In accordance with Article 46 of the Law on Compulsory Oil Reserves (“Official Gazette of the Republic of Macedonia” No. 144/14, 178/14, 199/15, 197/17 and 7/19 and (“Official Gazette of the Republic of North Macedonia” No.275/19 and 150/21 – hereinafter: LCOR), the existing Directorate for Compulsory Reserves of Oil and Oil Derivatives (DCOR) which was established pursuant to the Law on Compulsory Reserves of Oil and Oil Derivatives (Official Gazette of the Republic of Macedonia No. 84/08, 35/11, 84/12, 43/14 and 83/18 and (“Official Gazette of the Republic of North Macedonia” No. 101/19), with the day of commencement of the implementation of the LCOR on January 1, 2021, continued to function as the Macedonian Compulsory Oil Reserves Agency, i.e. from July 13, 2021 as the Compulsory Oil Reserves Agency (hereinafter: MACORA).
With the adoption of the LCOR in 2014, the domestic legislation was harmonized with the directives of the EU legislation in the field of oil reserves, i.e. in this law the provisions of the Council Directive 2009/119/EC imposing an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products, and provisions from Commission Implementing Directive (EU) 2018/1581 of 19 October 2018 for amending Council Directive 2009/119/EC as regards the methods for calculating stockholding obligations, were transposed.
Pursuant to LCOR, MACORA is a standalone, independent and non-profit legal entity which performs public interest affairs and is a central body for storing compulsory reserves and it is the only one authorised for the establishment, maintenance, storage, keeping and selling of the compulsory reserves of the Republic of North Macedonia.
The operation of MACORA is based on the principles: competence, professionalism and transparency and performance liability. For its operations MACORA is responsible before the Government of the Republic of North Macedonia.
Obligation to maintain compulsory reserves
The compulsory reserves are formed and stored in order to ensure the uninterrupted supply of the market with crude oil and/or oil derivatives in the event of impaired energy security caused by extraordinary disruption and significant and sudden decline in the market supply with crude oil and oil derivatives under the provisions of the LCOR and the bylaws arising from it. Extraordinary disruption of the supply can be caused by disruption of the regional market of crude oil and oil derivatives and/or causes and conditions to which occurrence cannot be influenced, and which occurred in the Republic of North Macedonia and/or in the countries through which the import of crude oil and oil derivatives for the market needs of the Republic of North Macedonia is done.
The compulsory reserves shall be used:
- in case of disorder and disruption in the supply of oil derivatives which may be caused
to the market of the Republic of North Macedonia, and
- shall be also used to fulfil the international obligations of the Republic of North
Establishment of compulsory reserves
Pursuant to law, the compulsory reserves shall be formed gradually, in order to ensure that the total compulsory reserves held at all times in the Republic of North Macedonia correspond to at least 90 days of average daily net imports or 61 days of average daily inland consumption in the previous calendar year, depending on whichever of the two specified quantities is greater.
Structure of compulsory reserves
The compulsory reserves held as refined products shall be composed of one or more of the following types of oil derivatives classified in the following categories:
- light distillates or light oil derivatives (liquefied petroleum gases LPG-butane, propane and mixture of butane and propane, all other motor gasoline and aviation gasoline),
- intermediate distillates or intermediate oil derivatives (all types of diesel for cars, gas oil or extra light 1 (EL-1) and kerosene) and
- heavy distillates or heavy oil derivatives (all types of fuel oil) and others (bitumen and petroleum coke).
The basic competencies of the MACORA shall be:
- creation, preservation, renewal and management of the compulsory reserves of the Republic of North Macedonia;
- purchase and sale of crude oil and/or oil derivatives in order to establish and replenish compulsory reserves;
- conclusion of contracts for optional purchase of crude oil and/or oil derivatives-tickets and contracts related to other financial instruments for establishment of compulsory reserves and limitation of the market and price volatility exposures during the establishment and maintenance of the compulsory reserves;
- calculating the stocks’ level of compulsory reserves on the basis of data from the reference year;
- record keeping of the level, type and territorial distribution of the compulsory reserves stocks;
- preparing and keeping the Registries of the compulsory and specific reserves ;
- insurance of the compulsory reserves stocks from risks;
- proposing a manner to determine, calculate, amount and the payment of the fee for compulsory reserves as well as the content, manner and deadlines for submission of data on the placement of oil derivatives on the domestic market;
- collecting the fee for compulsory reserves;
- record keeping about the payment amount of the fee for compulsory reserves;
- caring for the earmarked expenditures of the funds for the operations of the MACORA;
- proposing a manner to determine, calculate and the payment of the expenditures regarding the storage and evaporation of oil and oil derivatives from the compulsory reserves;
- monitoring the availability of the storage facilities for storage of the compulsory reserves;
- building, renovation, reconstruction and maintenance of new and/or existing storage facilities;
- conclusion of contracts for storage of the compulsory reserves and their recording;
- proposing the manner and procedure for the use, physical accessibility and availability of oil reserves in the event of disruption of energy security in the country caused by disruptions in the supply of large proportions;
- release of the compulsory reserves in the event of a major supply disruptions in the market, according to the LCOR;
- supervision and management of the compulsory reserves that are stored in the territory of the Republic of Macedonia or in the territory of another state, pursuant to the LCOR;
- supervision over the implementation of the regulations of the LCOR;
- cooperation with the competent authorities and institutions and commercial entities in the Republic of North Macedonia as well as cooperation with international institutions;
- regular monitoring of the domestic and international market of crude oil and oil derivatives;
- keeps records of the payment of the fee for the compulsory reserves and
- shall perform also other duties in accordance with the LCOR, regulations adopted under this Law, international agreements in the field of security of supply ratified under the Constitution of the Republic of North Macedonia and with the Statute of the MACORA.
Management and Governance
MACORA shall be managed by the Management Board, consisting of five members. The Management Board members shall be appointed and dismissed by the Government of the Republic of North Macedonia. Three members of the Management Board shall be appointed on the proposal of the Minister competent for energy related issues, from the line of reputable and distinguished professionals and experts in the country in the field of oil derivatives, one member shall be appointed on the proposal of the Minister competent for financial affairs and one member shall be appointed on the proposal of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia.
Members of the Management Board are:
- Ismail Luma – President
- Rozika Bojadzieva – deputy president
- Mirhan Arifi – member
- David Velkovic – member
- Florentin Murtezi – member
The MACORA is headed by a Director, appointed and dismissed by the Government of the Republic of North Macedonia.
Director of the MACORA is Uljusi Bekiri.
of Internal Organization of
the Compulsory Oil Reserves Agency