Failure to close the deal in ongoing contract negotiations between the Czech refinery Česká rafinérská and the Slovak oil transporter Transpetrol might result in a price increase of strategic oil transport coming from Russia, a source close to Transpetrol management told E15.
According to this source, Česká rafinérská, the main local oil consumer, might get into the position of a partner that does not have a long-term contract with the Slovak company. This would mean that Česká rafinérská would have to pay 1.5 times higher fees for transport and storage than what the regular prices are. That would result in the increase of overall oil prices.
E15 has recently reported that the validity of the previous oil transport and storage contract came to an end late last year. “Negotiations are still in progress, they have not finished yet,” Česká rafinérská spokesman Aleš Soukup said. The Czechs accentuate a fair price. “Česká rafinérská is trying to secure a position allowing for competitive transport fees,” said Soukup.
All Russian oil is transported via the Druzhba pipeline, the Slovak part of which is managed by Transpetrol. Russian oil has until now constituted some two-thirds of all Česká rafinérská supplies, some 5 million tonnes per year. The possible higher fees from Transpetrol would also affect the Czech refinery Paramo, which, according to available information, has always accepted the fees agreed upon by Transpetrol and Česká rafinérská.
Source close to Transpetrol said that the managers of both companies have recently agreed on the fees but did not get approval of Česká rafinérská shareholders. The majority shareholder in Česká rafinérská and Paramo is Unipetrol, controlled by the Polish PKN Orlen.
A well-informed Czech source perceives the current situation as a potential opportunity – the possible price increase of Russian oil would relatively decrease the commodity that comes to the Czech Republic from the west via the Ingolstadt pipeline. That would strengthen Czech energy security and lower commodity dependence on Russia, despite the negative immediate impact on the economy. In reaction to last year’s problems with Russian oil supplies, the domestic pipeline administrator, state company Mero, closed a more advantageous contract for the oil transport via Transalpine pipeline (TAL) from the sea terminal in Italian Terst.
Transpetrol is now controlled completely by the Slovak state, which has recently bought a minority stake from Mikhail Khodorkovsky’s former empire. Slovak media, however, continue mentioning a possibility of Russia regaining the minority stake due to a number of various legal disputes. Entrepreneur Ignác Ilčišin is also claiming a 34% stake in Transpetrol. Ilčišin gained the stake in 1998 as part of a distraint against tax authority. The Slovak government does not recognise Ilčišin’s claim and adds that even if he succeeds, the government has a constitutional right to seize his stake.
