Diesel D2 Gas OIL

COMMODITY: DIESEL D2 GAS OIL (L 0.02 high speed/62 GOST 305-82)

ORIGIN: Russia

SPECIFICATION : as attached

QUANTITY : 300,000 MT per months

CONTRACT LENGTH: 12 months with rolls and extension

LOADING PORT : Russian Loading Ports

Delivery: F/F ASWP 30-45 days after accepting buyer’s financial instrument


PRICE :

The price to be paid shall be based on the loaded quantity of Gas Oil D2L for each shipment based on standard Metric Ton and which is determined by the average of the three days around the Bill of Lading Date (one before, BL and one day after) of high quotations as reported by “PLATTS MARKETSCAN” under the heading Product Price Assessments “Cargoes MED to FOB GENOVA/ LAVERA” against GAS OIL D2 one day before, one day following and the day of the date of the bill of lading less a NET Discount of USD$ 23.00 (Twenty Three US DOLLARS) per MT and Gross $28.00 (twenty eight US DOLLARS) In the event that Platt s quotations are not published on B/L date the last three quotations before B/L date and the first two quotations.


PAYMENT: ONE TIME Transferable, Irrevocable, Confirmed, Auto-Revolving Letter of Credit (RDLC) paid 100% at sight, (loading port) 3 days after presentation of original shipping Documents confirmed by Top 25th banks.


PBG: 2% of the value of monthly shipment, 11 time revolving for entire Contract

Validity of FCSO : 7 banking days


PROCEDURE

- Buyer issues ICPO and BCL /or/ MT799 by SWIFT and send to sellers bank

- Seller issues signed electronic contract

- Buyer signs the contract electronically and returns it back to seller

- Seller issues POP to buyer’s Bank for verification .

- Buyer and Seller sign eight original copies of the contract and exchange it by courier or TTM (if needed).

- Within 3 working days of receiving the POP, Buyer bank issues the Non- Operative, Irrevocable, Confirmed, Transferable, Auto-Revolving RDLC

- Seller’s bank issues Auto-Revolving non-Transferable, Divisible, Assignable PBG in the amount of 2% of monthly shipment that makes buyer’s RDLC operative.

- 1st shipment to take place within 30 to 45 days after confirming buyer’s RDLC in Seller’s Bank.


Shipments continue as per contract schedule.


The Seller will provide the following documents as POP:

-Copy of license to export, issued by the Ministry of Energy.

-Copy of approval to export, issued by the Ministry of Justice.

-Copy of statement of availability of the product.

-Copy of the refinery commitment to produce the product.

-Copy of Transneft contract to transport the Product to the Port

-Copy of the Port Storage agreement

-Copy of the Charter Party Agreement(s) to transport the product to discharge port.



Sellers Bank Coordinates:

Bank Name:HSBC Beijing Branch

Bank Address:G/F, Block A,COFCO PLAZA No. 8 Jianguomennei Dajie,

Beijing China


ANNEX A

TEXT OF FORMAT DOCUMENTARY LETTER OF CREDIT

Date:

RLC. number of Opening Bank-

Issue of Documentary Credit-

RLC. number of Advising Bank-

LETTER OF CREDIT TO BE OPENED DIRECTLY WITH ________________BANK ________________AND TESTED.

We hereby open Irrevocable, Transferable, and automatically Revolving Documentary Letter of Credit 100% payable at sight number __________ and shall be automatically revolving to the next shipment until completion of the contracted quantity, subject to the uniform, customs and practice for Documentary Credits ICC Publication No. 500-1993 revision, as follows and basis of the sealed and signed by the Seller and Buyer “Contract Number : “__________“, Dated __________________

BY ORDER FOR ACCOUNT OF: ______________________

IN FAVOR OF-(SELLER) (Subject to our final confirmation)

Account Name-

Account Number

Swift Code-

For the Amount of-

Validity-_______________ at our counters in __________________

This Letter of Credit is available for payment at our counters, the issuing Bank, by referred payment days after presentation of the following documents per shipment as per the documents (Described in the contract ) shown below in one original and three copies unless otherwise stated :-

1.Signed commercial invoice (1) one original and (3) three copies covering the value of the actual shipment. 3/3 original clean on board bills of lading made out the order of shipper bank endorsed notify buyer’s company name marked “Freight Prepaid”

2.Original quality and quantity Certificate and analysis report issued by SGS (3) three issues each of “Loading and discharging” Ports.

3.Original surveyor company inspector report issued at loading port certifying that the quality and quantity are as per agreement showing:-

uDate of completion Loading

uShowing quantity in Metric Tons or Barrel(s) loading

uQuality confirming to the specification per agreement, Certificate or Origin issued by Chamber of Commerce,

uTally-one (1) original and three (3) copies

uCertificate of Insurance one (1) original and three (3) copies

4.All loading details including loaded quantity, quality and BL. Date will be faxed directly to the Buyer prompt after completion of loading, latest 72 (seventy two) hours after vessel sailed from loading port. All documents from a third party is acceptable by the Buyer.

lPort of Discharging

lDestination−FOB

lProduct description -

5.Certificate of Quality issued or countersigned by Independent inspector (Name of inspector company: SGS) at load port and discharge port, and also issued “To whom it may concerned” showing test results. COVERING :-

Shipments of “+/- 5%” percents at Seller’s option of according to the price formula below :- (Refer to Article 6)

DELIVERY:-

Delivery loading Lay-Can to be not later than _________

The following delivery Lay-Cans to be agreed according to the terms and conditions of the contract.

PRICE CALCULATIONS

The price shall be



SPECIAL CONDITIONS

The amount of this Letter Of Credit will fluctuate according to the above mentioned price clause and will automatically be adjusted without amendment.

1.Photostat copy instead of copies of documents acceptable.

2.Obvious spelling mistakes not to be considered as discrepancies (except in cargo figures)

3.All charges inside of Discharge Port are on Buyer’s expense. All outside of Discharge Port (Inside Of Loading Port) are on Seller’s expense.

4.Charter and or (third party) documents are acceptable.

5.Documents to be presented within 21 days after Bills Of Lading date, but within the validity of this RLC.

6.Documents present after 21 (twenty one) days, but inside of the validity of RLC is acceptable.

REIMBURSEMENT CLAUSE

This is a Operative instrument: no mail confirmation will follow.

This Let of Credit is subject to uniform customs practice for documentary credits.

“which sealed and signed between Seller and Buyer.


ANEX B SPECIFICATION

COMPONENT
UNIT
RESULT
MIN
MAX
Density@20 °C
Kg/m³
0.870
Color
2.0
Flash Point PMCC
°C
57
62
Kinematic Viscosity@20 °C
CST
3.0
6.0
Pour Point
°C
(*)
-10.0
Cloud Point
°C
(*)
-5.0
Mercaptan Sulphur
0.01
Acidity, mg/1000 cm³
5
Iodine Number
g/100g
6
Ash
wt
0.01
Total Sulphur
wt
0.02
0.05
Copper Corrosion (3hrs@50 °C)
1A
CCR on 10% residues
wt
0.2
Cetane Index
45
Distillation r’nge:
50% Recovered Volume
°C
280
90% Recovered Volume
°C
360
Bacteria MBC
Fibre/lt
500
Bacteria CFU
Fibre/lt
1000

Summer from March to October (PP – 5.0 degrees C)

Summer from March to October (CP – 0.0 degrees C)

Winter from November to February (PP – 10.0 degrees C)

Winter from November to February (CP – 5.0 degrees C)