“This is an activity that is of very high interest to us as it would be a new source of income beside the current ones,” said Dan Weiler, president of Conpet’s managing board.
Transport income rose by 10.6% in the first half of this year, to 185 million lei (EUR41.4 million), particularly on the higher regulated tariff the company levies for transport of local oil, but also on the rising volume of imported oil.
Conpet’s plan to tackle a new market segment comes as private players in the oil fields are forced by law to set up crude oil and fuel reserves for “rainy days” and the law allows those that do not have their own storage capacities to transfer this activity to other companies.
“There are two types of clients: the state and the other market participants. Both of them need strategic reserves and we are in talks with both categories, but no agreement has been reached, yet,” added Weiler.
Conpet shareholders are set to decide in next week’s general assembly whether to hire an independent consultant to draw up a feasibility study regarding the warehousing project.
For the time being, the company can store only crude oil, having a capacity of 50,000 cubic meters in 19 tanks located in several counties. Another 135,000 cubic meters of crude oil could be stores along the imported crude oil transport system.
However, these tanks need more or less complex rehabilitation works and turning them into finite product warehouses would involve considerable capital expenses.
An alternative to modifying Conpet warehouses would be the takeover of an oil product warehouse with a capacity of 150,000 tons of Petrotrans company, located close to Petrotel Lukoil refinery near Ploiesti.
“The two alternatives do not rule out each other, if we have business we will need both,” said Conpet president.
After the first six months, when net profit rose by 10% against the year earlier period, to almost RON31 million (EUR7 million), Conpet had RON300 million (EUR67 million) in its accounts, 20% more than in June 30, 2013.
Investments in the revamping of own and Petrotrans warehouses would revolve around EUR20 million and the project would be more lucrative if the National Mineral Resources Agency introduced a regulated tariff for storage activities.
(English version by Catalina Apostoiu)