Conoco Inc. will enter the Czechoslovakian refined products retail market through an agreement with Benzina, the Czech republic's state owned monopoly distributor and retailer.
Conoco will lease and operate 13 service stations throughout the Czech republic and holds an option to buy the stations once privatization of Benzina's network is complete.
Benzina plans to sell most of its 700 service stations.
In the first phase of privatization it will lease, then sell half its outlets to western companies.
Leases have been signed by nine foreign companies, including Conoco. A small number of stations will be bought by private individuals and the remainder retained by Benzina which will be sold to the public. The privatization process is expected to take 6 months to complete.
After the purchase is final, the Conoco stations will be upgraded. No decision has been made on whether they will operate under Conoco's jet brand. A product supply agreement is about to be signed with Benzina.
Conoco sees the agreement as a major step in establishing its business in central and eastern Europe.
David O. Kem, Conoco's vice-president of European refining and marketing, said the long term objective is to have an integrated refining and marketing operation throughout the area.
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