/2/2022 of the Bucharest Court of Appeal, Section IX of Administrative and Fiscal Litigation. With the right of appeal for the duration of the suspension.

17. File no. 5262/105/2022 - Ploiești Court of Appeal

Parties: CONPET SA – defendant

SC Petrotel Lukoil SA - defendant

Bulgarian Marius Viorel – claimant

Subject matter: Declaratory action. Bulgaru Marius Viorel requests that the court finds that during the period of work at Conpet, the activity carried out by the claimant falls under the 1st work group.

Clarifications: By the Sentence no. 1249/14.11.2023 The Prahova Court rejects the action as unfounded. Bulgarian Marius Viorel filed an Appeal.

Clarifications:

18. File no. 5074/105/2022 - Prahova Court

Parties: CONPET SA - defendant

Ionescu Aurel - claimant

Subject matter: Declaratory action. Ionescu Aurel filed a summons request in which he requested the following from the court:

- To state that in the period 01.04.1992 - 01.04.2001 the claimant was employed and that he actually worked 100% of the work schedule within the sections included in the I work group, IN ACCORDANCE with the Order 50/1990, the Order 100/1990 and of the Order 125/1990;

- Subsidiarily, in the situation where the first head of the claim will be accepted, he requested the court to establish the placement in the I work group and in the period 01.04.2001 - 15.06.2021, the claimant remaining in the same position and under the same working conditions;

- Obliging CONPET to draw up and issue a certificate attesting that the activity provided by the claimant falls under the I work group and the percentage in which he carried out his activity.

- Obliging CONPET to pay the legal expenses caused by this claim.

19. File no. 3845/204/2023 – Câmpina Courthouse

Deadline: 11.06.2024

Parties: CONPET S.A. - respondent

Dobrogeanu Dumitru - appellant

Subject matter: Appeal against enforcement. Dobrogeanu Dumitru filed a foreclosure appeal against the foreclosure started at the request of the creditor CONPET S.A. and the Petcu Alexandru Bailiff's Office based on the Conclusion no. 509/2022 issued today on 19.04.2023, given without citing the parties and requests:

- Cancellation of the Conclusion no. 509/2022 issued today 19.04.2023 by the Petcu Alexandru Bailiff's Office for payment of a debit in the amount of RON 1,022.70, representing the calculation of the related inflation rate for the period 19.01.2022 - 09.12.2022 for the main debit of RON 6,966.65.

- The cancellation of all expenses that the bailiff established.

- The cancellation of the garnishment notice issued on 19.04.2023 and received at my residence in Băicoi on 24.04.2023.

- Return of enforcement for the amount of RON 576.

- Legal expenses.

20. File no. 590/42/2022 – Ploiesti Court of Appeal

Deadline: 10.04.2023

Parties: CONPET S.A. - respondent

Vasile Valentin – convicted appellant

Gruia Gheorghe, Ciobanu Viorel, Dudaș Pavel, Tudorache Marius, Pârvu Valentin, Georgescu Anda, Manda Marin, OMV Petrom S.A., Amuza Daniel, National Gas Transport Society Transgaz S.A. - respondent

Subject matter: Formation of an organized criminal group (art. 367 NCP)

Clarifications: By the Conclusion of 04.05.2023, the Ploiești Court of Appeal puts the file back on pending for the Romanian Constitutional Court to rule on the constitutional challenge of the provisions of art. 426 letter b) of the Code of Civil Procedure, in the interpretation given by the High Court of Cassation and Justice-Complete for resolving some legal issues, by the Decision no. 67/25.10.2022, in the sense that "the court that resolves the annulment appeal, based on the effects of the decisions of the Constitutional Court no. 297 of April 26, 2018 and no. 358 of May 26, 2022, cannot reanalyze the prescription of criminal liability, if the appeals court debated and analyzed the incidence of this cause of termination of the criminal process during the process prior to this last decision".

Deadline: 29.04.2024

21. File no. 4829/121/2022 – Galati Court

Parties: CONPET S.A. - respondent

Diaconu Sorin Daniel – appellant

Subject matter: Appeal against the Sanctioning Decision no. 785/06.12.2022 – disciplinary termination of the individual employment contract no. 74/24.05.1993

22. File no. 4988/2/2023 - Bucharest Court of Appeal

Deadline: 03.04.2024

Parties: CONPET – defendant

Subject matter: The court is requested that, through the decision that will be pronounced, it orders:

OMV Petrom SA- claimant

1. The partial annulment of art. 1 and art. 3 of the Additional Acts no. 10, no. 11 and no. 13, respectively of art. 1 and 4 of the Additional Act no. 12, by which the duration of the transport contract was extended for the period 01.09.2022 - 31.12.2022 with the application of the new tariffs approved by the Order 229/2021, within the limit of the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding tariffs with N.A.M.R. M and, as a consequence,

2. Obliging CONPET to pay the Company, by way of compensation as a result of the partial cancellation of the Additional Acts no. 10-13, but also of its illegal act of providing erroneous data that formed the basis of the tariff development process by N.A.M.R. based on the Order no. 229/2021 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:

i. the difference between the amount of the tariffs provided for in the Additional Act no. 2 to the transport contract, concluded as a result of the new tariffs adopted by the Order 229/2021, paid by the Company in the period 01.09.2022 - 31.12.2022, as a result of the extension of the contractual period by the Additional Acts no. 10-13 and the amount of the tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with N.A.M.R., updated according to the inflation index, as well as the related legal interest calculated from the date of payment of the tariff difference;

ii. the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs established proportionally, by reference to the COUNTRY and IMPORT tariffs according to the subsystem actually used for the transport of marine crude oil, updated according to the index of inflation, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid;

-12,213 tons from art. 2 letter a) from the Additional Act no. 10 for September 2022;

-12,411 tons from art. 2 letter a) from the Additional Act no. 11 for October 2022;

-11,836 tons from art. 2 letter a) from the Additional Act no. 12 for November 2022;

-12,048 tons from art. 2 letter a) from the Additional Act no. 13 for December 2022.

iii. any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

3. Ordering the defendants to pay legal expenses.

Clarifications: By the Conclusion of 15.11.2023, the Bucharest Court of Appeal ordered the suspension of the trial of this case until the final resolution of the case which is the subject matter of the file no. 7035/2/2022 of the Bucharest Court of Appeal. With the right of appeal for the entire duration of the suspension, which is submitted to the Bucharest Court of Appeal.

23. File no. 5559/2/2023 - Bucharest Court of Appeal

Parties: CONPET - defendant

Subject matter: The court is requested that, by the judgment that will be pronounced, it orders:

OMV Petrom SA-claimant

1. The partial annulment of art. 1 of the Order no. 364/2022 regarding the tariffs established in Annex 1 and Annex 3 and, accordingly, Annexes 1 and 3 of the Order no. 364/2022, regarding the tariffs for the COUNTRY subsystem and the IMPORT subsystem, within the limit of the amount of tariffs that will be established as legal as a result of their recalculation in a transparent and non-discriminatory manner, in accordance with the constitutional provisions and those of the legislation primary and secondary oil and competition, as they are exposed through the present summons;

2. Ordering the defendants to pay legal expenses.

24. File no. 7685/315/2023 – Târgoviște Courthouse

Deadline: 18.04.2024

Parties: Conpet SA – respondent

Georgescu Anda - appellant

Subject matter: Appeal against enforcement. Georgescu Anda filed an appeal against the foreclosure against the Summons dated July 19, 2023 issued in the execution file no. 65/2022 of the Bailiff's Office Petrov Sergiu Alexandru and requests:

- Cancellation of the Summons dated July 19, 2023 and the bailiff's fee in the amount of RON 2,590, issued in the execution file no. 65/2022

- Legal expenses.

25. File no. 19571/233/2023 – Galati Courthouse

Deadline: 02.04.2024

Parties: Conpet SA – respondent

Drăgan Gheorghe – appellant

Subject matter: Appeal against enforcement. Drăgan Gheorghe filed an appeal requesting the court:

1. To find that the right to request foreclosure based on the enforceable title has been prescribed – the Criminal sentence no. 212/29.11.2013 pronounced in the file no. 2037/116/2013 of the Calarasi Court approved by the Decision no. 480/1/03.12.2015, based on art. 706 of 1 of the Code of Civil Procedure and by way of consequence, to order the cancellation of the foreclosure and of all the execution acts carried out in the execution file no. 480/VVI/2015 registered on behalf of BEJA Tudorie Stefan&Vicentiu Vasiliu, pursuant to art. 703 of the Code of Civil Procedure.

2. To find that the foreclosure started in the execution file no. 480/VVI/2015 registered on behalf of BEJA Tudorie Stefan&Vicentiu Vasiliu is obsolete.

3. Obligation of the creditor CONPET S.A. to the payment of the legal expenses caused by this litigation

26. File no. 22795/281/2023 – Ploiesti Courthouse

Deadline: 14.05.2024

Parties: Conpet SA – defendant

Andex Import Export – claimant

Subject matter: The claimant Andex Import Export SRL filed an application for damages with the defendant CONPET SA, requesting the court that, by the judgment it will pronounce, order the defendant to pay the claimant the amount of RON 22,704.89 with legal expenses occured in this file.

Clarifications: By the Conclusion of 27.11.2023, the Ploiesti Courthouse cancels the summons request. Andex Import Export filed a request for re-examination, which was the subject matter of the file no. 22795/281/2023/a1 pending before the Ploiești Courthouse.

By the Conclusion no. 118/18.01.2024 pronounced in the file no. 22795/281/2023/a1 the Ploiești Courthouse admits the request made by the claimant Andex Import Export S.R.L.. It rectifies the decision of cancellation of the request ordered by the Conclusion of 27.11.2023, pronounced in the file no. 22795/281/2023 and orders the submission of the file to the initially invested panel with the resolution of the application. Final.

27. File no. 8213/2/2023 - Bucharest Court of Appeal

Parties: CONPET - defendant

Subject matter: The court is requested that, by the judgment that will be pronounced, it orders:

OMV Petrom SA-claimant

1. The partial annulment of art. 1 and art. 3 of the Additional Act no. 14, of art. 1 and 4 of the Additional Acts no. 15, no. 16, no. 17, respectively of art. 1 and 5 of the Additional Act no. 18 by which the duration of the Transport Contract was successively extended for the period 01.01.2023 - 31.12.2023, with the application of the new tariffs mentioned in the Notification no. 811/06, 01.2023 sent by Conpet regarding the change in transport tariffs through the National System for the Transport of Crude Oil, Gasoline, Condensate and Ethane ("SNT") starting from January 1, 2023, based on the Order 364/2022 (Annex 4), within the limit of the amount of the tariffs that will be established as legal as a result of the administration of evidence from this case;

2. The partial annulment of art. 2 of the Additional Acts no. 14-18 in the sense of:

i. the elimination of the quantities of 5-417 tons mentioned in the content of art. 2 letter a) from the Additional Act no. 14 for the period January 1-15, 2023 that were transported from the Midia Terminal from the quantities transported through the COUNTRY subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the IMPORT subsystem;

ii. the elimination of the quantities of 15,061 tons from art. 2 letter a) from the Additional Act no. 15 for the period January 16 - February 28, 2023 transported from the Midia Terminal from the quantities transported through the COUNTRY subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the IMPORT subsystem;

iii. the elimination of the quantities of 40,859 tons from art. 2 letter a) from the Additional Act no. 16 for the period March 1 - June 30, 2023 transported from the Midia Terminal from the quantities transported through the COUNTRY subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the IMPORT subsystem;

iv. the elimination of the quantities of 28,811 tons mentioned in the content of art. 2 letter a) from the Additional Act no. 17 for the period July 1 - September 30, 2023 transported from the Midia Terminal from the quantities transported through the COUNTRY subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the IMPORT subsystem;

v. the elimination of the quantities of 28,898 tons mentioned in the content of art. 2 letter a) from the Additional Act no. 18 for the period October 1 - December 31, 2023 transported from the Midia Terminal from the quantities transported through the COUNTRY subsystem and the inclusion of the first quantities in those in point b) of the same article regarding the quantities transported through the IMPORT subsystem;

3. Obliging Conpet to pay the Company, in the form of compensation - as a result of the partial cancellation of the Additional Acts, but also of its illegal act of providing erroneous data that was the basis of the tariff development process by N.A.M.R. based on the Order no. 364/2022 and then upon their payment by the Company based on the Additional Acts, of the amounts representing:

i. the difference between the amount of the tariffs provided for in the Additional Acts no. 14 -18 to the Transport Contract concluded as a result of the new tariffs adopted by the Order no. 364/2022, paid by the Company in the period 01.01.2023 - 31.12.2023 and the amount of tariffs that will be established as legal following the administrative litigation proceedings carried out by the Company regarding them with N.A.M.R., updated according to the inflation index, as and the related legal interest calculated from the date of payment of the tariff difference;

ii. the difference between the amount of tariffs paid by the Company for the transport of crude oil, through the COUNTRY subsystem, from the Midia Terminal, and the amount of the tariffs set proportionally, by reference to the COUNTRY and IMPORT tariffs according to the subsystem actually used for the transport of marine crude oil, updated according to the index of inflation, as well as the related legal interest calculated from the date of payment of the tariff difference, for the following quantities transported from the Midia Terminal and for which the tariff for the COUNTRY subsystem was illegally calculated and paid:

- 5417 tons from art. 2 letter a) from the Additional Act no. 14 for the period January 1 - 15, 2023;

- 15,061 tons from art. 2 letter a) from the Additional Act no. 15 for the period January 16- February 28, 2023;

- 40,859 tons from art. 2 letter a) from the Additional Act no. 16 for the period March 1 - June 30, 2023;

- 28,811 tons from art. 2 letter a) from the Additional Act no. 17 for the period July 1 - September 30, 2023;

- 28,898 tons from art. 2 letter a) from the Additional Act no. 18 for the period October 1-December 31, 2023;

iii. any other amounts representing natural fruits that Conpet acquired or could have acquired in connection with the amounts illegally charged from the Company based on the tariffs;

4. Ordering the defendants to pay legal expenses.

c) The list of files pending before Courts on 13.03.2024 in which the company CONPET S.A. has double status

1. File no. 378/105/2007 - Prahova Court

Parties: Conpet S.A. - claimant-defendant

Petroconduct S.A. – defendant - counterclaimant

Subject matter: Conpet S.A. requests the obligation of the defendant Petroconduct S.A. Ploiesti at:

- payment of the amount of RON 80,548.49 representing penalties for non-execution on time of the obligations assumed by the contract no. L 45/18.03.2004 and the contract no. M 59/9.06.2004

- delivery of the tubular material composed of China steel pipe in the quantity of 504 in the amount of EUR 21,344.4 and China steel pipe in the quantity of 96 m in the amount of EUR 4,366.08 or upon payment to our company of its equivalent value, i.e. the amount of RON 89,291.50.

- payment of the amount of RON 20,626 representing transport, loading, unloading expenses for the tubular material

- payment of the legal expenses in the amount of RON 5,062.24, of which RON 5,057.24 judicial stamp duty and RON 5.00 judicial stamp as well as other legal expenses that we will incur in this proceedings.

Petroconduct S.A. filed a counterclaim requesting the obligation of Conpet SA to pay the amount of RON 46,214.01, representing the equivalent value of the works executed by it based on the works execution contracts no. L 45/18.03.2004 and no. MST 09/09.06.2004, in favor of the beneficiary Conpet SA.

Clarifications: On 22.02.2010, based on the art. 36 of Law no. 85/2006, the court ordered the suspension of the case.

By the Decision no. 111/09.05.2023 The Prahova Court admits the exception to the obsolescence of the request, invoked ex officio. The claim is found to be obsolete.

Conpet S.A. filed an appeal.

By the Decision no. 114/14.09.2023 The Ploiesti Court of Appeal admits the appeal. It quashes the sentence and sends the case to continue the trial at the substantive court. Irrevocable.

By the Decision no. 74/07.02.2024 The Prahova Court admits the exception of the defendant-claimant's lack of procedural capacity, invoked by the claimant-defendant. It cancels the summons request for the lack of procedural capacity of the defendant-claimant. It accepts the exception of the defendant-claimant's lack of procedural capacity in formulating the counterclaim, invoked ex officio. It cancels the counterclaim for the lack of procedural capacity of the defendant-claiamant. It rejects the impleader as having become devoid of purpose. With appeal after communication.

Procedural status of the case: Appeal – retrial - obsolescence

2. File no. 1372/212/2017* - Constanța Court of Appeal

Parties: Conpet SA – defendant - counterclaimant

Cruceanu Alin Florinel - claimant-defendant

Subject matter: Cruceanu Alin Florinel filed a request for a summons requesting the court to order:

- the obligation of Conpet SA to pay compensations equal to the market value of the land building with an area of 460 sq. m. located in Lazu commune, Luceafărului street no. 29, Constanța county and of the land building with an area of 460 sq. m. located in Lazu commune, Luceafărului street no. 31, Constanța county, the equivalent value estimated at EUR 30,000, the equivalent in RON 134,700;

- the obligation of Conpet SA to pay the equivalent value of the lack of land use in the form of an annual rent for the last three years;

- the obligation of Conpet SA to pay the legal expenses of settling the present request.

The claimant subsequently set out his action on the second head of claim, claiming that the court should:

- order Conpet SA to pay the amount representing the non-use of the two land buildings for the period between 10.12.2015 and the date of finality of the decision by which the first head of the claim was admitted.

The lack of use was provisionally assessed for stamping in the amount of RON 5,000.

Conpet filed a counterclaim requesting:

- The obligation on the claimant to allow Conpet S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the two lands owned by the claimant Cruceanu Alin Florinel, located in Agigea commune, Lazu village, Luceafărului street no. 29 and 31, respectively, Constanța County. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline Ø 20 ˝ Constanța-Bărăganu for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and execution of any repair works.

- Establishing the amount of the annual rent provided by law owed by us to the claimant in exchange for exercising the right of legal easement.

Clarifications: By the Civil Sentence no. 8561 / 14.07.2021 the Constanța Courthouse rejects, as unfounded, the pleas of the lack of passive procedural quality regarding the defendants CONPET SA, the ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES AND THE MINISTRY OF ENERGY. It rejects as unfounded the pleas of the lack of passive procedural quality regarding the impleaders the MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES. It admits the request formulated by the claimant CRUCEANU ALIN FLORINEL, against the defendants CONPET SA, THE ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES AND THE MINISTRY OF ENERGY. It obliges the defendants, jointly and severally, to pay to the claimant the amount of RON 184,700 representing the market value of the land building with an area of 460 sq m located in Lazu Commune, 29 Luceafărul Street, Constanța County and the market value of the land building with an area of 460 sq m located in Lazu Commune, 31 Luceafărul Street, Constanța county. It obliges the defendants, jointly and severally, to pay to the claimant the amount of RON 22,164 representing the equivalent value of the lack of land use between 10.12.2015 -10.12.2018. It rejects, as unfounded, the request for impleader formulated by CONPET SA against THE MINISTRY OF PUBLIC FINANCE. It rejects, as unfounded, the request for impleader made by CONPET SA against the NATIONAL AGENCY FOR MINERAL RESOURCES. It rejects, as unfounded, the counterclaim formulated by CONPET SA against CRUCEANU ALIN FLORINEL. It obliges the defendants jointly and severally to pay to the claimant the legal expenses in the amount of RON 8414.28 represented by the stamp duty and the expert's fee.

Conpet, N.A.M.R.., the Romanian State through the Ministry of Public Finance and Cruceanu Alin filed an appeal.

By the Conclusion no. 1548 / 07.10.2021, the Constanta Court admits the motion to dismiss for lack of jurisdiction of the Civil Section I of the Constanta Court. It declines the jurisdiction to settle the appeal in favor of the Second Civil Section of the Constanţa Court. No appeal.

By the Decision no. 1003 of 08.07.2022, the Court rejects, as unfounded, the appeal filed by the appellant CRUCEANU ALIN-FLORINEL in opposition to the defendants CONPET S.A., the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE, THE NATIONAL AGENCY FOR MINERAL RESOURCES and the MINISTRY OF ENERGY, against the Civil Sentence no. 8561/14.07.2021, pronounced by the Constanţa Court in the File no. 1372/212/2017. It admits the appeal filed by the appellants: the NATIONAL AGENCY FOR MINERAL RESOURCES, the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCES through the REGIONAL DIRECTORATE OF PUBLIC FINANCES GALAȚI – the COUNTY ADMINISTRATION OF PUBLIC FINANCES CONSTANȚA and CONPET S.A. It changes in part the Civil Sentence 8561/14.07.2021, pronounced by the Constanţa Courthouse in the File no. 1372/212/2017, as follows: It admits the exception of the lack of passive procedural capacity of the defendants, the NATIONAL AGENCY FOR MINERAL RESOURCES and the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE - regarding the summons request. It rejects the summons request filed by the claimant CRUCEANU ALIN-FLORINEL in contradiction with the defendants THE ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCES and the NATIONAL AGENCY FOR MINERAL RESOURCES, as being filed against persons without passive procedural status. It rejects, as unfounded, the summons request filed by the claimant CRUCEANU ALIN-FLORINEL in opposition to CONPET S.A. It rejects, as having become devoid of purpose, the impleader formulated by the defendant CONPET S.A. in contradiction with the NATIONAL AGENCY FOR MINERAL RESOURCES and the ROMANIAN STATE through the MINISTRY OF PUBLIC FINANCE. It admits the counterclaim filed by the defendant CONPET S.A. contrary to the claimant CRUCEANU ALIN-FLORINEL. It establishes in favor of CONPET S.A. an easement right in a total area of 81 square meters on the claimant's lands located in Lazu Commune, Luceafărului street no. 29 and in Lazu Commune, Luceafărului street no. 31, consisting of the right of use over an area of 2.4 meters wide placed along the crude oil pipeline that undercuts the claimant's land, as identified by the expert Datcu Dumitru through the Annex to the Response to objections (f.229 vol. 2 from the file of the Constanța Courthouse) - blue hatch. It establishes the annual rent owed by the defendant to the claimant in the amount of RON 693. It forces the claimant Cruceanu Alin Florinel to pay the defendant CONPET S.A. the amount of RON 3853.75 as legal expenses, representing: RON 1704 judicial stamp duty paid to the merits, RON 649.75 judicial fee for the appeal, RON 500 topographic expert's fee and RON 1000 lei agricultural expert's fee.

The claimant Cruceanu Alin Florinel filed an appeal.

By the Conclusion no. 23/22.03.2023 The Constanța Court of Appeal admits the exception of material procedural (functional) incompetence of the II civil division for insolvency and litigation with professionals and companies of the Constanța Court of Appeal. It declines the jurisdiction to resolve the case in favor of the civil division I of the Constanța Court of Appeal.

By the Conclusion no. 86/10.05.2023 the Constanța Court of Appeal admits the motion to dismiss for lack of jurisdiction of the Civil Division I of the Constanța Court of Appeal in resolving the appeal. It declines the jurisdiction to resolve the appeal in favor of the Civil Division II of the Constanța Court of Appeal. It finds that there is a negative conflict of jurisdiction.

It suspends the judgment of the case ex officio and orders the submission of the file to the High Court of Cassation and Justice in order to resolve the negative conflict of jurisdiction.

By the Decision no. 1833 of 26.10.2023, the HCCJ establishes the competence to settle the case in favor of the Constanța Court of Appeal, Civil Division II, for insolvency and litigation with professionals and companies. Final.

3. File no. 18344/212/2017 - Constanța Court

Parties: Conpet SA – defendant - counterclaimant

Mitu Dumitru – claimant - defendant

Mitu Rodica – claimant - defendant

Subject matter: Obligation to do. Mitu Dumitru and Mitu Rodica file a summons requesting Conpet's obligation to pay compensations for the two plots of land with an area of 4,972 sq. m. and 4,977 sq. m. respectively located in Lazu village, Agigea commune, Constanța county affected by the route of some pipelines transporting petroleum products, as well as obliging the defendant to pay an annual rent for the lack of use on the land affected by the exercise of the right of legal easement , starting with 20.06.2014 and compensations in the form of an annual payment for affecting the use of part of the land on which the pipeline is not located, with the obligation to pay the legal expenses.

The claimants assessed the claims brought before the court in the amount of RON 10,000 in order to stamp the request, showing that after establishing the values by the expertise that they will administer in the case, to pay the difference of judicial fee.

Conpet filed a counterclaim requesting the court:

1. To order the claimants to allow Conpet S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the two plots of land owned by the claimants. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline F2 Ø 20 ˝ Constanța-Bărăganu for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and execution of possible repair works.

2. To establish the amount of the annual rent provided by law due by Conpet to the claimants in exchange for exercising the right of legal easement.

Clarifications: By the Civil Sentence no. 3555/11.04.2023, the Constanța Courthouse rejects as unfounded the exception of the lack of passive procedural capacity of the defendant CONPET S.A. invoked by response. It rejects as unfounded the exception of the lack of passive procedural capacity of the impleader THE ROMANIAN STATE THROUGH THE MINISTRY OF PUBLIC FINANCES THROUGH THE GALATI REGIONAL DIRECTORATE OF PUBLIC FINANCES - CONSTANŢA COUNTY ADMINISTRATION OF PUBLIC FINANCES, invoked by the response submitted to the impleader. It rejects as unfounded the exception of the defendant's lack of passive procedural capacity, THE NATIONAL AGENCY FOR MINERAL RESOURCES. It rejects as unfounded the exception of the lack of passive procedural capacity of the defendant MINISTRY OF ENERGY, invoked in the response. It rejects the summons request as unfounded. It rejects the impleader as having become devoid of purpose. It admits the counterclaim filed by the counterclaim defendant CONPET S.A. It compels the claimants Mitu Dumitru and Mitu Rodica to allow the company CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. from Law no. 238/2004 on the two plots of land owned by the claimants MITU DUMITRU and MITU RODICA, located in the village of Lazu, Agigea commune, Constanţa County - plot A504/6/42 from the soil and plot A504/6/43. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main crude oil transport pipeline F2 0 20 " Constanţa-Bărăganu for the purpose of permanent access to the pipeline in order to check the condition of the pipeline daily and the execution of any repair works. It establishes the amount of the annual rent owed to the claimants in exchange for the exercise of the right of legal easement in the amount of RON 81, which will be updated annually with the inflation rate. It obliges the claimants to pay to the counter-defendant CONPET S.A. the sum of RON 3,350, with title of legal expenses.

Mitu Cosmin, Mitu Ionuț and Mitu Rodica filed an appeal.

By the Decision no. 284/11.03.2024 The Constanța Court rejects the appeal as unfounded. With the right of appeal after communication.

4. File no. 2323/120/2018 – High Court of Cassation and Justice

Parties: Conpet SA - defendant - counterclaimant

Buzatu Florin - claimant - defendant

Subject matter: Buzatu Florin files a request for a summons requesting the court:

1. To oblige the defendant Conpet SA to pay the claimant the amount of EUR 150,000, payable at the NBR exchange rate on the day of payment (amount to be revalued on completion of the real estate assessment expertise report to be carried out in the probation case, to be resized and specified the value of the claims, corroborated with the appropriate adjustment of stamp duties), representing fair and equitable compensation for the damage suffered by restricting the possibility of exercising its property right over the land area of 5980 sq. m. located in the built-up area of Slobozia Moară locality, Dâmbovița county, with cadastral number 70618, registered in the land book 70618 / ATU Slobozia Moară Dâmbovița county, on which are the underground gas pipelines and above-ground devices owned by the defendant, a land which cannot be used for building;

2. To oblige the defendant Conpet SA to pay a monthly indemnity of EUR 1,000 payable at the NBR exchange rate on the day of payment, starting with the date of the sentence, throughout the existence of underground pipelines and above-ground devices, buildings on the land owned by the claimant and to bear all the costs incurred by the claimant for the stages prior to the construction permit;

3. In the alternative, claims that the defendant should erect all the buildings built on the claimant's property, namely the gas pipelines and the above-ground devices, to restore the land to its original condition or to enable the claimant to carry out the obligation to do so, at the defendant's sole expense;

4. To order the defendant Conpet SA to pay the legal expenses incurred in the present legal proceedings.

Conpet filed a counterclaim requesting the obligation of the claimants to allow our company to exercise the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 and the establishment of the amount of the annual rent provided by law due by Conpet to the claimants in exchange for exercising the right of legal easement.

Clarifications: By the Decision 602 / 10.03.2022 the Dâmbovița Court rejects the exception of the lack of passive procedural capacity of the defendant-claimant Conpet S.A. as regards the claims for compensation and indemnity raised by it. It admits the claimant Conpet S.A.'s lack of passive procedural capacity as regards the head of claim concerning the obligation to raise the above-ground pipes and devices and to restore the land to its original condition or to empower the applicant to do so, invoked by it and consequently rejects that head of claim in contradiction with the defendant-claimant Conpet S.A. as being formulated against a person without passive procedural capacity. It admits in part the summons. It admits in part the counterclaim. It obliges the defendant claimant to demolish the construction without authorization (foundation) existing on the land belonging to him, with no. cadastral 70618, registered in the land book no. 70618 of the Slobozia Moară ATU, Dâmbovița county, identified according to the sketch drawn up in the expertise report in the topography specialty dated 04.11.2019 (f. 300 vol. I). It establishes the amount of the annual rent due by the claimant defendant to the defendant claimant for exercising the right of legal easement on the land with an area of 890 sq m related to crude oil pipelines O 143/4 and O 123/4, identified according to the sketch prepared in the expertise report of 02.11.2019 (f. 357 vol. I), at the amount of RON 284.8 and obliges the claimant defendant to pay it to the defendant claimant starting with the date of the finality of the present sentence. It dismisses the remainder of the action and the counterclaim. It rejects the request to show the right holder formulated by the claimant defendant in contradiction with the Romanian State, through the Ministry of Public Finance and the National Agency for Mineral Resources. It orders the refund to the claimant defendant of the stamp duty paid and not owed in the amount of RON 1,143.4. It compensates the expenses up to the amount of RON 1,172.7 and obliges the defendant claimant to pay to the claimant defendant the uncompensated difference of RON 836 legal expenses.

Buzatu Florin filed an appeal.

By the Decision no. 482/09.03.2023 The Ploiesti Court of Appeal rejects the appeal as unfounded.

Buzatu Florin filed an appeal.

Procedural status of the case: Appeal – procedure of filtering

5. File no. 1657/91/2020* - Vrancea Court

Parties: Vasile Maria Ilaria - at S.C.P.A. Buruian, Caracaş and Associates - Claimant

Dragu Georgeta - the S.C.P.A. Buruian, Caracaş and Associates - Claimant

Conpet SA Ploieşti - Defendant

Romanian State - through the Ministry of Public Finance - Defendant

National Agency for Mineral Resources - Defendant

Subject matter: By their summons, the claimants Vasile Maria-Ilaria and Dragu Georgeta requested to the court (we copy the petition for the summons) to:

A. In particular, order the defendant to pay an annual rent of EUR 496.64 for the protection area of the pipeline belonging to the defendant and which crosses the building privately owned by the undersigned, as of the date of registration of this summons;

B. In particular, order the defendant to pay a lump sum of EUR 508,080 in respect of the attribution of the use of the property according to its intended purpose, namely that the undersigned may not build buildings on the privately owned building;

C. In particular, order the defendant to pay legal interest on the annual rent provided for in point A, from the date of registration of the present summons;

D. In particular, order the defendant to pay legal interest for the lump sum compensation provided for in point B, from the date of registration of the present summons;

E. In the alternative, we request you to order the other two defendants to pay the amounts indicated in the preceding paragraphs."

Conpet filed a counterclaim in this case, requesting the court:

1. To order the claimants Vasile Maria - Ilaria, Dragu Georgeta and Dragu Maria to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by them, located in Focșani city, Vrancea County. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the crude oil transport pipeline Ø 20˝ Bărăganu - Borzești / Rafo Onești, for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and the execution of accidental and planned repair works. The exercise of the right of easement is to be carried out throughout the existence of the pipeline located on the claimants' land but not later than the date of termination of the oil concession agreement concluded by us, the undersigned CONPET S.A., with the Romanian State.

2. To establish the amount of the annual rent provided by law due by us, the undersigned CONPET SA, to the claimants Vasile Maria - Ilaria, Dragu Georgeta and Dragu Maria in exchange for exercising the right of legal easement, rent consisting in the equivalent value of the annual land use affected by the exercise of the legal easement.

Clarifications: By the Conclusion no. 71 / 09.03.2021 the competence to settle the case is declined in favor of the Civil Division II of Administrative and Fiscal of the Vrancea Court. No appeal. Thus, the file no. 1657/91/2020* has been created.

6. File no. 220/262/2017 * - Ploiești Court of Appeal

Deadline: 19.03.2024

Subject matter: Chivu Ion filed a request for a summons requesting the court to order:

Chivu Ion - claimant

- obliging Conpet SA to move the oil pipeline that crosses the land owned by him, with an area of 1,753 sq. m. located in the commune of Ocnița T14, P114;

- establishing the access location with the obligation of Conpet SA to pay an afferent annual rent both for the access road and for the pipeline that causes damage to the land;

- compensations for the land affected by the pipeline.

The claimant assessed his claims provisionally at the amount of RON 45,540 / year x 3 years (RON 136,620).

Conpet filed a counterclaim requesting the court to:

- Order the claimant CHIVU ION to completely dismantle the existing construction (concrete foundation) located on the crude oil pipeline Ø 6 5/8 ”Ochiuri - Moreni, which under-crosses the land owned by him, located in Ocnița, T 14, p114, cadastral no. 159 Land book no. 70441 Dâmbovița county. This construction was carried out without authorization, and Ocnița City Hall ordered the works to be stopped.

- To oblige the claimant to allow the company CONPET SA to exercise the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant Chivu Ion located in Ocnița commune, T 14, p114, cadastral no. 159 Land book no. 70441 Dâmbovița county. The exercise of the right of legal easement is to be carried out on a 2.4 meter wide corridor located along the crude oil transport pipeline Ǿ 6 5/8 ”Ochiuri - Moreni that under-crosses the claimant's land, in order to have permanent access to the pipeline in order to daily check the condition of the pipe and perform any repair works.

- To establish the amount of the annual rent provided by law due by us to the claimant in exchange for exercising the right of legal easement, starting with the date of finality of the decision by which the claimant is obliged to allow the company CONPET SA to exercise the right of legal easement.

Conpet filed a request to show the owner of the property right over the transport pipeline that under-crosses the land owned by the claimant Chivu, introducing the Romanian state in question through the Ministry of Finance and N.A.M.R.

Conpet filed a request to increase the amount, requesting the court to oblige the claimants to demolish the constructions (concrete platforms) built in the protection and safety area of the pipeline.

Clarifications: By the sentence no. 1000/05.11.2019 the Moreni Courthouse partially admits the main request. It admits in part the counterclaim. The decision was appealed by Conpet SA and Chivu Ion.

By the Decision no. 223/02.06.2020, the Dâmbovița Court rejects the appeal filed by the Romanian State through the Ministry of Public Finance-General Regional Directorate of Public Finance Ploieşti against the Conclusion of 5.04.2019. It admits the appeals exercised against the civil sentence no. 1000/5.11.2019 pronounced by the Moreni Courthouse in the file no. 1220/262/2017. It annuls the sentence under appeal and remits the case for retrial to the first instance.

By the Decision 694 / 06.10.2022, the Moreni Courthouse:

It rejects, as unfounded, the exception of the lack of passive procedural capacity of the defendant, the claimant, CONPET S.A. as regards the heads of claim for compensation and rent, invoked by it,

It admits the exception of the lack of passive procedural capacity of the defendant claimant CONPET S.A. regarding the claim regarding the diversion of the oil pipeline, and, consequently, rejects this claim contrary to the defendant claimant Conpet S.A. as having been formulated against a person without passive procedural standing,

It rejects as unfounded the exception of the lack of passive procedural capacity formulated by the Romanian State, through the Ministry of Public Finances, through the County Administration of Public Finances Dâmbovița.

It states that by Civil Decision no. 432/30,052018, pronounced by the Dâmbovița Court, the request to show the right holder made by the defendant claimant CONPET S.A. was admitted and in relation to the National Agency for Mineral Resources (with reference to the end of the claim aimed at diverting the pipeline).

It finds that the exception of ineligibility, invoked by the defendant-claimant CONPET S.A. was qualified as substantive defense.

It admits in part the main claim, as stated, formulated by the claimants - the defendants CHIVU ION and CHIVU FLORICA DANIELA in opposition to the defendant - claimant SC CONPET S.A., intervener the Romanian State through the Ministry of Public Finances - Ploiești Regional General Directorate of Public Finances, and main intervener the NATIONAL AGENCY FOR MINERAL RESOURCES (N.A.M.R.).

It admits in part the counterclaim, formulated by the defendant-claimant CONPET.

It obliges the claimants, the defendants, to dismantle the construction without authorization-basement existing on the land belonging to them, located on the crude oil transport pipeline 6 5/8" Ochiuri Moreni, which undercuts the land located in Ocnița, T 14, P 1 14, cadastral no. 159 Land registry no. 70441, Dâmbovița county, identified according to the sketch drawn up in the expert report in the topography specialty dated 19 January 2018 (f, 259 vol. II initial file).

It determines the amount of the annual rent owed by the defendant claimant CONPET S.A. to the defendant claimants for the exercise of the easement right established by art, 7 para. I from Law no. 238/2004 on the land owned by the claimants, the defendants, on the corridor of 2.4 m.p., located along the transport pipeline, in the amount of RON 21.14, and it obliges the defendant-claimant to pay it to the claimants-defendants starting from the date of the definitive ruling of this sentence.

It rejects the rest of the summons and the counterclaim.

It admits, in part, the request of the parties regarding the granting of legal expenses and obliges the defendant claimant to pay to the defendant claimants the amount of RON 2,239 as legal expenses, in proportion to the admitted claims.

It obliges the defendant claimants to pay the amount of RON 1247 as legal expenses to the claimant defendant CONPET S.A., in proportion to the admitted claims.

It compensates the legal expenses, within the limit of the amount of RON 1,247 and it obliges the defendant claimants to pay to the claimant defendant the uncompensated difference of RON 992 in legal expenses.

Chivu Florica – Daniela and Chivu Ion filed an appeal.

By the Decision no. 194/23.03.2023 The Dambovita Court rejects the Appeal as without merit.

Chivu Florica – Daniela and Chivu Ion filed an appeal.

By the Decision no. 73/07.03.2024 Ploiești Court of Appeal admits the exception to the ineligibility, invoked ex officio. It rejects the appeal as inadmissible. Final.

7. File no. 32294/299/2020 - Bucharest District 1 Courthouse

Parties: Conpet SA - defendant - counterclaimant

Bob Mihăiță - claimant-defendant

Subject matter: Bob Mihăiță files a summons requesting the court to order:

1. The obligation of Conpet SA and NAMR to move the crude oil pipeline crossing the land owned by the claimant located in Cernavoda, plot 1, plot A6 / 2, Constanța county;

2. The establishing the equivalent value of the lack of use, for a period of three years, prior to the formulation of the summons, amounting to RON 150,000;

3. In the alternative, the obligation of Conpet SA to pay an annual rent for the use of the land owned by the claimant, from the date of filing the summons, in the amount of EUR 5/sq. m./year for the area of 14,645 sq. m., land affected by the protection and safety area, during the existence of legal easement;

4. The payment of legal expenses.

By the request for clarification of the summons, the claimant stated the following:

„................................................. .................................................. ................................................

3. For the method of calculating the amount of RON 150,000, I indicated the value of a rent, estimated at RON 4,166 /month, for a period of three years prior to the formulation of the summons, which the defendants in the present case should pay as compensation for the damage suffered as a result of the impossibility of capitalizing the land crossed by their pipelines

4. We request, in the alternative, that the defendant SC Conpet SA be obliged to pay an annual rent for the use of the land personally owned by the undersigned, from the date of filing the summons, during the existence of the legal easement, until the lifting of the pipelines on the land of the undersigned.

5. The value of the 3rd head of the claim is RON 10,000, estimated value, following that, after performing the report of forensic technical expertise, the real estate assessment specialty, performed in question to stamp according to the value of the land related to the protection and safety area of the construction.

6. I request that the court oblige the defendant Conpet SA to pay all the compensations requested in the summons, and the defendant the National Agency for Mineral Resources to be obliged to move / decommission the oil pipelines on the land owned by the undersigned.

.................................................. .................................................. ............................................... “

Conpet filed a counterclaim seeking the following from the court:

1. To order the claimant to allow CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. of Law no. 238/2004 on the land owned by the claimant Bob Mihăiță located in Cernavoda, plot 1, plot A6 / 2, Constanța County. The exercise of the right of legal easement is to be carried out on a 2.4 meter wide corridor located along each of the main crude oil transport pipelines that under-cross the claimant's land, respectively the F1 main crude oil transport pipeline Ø 14¾ ", F2 main crude oil transport pipeline Ø 20 ", and Pipeline 28 Constanța - Bărăganu of crude oil transport Ø 28", for the purpose of permanent access to pipelines for daily verification of the condition of pipelines and execution of possible repair works. The exercise of the right of legal easement is to be carried out throughout the existence of the pipelines located on the land of the claimant, but no later than the date of termination of the oil concession agreement concluded by us, the undersigned Conpet SA, with the Romanian State;

2. To establish the amount of the annual rent provided by law due by us, the undersigned, to the claimant in exchange for exercising the right of legal easement.

Clarifications: By the Conclusion of 06.08.2021, the Bucharest District 1 Courthouse rejects the exception of the belatedly of the request for impleader and of the request for showing the right holder, invoked by the National Agency for Mineral Resources, as unfounded. It rejects the exception of the lack of representative capacity of the National Agency for Mineral Resources, invoked ex officio, as unfounded. It rejects the request for an impleader from the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. It rejects the request to show the right holder of the Romanian State, through the Ministry of Finance and the National Agency for Mineral Resources, as inadmissible in principle. The conclusion can be appealed with the merits.

8. File no. 3370/105/2022 – Ploiești Court of Appeal / Prahova Court

CONPET S.A. – claimant-defendant

Lambru Dragomir – defendant-respondent

Subject matter: obliging the defendant to pay the amount of RON 524,752.23 representing the counter value of the quantity of 5,989.72 meters of pipe missing in management and 15,532.00 meters of electric cables missing in management, amount to be updated with the inflation rate until the date of effective payment .With legal expenses.

Lambru Dragomir filed a counterclaim asking the court to oblige the company Conpet SA to compensate the minuses found by the court in my management from the Inotești Warehouse until the competition of the pluses from the same management found following the annual inventory of material stocks for the year 2013.

Clarifications: At the deadline of 08.12.2022, the Prahova Court split the counterclaim filed by Lambru Dragomir and the file no. 5132/105/2022 was created.

By the Decision no. 2566/15.12.2022 The Prahova Court admits the exception of ineligibility invoked by the defendant, by response. It rejects the action having as its subject matter a tort liability action, filed by the claimant SC CONPET SA against the defendant LAMBRU DRAGOMIR, as inadmissible.

Conpet filed an Appeal – the File no. 3370/105/2022

By the Conclusion of 24.05.2023, the Prahova Court ordered the suspension of the case until the final resolution of file no. 3370/105/2022, which is pending before the Ploiești Court of Appeal. With right of appeal throughout the suspension.

By the Decision no. 1650/28.09.2023, the Ploiești Court of Appeal rejects the appeal as unfounded. It maintains the appealed sentence. Final.

By the Decision no. 23/31.01.2024 (the file no. 5132/105/2022) The Prahova Court notes that the claimant Lambru Dragomir waives the judgment of the action. With the right of appeal within 30 days of communication.

Procedural status of the case: Merits - File no. 3370/105/2022

Merits - file no. 5132/105/2022.

9. File no. 1541/262/2023 - Moreni Courthouse

Parties: CONPET S.A. – defendant- respondent

Mapi Imobiliare S.R.L. – claimant-defendant

Subject matter: obliging Conpet to pay an annual rent according to art. 7 of Law no. 238/2004 and compensations, including for the past starting from 20.01.2023

Conpet filed a counterclaim in which it requested the following from the court:

1. the obligation of the claimant Mapi Imobiliare S.R.L. to allow the company CONPET S.A. the exercise of the right of legal easement established by the provisions of art. 7 et seq. from Law no. 238/2004 on the land owned by it, located in Ocnița commune, Ochiuri village, T91, P2/1, Dâmbovița county. The exercise of the right of legal easement is to be done on a 2.4 meter wide corridor located along the main Ø 6 5/8" Ochiuri-Moreni crude oil transport pipeline for the purpose of permanent access to the pipeline in order to daily check the condition of the pipeline and the execution of any repair works. The exercise of the right of easement is to be carried out for the entire duration of the existence of the pipeline located on the claimant's land, but no later than the date of termination of the oil concession agreement concluded by us, the undersigned CONPET S.A., with the Romanian State.

2. establishing the amount of the annual rent provided by law owed by us, the undersigned CONPET S.A., to the claimant Mapi Imobiliare S.R.L. in exchange for the exercise of the right of legal easement starting from the date of finality of the judgment pronounced in this case, rent consisting of the value of the annual use of the land affected by the exercise of the easement.

At the same time, Conpet filed an impleader for the Romanian State, represented by the Ministry of Public Finance and the National Agency for Mineral Resources, through which we requested the court to be compensated for the impleaders, which will answer jointly and severally for any amounts we will be obliged to pay the claimant Mapi Imobiliare S.R.L. in the situation where the summons filed by it will be admitted in whole or in part.