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ospa

Stocks management costs

The oil stocks may be kept in Estonia or another Member State of the European Union. The stocks may be maintained under a deposit contract on the basis of which the storage service is provided or under a contract for delegation of stocks on the basis of which another company or legal entity assumes the stock maintenance obligation and the stockholder assumes the right to purchase the stocks covered by the contract. The contract for delegation of stocks is, by essence, an option transaction through which one obtains the right to purchase fuel in the amount set out in the contract. These contracts will be used in practice mainly for renewal (replenishment) of the stocks in order to ensure the performance of the stock maintenance obligation prescribed by the law.

According to Directive 68/414/EEC (amended by Directive 98/93/EC), oil stocks may be kept in any Member State. Establishment of stocks outside the territory of the homeland is used because of the desire to ensure the cost-effectiveness of the maintenance service. The basis for keeping stocks abroad is an international agreement made between Member States, which is necessary for receiving the stocks in the event of oil delivery difficulties. Estonia has made such agreements with FinlandSwedenLatvia and Denmark.

Construction of OSPA's own tank facilities has not been planned. The necessary investments will be made by the providers of the maintenance service pursuant to the market situation.