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Droplets of oil fall from a pump - Source: Reuters
The government has reached arrangements to ensure the country doesn't run out of oil.
Energy Minister Gerry Brownlee says adequate reserves have been secured through an international tender.
Under International Energy Agency rules, the country must hold the equivalent of 90 days worth of oil imports - approximately 100,000 tonnes of crude.
Brownlee says the reserves have been secured by global tender and will not cost as much as last year. The stocks are held under eticket contracts, which give the government an option to buy petroleum in the event of an international energy crisis.
The Energy Minister says burgeoning oil production in New Zealand is saving the country millions of dollars a year in emergency stocks and we are tendering for less imported oil each year.
It means the cost of holding the stock is down from over $11 million in 2007 to less than $2 million in 2010.
"With the Maari, Tui and Kupe fields on stream, it's likely currently levels of production will be maintained or increased in coming years," says Brownlee.
