1. The governments of ASEAN Member States agree to implement THE ASEAN emergency supply system for crude oil and/or petroleum products in times of shortage and oversupply. All ASEAN Member States strive to ensure that the ASEAN Member State in distress totals 10% (10%) to provide. the normal internal requirement of the AISA Member State in difficulty, on the basis of the conditions to be negotiated between the appropriate parties in a spirit of assistance, and by the ASEAN Member States concerned, without any undue benefit; 5. In times of oversupply of crude products and/or petroleum products from domestic sources Importing Member States should, where possible, buying exports from member states in difficulty in order to increase their exports to at least 80% of normal exports, given the importing country`s national needs in terms of quantities of crude oil and/or petroleum products, existing processing facilities and “exports” are considered exports from oil operators/operators to which the government is not entitled. Procurement negotiations will take place on a bilateral basis. However, the reserve attached to this clause remains significant – it stipulates that “oil stocks, individually or jointly by ASEAN Member States, must be carried out on a voluntary and commercial basis.” The “voluntary” provision, which makes oil stocks an option without exception, instead of a provision to ensure security of supply in emergency situations, could expose ASEAN to potential new risks. “normal domestic demand,” the average domestic oil consumption per day for twelve (12) months immediately before the onset of the emergency; “Voluntary and commercial” oil stocks are not new to ASEAN. Indeed, some ASEAN countries store oil surpluses and have established national emergency guidelines for their use. However, these countries have uneven oil reserves of between 15 and 90 days. In addition, not all ASEAN countries have the necessary storage infrastructure. ASEAN Member States do not have effective coordination in the use of national oil stocks, unlike those of the International Energy Agency.
The enthusiasm for regional oil reserves had subsided and increased from time to time. In anticipation of the war in Iraq in 2003, some ASEAN countries have implicitly begun stockpiling oil. The Philippines, for example, accumulated 62 days of oil in mid-March 2003, the highest amount in a decade. In view of rising oil prices and geopolitical uncertainties in 2004, ASEAN has regained interest in regional oil stocks. However, a 2006 proposal for ASEAN-3 joint stocks involving China, Japan and South Korea was never heard again. Some ASEAN officials pointed out that, unlike Japan and South Korea, ASEAN is less dependent on energy imports, which excludes the need for a regional oil stockpile. They also argued that these capital-intensive efforts are only affordable for developed countries. Some have even suggested that the deposits could become headquarters for terrorists. The objective of this agreement is to increase oil security, individually or collectively, and to minimize exposure to an emergency by implementing short-, medium- and long-term measures, as envisaged below.