|(Will be printed on the buyer’s refinery letter head)
SAUDI LIGHT CRUDE OIL
To : The President / Chief Executive Officer
Kingdom of Saudi Arabia
LETTER OF INTENT
We, -------------------------, with full legal corporate authority and under penalty and perjury, hereby confirm our interest and that we are ready, willing and able to purchase Saudi Light Crude Oil as described below with clean and clear United States Dollar (USD) funds free of criminal or terrorist origin or influence:
Commodity: Saudi Light Crude Oil (Standard Export quality)
Country of Origin Kingdom of Saudi Arabia
Buyer's Currency: United States Dollars
Quantity: 10 million (10,000,000) barrels per month with positive
or negetave Operational Tolerance of 5 percent (+/-5%)
Term of Contract: 12 months with possible extensions/roll over
Quality: As per Saudi ARAMCO’s Standard Export Specs.
Inspection: SGS, Saybolt, or equivalent.
API GRAVITY _____
SEDIMENT CONTENT _____
ASTM STABILISED GRAVITY _____
WAX WT PERCENT _____
VANADIUM PPM V200 _____
GROSS HEATING VALUE _____
REID VAPOUR PRESSURE _____
SALT CONTENT, PPM NaCI _____
SULPHER, WT PERCENT _____ MAX
ASH, PPM _____
COMP, CARBON RESIDUE, WT PERCENT _____
VISCOSITY, CP _____
POUR POINT _____
Price FOB : The price shall be determined to the average of the 3 (three) days around the B/L date (The day before, the day of Bill of Lading and the day after), under theHeading of Dubai Platt Minus a Discount in ……
only per each Barrel of Crude Oil supplied. This price, shall be applicable for the full term of the Contract, One Year (1 Year) and total contract quantity of 120,000,000 BBLS (One Hundred Twenty Million Barrels)
Discount: Gross per Barrel of Crude Oil
Net : per Barrel of Crude Oil
Loading Port: Ras Tanura or Yanbu Port
Delivery Terms: FOB, Saudi Arabia ports.
Payment: Shall be by irrevocable, confirmed, Documentary LC
Performance Bond: As long as Saudi ARAMCO is the official seller of
record, no performance bond required. Should any other entity be the seller of record, a 2 % performance bond will be required.
Registration: (Refinery has to be registered with Saudi ARAMCO)
Banking Information: ____________________________
1. Buyer issues LOI. Including the Refinery details and ARAMCO Registration number if available.
2. Seller provides Full Corporate Offer (FCO).
(Certificate of Provision which states allocation numbers etc would be shown
at the Table Top Meeting (TTM) in Dubai)
3. Upon receiving the FCO, Buyer is to sign and seal on every page of the FCO. Buyer prepares ICPO, BCL and Letter of Authorization to Verify Assets(All original) together with the signed and sealed FCO and to bring with them to the TTM in Dubai within the FCO’s validity period. On the other hand, Buyer is to issue the Irrevocable Master Fee Protection and Pay Order Agreement (IMFPA) fully endorsed by its bank . This IMFPA is an additional part of the original contract.
4. Buyer and Seller meets armed with all respective original documents for
TTM in Dubai.
5. Buyer gives to Seller ship's name, call letters, captain's name (all to be included in the Letter of Credit text,) and a copy of the Aspatankvoy Charter Party Agreement from an internationally recognized chartering company marked "Freight Pre-paid."
6. Buyer issues Documentary Letter of Credit which will include the vessel particulars.
7. Buyer takes delivery in an appropriate Saudi port of shipment.
8. Buyer pays commissions as per IMFPA (Irrevocable Master Fee Protection and Pay Order Agreement.