SAUDI LIGHT CRUDE OIL ( SLCO )

Please note that the seller can and willing to supply 60,000,000+ barrels per month of Saudi Light Crude Oil for a period of 12-36 months based on the following terms and conditions.

Product: Saudi Light Crude Oil

Origin: Saudi Arabia

Quantity: 60,000,000 barrels per month for a contract of 12 months with rolls and extension up to 36 months.

Specification: As per Specification Sheet annexed herewith

Delivery: CIF ASWP.

Price: The Price shall be determined by the average of three (3) days around BL date (the day before, the BL date and the day after). Rates to be referred to the quotations as reported by Med. Platt's with CIF ASWP bassis.

Discounts: Gross Discount: US$6.00 Gross

Net Discount: US$4.00 Net

Commission:

USD$1.00 Buyer's side

USD$1.00 Seller's side (closed)

Payment: At Buyers election, Seller will accept payment by any one of the following methods:

By revolving irrevocable, unconditional and unencumbered letter of credit (RL/C), in favor of the Seller, issued or confirmed by a top 20 European or United States bank, or alternative bank approved by Seller, for full 12 month contract value , first payment being due on the first anniversary of the date of issue and every succeeding month on the same day of month (as date of issue) totaling 12 payments, providing full one year interest free terms for each month's shipments. Drawings against RLC to be by sight drafts, drawn by Seller or any holder/assignee in due course payable at Seller's bank. RLC in conformity with verbiage per attached Addendum “A”.

Bank Guarantee for preferably three months contract value supply of Product. Said payment instrument is to be used by Seller for the last three months of supply of the first (12) twelve months buy/sell contract and/or as security for default or Buyer(s) or Buyer(s)'s bank, buy/sell contract and payment by DRLC or SWIFT wire transfer per shipment against relevant shipping documents. BG in conformity with verbiage per attached Addendum “B”.

Standby Letter of Credit for preferably three months contract value supply of Product. Said payment instrument is to be used by Seller for the last three months of supply of the first (12) twelve months buy/sell contract and/or as security for default or Buyer(s) or Buyer(s)'s bank, buy/sell contract and payment by DRLC or SWIFT wire transfer per shipment against relevant shipping documents. SBLC in conformity with verbiage per attached Addendum “C”.

Seller agrees to pay by way of SWIFT wire transfer 100% of the face value of the Bank Instrument, as received, verified and accepted, plus 5% penalty, totaling 105%, as full settlement within 60-65 days from the receipt, verification and acceptance of the Bank Instrument by our Bankers and Ourselves, in the event of non delivery for any reason whatsoever, including force majeure.

Inspection: Quality, Quantity, Weight and photo by SGS or Equivalent at seller's cost at port of loading

Shipping: First shipment within 30-45 days after receipt and acceptance of L/C. Balance as per final contract.

Performance Bond: 2% by Seller's Bank .

Documents: To supply all documents required in the buying and selling of this product.

Discharge: All costs at Port of Discharge for account of the Buyer.

Loading: All costs at Port of Loading for the account of the Seller.

Special Condition: This FCO is subject to final approval and agreement by both Seller and Buyer of all the terms and conditions herein as well as the subsequent Contract of Sale including any amendments or variations thereof, all of which has to be reduced in writing and signed by both parties hereto and buyer instructing his/hers/its banker to issue a “Pre-advice” as per Addendum “A” attached draft, including choices of attached Addendums B, C or D.

Procedures:

•  Buyer sends LOI/ICPO with full co-ordinates together with full banking information (and comfort as to capability to comply for new client/buyers).

•  A fully executed FCO will be supplied by Seller to Buyer with cc to Mandate/Agent/ Intermediary within one to three international business days.

•   Buyer returns signed/ acceptance of FCO to Seller with full banking information (and if required further, comfort as to capability to comply for new client/buyers) within one to three international business days.

•  Seller prepares full buy/sell contract signed by seller, together with relevant Addendums, within one to four international business days and forwards to Buyer and cc to Mandate/Agent/Intermediary.

•  Buyer returns signed buy/sell contract to Seller within one to three international business days.

•  Buyer instructs his/hers/its banker to issue a Pre-advice or non operative LC/BG by SWIFT to Seller's banker, on a bank to bank only basis within one to three international banking days as per the sample text supplied by the Seller as part of the buy/sell contract from a top 20 European or United States bank, or with “AVAL” from a top 20 European or United States bank, in text/format acceptable to the Sellers bank.

7. (a) Seller after verification by the Seller's banker of the pre-advice/Non operative LC/BG instructs its banker to issue to the buyers banker a SWIFT bank to bank confirmation, as per reply required to Pre-advice.

(b) The confirmation of PB on a top world bank to bank basis will activate any non-operative L/C and/or BG immediately, or Buyer will allow Buyer's bank to comply as per below and a seller shall supply (POP) Proof of Product to the buyer or buyer's bank.

•  Or, the Buyers banker must transmit by SWIFT an SBLC and/or Revolving irrevocable, unconditional Revolving Letter of Credit; and/or Bank Guarantee (BG).

•  Seller supplies requested proof of product to Buyer as per request made when signing FCO.

8. (a) As per buy/sell contracts delivery of product/commodity begins as agreed and continue as agreed against payment as agreed.

(b) The Mandate/Agents/Intermediaries are paid as agreed per FPA/NCND.

SAUDI LIGHT CRUDE OIL SPECIFICATION

API GRAVITY : 33.34	SEDIMENT CONTENT : 0.1
ASTM STABILISED GRAVITY : 34.5	WAX-WT PERCENT : 2.9
VANADIUM ppm V200 : 11.0	GROSS HEATING VALUE : 19.23
REID VAPOUR PRESSURE : 2.0	SALT CONTENT, PPM NaCl : 3.8
SULPHUR , WT PERCENT : 1.5 MAX	ASH,PPM : 100.0
COMP.CARBON RESIDUE, WT PERCENT : 3.1	VISCOSITY, CP : 55.0
POUR POINT : 35.0