Exhibit 10(32)
AGREEMENT 006.03 ON CRUDE OIL SALES
5 MAY, 2003
CONCLUDED BETWEEN NINOTSMINDA OIL COMPANY LIMITED AND SVETI LTD AS FOLLOWS:
1.
SELLER:
NINOTSMINDA OIL COMPANY LIMITED
22, STASICRATOUS
OLGA COURT
P.O.BOX 48
NICOSIA, CYPRUS
2.
BUYER:
SVETI LIMITED
21 KEKELIDZE STREET, APT.22
TBILISI, GEORGIA
3.
CONTRACT PERIOD:
THIS AGREEMENT COMMENCES ON THE DATE HEREOF AND SHALL CONTINUE FOR A PERIOD OF
EIGHTEEN (18) MONTHS.
4.
QUANTITY:
THE MONTHLY QUANTITY OF OIL AVAILABLE FOR SALE TO THE BUYER UNDER THE TERMS OF
THIS AGREEMENT WILL BE LIMITED TO 5,000 (FIVE THOUSAND) METRIC TONNES OF THE
SELLER'S MONTHLY SHARE OF CRUDE OIL PRODUCED UNDER THE NINOTSMINDA PRODUCTION
SHARING CONTRACT ("MONTHLY QUANTITY")COMMENCING IN AUGUST 2003 AND CONTINUING
FOR A PERIOD OF 12 CONSECUTIVE MONTHS("DELIVERY PERIOD"). IN THE EVENT THE TOTAL
QUANTITY OF CRUDE OIL MADE AVAILABLE FOR PURCHASE TO THE BUYER DURING THE
DELIVERY PERIOD IS LESS THAN 60,000 (SIXTY THOUSAND) METRIC TONNES THE DELIVERY
PERIOD SHALL BE EXTENDED FOR SUCH ADDITIONAL PERIOD AS NECESSARY TO ALLOW THE
NAMED QUANTITY TO BE MADE AVAILABLE TO THE BUYER. BUT THE SELLER IS ONLY OBLIGED
TO DELIVER OR MAKE AVAILABLE TO THE BUYER ITS SHARE OF OIL ACTUALLY PRODUCED. IN
THE EVENT THAT THE SELLER FAILS TO PRODUCE THE ESTIMATED MONTHLY QUANTITY THE
SELLER SHALL HAVE NO LIABILITY TO THE BUYER AS A RESULT OF THAT FAILURE.
THE CONVERSION RATIO FOR METRIC TONNES: BARRELS SHALL BE DETERMINED FROM SAMPLES
TAKEN AT THE TIME OF DELIVERY.
1
IN THE EVENT THE QUANTITY OF CRUDE OIL PRODUCED EACH MONTH BY THE SELLER EXCEEDS
5,000 (FIVE THOUSAND) METRIC TONNES THE AMOUNT OF CRUDE OIL IN EXCESS OF 5,000
METRIC TONNES SHALL BE OFFERED FOR SALE TO THE BUYER ON A FIRST PRIORITY BASIS
AT THE THEN PREVAILING MARKET TERMS.
5.
QUALITY:
NINOTSMINDA CRUDE OIL OF NORMAL EXPORT QUALITY ("OIL") WITH THE FOLLOWING
GUARANTEED SPECIFICATION:
- DENSITY AT 20° C
820 - 840 KG/CSM - SULPHUR
MAX 0,2 WT PCT - WATER
MAX 1.0 PCT
QUALITY OF OIL SHOULD COINCIDE WITH THE EXISTING NORMS. SELLER AND BUYER SHALL
MEET TO AGREE THE APPOINTMENT OF AN INDEPENDENT EXPERT LABORATORY, TO WHOM ANY
DISPUTES CONCERNING THE QUALITY OF THE OIL OR THE METHOD OF TESTING THEREOF
SHALL BE REFERRED AND BOTH PARTIES MUST ACCEPT THE DECISION OF THE EXPERT.
6.
DELIVERY:
DELIVERY UNDER THIS CONTRACT COMMENCES IN AUGUST 2003. ON A MONTHLY BASIS ON A
DATE TO BE AGREED BETWEEN BUYER AND SELLER, SELLER SHALL MAKE OIL AVAILABLE TO
THE BUYER AT GEORGIAN OIL'S STORAGE RESERVOIRS AT SAMGORI (NGDU) IN CAR TANKS
PROVIDED BY THE BUYER ("DELIVERY POINT"). OIL SHALL BE CONSIDERED DELIVERED AS
THE OIL PASSES THE FILLING HOSE TO THE CAR TANKS. THE SELLER, BUYER AND THE
OPERATOR OF THE OIL STORAGE AND LOADING FACILITY WILL SIGN THE RELATED DELIVERY
ACT.
7.
PRICE:
THE PRICE IN US DOLLARS PER NET US BARREL AT THE DELIVERY POINT FOR OIL
DELIVERED DURING EACH MONTH SHALL BE EQUAL TO THE AVERAGE OF THE MEAN OF THREE
QUOTATIONS IN THE