New Zealand’s Oil Ticket Contracts for 2013/2014

Media release

Tuesday, 9 April 2013

New Zealand’s Oil Ticket Contracts for 2013/2014

New Zealand has secured ticket contracts from Japan and the Netherlands to help meet its international oil stockholding obligations for 2013-2014.

As a member of the International Energy Agency (IEA), New Zealand is required to hold 90-days of stock, measured on the previous year’s net oil imports, should there be an international disruption impacting oil markets.

New Zealand currently meets its obligation through a combination of indigenous production, domestic inventories and ticket contracts.

“Crude oil tickets totalling around 155,000 tonnes have been secured from Japan and the Netherlands for 2013-2014,” says Simon Lawrence, Acting Manager Energy Markets, Ministry of Business, Innovation and Employment.

“This allows New Zealand to continue to meet its obligations as an IEA member and to hold oil stocks that will mitigate the impacts of international oil market shortages should they occur.”

Last year the volume of the obligation under ticket contracts totalled 150,000 tonnes and approximately 100,000 per annum for the three years prior to that (2009, 2010 and 2011). A high of 461,000 tonnes was required to be held in 2007.

Ticket contracts provide the government with an option to purchase crude oil in the event of an IEA-declared oil market emergency. New Zealand has bilateral arrangements with Australia, Denmark, Japan, the Netherlands and the United Kingdom that enable negotiations for ticket contracts for oil stocks held in those countries to be counted towards New Zealand's IEA obligations. Tickets are secured through a global tender.

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