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Crude Oil Sales Agreement
"I need a Crude Oil Sales Agreement for a 12-month term deal starting March 2025, covering monthly deliveries of 50,000 barrels of Brent crude on FOB terms at Port of Trieste, with payment via confirmed letter of credit."
1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Context of the agreement and relationship between parties
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligation of seller to sell and buyer to purchase agreed quantities of crude oil
5. Quality Specifications: Detailed specifications of the crude oil grade and quality parameters
6. Quantity and Measurement: Agreed volumes, measurement methods, and standards
7. Price and Payment Terms: Pricing formula, currency, payment timing, and invoicing requirements
8. Delivery Terms: Delivery point, transfer of title and risk, loading/discharge requirements
9. Nominations and Scheduling: Process for nominating vessels and scheduling loadings
10. Transportation and Shipping: Vessel requirements, vetting procedures, and shipping terms
11. Testing and Inspection: Sampling procedures, testing methods, and independent inspection
12. Force Majeure: Definition of force majeure events and consequences
13. Liability and Indemnification: Allocation of risks and responsibilities between parties
14. Term and Termination: Duration of agreement and termination rights
15. Governing Law and Dispute Resolution: Choice of Austrian law and dispute resolution mechanisms
16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignments
1. Letter of Credit: Required when payment security through LC is agreed
2. Terminal Requirements: Needed when specific loading/discharge terminal requirements apply
3. Environmental Protection: Additional environmental provisions beyond standard requirements
4. Sanctions Compliance: Detailed sanctions compliance provisions for high-risk jurisdictions
5. Price Review: Mechanism for price review in long-term contracts
6. Tank Storage: Required when storage at specific facilities is part of the agreement
7. Minimum/Maximum Volume Commitments: For term contracts with volume flexibility
8. Hedging Arrangements: When price hedging is part of the commercial arrangement
1. Schedule 1 - Product Specifications: Detailed technical specifications of the crude oil grade
2. Schedule 2 - Pricing Methodology: Detailed pricing formula and price adjustment mechanisms
3. Schedule 3 - Measurement and Testing Procedures: Technical standards and procedures for measurement and testing
4. Schedule 4 - Loading/Discharge Port Requirements: Specific requirements for designated ports
5. Schedule 5 - Vessel Requirements: Technical and operational requirements for vessels
6. Schedule 6 - Form of Notice of Readiness: Standard form for vessel notices
7. Schedule 7 - Form of Bill of Lading: Standard form of bill of lading to be used
8. Schedule 8 - Form of Letter of Credit: Required LC format and terms
9. Appendix A - HSE Requirements: Health, safety, and environmental requirements
10. Appendix B - Compliance Requirements: Detailed compliance obligations including sanctions and anti-corruption
Authors
Oil & Gas
Energy Trading
Shipping & Maritime
Commodities Trading
Energy Distribution
Industrial Manufacturing
Petrochemicals
Transportation & Logistics
Financial Services
Insurance
Legal
Trading
Operations
Compliance
Risk Management
Finance
Treasury
Shipping
Quality Control
Environmental
Commercial
Supply Chain
Credit
Business Development
Contract Administration
Trading Manager
Commercial Director
Legal Counsel
Compliance Officer
Risk Manager
Operations Manager
Supply Chain Manager
Shipping Manager
Finance Director
Credit Manager
Environmental Compliance Officer
Quality Control Manager
Contract Administrator
Business Development Manager
Treasury Manager
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