Primary activities

Oil transportationTRANSPETROL THROUGH IT S CRUDE OIL PIPELINE SYSTEM, T HE ONLY ONE IN SLOVAKIA, PROVIDES A TRANSIT AND DOMESTIC TR ANSPORT ATION OF CRUDE OIL AND IT S STORAGE TO EN SURE THE RE-QUIRED AMOUNT OF CRUDE OIL PRIMARILY FOR SLOVAK COMPANIES, ADMINISTRATION OF STATE MATERIAL RESERVES, AS WELL AS OTHER IM PORT ANT CUSTOMERS. THE DOMESTIC TRANSPORT ATION AND TRANSIT OF CRUDE OIL AND ITS STORAGE ARE THE MAIN ECONOMIC ACTIVITIES OF T HE JOINT STOCK COMPANY. T HE TRANSPORT ATION CAPACITY OF T HE CRUDE OIL PIPELINE SI 20 MILLION TONS PER YEAR.

TRANSPETROL, a. s. transported a total 9,460,155 tons of crude oil in 2018. The major role in terms of realized revenues and utilization of the crude oil pipeline transport capacity in the operation of TRANSPETROL, a. s. is played by Slovnaft, a. s., refinery in Bratislava. The transportation of crude oil to
this company in 2018 amounted 5,457,489 tons of crude oil, representing about 57.69% of the quantity transported by Družba pipeline in that year. T ransport of the Russian crude oil amounted to 5,241,197 tons and transport of other crude oil through the pipeline ADRIA amounted to 216,292 tons. Slovnaft, a. s. is currently the sole customer for crude oil in Slovakia.

In the history of TRANSPETROL, a. s. the year 2016 was a breakthrough year. For the first time, the transport of a differenttype of crude oil than REB was realized to the refinery Slovnaft, a. s. I t was the crude oil KBT, exclusively reserved for Slovnaft, a. s. T ankers with K BT crude were transported to Croatian port Omišalj, then transported through Hungarian
Szazhalombatt by the reconstructed ADRIA pipeline to PS4 Tupa where after the requested customs procedure prescribed by law and upon the laboratory tests, it was transported to the Slovnaft refinery. Quantity and quality of separate amount of other crude oil was provided by the newly built system of control of supply movement in the management system. I n 2017, TRANSPETROL, a. s. shipped 78,600 tons of C PC oil to Slovnaft, in 2018 it was 216,292 tons of other type of oil.

A significant role in terms of realized revenues and utilization of the pipeline transport capacity within the operation of TRANSPETROL, a. s. is played by Unipetrol RPA, s. r. o. TRANSPETROL, a. s. transported a total of 4,002,666 tons of crude oil to Unipetrol RPA, s. r. o in 2018.

The total quantities of crude oil transported to individual customers in the period from 2014 to 2018 in thousands of tons.

Graphic design of the quantity of the transported crude oil based on customers in the period 2014 – 2018 in thousands of tons.

Beside the crude oil transportation, the crude oil storage remains an important business activity of the company TRANSPETROL, a. s. Its available capacity is used to store crude oil for SLOVNAFT, a. s., Unipetrol RPA, s. r. o. or other customer. In 2018, the average daily amount invoiced for storage was 3,233.92 tons of crude oil.

Storage capacity Transpetrol, a. s., within the period 2014 – 2018 in thousands of tons.

Graphic design of the storage capacity in the period 2014 – 2018 in thousands of tons.

TRANSPETROL, a. s.’s priority is to constantly improve its strategic position in the transportation and crude oil storage for the Slovak economy and strengthening its position in the European market. The company identified a risk that could affect the company´s development in the near future. The
most important risk represents the risk of negative development of crude oil transport.