b'GOw2GOw2 Energy Suriname N.V. (GOw2) is a subsidiary of Staatsolie. GOw2 is a fuel supplier owning and operating several fuel terminals and retail stations In 2019, GOw2 has achieved 92% of its sales target. The retail market share has grown to 31% from 29% in 2018. The retail business has shown a slight growth but is under pressure from aggressive competition. GOw2 managed to increase sales in the third quarter via a promotion campaign which proved to be very successful. During this period, we have recorded an increase of 24% of the retail volume.Plans to rebrand a few of our retail sites were not realized due to other priorities but are again budgeted for 2020.GOw2 realized an increase of sales compared to 2018 mainly due to the aviation business and lubricants sales. The aviation business has shown a steady growth exceeding our expectations for both new and existing customers. Tenders for both Associated Energy Group (AEG) and COPA Airlines fuel supply in Suriname were awarded to GOw2 in 2019.VentrinBoth Ventrin and Staatsolie have successfully tested and achieved the supply of IMO 2020-compliant bunker fuel to the market since Q4 2019. Since Q4 2019, Ventrin has been supplying VLSFO to meet the IMO requirement; as a result, sales price moved to VLSFO pricing, an increase of US$ 25-30/bbl, providing us not only high margins, but also generating international recognition, customer loyalty, larger market share and an increase in bunker fuel sales from November 2019 forward. Downstream achievements in 2019 include:Responding successfully to the IMO 2020 specs for bunker fuels to serve the market and increase margins with no additional investment cost. Sustaining use of the Vacuum Distillation Unit and the Hydrocracker above 100%, while reducing ouroperating expenses; achieving production above 10,000 bbls per day. Reduction of LPG consumption; improving water treatment to reduce chemical use. Optimization of EBITDA of refinery and marketing operations.Cost reductions and process simplifications.Improving systems throughout, including procurement, succession planning, and mentoring futuremanagers.Competency gap assessments done for Operations and Maintenance to guarantee a competent workforce; a development plan put in place, along with a Graduate Program to increase skills training. First steps were made to prepare the road map for achieving the ISO 45001 certification of the HSEManagement system. In 2020, further improvement of the downstream operations will be achieved by: Successful execution of the first TA.Increasing the utilization of the Refinery and reducing the operational costs. Development of the workforce closing the competency gaps.More focus on leadership skills of supervisory personnel.Preparing for ISO 45001 certification of the HSE management system. Improving the Material Inventory / Management process.18 STAATSOLIE 2019 ANNUAL REPORT'