Obligations and guarantees
A unique three-party management of obligations
The management of strategic reserves is governed by a three-party management unique in France: the State, the decision-maker and operational partnership CPSSP/SAGESS and the oil operators. Legislation goes back to 1992 when approved operators were obliged to hold strategic reserves. Oil operators can delegate 56% or 90% of their obligation to the CPSSP, with the remainder assumed under their own responsibility. Reserves under CPSSP responsibility can rest either on those owned by SAGESS or on those placed at its disposal by operators (tickets). As of July 1, 2011, the national obligation was 17.7 million tonnes equivalent in end products (EQPF). The amount covered by CPSSP rose to 13 million tonnes, with the balance covered by operators’ reserves, that is 4.7 million tonnes EQPF. The share of the CPSSP is itself divided between SAGESS stocks (10.8 million tonnes) and tickets (2.2 million tonnes).
A collaborative governance involving the main players in the oil industry
The principles of this governance are solidly anchored on open dialogue to take into account various perspectives. Thus, the main players of the oil industry are represented on the SAGESS Board of Directors. Having public authorities on both the SAGESS and CPSSP Board of Directors makes it possible to ensure that SAGESS follows its mission according to a strict regulatory framework and under the control of the French State. The public authorities are supported by three representatives of the main responsible ministries: Energy ; Competition, Consumer Affairs and Fraud ; and the Customs Office. A Government Commissioner also participates in all Board meetings related to the SAGESS Manosque pipeline. Finally, specialized advisory committees of experts assist SAGESS Management in his main decisions. SAGESS is closely monitored by an audit committee whose role is to assist the Board of Directors to ensure internal quality control and reliability of information given to both shareholders and financial markets.