If Czech-Slovak relations were similar to those between Russia and Ukraine, a major part of crude oil supplies to the Czech Republic would probably have been halted. The reason is that Česká rafinérská, the main Czech oil buyer, does not have a contract with Slovak oil transporter Transpetrol.
“I can confirm that Transpetrol does not have a contract with Česká rafinérská at present. The previous contract on transport and storage of crude oil expired on 31 December 2008,” Transpetrol CEO Štefan Czucz told the daily E15.
Neither Česká rafinérská nor its biggest shareholder, Unipetrol, have provided answers to E15’s questions regarding the contract with Transpetrol since Thursday morning. The reason behind the non-existence of the contract is simple: Both parties have failed to agree on the price of transport and storage of crude oil. Another Unipetrol unit, Paramo, does not have a contract with Transpetrol either, according to information available at the moment.
Slovakia seems annoyed by the current situation, but is not threatening to close the oil taps. “In practice, it means that Transpetrol is not bound by any document to guarantee regular oil supplies and storage according to the customer’s requirements. Of course it does not mean, given the long-lasting good cooperation, that Transpetrol is not trying to secure transport and storage for Czech customers to meet their needs. We hope that we come to terms as soon as possible,” said Czucz. All crude oil flowing to Česká rafinérská from Russia comes through Transpetrol, which operates the Slovak part of the Druzhba oil pipeline.
Russian oil accounts for about two-thirds of crude oil supplies to Česká rafinérská – some five million tonnes a year. Total annual crude oil consumption in the Czech Republic hovers around eight million tonnes.
Czucz said that Transpetrol and its Czech partner have been in “intensive talks on the contractual terms for 2009 for several months”. The talks on a new agreement with Česká rafinérská have even approached the final stage several times, but the Czech company’s shareholders were against in the end, Czucz added. Česká rafinérská is majority controlled by Unipetrol, which is in the hands of the Polish firm PKN Orlen. Other shareholders in Česká rafinérská are the Italian oil company ENI and the Dutch-British concern Shell.
Slovak economist Vladimír Bačišin, who is also involved in public affairs, said the non-existence of a contract between Transpetrol and Česká rafinérská is “incomprehensible”. Bačišin did not rule out problems regarding oil storage in Slovakia for the Czech partner. He said the problem rests in the current practice of short-term agreements. Such contracts should not be extended on a yearly basis, but there should be a framework contract, he added. “Oil buyers always want as low fee as possible, while transporters demand a fee that will make it possible to keep the transport profitable,” said Bačišin.
