Former OECD Secretary-General Donald J. Johnston visits SLOVNAFT

Former OECD Secretary-General Donald J. Johnston visited SLOVNAFT during his 3-day stay in Slovakia. After his meeting with SLOVNAFT Chairman of Board, Marián Jusko, and CEO Oszkar Vilagi, he visited key production units at the refinery – the EFPA complex, which has enabled SLOVNAFT to become one of leading refineries in technological and efficiency terms, and the new HDS 7 unit.

Thanks to the EFPA project (Environmental Fuel Project Apollo), SLOVNAFT has succeeded in significantly increasing crude oil processing efficiency, which has made it possible for the Company to produce one million tons more top quality fuels than it could have done from the same amount of crude oil, 10 years ago - all, naturally, complying with environmental standards-in-force. Thanks to the EFPA project and the new HDS7 unit, SLOVNAFT is now capable of producing all its fuels to ultra-low sulphur quality standards, thus already meeting EU requirements, not due to come into force until 2009. In addition, of course, SLOVNAFT significantly contributes to decreasing negative impact on the environment, and pollution in general. A forward-looking strategy to invest in state-of-the-art technology, amounting to SKK 50bn over the last 10 years, has helped SLOVNAFT become one of the three most modern and complex refineries in Europe.

Mr. Johnston recognized the successful transformation of SLOVNAFT to a modern market oriented company and also its sophisticated investment strategy, by which the company successfully contributes also to increasing oil product supplies to the European marketplace, thus easing the current tension between supply and demand. Mr. Johnston acknowledged this investment strategy focusing on higher production, modernization and product quality mainly in that context that many refineries, especially US refineries, did not invest into capacity increase in the last decades. Today this fact contributes to the tension on the global crude and fuel markets. Mr. Johnston said that fortunately, high crude prices still do not have significant negative effect on the OECD economies. “Compared to the situation during the second oil crises, the economies of OECD are in much better shape and thus high crude prices has not caused problems yet, neither from core inflation nor GDP growth point of view,” added Mr. Johnston. SLOVNAFT Chairman of the Board, Marián Jusko has confirmed these words adding that this is due to the much lower energy intensity of GDP creation in OECD countries.

Donald J. Johnston chose SLOVNAFT for his visit due to the company’s role in the Slovak economy (SLOVNAFT accounts for 1.5% of total Slovak GDP, and is one of the top 3 Slovak exporters) and also because the OECD pays close attention to development of the global oil and oil products markets. In this connection, Mr. Johnston praised the intention of MOL Group, of which SLOVNAFT is a key pillar, to triple hydrocarbon production to reach 300 000 boe/day, and to increase the sale of refined products up to 500 000 barrels/day, over the coming 5 years.

Donald J. Johnston was the fourth Secretary-General of the OECD, since it was established in 1961. He held this position from June 1996 till May 2006. During his term at the top of this prestigious institution, Slovakia was invited to join the club, which comprises the most developed countries in the world. Slovakia entered the OECD on 14th December 2000.

Since ^1st June, Angel Gurría of Mexico has been OECD Secretary-General, in succession to Donald J. Johnston.