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Unipetrol sees Russian supply up, not fully-source

Wed Jul 30, 2008 11:30pm IST
 
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PRAGUE, July 30 (Reuters) - Supplies of Russian oil to Czech company Unipetrol (UNPEsp.PR: Quote, Profile, Research) should recover in August after a cut this month but will probably still lag behind planned volumes, a source from the refining group said on Wednesday.

Deliveries through the Druzhba pipeline were reduced in July due to what Russian supplier Tatneft (TATN3.MM: Quote, Profile, Research) said was a lack of available crude.

The reduction sparked speculation that Russia was punishing its former Communist-era ally for signing a deal to host a U.S. missile defence base, a charge denied by Russian officials.

Russian Prime Minister Vladimir Putin last week ordered a guarantee of full oil supplies to the central European country.

But the source said Unipetrol would still have to tap state reserves in August or import through the alternative IKL pipeline, which connects the country with the west European pipeline system in Germany.

"The promise we have (from Russia) at the moment is not for the whole 100 percent. The indications suggest that the volume will be somewhat lower than the plan for August," the source said without giving precise figures.

The Czech Republic, unlike some of its neighbours in central and eastern Europe, can cope without Russian crude thanks to the IKL pipeline, build in the 1990s. The country also holds oil reserves for over 90 days.

Radek Nemecek, director of investor relations at Unipetrol, said the Russian suppliers were expected to announce the volume in the first week of August.

Industry Ministry spokesman Tomas Bartovsky said the supply figures were yet to be confirmed. Russian crude has been processed mainly at the Litvinov refinery, controlled by Unipetrol with a 51 percent stake. Italian Eni (ENI.MI: Quote, Profile, Research) holds 32 percent and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) owns 16 percent, and handle their own supplies independently from Unipetrol.  Continued...

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
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