Oil stocks agreement signed with the Netherlands

New Zealand and the Netherlands signed a treaty today which allows New Zealand to hold some of its emergency oil reserves in the Netherlands.

As a member of the International Energy Agency (IEA) New Zealand has an obligation to hold 90 days of emergency petroleum stocks. New Zealand's stocks are held under 'ticket' contracts, which provide the Government with an option to purchase petroleum in the event of an IEA-declared emergency.

The treaty with the Netherlands includes an undertaking by the Netherlands not to impede release of stocks to New Zealand in the event of an emergency.

The bilateral treaty was signed in Wellington by Energy Minister David Parker and Her Excellency Ms Rasha H.E. ter Braack, Ambassador to New Zealand.

"On behalf of the New Zealand Government, I would like to thank the Netherlands for its cooperation in finalising this treaty," Mr Parker said.

"New Zealand's emergency reserve target is an important measure that will ensure New Zealand is prepared if international oil supplies are disrupted. It complements other short and long-term measures outlined in the New Zealand Energy Strategy," Mr Parker said.