The Department of the Environment and Energy is running a procurement process in order to consistently hold up to 400,000 tonnes of oil stock tickets for the Australian Government 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 IEA 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.
Documents available for download:
- oil stock ticketing - registration
- oil stock ticketing - request for tender
- oil stock ticketing - offshore contract
- oil stock ticketing - onshore contract
- oil stock ticketing - general terms and conditions
(for sale and purchase of oil stock under a purchase option exercised pursuant to an oil stock ticket contract)
The approach to market process has 2 stages:
- 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 must also create an account on AusTender to participate in future requests for tender.
- A request for tender (RFT), where successfully registered applicants may submit tender offers to hold stocks.
The department will notify applicants and tenderers of any future tender rounds on this website. The department will run future tenders as required to maintain a maximum of 400,000 tonnes of oil stock tickets for the duration of the period 1 October 2018 to 30 June 2020. Three procurement processes have been finalised.
Indicative timetable for Round 4 procurement
All times are Australian Eastern Daylight Time (AEDT).
- Registration lodgement date to participate in Round 4 RFT: 23.59 on 18 October 2019
- Notification to applicants of registration outcome: on or before 28 October 2019
- RFT open date: 09.00 on 29 October 2019
- Tender closing time: 17.00 on 5 November 2019
- Notification of Round 4 tender outcome: on or before 15 November 2019
The above timetable is indicative only and is subject to change at the department’s absolute discretion. The department will use this website to provide updates on any changes to key dates and any updates on the government-to-government arrangements.
The registration process is open to:
- entities offering to hold stocks in Australia
- entities 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
- The Netherlands
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 registration lodgement date for a tender to be considered.
*A treaty has been signed with Hungary and is progressing toward entry into force. The governments of Australia and Hungary have agreed to allow ticketing to occur under the signed treaty.
Registration lodgement period
Registrations are currently open and the department welcomes applications for registration. Registration applications including accompanying documents must be lodged electronically at oil.tickets [at] environment.gov.au.
Registrations for new participants must be lodged by 18 October 2019 for the applicant to be eligible to participate in the RFT commencing 29 October 2019.
All applications must be lodged in English, to allow the department to process applications without delay. If applications and supporting documents are not lodged in English, the department may be unable to register new participants.
On receipt of applications, the department will process them in the order they are received and will seek any clarifications the department deems necessary from the applicant.
Applicants are encouraged to submit their applications early, to ensure there is enough time to clarify information and contractual details, if required.
Notification of registration outcome
The department will notify applicants of their registration outcome on or before 28 October 2019.
If an applicant is successfully registered, they will be able to participate in future RFTs as long as they remain registered.
In order to participate in the RFT, successful applicants will need to create an account with AusTender, the Australian Government’s AusTender website.
Request for tender
Round 4 volume and ticket start date
The department is seeking tenders from registered entities to secure up to 400,000 tonnes of oil tickets per calendar quarter, ending 30 June 2020. Details of exact volumes (in tonnes) sought in each of the quarters is shown below.
Tenders beyond Q2 2020 are not sought at this time.
Q1 2020: 180,000
Q2 2020: 180,000
Lodgement of tenders and notification of results
Tenders will be required to be lodged via the Australian Government’s AusTender website: www.tenders.gov.au.
All tenders must be lodged in English, to allow the department to process lodgements without delay. If tenders are not lodged in English, the department may be unable to assess the offers.
The department intends that the Round 4 RFT will be open from 29 October 2019 to 5 November 2019.
The department intends to notify tenderers of the outcome of their tenders on or before 15 November 2019.