New Zealand’s oil reserves target met for 2012

New Zealand has secured oil reserves for 2012 that ensure the country will continue to meet its international obligations, Energy and Resources Minister Phil Heatley announced today.

“As a member of the International Energy Agency, New Zealand is required to hold 90-days of stock of the previous year’s net oil imports,” says Mr Heatley.

“New Zealand's total 90-day obligation for 2012 is 1.1 million tonnes. The majority of these reserves are commercial stocks held by companies in the oil and gas sector,” says Mr Heatley.

Oil reserves are secured through a global tender, with stocks held under 'ticket' contracts that provide the government with an option to purchase crude oil and petrol petroleum in the event of an IEA-declared emergency.

“Tickets have been secured from Japan, Netherlands and the United Kingdom for 146,000 tonnes of stock in 2012. The reserves include both petrol and crude oil,” says Mr Heatley.

“This requirement compares with volumes of around 100,000 tonnes in the last three years (2009, 2010 and 2011), 285,000 tonnes in 2008, and 461,000 tonnes held in 2007.

“I am very pleased that New Zealand will continue to be in full compliance with its IEA obligations,” says Mr Heatley.

New Zealand has bilateral arrangements with Australia, Japan, the United Kingdom and the Netherlands that enable negotiations for ticket contracts for oil stocks held in those countries to be counted towards New Zealand's IEA obligations.

"I would like to thank the Governments of Japan, the Netherlands and the United Kingdom for their help and cooperation to enable New Zealand to meet its stock holding obligations for 2012,” says Mr Heatley.