Oil Stocks Agreement Signed With Japan

New Zealand and Japan signed a treaty today which allows New Zealand to hold some of its emergency oil reserves in Japan.

The bilateral treaty was signed in Wellington by Energy Minister David Parker and His Excellency Mr Toshihiro Takahashi, the Japanese Ambassador to New Zealand.

"On behalf of the New Zealand Government, I would like to thank Japan for its cooperation in finalising this treaty," Mr Parker said.

"The agreement will help diversify New Zealand's stock locations and strengthen our mutual commitment to improving global oil security.

"The agreement is also an example of the type of cooperation that can strengthen energy security in the Asia-Pacific region," Mr Parker said.

New Zealand has an obligation as a member of the International Energy Agency (IEA) to hold 90 days of emergency petroleum stocks. It currently holds contracts for reserve stocks in Australia, the Netherlands and the United Kingdom. The contracts provide the Government with an option to purchase petroleum in the event of an IEA-declared emergency.

The bilateral treaty with Japan includes an undertaking by Japan not to impede release of stocks to New Zealand in the event of an emergency.

New Zealand recently let a global tender for an additional 100,000 tonnes of oil and petroleum to ensure that New Zealand meets its emergency reserve obligation in 2008. This tender will complement stocks already secured for 170,000 tonnes of petrol and diesel for 2008.

"New Zealand's emergency reserve target is an important measure that will ensure New Zealand is prepared if international oil supplies are disrupted. It complements other short and long-term measures outlined in the Government's recently released Energy Strategy," David Parker said.

ENDS

© Scoop Media