Chemopetrol Force To Stop Production Over Price Dispute
Chemopetrol, a petrochemical unit of the Czech oil holding company Unipetrol, has been forced to stop production for two days after another Unipetrol unit stopped supplies amid a dispute over prices, Hospodarske Noviny has reported.
Ceska Rafinerska, the country's largest refinery, which is forty nine percent controlled by a consortium made up of Conoco, Royal Dutch/Shell Group and Agip Petroli International, stopped deliveries to Chemopetrol on Friday at midnight and resumed them after the industry minister intervened, the paper reported.
Unipetrol Chief Executive Pavel Svarc said the group of international oil companies wanted to extend a price contract that is favorable for the refinery as it mulls buying the remaining stake in Rafinerska, Hospodarske reported. The group of Conoco, Shell and Agip must say by this Thursday if it wants to execute an option to buy the remaining stake in Rafinerska.
Chemopetrol said the stoppage caused it tens of millions of koruna. The two sides agreed on a price compromise for the next two months but talks are continuing. Unipetrol asked the Anti Monopoly Office to help resolve the dispute.