Document background
The Oil Purchase And Sale Agreement is a fundamental commercial document used in Saudi Arabia's oil industry for establishing the legal framework for oil trading transactions. It is essential for companies engaged in buying or selling oil products within Saudi jurisdiction, whether domestic or international transactions. The agreement must comply with Saudi Arabian law, including Sharia principles, and typically includes detailed provisions on product specifications, pricing mechanisms, delivery terms, quality requirements, and risk allocation. This document is particularly important given Saudi Arabia's position as a major oil producer and the need to ensure compliance with local regulations while facilitating international trade. The agreement can be used for both spot and term sales, with appropriate modifications to reflect the specific nature of the transaction.
