03 specifications and delivery terms d ost milstrand jul2013

Invitation Documents for making the offer for “Specifications and Delivery Terms” purchase of 8 000 tonnes of diesel 09.07.2013

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Specifications and Delivery Terms

AS Eesti Vedelkütusevaru Agentuur (Estonian Oil Stockpiling Agency - OSPA) purchases diesel corresponding to the following quantity and quality requirements and on the following terms and conditions: 1. Quality

Quality: Delivered diesel shall not be older than 1 year and must be winter grade corresponding to the specification that meets at least EN 590 requirements including the following criteria (please note: Cetane number shall be min 51,0; content of bio-components are not allowed):

The Vendor shall submit the following documents before starting the delivery:

- MSDS document (REACH registration); - Certificate of Origin; - Certificate of Quality issued by the refinery. Bill of Lading, consignment notes, MSDS document (REACH registration), Certificate of Origin, Certificate of Quality issued by Refinery or any other transport documents are free of charge for OSPA.

2. Quantity

Quantity: 8 000 tonnes (for the delivery the quantity tolerance minus 5% is allowed). Please note: depending on the density the max acceptable quantity on volume basis is 9 500 m3/15°C.

PRODUCT SPECIFICATION - Diesel 10 ppm (Estonian spec), EN 590:2004

Property Winterlimit

Unit Reference method Com.

Appearance at 20 °C clear and bright Visual inspectionAsh content max 0,010 % m/m EN ISO 6245Carbon residue max 0,30 % m/m EN ISO 10370

(on 10% distillation residue)Cetane index min 46,0 EN ISO 4264Cetane number min 51,0 EN ISO 5165CFPP max -26 °C EN 116Cloud point max -16 °C EN 23015Copper strip corrosion (3h at 50°C) class 1 EN ISO 2160Density at 15°C 800,0-845,0 kg/m3 EN ISO 3675 / EN ISO 12185Distillation: EN ISO 3405

% (V/V) recovered at 180 °C max 10 %V/V% (V/V) recovered at 250 °C %V/V% (V/V) recovered at 340 °C min 95 %V/V% (V/V) recovered at 350 °C %V/V95% (V/V) recovovered at °C

Fatty acid methyl ester is not allowed %V/V(FAME) content

Flash point Above 55,0 °C EN ISO 2719Lubricity (wsd 1,4) at 60°C max 460 µm EN ISO 12156-1Oxidation stability max 25 g/m3 EN ISO 12205Polycyclic aromatic hydrocarbons max 8 % m/m EN 12916Sulphur content max 10,0 mg/kg EN ISO 20846 / EN ISO 20884Total contamination max 24 mg/kg EN 12662Water content max 200 mg/kg EN ISO 12937Viscosity at 40°C 1,500 - 4,000 mm2/s EN ISO 3104


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3. Delivery

Delivery must be carried out EU qualified (only in excise warehouse), according to the terms of INCOTERMS latest issue.

Delivery by the Vendor: Diesel 8 000 tonnes

Free in tank at Milstrand terminal (Miiduranna, Estonia) according to DDP-clause of INCOTERMS (latest issue). Please note: it’s an excise warehouse and therefore the excise tax shall not be paid.

Please note: The Vendor has to arrange all transport and all customs formalities at his own risk and expense. OSPA will not bear any demurrage or overtime expenses.

4. Delivery Period

Delivery into Milstrand terminal shall be finished during 01st of December 2013 until 30th of April 2014.

Deliveries have to be nominated and agreed with Storage Operator and OSPA. Any expenses caused by delayed delivery must be paid by the Vendor.

5. Storage Facility (receiving terminal)

Diesel 8 000 tonnes

Storage Facility: Milstrand AS Randvere tee 5 Miiduranna, Viimsi

Estonia

Contact person: Mr. Ervin Hasselbach E-mail: [email protected] Phone: +372 6055951

6. Conditions for Discharging

Diesel 8 000 tonnes At Port of Miiduranna According to - Port of Miiduranna / Port Rules - Port of Miiduranna / Port Dues and Charges

(http://www.miidurannasadam.ee) Please contact Port of Miiduranna for further information.

E-mail: [email protected] Phone: +372 6054314

All details of discharging shall be agreed upon directly between the Vendor and the Storage Operator.


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7. Price

The basis for calculating the price of the delivered diesel shall be Platts CIF NWE Cargoes / Basis ARA average of the medium-quotation of the month in March 2014 (“Diesel ULSD 10ppm” (Platts’ symbol AAVBG00).). The price to be offered for the delivered volumes shall consist of the aforesaid price plus/minus a fixed premium in USD/tonnes, esc/deesc basis 0,845 (at 15°C). The fixed premium shall take into account any possible import duties (e.g. customs duties, oil pollution fees if applicable, please ask those from the storage operator – see clause 5), but shall be exclusive of mineral oil tax (excise tax), VAT and stockpiling tax/stockpiling fees, if applicable. The density (at 15°C) used in the calculation of the volumes by the independent inspector shall be used during the escalation.

Please note: Any costs and expenses occurred before completion of the delivery of the goods, particularly for transportation and delivery (incl. but not limited to the harbour dues, the railway tanker-delivery charge etc, please ask those from the storage operator – see clause 5) will be paid by the Vendor and shall not be covered by OSPA. Costs (if any) related to discharging (pumping) of the liquid fuels from the transport to the tank at the receiving terminal will be borne by OSPA. These costs are covered through the storage fee indicated in the storage agreement signed between OSPA and Storage Operator and therefore these costs shall not be included in the fuel price.

8. Inspections

Quantity and quality shall be certified at the place of delivery (in tank) by an independent inspector mutually agreed upon by OSPA and the Vendor. The results of the inspection are binding for both parties. Costs of the inspection shall be shared equally (50/50) between the Vendor and OSPA.

9. Quantities for Invoicing

Quantities in tank minus BS&W (=“Net”) as established/validated by the independent inspector in tonnes.

10. Payment

Payment for the delivered quantity shall be made in US dollars (USD). The Vendor will issue an invoice for the quantities delivered. Provided that the Storage Operator has confirmed the delivered volume, the relevant invoice shall be due 10 (ten) days after receipt of the invoice by OSPA. The invoice shall not be issued before the end of the pricing period indicated in Section 7. As the delivery may be finished before the end of the pricing period indicated in Section 7, then if needed the basis for calculating the presumed purchase price can be Platts CIF NWE Cargoes / Basis ARA average of the medium-quotation of the month in December 2013 or January 2014 or February 2014 depending on the actual delivery month.


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OSPA and the Vendor shall settle invoices with regard to the quantity of the delivered product and actual purchase price after the end of the pricing period indicated in Section 7. OSPA has the right of retention of the payment in case the delivery does not comply with the conditions of the Contract, e.g. in case of lack of conformity of the goods’ quality and quantity.

Alan Vaht Chairman of the Board Estonian Oil Stockpiling Agency