Why do entities holding oil tickets domestically need to address additional requirements? Why don’t offshore entities also have those requirements?
The Department of Industry, Science, Energy and Resources 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 reduction in 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.
What information will be required by entities applying in the registration?
All entities 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 entities 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 oil stock ticketing.
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 at oil stock ticketing.
All documents are due by the time and date listed on the website. This includes registration applications which must be received by the registration lodgement date of a tender round in which the applicant wishes to be considered.
Who should I contact for additional information?
All communication including questions must be sent to the department’s central contact point for this procurement at firstname.lastname@example.org
Questions that are sent to any other contact point (including to individuals within the department) may not be answered.
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 not to change the department’s template.
Changes may be considered on a limited basis only, at 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 registration lodgement date to be eligible to become registered to participate in the following tender.
Does my company need to be registered in order to participate in the RFT?
Yes. Only entities that have been successfully registered will be provided with details of, and invited to participate in, the RFT process.
My company tried to register after the registration lodgement date, can we participate in this procurement?
Entities must have registered successfully in order to participate in the RFT stage of the procurement. Registration applications must be received by the registration lodgement date of the tender round in which the applicant wishes to be considered.
Registration applications including accompanying documents must be lodged electronically at email@example.com by the 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.
When applications are received after the registration lodgement date of a tender round, they will be assessed for participation in subsequent tender rounds at the department’s earliest convenience.
Subject to successful registration, these entities may be able to participate in future procurements (if any), and are encouraged to visit oil stock ticketing for updates on future procurement rounds.
Where and when should I submit my registration application form?
All completed registration forms should be submitted via firstname.lastname@example.org
Applications must be provided to the department by the registration lodgement date and time published on our website to be eligible to be assessed for participation in that round. Entities are advised to visit oil stock ticketing for the dates of upcoming tenders.
While lodgement of these documents must occur by no later than this time, entities are strongly encouraged to submit their registration application as early as possible. Registration applications will be processed in the order they are received.
Are entities operating in my country eligible for registration?
This 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, a government-to-government arrangement must be in place for the stock location by the registration lodgement date to be considered.
Where will my entity submit its tender?
Tenders will be processed through Australia’s centralised procurement system, AusTender. Entities are advised to register ahead of time on the AusTender page in order to streamline the RFT process.
What volume of stocks is Australia looking to procure?
The Australian Government aims to consistently hold up to 400,000 tonnes/metric tons (although that volume may be adjusted at the discretion of the Australian Government) of oil stock tickets for quarters between 1 July 2020 and 30 June 2021. Tenders will be run as required in order to procure these stocks. The minimum contract quantity is 10,000 tonnes/metric tons.
For what products is Australia looking to procure tickets?
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.
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.
- 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.
- Location: stock held in Australia is rated more highly, with lower ratings given the further the distance from Australia’s normal supply chains.
Entities that have registered successfully and are invited to participate in an RFT stage should read the RFT documents carefully when they access them to ensure they understand the criteria that will be used in evaluating the tenders.
What registration and RFT results will be published?
It is not the department’s intention to publish any details of the entities that are successfully registered, or the RFT results.
Can ticketed stocks be used 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.