ASMR And UNIPETROL RPA Reinforce The Oil Security Of The Czech Republic

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 Durèák 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 Durèák, Executive of Unipetrol RPA. "Following the recently concluded agreement on oil transmission between Èeská 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 Durèák.

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 ÈR, a.s.

The UNIPETROL Group owns a 51% stake in ÈESKÁ RAFINÉRSKÁ, a.s., which operates oil refineries in Litvínov and Kralupy nad Vltavou.