MAINTENANCE OF MINIMUM STOCKS OF CRUDE OIL AND, OR PETROLEUM PRODUCTS REGULATIONS

SUBSIDIARY LEGISLATION 545.09

MAINTENANCE OF MINIMUM STOCKS

OF CRUDE OIL AND, OR PETROLEUM

PRODUCTS REGULATIONS

31st December, 2012 *

LEGAL NOTICE 109 of 2013, as amended by Act XXV of 2015, Legal

Notices 234 of 2017 and 156 of 2019.

(1) The title of these regulations is the Maintenance of

M i n i m u m St o c k s o f C r u d e O i l a n d , o r P e t r o l e u m P r o d u c t s

Regulations.

(2) The scope of these regulations is to transpose Directive

2009/119/EC imposing an obligation on Member States to maintain

minimum stocks of crude oil and, or petroleum products.

(3) These regulations provide rules aimed at ensuring a high

level of security of oil supply through reliable and transparent

m e c h a n i s m s b a s e d o n s o l i d a r i t y a m o n g s t M e m b e r St a t e s ,

maintaining minimum stocks of crude oil and, or petroleum

products and putting in place the necessary procedural means to

deal with a serious shortage.

In these regulations, unless the context otherwise requires

"the Act" means the Regulator for Energy and Water Services

Act;

"additives" means non-hydrocarbon compounds added to or

blended with a product to modify its properties;

"biofuel" means liquid or gaseous fuel for transport produced

from biomass, being the biodegradable fraction of products, waste

and residues from agriculture (including vegetable and animal

s ub s t a n c e s ), f o re s tr y a n d r e l at e d i n du s t ri e s , a s w e l l a s t h e

biodegradable fraction of industrial and municipal waste;

"central stockholding entity" means the body or service upon

which powers may be conferred to act to acquire, maintain or sell

oil stocks, including emergency stocks and specific stocks,

hereinafter referred to as "CSE";

"commercial stocks" means those oil stocks held by economic

operators which are not a requirement under these regulations;

"the Commission" means the European Commission established

by the Treaty on the Functioning of the European Union as

amended by the Lisbon Treaty, 2009;

"the Community" means the European Community established

by the Treaty on the Functioning of the European Union as

amended by the Lisbon Treaty, 2009;

*see regulation 1(4) of these Regulations as originally promulgated.

"Coordination Group" means the consultative group established

by Directive 2009/119/EC to contribute to analysing the situation

within the Community with regard to security of supply for oil and

petroleum products and to facilitate the coordination and

implementation of measures in that field;

"economic operator" means any person, body or entity required

to hold emergency stocks under these regulations;

"effective international decision to release stocks" means any

decision in force taken by the Governing Board of the International

Energy Agency to make crude oil or petroleum products available

to the market by a release of its members’ stocks and, or additional

measures;

"emergency stocks" means the oil stocks that are required to be

maintained pursuant to regulation 3;

"Governing Board of the International Energy Agency" means

the Governing Board of the International Energy Agency (IEA), the

inter-governmental organisation established by means of the

A g r e e m e n t o n a n I n t e r n a t i o n a l E n e r g y P r o g r a m ( " I . E . P.

Agreement");

"inland consumption" means the total quantities, calculated

according to the Second Schedule, delivered within a country for

both energy and non-energy use. This aggregate includes deliveries

to the transformation sector and deliveries to industry, transport,

households and other sectors for ‘final’ consumption. It also

includes the own consumption of the energy sector (except refinery

fuel);

"international marine bunkers" means the quantities of fuels

delivered to ships of all flags that are engaged in international

navigation. The international navigation may take place at sea, on

inland lakes and waterways, and in coastal waters. The following

shall be excluded

(a) consumption by ships engaged in domestic navigation.

The domestic or international split should be

determined on the basis of port of departure and port

of arrival, and not by the flag or nationality of the

ship;

(b) consumption by fishing vessels;

(c) consumption by military forces;

"major supply disruption" means a substantial and sudden drop

in the supply of crude oil or petroleum products to the Community

or to a Member State, irrespective of whether or not it has led to an

effective international decision to release stocks;

"the Minister" means the Minister responsible for resources;

" M e m b e r St a t e " m e a n s a s t a t e w h i c h i s a m em b e r o f t h e

European Union;

"oil stocks" means stocks of the energy products listed in Chapter

4 of Annex A to Regulation (EC) No 1099/2008;

"physical accessibility" means arrangements for locating and

transporting stocks to ensure their release or effective delivery to

end users and markets within time frames and conditions conducive

to alleviating the supply problems which may have arisen;

"reference year" means the calendar year of the consumption or

of the net import data used to calculate either the stocks to be held

or the stocks actually held at a given time;

"Regulation (EC) No 1099/2008" means Regulation (EC) No

1099/2008 of the European Parliament and of the Council on

energy statistics;

"the Regulator" means the Regulator for Energy and Water

Services established by the Act;

"specific stocks" means oil stocks which meet the criteria set out

in regulation 9.

3. (1) Economic operators shall carry out any necessary

measures as directed by the Regulator in pursuance of the national

obligation that the total oil stocks maintained at all times

correspond, at the very least, to ninety days of average daily net

imports or sixty-one days of average daily inland consumption,

whichever of the two quantities is greater. The Regulator may, from

time to time, adopt such administrative measures, as it may deem

necessary, to ensure the fulfilment of such national obligation. The

Regulator shall calculate the total oil stocks which shall be

maintained at all times by each economic operator as required by

the Regulator to be held by them

Provided that, until the 31st December 2014, the total oil

stocks maintained shall at all times correspond, at the very least, to

eighty-one days of average daily net imports.

(2) The average daily net imports to be taken into account shall

be calculated on the basis of the crude oil equivalent of imports

during the previous calendar year, determined in accordance with

the method and procedures set out in the First Schedule. The

average daily inland consumption to be taken into account shall be

calculated on the basis of the crude oil equivalent of inland

consumption during the previous calendar year, established and

calculated in accordance with the method and procedures set out in

the Second Schedule.

(3) Without prejudice to sub-regulation (2), the daily averages

of net imports and inland consumption, as referred to in that sub-

regulation, shall be determined, as regards the period from 1

January to 30th June of each calendar year, on the basis of the

quantities imported or consumed during the last year but one before

the calendar year in question.

(4) Notwithstanding any other provision under this regulation,

the Minister may decide that part of the oil-stocks to be maintained

at all times in pursuance of the national obligation referred to in

sub-regulation (1), are to be maintained by Government, under such

conditions which shall be communicated to the Regulator.

(1) The economic operator shall calculate the levels of

stocks held using the methods set out in the Third Schedule. When

calculating stock levels f or each category held pursuant to

regulation 9, those methods shall apply only to the products in the

category in question.

(2) The levels of stocks held at any given time shall be

calculated using data from the reference year determined in

accordance with the rules set out in regulation 3.

(3) Any oil stocks may be included simultaneously in both the

calculation of emergency stocks and the calculation of specific

stocks provided that those oil stocks satisfy all the conditions laid

down in these regulations for both types of stocks.

(1) At all times, economic operators shall ensure that

emergency stocks and specific stocks are available and physically

accessible for the purposes of these regulations. Econom ic

operators shall ensure that stocks are identifiable and accountable

and under their control and that such stocks may be verified at any

time. This requirement shall also apply to any emergency stocks

and specific stocks that are commingled with other stocks held by

economic operators.

(2) Economic operators shall take all necessary measures to

prevent all obstacles and encumbrances that could hamper the

availability of emergency stocks and specific stocks. The Regulator

may set limits or additional conditions on the possibility of

emergency stocks and specific stocks being held outside Malta.

( 3 ) W h e r e t h e r e i s r e a s o n t o i m p l e m e n t t h e e m e rg e n c y

procedures provided for in regulation 20, the Regulator shall

prohibit, and the economic operators shall refrain from taking, any

measure hindering the transfer, use or release of emergency stocks

or specific stocks held within Malta on behalf of another Member

State.

(4) The Regulator may issue any decision or give a directive as

it may deem necessary, and economic operators shall observe any

such decision or directive, to ensure that emergency stocks and

specific stocks are available and physically accessible for the

purposes of these regulations.

(1) The Regulator shall keep a continually updated and

detailed register of all emergency stocks held by Malta which do

not constitute specific stocks. Such register shall contain, in

particular, information needed to pinpoint the depot, refinery or

storage facility where the stocks in question are located, as well as

the quantities involved, the owner of the stocks and their nature,

with reference to the categories identified in Chapter 3.4 of Annex A

to Regulation (EC) No 1099/2008.

(2) By the 25th February of each year following the entry into

force of these regulations, the Regulator shall send to the

Commission a summary copy of the stock register referred to in

sub-regulation (1) showing at least the quantities and nature of the

emergency stocks included in the register on the last day of the

preceding calendar year.

(3) The Regulator shall also send to the Commission a full

copy of the register within fifteen days of a request made by the

Commission, and without prejudice to any data relating to any

period preceding the 1st January 2013, and may not bear upon data

relating to any period preceding the 1st January 2013. In this copy

sensitive data relating to the location of stocks shall be withheld.

(1) The Government may set up a CSE, provided that no

more than one CSE or any other similar body may be set up. The

Government may set up the central stockholding entity at any

location within the Community. When the Government sets up a

CSE, it shall take the form of a body or service without profit

objective and acting in the general interest, and it shall not be

considered to be an economic operator within the meaning of these

regulations.

(2) The main purpose of the CSE shall be to acquire, maintain

and sell oil stocks for the purposes of these regulations, or for the

purpose of complying with international agreements concerning the

maintenance of oil stocks. The CSE shall be the only body or

service upon which powers shall be conferred to acquire or sell

specific stocks.

(3) The Minister or the CSE may, for a specified period,

delegate tasks relating to the management of emergency stocks and,

with the exception of sale and acquisition, of specific stocks, but

only to

(a) another Member State within which territory such

stocks are located or the CSE set up by that Member

State. Tasks thus delegated shall not be sub-delegated

to other Member States or to CSEs set up by them;

(b) economic operators. Tasks thus delegated to economic

operators shall not be sub-delegated.

Where such a delegation, or any change or extension to that

delegation, involves tasks relating to the management of emergency

and specific stocks held in another Member State, economic

operators shall be authorised in advance by the Minister or the CSE

as the case may be, on whose account the stocks are held, and by all

Member States within which territories the stocks will be held.

(4) The CSE shall, for the purposes of regulation 8(1) and (3),

publish

(a) on an ongoing basis, full information, broken down by

product category, on the stock volumes that it may

undertake to maintain for economic operators, or,

where appropriate, interested CSEs

Provided that the CSE, in the case when stocks shall be

held within Malta, shall have the right to make the

delegation conditional upon its authorisation;

(b) at least seven months in advance, the conditions

subject to which it is willing to provide services

related to maintaining the stocks for economic

operators. The conditions under which services may be

provided, including conditions relating to scheduling,

shall also be determined by the Regulator or following

a competitive procedure intended to determine the best

bid among operators or, where appropriate, interested

central stockholding entities.

(5) The CSE shall accept such delegations under objective,

transparent and non-discriminatory conditions. Payments by the

operators for the services of the central stockholding entity shall

not exceed the full costs of the services rendered and may not be

required until the stocks are constituted. The CSE may make its

acceptance of a delegation conditional upon the operator ’s

provision of a guarantee or some other form of security.

(1) Any economic operator on which the Regulator

imposes stockholding obligations in order to fulfil its obligations

under regulation 3 shall have the right to delegate those obligations

at least in part and at the choice of the economic operator, but only

to

(a) if applicable, to the CSE; and, or

(b) one or more other CSEs of other Member States which

have in advance declared themselves willing to hold

such stocks, provided that such delegations have been

authorised in advance both by the Minister and by all

Member States within which territories the stocks shall

be held;

(c) other economic operators which have surplus stocks or

available stockholding capacity outside of the territory

of Malta and when the stocks are held within the

Community on account of the Minister, provided that

such delegation has been authorised in advance both

by the Minister and by all Member States within which

territories the stocks shall be held; and, or

(d) other economic operators which have surplus stocks or

available stockholding capacity within Malta,

provided that such delegation has been communicated

in advance to the Regulator. The Regulator may

impose limits or conditions on such delegations.

(2)

Obligations delegated in accordance with sub-regulation

(1)(c) and (d) may not b e sub-delegat ed. Any change t o or

extension of a delegation referred to in paragraphs (b) and (c) shall

only take effect if authorised in advance by the Minister and by all

Member States within which territories the stocks shall be held and

which authorised the delegation. Any change to or extension of a

delegation referred to in paragraph (d) shall be treated as a new

delegation.

(3) The Regulator may restrict the delegation rights of the

economic operators on which it imposes or has imposed

stockholding obligations

Provided that the Regulator may not limit the delegation

rights of an economic operator to amounts corresponding to less

than 10% of the stockholding obligation imposed on it, unless the

Minister has set up a CSE

Provided also that an economic operator shall have the right

to delegate at least 10% of the stockholding obligation imposed on

it to such CSE, which shall accept the delegation to it in respect

such amount

Provided further that the minimum percentage referred to in

this sub-regulation shall be increased from 10% to 30% by 31

December 2017.

(4) Without prejudice to the provisions of sub-regulations (1)

and (3), the Minister may impose an obligation on an economic

operator to delegate at least part of its stockholding obligation to

the CSE, if applicable, by means of an order published in the

Gazette.

(5) The Regulator shall inform economic operators of the

modalities to be used to calculate the stockholding obligations

imposed on them no later than two hundred days prior to the start of

the period to which the obligation in question relates. Economic

operators shall exercise their right to delegate stockholding

obligations to CSEs as applicable no later than one hundred and

seventy days prior to the start of the period to which the obligation

in question relates. Where economic operators are informed less

than two hundred days before the commencement of the period to

which the stockholding obligation relates, they may exercise their

right to delegate that obligation at any time.

(1) The Minister, after consultation with the Regulator,

may direct that a minimum level of oil stocks shall be maintained,

and calculated in terms of number of days of consumption, in

accordance with the conditions set out in this regulation. Specific

stocks shall be owned by the Government or the CSE set up by it

and shall be maintained either on the territory of Malta, and, or

other Member States, as the case may be.

(2) Specific stocks can only be composed of one or more of the

following product categories, as defined in Chapter 3.4 of Annex A

to Regulation (EC) No 1099/2008

(a) ethane;

(b) liquefied petroleum gas;

(c) motor gasoline;

(d) aviation gasoline;

(e) gasoline-type jet fuel (naphtha-type jet fuel or JP4);

(f)

kerosene-type jet fuel;

(g) other kerosene;

(h) gas/diesel oil (distillate fuel oil);

(i)

fuel oil (high sulphur content and low sulphur

content);

(j)

white spirit and SBP;

(k) lubricants;

(l)

bitumen;

(m) paraffin waxes;

(n) petroleum coke.

(3) Petroleum products constituting specific stocks shall be

identified by the Minister on the basis of the categories listed in

sub-regulation (2). The Minister shall ensure that, for the reference

year determined in accordance with the rules set out in regulation 3

and concerning the products included in the categories used, the

crude oil equivalent of quantities consumed in Malta is at least

equal to 75% of inland consumption calculated using the method

set out in the Second Schedule.

(4) For each of the categories chosen by the Minister, the

specific stocks undertaken to be maintained by the CSE shall

correspond to a given number of days of average daily consumption

measured on the basis of their crude oil equivalent during the

reference year determined in accordance with the rules set out in

regulation 3. The crude oil equivalents referred to in the sub-

regulations (1) and (2) shall be calculated by multiplying by a

factor of 1.2 the sum of the aggregate ‘observed gross inland

deliveries’, as defined in Section 3.2.2.11 of Annex C to Regulation

(EC) No 1099/2008, for the products included in the categories used

or concerned. International marine bunkers shall not be included in

the calculation.

(5) When the Minister has decided that specific stocks shall be

held by Malta, the Government shall send to the Commission a

notice to be published in the Official Journal of the European

Union, specifying the level of such stocks which the Minister has

undertaken to maintain and the duration of such undertaking which

shall be at least of one year. The notified minimum level shall apply

equally to all categories of specific stocks used by Malta.

(6) Such stocks shall be held for the full length of the notified

period without prejudice to the right of the Minister to authorise

temporary reductions to be undergone due solely to individual

stock replacement operations. The list of categories used by Malta

shall remain in effect for at least one year and may be amended

only with effect on the first day of a calendar month.

(7) In the case that the Government has not made a

commitment for the full length of a given calendar year to maintain

at least thirty days of specific stocks, at least one-third of the

stockholding obligation shall be held in the form of products

composed in accordance with sub-regulations (2) and (3).

(8) When less than thirty days of specific stocks are held, the

CSE shall draw up an annual report analysing the measures taken to

ensure and verify the availability and physical accessibility of its

emergency stocks as referred to in regulation 5. The CSE shall

document in the same report arrangements made to allow the

Government to control the use of these stocks in case of oil supply

disruptions. Such report shall be sent to the Minister and to the

Regulator fifteen days prior to the end of the first month of the

calendar year to which it relates.

(1) The CSE shall keep a continually updated and detailed

register of all specific stocks held within Malta. Such register shall

contain, in particular, all information needed to pinpoint the exact

location of the stocks in question. The CSE shall also send to the

Regulator a copy of the register within seven days of a request by

the Commission for a copy of such register. In this copy, sensitive

data relating to the location of stocks shall be withheld.

(2) Where specific stocks are commingled with other oil

stocks, the CSE shall prevent those commingled products from

being moved, to the extent of the proportion constituting specific

stocks, without the prior written authorisation of the Minister.

(3) The Minister shall take the necessary measures to confer

unconditional immunity from enforcement action on all specific

stocks maintained or transported within Malta, irrespective of

whether those stocks are owned by the Government or by other

Member States.

The delegations referred to in regulations 7 and 8 shall in

no way alter the obligations incumbent upon the Minister pursuant

to these regulations.

(1) With regard to the levels of stocks to be held pursuant

to regulation 3, the Regulator shall draw up statistical summaries

and submit them to the Minister in accordance with the rules set out

in the Fourth Schedule.

(2) The Regulator may not include quantities of crude oil or

pet roleum products w hich are subject to a seizure order or

enforcement action in its statistical summary of emergency stocks.

This also applies to stocks owned by companies that are bankrupt

or have entered into an arrangement with creditors.

(1) If applicable, the CSE shall draw up and submit to the

Minister and to the Regulator a statistical summary, for each

product category, showing the specific stocks existing on the last

day of each calendar month and specifying the quantities and the

number of days of average consumption in the reference year which

those stocks represent. If some of those specific stocks are held

outside Malta, it shall provide details of the stocks maintained in or

by the various Member States and central stockholding entities

concerned. It shall also provide a detailed indication of whether

Government owns all of those stocks or whether they are owned, in

whole or in part, by its CSEs, if applicable.

(2) If applicable, the Regulator shall also draw up and submit

to the Commission a summary of the specific stocks located within

Malta and owned by other Member States or CSEs in other Member

States, showing the stocks existing on the last day of each calendar

month and broken down into the product categories identified

pursuant to regulation 9(5). In that summary, the Regulator shall

also indicate, in each case, the Member State or central

stockholding entity concerned and the quantities involved.

(3)

The statistical summaries referred to in sub-regulations (1)

and (2) shall be submitted during the calendar month following that

to which they relate.

(4) Copies of the statistical summaries shall also be sent

immediately upon request by the Minister. Such requests may be

made no later than five years after the date to which the data in

question relate.

(1) The economic operator shall submit to the Regulator a

monthly statistical summary of the levels of commercial and

emergency stocks held within Malta. Any data should be provided

to the level of detail and categorisation requested by the Regulator

Provided that such detail and categorisation shall be

proportionate to the level required for the Regulator to fulfil its

reporting and verification obligations under these regulations.

(2) The data referred to in sub-regulation (1) shall reach the

Regulator by not later than the fifteenth day after the end of the

month for which the report is due, save as otherwise provided by

the Regulator. Such data shall be submitted in the form, manner or

format required by the Regulator, including in electronic form.

(1) When calculating stockholding obligations under

regulations 3 and 9, biofuels and additives shall be taken into

account only where they have been blended with the petroleum

products concerned.

(2) When calculating the stock levels actually maintained,

biofuels and additives shall be taken into account when

(a) they have been blended with petroleum products

concerned; or

(b) they are stored on the territory of Malta

Provided that such biofuels and additives shall be taken into

account only when legally binding obligations are in force ensuring

that biofuels are to be blended with petroleum products held

pursuant to stockholding requirements set out in these regulations

and that they are to be used in transportation.

(1) The Regulator or the CSE, as the case may be, shall

place sensitive data relating to the location of stocks at the disposal

of the Commission’s employees or its authorised agents within one

week of an order given in writing by the Minister in terms of this

sub-regulation.

(2) The Regulator and those responsible for maintaining and

managing emergency and specific stocks may be inspected and,

when inspected, they shall provide assistance to the persons

authorised by the Minister to perform reviews of emergency

preparedness and stockholding. Those persons shall be granted in

particular the right to consult all documents and registers relating

to the stocks and have right of access to all sites on which stocks

are held and to all related documents.

(3) Officials, agents and other persons working under

Commission supervision and members of the Coordination Group

shall not disclose any information which has been gathered or

exchanged pursuant to this regulation and which, by its nature, is

covered by professional secrecy, such as the identity of the owners

of stocks.

(4) The Regulator, economic operators and if applicable the

CSE shall preserve all data, records, summaries and documents

relating to emergency stocks and specific stocks for a period of at

least five years.

These regulations shall be without prejudice to, and shall

in no way affect, the level of protection of individuals with regard

to the processing of personal data under the Data Protection Act.

(1) The Minister may direct in writing the Regulator and if

applicable the CSE to release quickly, effectively and transparently

some or all of the emergency stocks and specific stocks in the event

of a major supply disruption, and to impose general or specific

restrictions on consumption in line with the estimated shortages,

inter alia, by allocating petroleum products to certain groups of

users on a priority basis.

(2) The Regulator shall at all times have contingency plans to

be implemented in the event of a major supply disruption and shall

provide for organisational measures to be taken to allow those

plans to be implemented. Upon request, the Regulator shall inform

the Commission of contingency plans and of the corresponding

organisational arrangements.

(3) In the event of an effective international or Community

decision to release stocks affecting Malta, the Minister may direct

in writing to the Regulator to order economic operators and the

C S E t o u s e e m e rg e n c y s t o c k s a n d s p e c i f i c s t o c k s t o f u l f i l

international obligations under that decision. In so doing, the

Minister shall notify the Commission immediately.

(4) The Minister may direct in writing the Regulator to order

economic operators to release emergency and specific stocks below

the compulsory minimum level set by these regulations in amounts

immediately necessary for an initial response in cases of particular

urgency or in order to meet local crises. In the event of such

release, the Minister shall inform the Commission immediately of

the amount released.

(5) Where sub-regulations (3) or (4) are applied, the Minister

may direct in writing to the Regulator to order economic operators

and the CSEs, as may be applicable, to temporarily permit that

stocks are held at levels lower than those stipulated by these

regulations.

(6) As from 1 January 2013, economic operators and the CSEs,

as may be applicable, shall retain data and documentation relating

to stocks, held for the purpose of these regulations, for a period of

time of at least five years.

(1) The Regulator may impose an administrative fine in

terms of the Act upon any person who infringes any provision of

these regulations or who fails to comply with any directive or

decision given by the Regulator in ensuring compliance with these

regulations.

(2) Without prejudice to sub-regulation (1), an economic

operator who -

(a) does not submit data to the Regulator within the

established time-frame; and, or

(b) supplies information which is erroneous or misleading

or inaccurate; and, or

(c) submits data in a format which is different from that

requested by the Regulator; and, or

(d) by any act or omission whatsoever and howsoever

described, fails to maintain the oil stocks as required

to be held by the Regulator in terms of these

regulations,

shall be liable to the imposition of an administrative fine which

shall not exceed one hundred thousand euro (€100,000) for each

contravention and, or six hundred euro (€600) for each day of non-

compliance.

Any person who -

(a) fails to comply with any lawful order made by an

inspector, employee or officer of the Regulator in the

performance of his duties; and, or

(b) hinders, obstructs, molests or interferes or attempts to

hinder, obstruct, molest or interfere with the

performance of the duties of any inspector, any

employee or officer of the Regulator; and, or

(c) makes a declaration for any of the purposes of these

regulations which is false, misleading or incorrect in

any material particular,

shall be guilty of an offence against these regulations and shall, on

conviction, be liable to imprisonment for not more than eighteen

months, or to a fine (multa) of not more than sixty-nine thousand

euro (€69,000) or to one thousand three hundred euro (€1,300) for

each day during which the offence persists, or to both such fine and

imprisonment.

MAINTENANCE OF MINIMUM STOCKS

OF CRUDE OIL AND, OR PETROLEUM PRODUCTS

First Schedule

Substituted by

Regulation 3

L.N. 156 of 2019.

METHOD FOR CALCULATING THE CRUDE OIL EQUIVALENT OF IMPORTS OF

PETROLEUM PRODUCTS

The crude oil equivalent of imports of petroleum products, as referred to in

regulation 3, must be calculated using the following method

1. The sum of net imports of crude oil, natural gas liquids (NGL), refinery

feedstocks and other hydrocarbons, as defined in Annex A, Chapter 3.4 of

Regulation (EC) No 1099/2008 (*), shall be calculated and adjusted to take account

of any stock changes. From the resulting figure, one of the following figures shall be

deducted for naphtha yield

(a) 4 %;

(b) the average naphtha yield;

(c) the net actual naphtha consumption.

2. The sum of the net imports of all other petroleum products, as defined in

Annex A, Chapter 3.4 of Regulation (EC) No 1099/2008, excluding naphtha, shall be

calculated and adjusted to take account of stock changes and shall be multiplied by a

factor of 1,065.

The sum of the figures resulting from items 1 and 2, represents the crude oil

equivalent.

International marine bunkers shall not be included in the calculation.

(*) As modified by Commission Regulation (EU) 2017/2010 of 9 November 2017.

Second Schedule

Amended by

Regulation 3

L.N. 156 of 2019.

METHOD FOR CALCULATING THE CRUDE OIL EQUIVALENT

OF INLAND CONSUMPTION

For the purpose of regulation 3, the crude oil equivalent of inland consumption

must be calculated using the following method

Inland consumption is the sum of the aggregate ‘observed gross inland deliveries’,

as defined in Section 3.2.2.11 of Annex C to Regulation (EC) No 1099/2008, of the

following products only: motor gasoline, aviation gasoline, gasoline-type jet fuel

(naphtha-type jet fuel or JP4), kerosene-type jet fuel, other kerosene, gas/diesel oil

(distillate fuel oil) and fuel oil (high sulphur content and low sulphur content) as

defined in Chapter 3.4 of Annex A to Regulation (EC) No 1099/2008.

MAINTENANCE OF MINIMUM STOCKS

OF CRUDE OIL AND, OR PETROLEUM PRODUCTS

International marine bunkers are not included in the calculation.

The crude oil equivalent of inland consumption is calculated by multiplying by a

factor of 1,2.

Third Schedule

Amended by

XXV. 2015.41;

Regulation 4 (1)

L.N.156 of 2019.

METHODS FOR CALCULATING THE LEVEL OF STOCKS HELD

The following methods must be used to calculate stock levels

Without prejudice to the case addressed in regulation 4(3), no quantity may be

counted as stock more than once.

Crude oil stocks are reduced by 4%, which corresponds to the average naphtha

yield.

Stocks of naphtha and petroleum products for international marine bunkers are not

included.

Other petroleum products are included in the stock-count using one of the two

methods set out below. The method chosen must continue to be used throughout the

whole calendar year in question.

The Regulator may

(a) include all other stocks of the petroleum products identified in Chapter

3.4 of Annex A to Regulation (EC) No 1099/2008. and calculate the crude

oil equivalent by multiplying the quantities by a factor of 1,065; or

(b) include stocks of only the following products: motor gasoline, aviation

gasoline, gasoline-type jet fuel (naphtha-type jet fuel or JP4), kerosene-

type jet fuel, other kerosene, gas/diesel oil (distillate fuel oil) and fuel

oil (high sulphur content and low sulphur content) and calculate the

crude oil equivalent by multiplying the quantities by a factor of 1,2.

The calculation may include quantities held

-

in refinery tanks,

-

in bulk terminals,

-

in pipeline tankage,

-

in barges,

-

in intercoastal tankers,

-

in oil tankers in port,

-

in inland ship bunkers,

-

in storage tank bottoms,

-

as working stocks,

-

by large consumers as required by law or otherwise controlled by

governments.

However, those quantities except for any held in refinery tanks, in pipeline

tankage or in bulk terminals, may not be included when calculating levels of specific

MAINTENANCE OF MINIMUM STOCKS

OF CRUDE OIL AND, OR PETROLEUM PRODUCTS

stocks where such stocks are calculated separately from emergency stocks.

The calculation may never include

(a) crude oil not yet produced;

(b) quantities held

-

in pipelines,

-

in rail tank cars,

-

in seagoing ships’ bunkers,

-

in service stations and retail stores,

-

by other consumers,

-

in tankers at sea,

-

as military stocks.

When calculating stocks, the Regulator must reduce the quantities of stocks

calculated as set out above by 10%. That reduction applies to all quantities included

in a given calculation.

However, no 10% reduction is to be applied when calculating the level of specific

stocks or the levels of the different categories of specific stocks where those stocks

or categories are considered separately from the emergency stocks, particularly with

a view to verifying compliance with the minimum levels laid down by regulation 9.

Fourth Schedule

Amended by

XXV. 2015.41.

Regulation 14

Rules for the preparation and submission to the Minister of statistical summaries of

stocks to be held pursuant to regulation 3

The Regulator must draw up and submit to the Minister, on a monthly basis, a

definitive statistical summary of the level of stocks actually held on the last day of

the calendar month, calculated either on the basis of the number of days of net oil

imports or on the basis of the number of days of inland oil consumption, in

accordance with regulation 3. The statistical summary must provide precise details

of why the calculation is based on the number of days of imports or, conversely, on

the number of days of consumption and must specify which of the calculation

methods set out in the Third Schedule was used.

If some of the stocks included when calculating the level of stocks held pursuant

to regulation 3 are held outside national territory, each summary shall give details of

the stocks held by the various Member States and CSEs concerned on the last day of

the period to which it relates. In its summary, the Regulator shall also indicate, in

each case, whether the stocks are being held pursuant to a delegation request made

by one or more economic operators or whether they are being held at its request or at

the request of the CSE if applicable.

For any stocks held in Malta on behalf of other Member States or CSEs, the

Regulator shall draw up and submit to the Minister a summary showing the stocks

existing on the last day of each calendar month, broken down by product category. In

that summary, the Regulator shall also indicate, in particular, the Member State or

CSE concerned and the quantities involved in each case.

MAINTENANCE OF MINIMUM STOCKS

OF CRUDE OIL AND, OR PETROLEUM PRODUCTS

The statistical summaries referred to in this Schedule must be submitted to the

Commission within fifty-five days of the end of the month to which they relate.

Those same summaries shall also be submitted by the Regulator within two months

of a request by the Commission.