Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Oil reserves secure for 2008

9 December, 2007

Oil reserves secure for 2008

New Zealand has secured contracts for additional oil reserves in Australia, Japan and the Netherlands for 2008, the Ministry of Economic Development announced today.

Secured through a global tender, the contracts ensure that New Zealand is able to meet its obligations as a member of the International Energy Agency (IEA). One of the main obligations of membership is to hold minimum oil stocks equivalent to 90 days of the previous year’s net imports.

The additional oil reserves are held under “ticket” contracts, which provide the Government with the option to purchase petroleum in the event of an IEA-declared emergency, so as to minimise the effects of such a disruption on New Zealand.

The tickets for 285,000 tonnes of crude oil, petrol and diesel for 2008 were secured for US$5 million.

This is the first year New Zealand has completed a contract for stocks in Japan. This follows the signing of a bilateral treaty with Japan in November, enabling stocks held there to be counted towards New Zealand’s IEA obligations.

New Zealand also has bilateral agreements with Australia, the United Kingdom, and the Netherlands.

The IEA is an autonomous intergovernmental body within the OECD in Paris. It is committed to advancing security of energy supply, economic growth, and environmental sustainability through energy policy co-operation. Most members of the OECD are also members of the IEA. New Zealand joined the IEA in 1975.

In March 2005, Cabinet agreed that the Government should tender for oil stocks to meet the IEA’s 90 days reserve obligation. The Government’s bilateral arrangements with the governments of Australia, Japan, the UK and the Netherlands require New Zealand to seek approvals for proposed quantities of tickets, and for host governments to undertake to not impede the release of stocks to New Zealand in the event of an emergency.

Increased domestic production following the start up of the Pohokura condensate and Tui oil fields means that the amount of reserves the Government needs to secure off shore has reduced. Depending on the timing of new crude oil production streams in New Zealand, a tender may be required for stocks in 2009, although by 2010 the increases in domestic oil production from Tui, Maari and Pohokura may mean no additional reserves are required.

New Zealand’s total 90 days obligation for 2007 was 1.4 million tonnes and in 2008 it is 1.2 million tonnes. The majority of these reserves are commercial stocks held by companies in the petroleum sector.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

PM's Press Conference: Pike Re-Entry Agency

At today's post-cabinet press conference Prime Minister Jacinda Ardern was joined by Minister Responsible for Pike River Re-entry Andrew Little to announce plans for the new agency for re-entry of the mine.

The Pike River Recovery Agency, Te Kahui Whakamana Rua Tekau ma Iwa, will be officially established on 31 January 2018 and will work with the Pike River families with the intention of manned entry of the drift before March 2019. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>


Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>


Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>


Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>





Featured InfoPages

Opening the Election