CONTRACT N ______For Crude Oil in bulk, f.o.b.terms
Kiev Date ___________
This contracts is made between hereinafter designated as
Sellers and hereinafter designated as Buyers, whereby it is agree
1. Object of Contract
Sellers have sold and Buyers have bought f.o.b.
The goods sold under the present contract shall be of the
The price for the Crude Oil sold under the present contract
on terms f.o.b. is fixed at US $ per barrel for gravity F.P.I.
The price is considered fixed on and in future will be changed on
the date of shipment in conformity with the absolute change of
the price per barrel (or Arabian and Iraq Crude Oil with gravity
of 36,0 -- 36,9 A.P.I. (US $ on) f.o.b. Sidon or Tripoli,
Lebanon, respectively, published in Platt's Oilgram under heading
оMiddle East Crude Prices (average of prices of three companies
-- "Esso", оShell and оMobile Overseas ), provided, however, that
the increase or decrease of the quotation is within the limits
of-of the basic at US $. Should the quotation for Arabian and
Iraq Crude Oil f.o.b. Tripoli, Lebanon, be unequal, an average of
these two quotations shall be accepted. If the above mentioned
quotations are higher or lower than the above limits, the basic
price fixed under the present contract is to be reconsidered at
the request of any of the parties. Should the gravity of the
Crude Oil shipped under the Present contract be higher or lower
than the range of A.P.I., the contract price of the Crude Oil per
barrel of US $ will be increased for each full degree A.P.I.
above maximum range by 2 cents per barrel and on the basis of
thus determined price per barrel of supplied Crude Oil the price
metric ton is established in conformity with the number of
barrels per metric ton corresponding to the actual specific
gravity of the Crude Oil supplied.
4. Time of Delivery
The goods sold under the present contract are to be
delivered by Sellers and accepted by Buyers
The date of the Bill of Lading to be considered as the date
Payment for the goods sold under the present contract is to
be effected out of an irrevocable confirmed Letter of Credit to
be opened by Buyer in with the or with in favour of Sellers for
the value of each lot of the goods to be shipped plus 10%;
validity of the Letter of Credit - 45 days.
The Letter of Credit to be opened not later than 15 days
before tanker's arrival at the port of loading. Expenses in
connection with the opening, amendment and utilization of the
Letter of Credit to be paid by Buyers.
Should Buyers fail to open the Letter of Credit in time they
are to pay Sellers a fine for each day of the delay, but not
longer than during 20 days, at the rate of 0,1 per cent of the
amount of the Letter of Credit and Sellers have the right not to
load the tanker pending the opening of the Letter of Credit.
Should the delay in the opening of the Letter of Credit
exceed 20 days, Sellers have the right to refuse to deliver the
goods which were to be paid out of this Letter of Credit. And all
the damages incurred by Buyers in connection with the above in
delivery of the goods and with the refusal to deliver them cannot
be claimed from Sellers.
Payment from the Letter of Credit is to be made against
presentation by Sellers to of the following documents: 1)
commercial invoice and 2) Captain's telegram to Sellers address
indicating the name of the tanker, date and number of the Bill of
Lading, denomination and quantity of the goods shipped.
In case of the opening of the Letter of Credit with another
Bank, payment is to be made against the telegram of Moscow,
acknowledging the receipt of the above documents. Shipping
documents - 3 original and 1 copy of Bill of Lading, Certificate
of quantity and Certificate of qualify of the goods to be
transferred by Setters in accordance with Buyers' instruction as
soon as possible.
The rate of exchange of US dollars into
6. Delivery and Acceptance
The goods are considered to be delivered by Sellers and
accepted by Buyers in respect to quantity: as per weight
indicated in the Bill of Lading in conformity with the
measurements of shore tanks at the port of loading, in respect to
quality: as per cent certificate of quality issued by a
laboratory at the port of loading. The weight stated in the Bill
of Lading is to be considered final and binding upon both
Previous to loading of the goods, 4 arbitration samples are
to be taken from each of the shore tanks from which the goods are
to be loaded in the carrying tanker. These samples to be sealed
by Sellers as well as by the Captain of the tanker; 2 samples to
be handed over to the Captain of the tanker and the other 2 to be
retained by Sellers. Both parties shall keep these samples during
2 months from the date of delivery and longer until final
settlement of claim, if any.
In case of a dispute on the quality of the goods in
connection with divergencies in the analyses of the arbitration
samples made by the Sellers' and Buyers' laboratories, the final
and binding upon both parties analysis is to be made by a neutral
laboratory agreed by the parties.
7. Terms of Transportation
a) Buyers in accordance with the lifting schedule agreed by
the parties, are to inform Sellers by telegraph or by telex not
later than 15 days before arrival of the tanker at the port of
loading, of the name, capacity, flag and draught of the tanker,
approximate date of her arrival at the port of loading as well