Managing strategic oil reserves
Established in 1988, on the initiative of oil operators and under the aegis of public authorities, the Société Anonyme de Gestion de Stocks de Sécurité (SAGESS), mandated by the Comité Professionnel des Stocks Stratégiques Pétroliers (CPSSP), has the role of building up, stockpiling and maintaining strategic oil reserves in order to fulfill obligations set by national and international standards.
Managing strategic oil reserves is a complex mission because it is based on logistical and financial dynamics, requiring the continuous maintenance of our substantial share of the national compulsory stock obligation levels, thereby necessitating a regular recourse to financial markets. To fulfill their obligation to stockpile strategic oil reserves, oil operators rely more and more on CPSSP which, as a consequence, has to increasingly use SAGESS owned stocks.
A mission dedicated to public interest
Since 90 years, France has been a precursor in regard with strategic oil reserves. France and european commitments have consolidated the policy already established with minor adjustments.
The transposition of the European Directive in the French regulatory framework results in a national obligation in strategic stocks equivalent to 29.5% (on July 1st of the each year) of the inland consumption of the preceding year. This obligation is guaranteed by the oil operators who delegate this obligation to the CPSSP. SAGESS, as the French Central Storage Entity (CSE), assure 73,9% of this obligation (by year-end 2018), with its own stocks, which release on the market by the operators is decided by the Ministry of Enenrgy (DGEC).
As a result thereof, SAGESS deploys means to:
- Make stocks available to French Government Authorities in the event of a crisis or at the request of CPSSP;
- Ensure a timely response in releasing stocks for public consumption in case of need;
- Guarantee their availability nationwide through an adequate network of storage facilities;
- Ensure an optimized and sustainable financing of its stocks.