Czechs to raise state oil reserves after outages

PRAGUE, March 21 (Reuters) - The Czech Republic will raise its strategic reserves of oil and oil products to 120 days of national consumption from around 95 days after last year's import and processing interruptions, the industry ministry said on Friday.

"The reason is energy security. The experience from last year -- the halt in deliveries from Russia and a refinery disruption," spokesman Tomas Bartovsky said.

In January 2007, Russia, the key supplier to the central European country, interrupted shipments through the Druzhba pipeline for several days due to a dispute with Belarus about transit fees.

Later in the year, a planned shutdown at the country's biggest Litvinov refinery, operated by Unipetrol (UNPEsp.PR: Quote, Profile, Research), ran far beyond schedule after an accident.

None of the two incidents last year disrupted fuel supplies in the country.

In the first step this year, the Administration of the State Material Reserves will purchase around 100,000 tonnes of oil for estimated 1.2-1.5 billion crowns ($72.90-91.13 million) to strengthen minimum reserves to 100 days from 95 days, Bartovsky said, adding stocks would grow to 120 days at a later stage.

The purchase will be financed from the sale of other reserve commodities, including aluminium and copper.

Dusan Makovec, deputy director of the reserves administration, said additional purchases would be needed to keep the reserves in line with rising daily consumption in the fast-growing economy.

The agency stores most of the reserves with state-owned distribution firms Cepro and Mero, but Makovec said that private companies may be involved in the future.

(Reporting by Jan Korselt; editing by Chris Johnson)