Oil stock ticketing

Addenda

Please note that addenda to the oil ticket procurement process can be found here. All potential Respondents should ensure they read any addenda carefully.

About ticketing

The Department of the Environment and Energy (Department) is running a process to procure up to 400,000 metric tonnes of oil tickets for the Australian Government to be held from 1 October 2018 to 30 June 2020. An oil stock ticket is a contractual right to purchase or release oil, where the seller agrees to reserve a predetermined amount of oil for the period of the contract, in return for an agreed fee.

During an International Energy Agency (IEA) declared global oil emergency (known as a collective action), a ticket would give Australia the option to either purchase the reserved oil outright or to release the oil to market by cancelling the ticket, helping to ease the disruption in the oil market.

This procurement is part of the government’s plan for returning to compliance with the IEA’s 90 day oil stockholding requirement (for further information see the International Energy Agency program treaty).

If you have any questions about the oil ticketing procurement process, please read the Oil stock ticketing - procurement FAQs or email oil.tickets [at] environment.gov.au.

Procurement process

Documents available for download:

The approach to market process has 2 stages:

  1. A registration process, where applicants submit information about their business and have the opportunity to review the Department’s template “Oil stock ticket contracts and general terms and conditions”. If an applicant is successfully registered, they can pre-register on AusTender to participate in the request for tender.
  2. A request for tender (RFT), where successfully registered applicants may submit tender offers to hold stocks.

The Department will notify applicants and tenderers of future approaches to market on this website. The Government will run future tenders quarterly as required to maintain a maximum of 400,000 metric tonnes of stock tickets for the duration of the period 1 October 2018 to 30 June 2020.

Indicative timetable for initial (Round 1) procurement

All times are Canberra time.

  • Registration open date: 7 June 2018
  • Registration lodgement date: 10.00am, local time in Canberra (12.00am GMT time) on 11 July 2018
  • Clarification period: 11 July to 27 July 2018
  • Registration process close date: 27 July 2018
  • Notification to applicants of registration outcome: on or before 27 July 2018
  • Successful registrants to pre-register for the RFT on AusTender: on or before 30 July 2018
  • RFT open date: 30 July 2018
  • Tender closing time: 10.00am, local time in Canberra (12.00am GMT time) on 3 August 2018
  • Notification of Round 1 tender outcome: on or before 17 August 2018

The above timetable is indicative only and is subject to change at the Department’s absolute discretion. The Department will use this website to notify applicants for registration and tenderers of changes to key dates as well as any updates on the government-to-government arrangements.

Eligibility

This 2018 Registration process is open to:

  • Companies offering to hold stocks in Australia; and
  • Companies offering to hold stocks in a country that has a government-to-government arrangement between the Australian Government and the host government.

At present, the following countries have a government-to-government arrangement with the Australian Government:

  • United States
  • United Kingdom
  • Germany
  • The Netherlands*

A Government-to-Government arrangement is being finalised with Denmark, and suppliers with stocks held there are encouraged to consider submitting an application in the Registration process. Arrangements are also being negotiated with a number of other countries.

Potential suppliers are encouraged to visit this page periodically to receive updates on the status of future government-to-government arrangements. Please note that a government-to-government arrangement must be in place for the stock location by the RFT open date for a tender to be considered.

*A Treaty has been signed with the Netherlands and it is anticipated that it will enter into force in time for first round contract commencement on 1 October 2018. The Governments of Australia and the Netherlands have agreed to allow ticketing to occur under the signed treaty.

Registration

Registration lodgement period

Registration applications including accompanying documents must be lodged electronically at oil.tickets [at] environment.gov.au by the registration lodgement date.

The Round 1 registration lodgement period will open at 10.00am, local time in Canberra (12.00am GMT time) on 7 June 2018 and close at 10.00am, local time in Canberra (12.00am GMT time) on 11 July 2018 (registration lodgement date).

Applicants are encouraged to submit their applications early, to ensure there is enough time to clarify information and contractual details, if required.

Applications received after the registration lodgement date will not be eligible for the current tender process, however, they will be processed following the closure of this procurement and will be eligible to participate in future tenders.

Clarification period

The Department will process applications for registration and seek any clarification during the Round 1 clarification period from 11 July 2018 to 27 July 2018.

Notification of registration outcome

The Department will notify applicants of their Registration outcome on or before 27 July 2018.

If an applicant is successful through the registration, they will be able to participate in this and any future RFTs so long as they remain registered.  

In order to participate in the RFT, successful applicants will need to pre-register with AusTender, the Australian Government’s AusTender website: https://www.tenders.gov.au/.

Request for tender (RFT)

Volume and ticket start date

The Department intends to seek tenders from applicants that have been successful in registration to secure contracts for up to 400,000 metric tonnes of oil tickets, commencing 1 October 2018. Individual contracts must be for a minimum of 3 months and 10,000 metric tonnes of oil tickets.

Lodgement of tenders and notification of results

Tenders will be required to be lodged via the Australian Government’s AusTender website: https://www.tenders.gov.au/.

The Department intends that the Round 1 RFT will be open from 30 July to 3 August 2018.

The Department intends to notify tenderers of the outcome of their tenders on or before 17 August 2018.