Kralupy nad Vltavou, 31 January 2025 – MERO ČR and ORLEN Unipetrol have concluded a new contract for the transportation and storage of crude oil. The new contract replaces the original one from 2016 and after nine years updates the conditions of oil transportation, especially technological, economic and distribution parameters. The contract will ensure a more secure and stable oil supply to the Czech Republic. The paper was signed on 30 January 2025 and is concluded for an indefinite period.
Jaroslav Pantůček, CEO, MERO ČR
The new oil transport agreement will provide Czechia with safer and more stable conditions for oil transport and supply. The original contract, concluded in 2016, was far from matching the technological and economic situation on the market.
I am very pleased that after tough but fair negotiations with our partner ORLEN Unipetrol we have managed to find an agreement and conclude a new long-term contract. I would therefore like to thank our partners for their cooperation.
There are three major improvements in the new contract. The first one is an update of the technological parameters for the transport of crude oil, including taking into account the new transport capacity of the TAL pipeline. The new agreement already works with our plan to move away from Russian oil and fully supply the Czech Republic bythe western route throughthe TAL and IKL pipelines.
The second change relates to the indexation of freight charges to reflect the current market situation, and the third important advantage is the extension of the nomination period for the quantity of oil to be transported, which brings a greater degree of flexibility for both parties, including a reduction in the administrative burden.
Mariusz Wnuk, CEO, ORLEN Unipetrol
Our priority is to secure and develop fuel production for the Czech Republic and neighbouring countries at both our refineries. To do this, we need sufficient volumes of crude oil, which flows into Czechia through pipeline infrastructure owned by the Czech state and managed by the state-owned company MERO. We are glad that, after several months of negotiations, the contract has been concluded. I would also like to , thank our partners at MERO for their cooperation.
We are technologically ready for the transition to new oil blends at our Litvínov refinery. After the capacity increase of the TAL pipeline, the conclusion of this contract is another important step on the way to the transition to new oil blends in the Czech Republic.
The original agreement on crude oil transportation to the Czech Republic between MERO ČR and ORLEN Unipetrol was concluded in 2016. MERO ČR terminated it as of 31 May 2023 and together with ORLEN Unipetrol started negotiations on the parameters and conclusion of a new contract. This situation had no impact on the oil supply to Czechia and supplies to the Czech Republic have been running normally since 1 June 2024 under temporary conditions.
The new oil transportation contract was concluded on 30 January 2025.
