Nippon Oil inks deal with New Zealand

Japan’s Nippon Oil Corp. has signed a deal to provide New Zealand with crude oil in case of a crisis. The agreement, covering 2009, allows New Zealand to purchase up to 84,000 kiloliters of crude oil, equivalent to five days of the nation’s consumption, at market prices, said a report. New Zealand has an obligation as a member of the International Energy Agency (IEA) to hold 90 days of emergency petroleum stocks and also holds contracts for reserve stocks in Australia, the Netherlands and the United Kingdom. The previous government recently signed a bilateral treaty with Japan which includes an undertaking by Japan not to impede the release of stocks to New Zealand in the event of an emergency. (December 3, 2008)