The Administration of State Material Reserves (hereinafter the “ASMR”) and the largest Czech petroleum processor, UNIPETROL RPA, s.r.o. (hereinafter “Unipetrol RPA”), member of the UNIPETROL Group, signed an agreement today on processing petroleum during oil crisis situations.
This strategic agreement defines the conditions under which emergency oil reserve held by the ASMR would be processed at UNIPETROL Group refiners, should a state of oil crisis is declared. The ASMR would then distribute the processed petroleum products to the crisis management authorities and the public. The agreement was signed on behalf of the ASMR by Deputy Chairman Tomáš Perutka and on behalf of Unipetrol RPA Executive, Martin Durčák and Ivan Ottis, Director for Special Projects.
"Owing to the newly signed agreement, the Czech Republic can react to reduced oil supplies much more quickly and effectively, by immediately ensuring the processing of its strategic oil supplies if needed," said Tomáš Perutka, Deputy Chairman of the ASMR.
"The signing of this agreement is the successful culmination of relatively lengthy negotiations, the aim of which was to define effective and efficient cooperation in the case of an oil crisis. New conditions have been contractually defined, under which the refineries in Kralupy and Litvínov will process supplies from the Administration of State Material Reserves, as well as the rights and obligations of both contractual parties and the price conditions for processing," says Martin Durčák, Executive of Unipetrol RPA. "Following the recently concluded agreement on oil transmission between Česká rafinérská and Transpetrol, it is yet another important contract in terms of the Czech Republic's oil security in a very short time," adds Martin Durčák.
The agreement between the ASMR and Unipetrol RPA is concluded for an indefinite term. Moreover, it cannot be terminated by either contractual party if an oil crisis is declared. The agreement also regulates the price for processing the raw material, which covers the costs of Unipetrol RPA. The price will be updated annually based on the development of cost items.
The government of theCzechRepublicdeclares an oil crisis if for various reasons there is a significant decline in the import of petroleum and petroleum products. It is a crisis situation that has not occurred yet in theCzech Republicto date.
The ASMR holds approximately 1 million tonnes of oil in its emergency reserve, stored mainly at the Central Oil Storage Facility in Nelahozeves, operated by the oil pipeline operator MERO ČR, a.s.
The UNIPETROL Group owns a 51% stake in ČESKÁ RAFINÉRSKÁ, a.s., which operates oil refineries in Litvínov and Kralupy nad Vltavou.
UNIPETROL, a.s. is a group of companies operating in the petrochemical industry in the Czech Republic. In 2005 UNIPETROL became a part of the PKN ORLEN Group, the largest oil processor in Central Europe. The UNIPETROL Group is oriented mostly towards oil processing, fuel distribution and petrochemical production. In all of these business areas the UNIPETROL Group is among the key players both in the Czech Republic and on the Central European market. The Group ranks among the leading firms in the Czech Republic in terms of its revenues, and employs 3,700 people.
Contact:
Mikuláš Duda
Press Department Manager
Telephone: +420 225 001 407, +420 736 502 520
E-mail: mikulas.duda@unipetrol.cz