In order for MERO a. s. to fulfil all of the duties that are placed upon it, it is necessary to have long-term stability and prospective development ensured.

Economic Environment

The economy of MERO ČR, a. s. is affected by the company’s main purpose of business activity, i.e. transport and storage of crude oil, which also determines the basic economic characteristics of the company:

  • extensive need of fixed assets
  • monopolistic position of exclusive transporter of crude oil into the Czech Republic
  • the biggest conservator of the emergency crude oil reserves in the Czech Republic

A critical area of the business activities of MERO ČR, a.s. is the transportation of crude oil from the foreign IKL and Druzhba crude oil pipelines for domestic refineries.
In the area of crude oil transportation, two natural monopolies meet– the monopoly of the transporter, i.e. MERO ČR, a.s., and the monopoly of the processor, i.e. the refinery. After crude oil refining at PARAMO, a.s. was stopped in 2012, crude oil is supplied to only one customer, which is the company UNIPETROL RPA, s.r.o., who owns refineries in Litvínov and Kralupy nad Vltavou.
Storage and preservation of state strategic crude oil reserves, which is the second most important business area of MERO ČR, a.s., is provided based on an agreement with the Czech Republic - Administration of State Material Reserves. The agreement is concluded for a period of 30 years and gives the contractual parties the space to meet the economic parameters of the investment. One of the conditions of accession of the Czech Republic to the European Union was to ensure an increase in the storage capacity of emergency crude oil stocks. Over the past few years, MERO ČR, a.s. has gradually increased its storage capacity at the central crude oil tank farm (CTR) in Nelahozeves, which made it possible for the State to fulfill its obligations towards the European Union in this field to the required level. CTR Nelahozeves has been expanded using in-house resources and under the direct investment of MERO ČR, a.s.