Malta, France sign agreement on crude oil, petroleum products stock maintenance

Any disruption in the supply of such products imported from outside the European Union, or a significant increase in their price on international markets could upset the economic activity of the Union. Thus, it is imperative that all Member States within the European Union ensure the availability of an adequate level of emergency oil stocks and safeguard the energy supply. Based on solidarity amongst Member States, Council Directive 2006/67/EC of 24 July 2006 imposes an obligation on Member States to maintain minimum stocks of crude oil and/or petroleum products such that the European Union would be in the position of alleviating any harmful effects in such a case.

Oil stocks may be held in any location across the European Union. Due to the excellent relations between France and Malta, the Agreement on the Maintenance of Stocks of Crude Oil and Petroleum Products between the French government and Malta was initialled by minister George Pullicino and Eric Besson, Minister for Industry, Energy and the Digital Economy at the Ministry of Economy, Finance and Industry of France. The final agreement will be signed by the two countries shortly.

This agreement lays down conditions for the maintenance of oil stocks with the aim of safeguarding control and availability of these stocks and specifies the arrangements for statistical reporting of such stocks. The State on whose territory the stocks are held under this agreement shall not oppose the transfer of these stocks to the other State during emergencies, but it shall monitor and inspect such stocks in accordance with the procedures specified in this agreement. Moreover, this agreement is in force for an unlimited time period and, although, a provision is made for unilateral termination, this shall not apply without prior notice to the Commission or during a period of supply crisis.