Release of Strategic Stocks

In the event of a supply crisis, the strategic stocks of crude oil and petroleum products are permitted to be released pursuant to the decree of the minister in charge of energy affairs (the Minister). The Minister, by decree, specifies the volume of crude oil and petroleum products to be released as well as sets the deadline for the replenishment of the released stocks. The Minister is authorised to grant priority access to the released emergency stocks for consumers ensuring the proper functioning of the country. In this case, the released stocks are sold by the Hungarian Hydrocarbon Stockpiling Association (the Association) to the consumers determined in the ministerial decree in compliance with the conditions set forth therein.

As long as priority access is not stipulated by the decree, or the volume of the stocks to be sold with priority access does not cover the whole quantity authorised for consumption, the member companies of the Association have pre-emption rights to the volume of strategic stocks remaining after the volume sold to consumers granted priority access, in proportion to their contribution fees due and paid in the preceding calendar year. The members receive a written notification on the extent of their pre-emption rights from the Association on the day the ministerial decree is issued. The members of the Association must confirm within twenty-four hours at the latest whether they wish to validate their pre-emption rights, including the volume they intend to purchase.

As regards an unutilised volume remaining from the stocks permitted to be used by the ministerial decree, the Association publishes a call for tenders.

In all circumstances, a sales agreement is concluded by the Association on the sale of released strategic stocks in accordance with the content of the sample contract published on the Association’s website. The storage sites are also notified by HUSA on the information required for the withdrawal of stocks. The withdrawal of stocks is authorised to commence promptly after the sales agreements are concluded and the financial guarantee conditions laid down therein are fulfilled.