MOL’s latest long-term strategy document reveals some of its plans.
Members of the INA Supervisory Board learned about the details of the MOL long-term strategy only by reading it over the internet, since they have not been officially informed about the key document which explains business plans until the year 2030 of the majority owner of INA, the largest Croatian oil company, reports Lider on October 15, 2016.
“This demonstrates quite well how business decisions are made in INA, which is connected with MOL much more than it should be. Our directors make decisions only after they had been agreed with MOL’s directors. Therefore, I would really like to see this strategy and the extent to which it relates to INA”, said Damir Čehić, a member of the INA Supervisory Board. Čehić did not want to comment on a sentence from the strategy which says that MOL “will continue to manage efficient and profitable refineries”. As a lawyer, he said that the claim was too vague to be assessed.
However, energy expert Davor Štern said it was a quite clear message sent by the Hungarian company. “If the parent company wants to continue operating only profitable refineries, that it means that the refinery in Sisak will be closed down or turned into something else. I do not believe that the Sisak refinery could be turned into a biodiesel plant, because such plants employ only about fifty people. When MOL’s strategy notes the diversification of production in the segment, it means that refineries such as the one in Sisak will be gone”, explained Stern.
However, Čehić invokes the provisions of the shareholders agreement between Croatia and MOL from 2003, which say that the refinery in Sisak should be preserved. “These provisions have never been changed, which means that a decision on the closure of the Sisak refinery can only be made by both sides, both shareholders. However, there is always the possibility of a breach of contract, but I do not think this will happen”, said Čehić.
While MOL does have a strategy, the Croatian government and INA apparently do not have it. Both Čehić and Štern are waiting for the new government to be formed so that it can finally move to address the issue of INA.
“Investments in Petrokemija which have been announced by MOL are a consequence of the fall of the use of vehicles fuelled by petrol. As far as Croatia is concerned, it is precisely a report such as this which should be an incentive for the government to develop an overall strategy that will cover all the issues of oil, gas and electricity”, said Štern.