Oil stock ticketing

About ticketing

The Department of the Environment and Energy (Department) is running a procurement process in order to consistently hold up to 400,000 metric tonnes of oil 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.

Procurement process

Documents available for download:

  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 any future tender rounds 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. The Round 1 procurement has now been finalised.

Indicative timetable for the Round 2 procurement

All times are GMT time.

  • Registration Lodgement Date for Round 2 Procurement: 23.00 GMT time on 30 October 2018
  • Notification to applicants of registration outcome: on or before  8 November 2018
  • RFT open date: 9 November 2018
  • Tender closing time: 23.00 GMT time on 15 November 2018
  • Notification of Round 2 tender outcome: on or before 26 November 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:

  • Entities offering to hold stocks in Australia; and
  • 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
  • Germany
  • The Netherlands*
  • Denmark

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 the Netherlands and is progressing toward ratification. The Governments of Australia and the Netherlands have agreed to allow ticketing to occur under the signed treaty.

Registration

Registration lodgement period

The Department welcomes applications for registration, however, registration applications must be received by the Department by the Registration Lodgement Date to be eligible for assessment for the upcoming tender round. When applications are received after the Registration Lodgement Date for a tender round, they will be assessed for participation in subsequent tender rounds. Registration applications including accompanying documents must be lodged electronically at oil.tickets [at] environment.gov.au by the Registration Lodgement Date.

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 8 November 2018.

If an applicant is successfully registered, they will be able to participate in this and any future RFTs as 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.

Request for tender (RFT)

Round 2 volume and ticket start date

The department is seeking tenders from successful applicants to secure contracts for up to 400,000 metric tonnes of oil tickets. Details of exact volumes (in metric tonnes) sought per Round 2 calendar quarter can be found in Table 1 below. Tenders beyond Q1 2020 are not sought at this time.

Table 1 - Round 2 oil ticket volumes by quarter (metric tonnes)
Q2 2019 Q3 2019 Q4 2019 Q1 2020
240,000 240,000 400,000 400,000

Lodgement of tenders and notification of results

Tenders will be required to be lodged via the Australian Government’s AusTender website.

The department intends that the Round 2 RFT will be open from 9 November to 15 November 2018.

The department intends to notify tenderers of the outcome of their tenders on or before 26 November 2018.