CAPITAL: PRAGUE
MONETARY UNIT: KORUNA
REFINING CAPACITY: 198,000 B/CD
OIL PRODUCTION: 7,400 B/DOIL RESERVES: 15 MILLION BBL
GAS RESERVES: 140 BCF

Due to lobbying by the Czech Central Bank, the government moved to decontrol energy prices. In late 2000 a council of government, business, and labor leaders agreed to complete the deregulation of retail energy prices by the end of 2002.

Under the plan, electricity prices rose 15% and natural gas prices 10.9% for homeowners in 2000.

The government compromised from its original proposal to increase natural gas prices by 15%. In 2001, electricity prices were due to rise 14% and gas 7%, while in 2002 electricity would jump 13% and gas 5.7%.

In early 2001, the Czech Republic became a full member of the International Energy Agency, bringing the Paris-based energy watchdog's membership to 25 nations.

IEA said the Czech government had built its oil stocks to more than enough to cover 90 days of net imports.

In early 2001, the Czech government decided to sell its 71% stake in Paramo AS, a refinery at Pardubice producing heating oils and lubricants. The government's stake was valued at $23 million.

In upstream developments, Geocan Energy Inc., Calgary, signed a letter of intent to explore for oil and gas on the Rostin Block in the southeastern Czech Republic.

The deal, signed with local oil and gas producer Unigeo AS and Ceska Naftarska Spolecnost SRO, provided for joint participation in exploration drilling and development of the 151 sq km block. The 4-year exploration permit did not carry a seismic or drilling commitment.

Geocan would earn an 82% working interest before payout and a 70% working interest after payout. The block was in a multiple-zone oil and gas-producing basin. Wells were drilled on the block during 1972-85.