Oil stock ticketing - procurement FAQs

1. Why do companies holding oil tickets domestically need to address additional requirements? Why don’t offshore companies also have those requirements?

The department needs to ensure that it achieves value for taxpayers’ money when purchasing oil tickets.

In the absence of an industry stockholding obligation, there is no guarantee that oil ticketed stock held in Australia is ‘additional’, that is, above what would have occurred under business as usual. To ensure value for money and reduce Australia’s compliance gap, an ‘additionality’ test needs to be imposed on domestic oil tickets.

Oil tickets purchased from overseas are automatically counted by the International Energy Agency (IEA) as additional to Australia’s domestic stocks and accordingly reduce Australia’s compliance gap.

2. What information will be required by companies applying in the registration?

All companies submitting an application in the registration process will be required to provide information to determine that the entity is established, reputable and financially stable.

Australian entities will also need to provide documents with information on where the stock will be stored and how it is ‘additional’ to previous and forecast commercial oil stocks.

All companies considering submitting a response in the registration stage should review the registration documentation as it outlines the information that needs to be provided.

The registration documentation is available at www.energy.gov.au/government-priorities/international-activity/oil-stock-ticketing

3. When do registration applications and RFT tenders need to be submitted by?

Details of the timing of each stage of this procurement process can be found on our website www.energy.gov.au/government-priorities/international-activity/oil-stock-ticketing

All documents are due by 11.00am, local time in Canberra (01.00am GMT time) on the day of the stage closure that is listed on the website.

4. Who should I contact for additional information?

All communication including questions must be sent to the department’s central contact point for this procurement, oil.tickets [at] environment.gov.au. If you have any queries, please do not hesitate to contact this email address.

Questions that are sent to any other contact point (including to individuals within the Department) may not be answered.

5. Can the oil stock ticket contract or general terms and conditions be modified?

Registration applicants may request amendments to the relevant template oil stock ticket contract or general terms and conditions.

However, as stated in the registration document, the department’s strong preference is for no changes to be made to the department’s template.

Changes may be considered on a limited basis only, in the department’s absolute discretion.

Among other requirements, applicants must have reached in-principle agreement with the Department on the terms of the relevant template oil stock ticket contract and the general terms and conditions by the end of the clarification period to be eligible to participate in the following tender.

6. Does my company need to be registered in order to participate in the RFT?

Yes. Only companies that have been successfully registered prior to closure of the clarification period will be provided with details of, and invited to participate in, the RFT process.

7. My company tried to register after the clarification period, can we participate in this procurement?

No. Companies must have been successfully registered prior to the closure of the clarification period in order to participate in the RFT stage of the procurement.

Companies that register after the clarification period may be able to participate in any future procurements (if any), and are encouraged to visit www.energy.gov.au/government-priorities/international-activity/oil-stock-ticketing for updates on future timings.

8. Where and when should I submit my registration application form?

All completed registration forms should be submitted via oil.tickets [at] environment.gov.au.

While lodgement of these documents must occur no later than 09.00am, local time in Canberra on 16 July 2018 (23:00, 15 July 2018 GMT time), you are strongly encouraged to submit your registration application as early as possible. Registrations applications will be processed in the order that they are received.

9. Are companies operating in my country eligible for registration?

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*
  • 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 tender closing time 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.

10. Where will my company submit its tender?

Tenders will be processed through Australia’s centralised procurement system, AusTender. Companies are advised to register ahead of time on the AusTender page in order to streamline the RFT process.

11. What volume of stocks is Australia looking to procure?

The volume of tickets being sought through this procurement for is up to 400,000 metric tonnes (although that volume may be adjusted at the discretion of the Australian Government) with a minimum contract quantity of 10,000 metric tonnes.

12. What products is Australia looking to procure tickets for?

Stocks can be crude oil, condensate or petroleum products (gasoline, jet, gas oil, fuel oil and any oil), and must be able to be counted towards the IEA 90-day stock compliance.

13. What are the criteria upon which tenders will be assessed?

Tenders will be assessed to determine whether they represent value for money through the criteria below in the following order of priority:

  1. price: this covers all costs, fees allowances and charges associated with the implementation and completion of contract obligations. This includes the cost of the ticket and cost implications for ticket terms and quantities; and
  2. location: stock held in Australia is rated more highly, with lower ratings the further the distance from Australia’s normal supply chains.

Companies that have been successfully registered and are invited to participate in the RFT stage should read the RFT documents carefully when they access them to ensure they understand the criteria that will be used in evaluation of tenders.

14. Can ticketed stocks be utilised by the host country in the event of a domestic fuel shortage?

No. 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. This means that ticketed stocks must remain in reserve throughout the duration of the contract.