Crude Oil Offtake Agreement

Most acceptance agreements contain force majeure clauses. These clauses allow the buyer or seller to terminate the contract in the event of the occurrence of certain events that are beyond the control of one of the parties and when one of the other parties imposes unnecessary difficulties. Force majeure clauses often offer protection against the negative effects of certain natural acts such as floods or forest fires. A purchase agreement is an agreement between a producer and a buyer to buy or sell some of the producer`s future products. A purchase contract is normally negotiated before the construction of a production plant – such as a mine or plant – to secure a market for future production. The initial option pricing model was converted to a fixed price with an annual escalation. The agreement simplifies agreements and supports both the provision of free material cash flow from West Erregulla`s Phase 1 production and Strike`s performance expectations, adding that it now has a robust platform to ensure a quality financing solution for the construction program. Acceptance agreements are legally binding contracts related to transactions between buyers and sellers. Their provisions usually set the purchase price of the goods and their delivery date, although agreements are only concluded before the production of goods and the breaking of the ground for a facility. However, companies can generally withdraw from a reception contract by negotiating with the counterparty and subject to payment of a fee. Headquartered in Houston, Texas, Par Petroleum Corporation is an integrated, growth-oriented distributor of petroleum products. Par owns and operates, through its subsidiaries, a 94,000 bpd refinery with an associated logistics and retail network in Hawaii.

Par also transports, markets and markets crude oil from the western United States and Canada to refining centers in the Midwest, Gulf Coast, East Coast and Hawaii. Par also owns 34% of Piceance Energy, LLC, which owns natural gas production and reserves in Piceance Basin, Colorado. Par`s articles of association contain restrictions that prohibit the parties from acquiring 5% or more of Par`s common shares without the prior consent of the company. For more information, see www.ppetrol.com. Joseph Israel, President and CEO of Par, said, “We look forward to a new delivery and purchase agreement for our Hawaii refinery. This agreement provides a low-cost and flexible structure for our crude oil needs and helps maximize the capacity utilization of our refinery. The guarantee of this new agreement generates additional liquidity and is an important step to further improve the future performance of our refinery. Purchase agreements are typically used to help the selling company acquire financing for future construction, extension or new equipment projects by promising future revenue and proving existing demand for the goods. As in the previous agreement, Vitol NARL will provide aggregate working capital financing for raw materials and finished products, including credit credits, transit and storage inventories, and trade credits. In addition, Vitol will provide raw material sourcing and shipping services, marketing and shipment of finished products, price management, administrative and back-office services. The SOA will enter into force from 1 November 2009 for an initial period of two years and will then be automatically renewed.

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