Establishment of systems for protection against disruptions in the oil derivatives market

The administrative building of the company “Operator-Terminals of the Federation of BiH” (OTF), which is the only one authorized to establish and restore stocks of oil derivatives in the territory of FBiH, was officially opened today in the premises of the Blažuj Branch.

The President of the Management Board Hermedin Zornić and a member of the Management Board Slaven Zeljko stated that in order to satisfy the directive of the European Commission, which imposes an obligation on all member states and candidate states for EU membership to maintain minimum reserves of crude oil or oil derivatives, OTF implements terminal rehabilitation projects, the resolution of property relations, in order to enable the establishment and storage of reserves of oil derivatives in accordance with the Law on Oil Derivatives.

By opening that building and centralizing the business, as Zornić said, they create conditions for further business as it was foreseen, which followed the opening of the Liquid Petroleum Derivatives Terminal in Živinice in 2020.

Zornić stated that the next step is the start of work on the liquid cargo terminal in Bihać. All projects have been completed, audits have been completed, the most favorable contractor has been selected and they expect to start the work on the liquid cargo terminal in Bihać within the next month.

“As for this project, it was completed after 30 years of stagnation of unresolved legal-property relations. We got the opportunity, thanks to the Government of the Federation and the Prime Minister, who, through the Law on Petroleum Derivatives, gave us the opportunity of those inflows of one pfennig for each output liter, to be able to consume those accumulated funds in the way that the law predicted, and we did it,” said Zornić added.

According to him, the capacity of that terminal is 42 million liters, which is 25 percent of the total required quantities prescribed by the law. Zornić expressed hope that the second part of the project, in terms of the dimensions of the terminal, will be completed in the next three to four months.

One of the mega projects, he added, also refers to Mostar, where they completed the property-legal relations, solved the main implementation projects and are currently working on the revision project.

Zornić expects that at the beginning, possibly mid-next year, they could start the execution of those works as well.

The ceremony was also attended by the Prime Minister of the Federation of Bosnia and Herzegovina, Nermin Nikšić, who emphasized the importance of establishing capacities in which traders will be able to store their fuel in a situation when they acquire it at favorable prices on the global market.

The work is not finished yet, Nikšić added, and it still needs to be done in Bihać and Mostar in order to create a system and for the Federation of Bosnia and Herzegovina to ensure that it protects itself from all possible disruptions on the market.