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Crude Oil Purchase Agreement
"I need a Crude Oil Purchase Agreement under Saudi Arabian law for a 12-month term starting January 2025, covering monthly deliveries of 500,000 barrels of Arabian Light crude oil from Ras Tanura port to an international oil trading company, with payment by letter of credit."
1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and basic transaction premise
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligations of parties regarding sale and purchase of crude oil
5. Quantity and Nominations: Specified quantities, nomination procedures, and delivery schedules
6. Quality Specifications: Detailed quality parameters and testing procedures for the crude oil
7. Price and Payment: Pricing mechanism, payment terms, invoicing, and currency specifications
8. Delivery Terms: Delivery point, transfer of title and risk, shipping terms (using appropriate Incoterms)
9. Measurement: Methods and procedures for quantity and quality measurement
10. Loading/Discharge: Procedures and requirements for loading and discharge operations
11. Term and Termination: Duration of agreement and termination provisions
12. Force Majeure: Definition and consequences of force majeure events
13. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms
14. Notices: Communication procedures and contact details
15. Confidentiality: Obligations regarding confidential information
16. Assignment: Rights and restrictions regarding assignment of the agreement
17. Entire Agreement: Integration clause and relationship to other agreements
1. Storage Provisions: Required when deal involves storage facilities or temporary storage requirements
2. Letter of Credit: Include when payment security through LC is required
3. Pipeline Transportation: Needed when delivery involves pipeline transportation
4. Vessel Requirements: Include for agreements involving marine transportation
5. Sanctions Compliance: Required for international trades or when dealing with sanctioned countries
6. Environmental Compliance: Include when specific environmental regulations need addressing
7. Insurance: Detailed insurance requirements when specific coverage needs to be mandated
8. Taxes and Duties: Include when specific tax arrangements or duties need to be addressed
9. Parent Company Guarantee: Include when additional financial security is required
1. Schedule A - Product Specifications: Detailed technical specifications of the crude oil
2. Schedule B - Pricing Formula: Detailed pricing mechanism and calculations
3. Schedule C - Delivery Schedule: Timing and quantity of deliveries
4. Schedule D - Testing Methods: Detailed procedures for quality testing
5. Schedule E - Loading/Discharge Ports: Specifications and requirements for approved ports
6. Schedule F - Vessel Requirements: Technical and safety requirements for vessels
7. Schedule G - Bank Details: Banking information for payments
8. Appendix 1 - Form of Notice of Readiness: Standard form for vessel readiness notification
9. Appendix 2 - Form of Bill of Lading: Standard bill of lading template
10. Appendix 3 - Form of Letter of Credit: LC format and requirements if applicable
Authors
Oil & Gas
Energy
Petrochemicals
Maritime & Shipping
International Trade
Commodities Trading
Financial Services
Insurance
Logistics
Environmental Services
Legal
Commercial
Trading
Operations
Finance
Risk Management
Compliance
Technical
Quality Control
Shipping
Treasury
Procurement
Business Development
Contract Administration
Chief Commercial Officer
Trading Director
Legal Counsel
Contract Manager
Commercial Manager
Risk Manager
Supply Chain Manager
Operations Manager
Treasury Manager
Quality Control Manager
Shipping Manager
Finance Director
Compliance Officer
Trade Finance Manager
Business Development Manager
Technical Manager
Chief Financial Officer
Procurement Manager
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