Document:

Exhibit 4.7

 

HYDRO
R&M HOLDING AB

 

AND

 

NORSK
HYDRO LAGRINGS & DISTRIBUTIONS AB

 

AND

 

 

PREEM
PETROLEUM AB

 

 

PURCHASE
AND SALE AGREEMENT

 

 

DATED
AS OF SEPTEMBER 17, 2003

 

 

PURCHASE AND SALE AGREEMENT

 

This
Purchase and Sale Agreement (this “Agreement”) is made  in Stockholm as of September 17, 2003

 

Among:

 

(1)                              Hydro R&M
Holding AB, with company registration number 556061-7390, a company
incorporated in Sweden and with its registered office at Box 27325, SE-102 54
Stockholm, Sweden (the “Shares Seller”);

 

(2)                              Norsk Hydro
Lagrings &Distributions AB, with company registration number 556171-0640, a
company incorporated in Sweden and with its registered office at Box 27325,
SE-102 54 Stockholm, Sweden (the “Assets
Seller”); and

 

(3)                              Preem Petroleum
AB, with company registration number 556072-6977, a company incorporated in
Sweden and with its registered office at Sandhamnsgatan 51, SE-115 90
Stockholm, Sweden (the “Purchaser”).

 

Background

 

(A)                           The Shares
Seller owns 570,350 shares in Skandinaviska Raffinaderi AB Scanraff (the “Scanraff Shares”), company registration
number 556041-9433 (“Scanraff”),
which corresponds to twenty-five percent (25%) of the total number of issued
and outstanding shares of capital stock of Scanraff.  The remaining shares in Scanraff are owned by the Purchaser.

 

(B)                             The Assets
Seller is the party to certain contracts and is the owner of certain stocks of
petroleum products relating to the Business, which are collectively defined as
the Scanraff Assets in Clause 3.1.

 

(C)                             The Sellers have
agreed to sell and the Purchaser has agreed to purchase the Scanraff Shares and
the Scanraff Assets on the terms and conditions set out herein.

 

1.                                      Interpretation

 

In this Agreement, unless the context otherwise requires, the
provisions in this Clause 1 apply:

 

1.1                               Definitions

 

“Accounting Principles”
means the Swedish Accounting Act (Sw. “bokföringslagen”),
the Swedish Annual Accounting Act (Sw. “årsredovisningslagen”),
Swedish GAAP — the statements and recommendations of the Swedish Financial
Accounting Standards Council (Sw. “Redovisningsrådet”)
of the Accounting Board (Sw. “Bokföringsnämnden”),
and the accounting principles used by Scanraff in maintaining its books and
records and in preparing its financial statements up to the Closing Date;

 

 

“Affiliates” means, with
respect to any Person, any other Person directly or indirectly controlling,
controlled by, or under common control with such Person;

 

“Ancillary Agreements”
means the agreements listed in Schedule 1.1,
Part 1;

 

“Assigned Contracts” means
those contracts listed in Schedule 1.1,
Part 2 which are actually assigned to the Purchaser at the Closing to the
extent the Assets Seller is able to obtain an executed Assigned Contract
Consent or Assigned Contract Novation, as applicable, from the other parties to
each of the contracts listed on Schedule 1.1,
Part 2;

 

“Assigned Contract Consent”
or “Assigned Contract Novation”
means a written consent or novation, as applicable, in form and substance
reasonably acceptable to the Purchaser, to be obtained by the Assets Seller
from each of the other parties to the Assigned Contracts confirming their
consent or novation, as applicable, to the assignment of each of the Assigned
Contracts and their acceptance of the Purchaser as the successor of the Assets
Seller to each of the Assigned Contracts;

 

“Base Capital Expenditures Value”
means the amount set out in Schedule 1.1,
Part 3;

 

“Base Current Assets Value”
means the amount set out in Schedule 1.1,
Part 4;

 

“Base Petroleum Products Stock Value”
means the amount set out in Schedule 1.1,
Part 5;

 

“Base Scanraff Debt Value”  means the amount set out in Schedule 1.1, Part 6;

 

“Business” means all
business activities of Scanraff conducted on the Closing Date;

 

“Business
Day”
means a day which is not a Saturday, a Sunday or a public holiday in Sweden on
which banks in Sweden are required to close;

 

“Capital Expenditures”
means capital expenditures of Scanraff in non-maintenance investments
undertaken between the Date of this Agreement and the Closing Date required to be
disclosed as fixed assets on the financial statements of Scanraff in compliance
with the Accounting Principles, but shall in no event include capital
expenditures made prior to the Date of this Agreement;

 

“Capital Expenditures Valuation
Statement” has the meaning given to it in Clause 8.1;

 

“Capital Expenditures Value Payment”
has the meaning given to it in Clause 8.3.4;

 

“Clearance Decisions”  means, collectively, any and all Swedish,
EC Merger Regulation, EC Merger Task Force, EEA Competition Authority or other
applicable agencies or regulations required for clearance and approval of the
transactions contemplated by this Agreement;

 

2

 

“Closing Capital Expenditures Value”
means the actual Closing Date value of the Capital Expenditures determined in
accordance with the procedures set out in Schedule 8.1
and shown on the Capital Expenditures Valuation Statement;

 

“Closing Current Assets Value”  means the actual Closing Date value of the
Current Assets determined in accordance with the procedure set out in Schedule 8.1 and shown on the Current
Assets Valuation Statement;

 

“Closing Petroleum Products Stock
Value” means the actual Closing Date value of the Petroleum Products
Stock determined in accordance with the procedure set out in Schedule 8.1 and shown on the
Petroleum Products Stock Valuation Statement;

 

“Closing Scanraff Debt Value”  means the actual Closing Date value of the
Scanraff Debt determined in accordance with the procedure set out in Schedule 8.1 and shown on the Scanraff
Debt Valuation Statement;

 

“Closing”
means the completion of the transactions contemplated by this Agreement
pursuant to Clause 7;

 

“Closing Amount” has the
meaning given to it in Clause 4.1(i);

 

“Closing
Date” means the date on which the Closing takes place;

 

“Confidentiality
Agreement” means the Confidentiality Agreement, dated August 6,
2002, between Hydro and the Purchaser, pursuant to which the Sellers made
available to the Purchaser certain confidential information relating to the
Hydro Group and Scanraff;

 

“Contingent Consideration”
means the post-Closing payment to be made by the Purchaser as part of the
Purchase Price, as provided for in Clause 4.3 and as further described in Schedule 4.3;

 

“Current Assets” means the
current assets of Scanraff required to be disclosed as current assets on
financial statements of Scanraff in compliance with the Accounting Principles;

 

“Current Assets Value Adjustment”
has the meaning given to it in Clause 8.3.2;

 

“Current Assets Valuation Statement”  has the meaning given to it in Clause 8.1;

 

“Data
Room”
means the data room containing documents and information relating to the Hydro
Group and Scanraff made available by the Sellers at Linklaters, Stockholm, the
contents of which are listed in Schedule 1.1,
Part 7;

 

“Date of this Agreement”  means the date when this Agreement is
entered into by the Parties, as set forth in the first paragraph hereto;

 

“Debt” means (i) all
liabilities and obligations related to Scanraff as required to be disclosed as
debt on the balance sheet of any financial statements in compliance with the
Accounting Principles used by Scanraff in preparing the Financial Statements,

 

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consistently applied and (ii) all liabilities and obligations
related to the Scanraff Assets as required to be disclosed as debt on the
balance sheet of any financial statements in compliance with the Accounting
Principles;

 

“EC” means the European
Community;

 

“EEA” means the European
Economic Area;

 

“Encumbrances”
means any charge, mortgage, lien, pledge, encumbrance, retention of title,
restriction, option right, right of pre-emption, right of first refusal, prior
assignment or other similar third party right or security interest, or an
agreement to create any of the foregoing;

 

“Environmental Laws” means
any applicable Swedish, EC or EEA law, judicial decision, regulation, rule,
judgment, order, decree, injunction, permit or governmental restriction or
requirement or any agreement with any governmental authority, in effect at the
Closing Date, relating to human health and safety, the environment or to
pollutants, contaminants, wastes or chemicals or any toxic, radioactive,
ignitable, corrosive, reactive or otherwise Hazardous Substances, wastes or materials;

 

“Environmental Permits”
means all required permits, licenses, franchises, certificates, approvals and
other similar authorizations of governmental authorities required by
Environmental Laws and affecting, or required in any way, for the Business as
currently conducted and as conducted on the Closing Date;

 

“Financial Statements”
means the audited consolidated Annual Report of Scanraff for the financial year
ending December 31, 2002, as set out in Schedule 1.1,
Part 8;

 

“Hazardous Substances”
means any pollutant, contaminant, waste or chemical or any toxic, radioactive,
ignitable, corrosive, reactive or otherwise hazardous substance, waste or
material, or any substance whether waste material, raw material, finished
product, co-product, by-product or any other material or article (whether
solids, liquids or gases) having any constituent elements displaying any of the
foregoing characteristics and any substance, waste or material which (during
use, handling, process, storage, emission, disposal, spill, release or any
other activity) is regulated by, or form the basis of liability under, any
Environmental Laws, or any other material or substance which may constitute a
health, safety or environmental hazard, risk or exposure to any animal, plant,
organism, Person, property or natural resource;

 

“Hydro” means Norsk Hydro ASA;

 

“Hydro Group”  means, collectively, the Sellers, Hydro
and the Sellers’ and Hydro’s Affiliates (except Scanraff);

 

“Hydro Group Key Employees”  means those employees of the entities comprising
the Hydro Group who are listed in Schedule 1.1,
Part 9;

 

“Indemnity Notice” has the
meaning given to it in Clause 10.1;

 

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“Losses”
means all losses, liabilities, obligations, damages, costs and expenses
(including, without limitation, reasonable attorney’s, experts’ and
consultants’ fees and expenses), charges, penalties, fines and claims;

 

“Material Adverse Effect”
means any change, event or effect which individually or in the aggregate: (i)
gives rise to a material adverse effect on the Business or (ii) creates a Third
Party action that materially impairs, individually or in the aggregate, a
Party’s authority, right or ability to consummate the transactions contemplated
by this Agreement, except that any action or decision by any financial
institution financing, intending to finance, or arranging to finance or
underwrite the financing of the Purchaser’s transaction shall not be considered
a Material Adverse Effect;

 

“Parties” means,
collectively, the Sellers and the Purchaser; and “Party” means any one of them;

 

“Person” means an
individual, corporation, partnership, limited liability company, association,
trust or other entity or organization;

 

“Petroleum Products Stock”
has the meaning given to it in Schedule 8.1;

 

“Petroleum Products Stock Valuation
Statement” has the meaning given to it in Clause 8.1;

 

“Petroleum Products Stock Value
Adjustment” has the meaning given to it in Clause 8.3.1;

 

“Purchaser Indemnified Parties”
means, collectively or individually, the Purchaser, Scanraff and Preem Holdings
AB (the sole shareholder of the Purchaser);

 

“Purchaser’s Group” means,
collectively, the Purchaser and its Affiliates, as listed in Schedule 1.1, Part 10;

 

“Purchase Price” has the
meaning given to it in Clause 4.1;

 

“Restricted Business” has
the meaning given to it in Clause 11.1;

 

“Scanraff” has the meaning
given to it in Recital A under Background;

 

“Scanraff Assets” has the
meaning given to it in Clause 3.1;

 

“Scanraff Debt” means all
Debt related to Scanraff;

 

“Scanraff Debt Value Adjustment”
has the meaning given to it in Clause 8.3.3;

 

“Scanraff Debt Valuation Statement”
has the meaning given to it in Clause 8.1;

 

“Scanraff Shares” has the
meaning given to it in Recital A under Background;

 

5

 

“Scanraff Shareholders’ Agreement”  means the Shareholders’ Agreement, dated
as of April 17, 2002, among the Shares Seller, the Purchaser and Scanraff,
regarding the Scanraff Shares and Scanraff;

 

“Sellers’” means,
collectively, the Shares Seller and the Assets Seller;

 

“Sellers’ Knowledge” means
the actual knowledge of the Hydro Group Key Employees and shall be deemed to
include an additional statement that the statement has been made after due and
diligent inquiry by the Hydro Group Key Employees;

 

“Sellers’
Lawyers” means Linklaters, Stockholm, Sweden;

 

“Sellers’
Warranties” means, collectively, the representations and warranties
given by the Sellers pursuant to Clause 9; and “Sellers’ Warranty” means any
one of them;

 

“Taxation” or “Tax” means all forms of
taxation whether direct or indirect and whether levied by reference to income,
profits, gains, added value or other reference and statutory, state,
provincial, district, local governmental or municipal (including without
limitation social security contributions and any other payroll taxes), whenever
and wherever imposed (whether imposed by way of a withholding or deduction for
or on account of tax or otherwise) and in respect of any person and all
penalties, charges, costs and interest relating thereto;

 

“Tax
Authority”
means any taxing or other authority competent to impose any liability in
respect of Taxation or responsible for the administration and/or collection of
Taxation or enforcement of any law in relation to Taxation;

 

“Tax Return” means any
return, declaration, report, claim for refund or information statement relating
to Taxes, including any schedules or attachments thereto, and including any
amendments thereof;

 

“Third Party” means a
Person who is not a Party, an Affiliate of a Party, a representative of a
Party, a representative of an Affiliate of a Party or an equity owner of any of
a Party, a Party’s Affiliate or a Party’s representative;

 

“Third Party Claim” has
the meaning given to it in Clause 10.14;

 

“VAT” means any Taxation
levied by reference to added value or sales.

 

1.2                               Schedules
etc.

 

References to this Agreement shall include any Schedules to this
Agreement and references to Clauses and Schedules are to Clauses of, and
Schedules to, this Agreement. References to paragraphs and Parts are to
paragraphs and Parts of the Schedules.

 

6

 

1.3                               Information

 

References to books, records or other information mean books, records
or other information in any form, including paper, electronically stored data,
magnetic media, film and microfilm.

 

1.4                               Legal
Terms

 

References to any Swedish legal term shall, in respect of any
jurisdiction other than Sweden, be construed as references to the term or
concept which most nearly corresponds to such Swedish legal term in that
jurisdiction.

 

2.                                      Sale and Purchase
of the Scanraff Shares

 

2.1                               On
and subject to the terms and conditions of this Agreement, the Shares Seller
agrees to sell, transfer and deliver to the Purchaser and the Purchaser agrees
to purchase, acquire and accept the Scanraff Shares from the Shares Seller.

 

2.2                               The
Scanraff Shares shall be sold, transferred and delivered together with all
rights attaching to them as at Closing (including, without limitation, the
right to receive all dividends or distributions declared on or after Closing).

 

3.                                      Sale and Purchase
of the Scanraff  Assets

 

3.1                               On
and subject to the terms and conditions of this Agreement, the Assets Seller
agrees to sell, transfer and deliver to the Purchaser and the Purchaser agrees
to purchase, acquire and accept from the Assets Seller, all of the following
assets (collectively, the “Scanraff Assets”):

 

(i)                     the Petroleum
Products Stock; and

 

(ii)                  the Assigned
Contracts.

 

3.2                               The
Assets Seller agrees to transfer (to the extent it is able so to do and the
other party to such contract has been willing to provide an Assigned Contract
Consent or Assigned Contract Novation, as applicable) and the Purchaser agrees
to accept the transfer of any such Assigned Contract and to assume any rights,
and to duly and punctually pay, satisfy, discharge, perform or fulfill, all
liabilities under the Assigned Contracts that accrue or arise after the Closing
Date.  The Sellers and Hydro, jointly
and severally, shall indemnify and hold the Purchaser harmless from and against
all Losses of any nature (whether actual, accrued, contingent, absolute,
determined, determinable, known or unknown or otherwise) incurred by the
Purchaser, resulting from, arising out of or relating to any liabilities under
the Assigned Contracts that accrued or arose before the Closing Date.  The Parties agree that the obligations of
the Sellers, Hydro and the Purchaser under this Clause 3.2 shall only apply to
Assigned Contracts covered by an Assigned Contract Consent or Assigned Contract
Novation, as applicable, at the Closing Date.

 

7

 

4.                                      Consideration

 

4.1                               Purchase
Price

 

The “Purchase Price” for
the purchase of the Scanraff Shares and the Scanraff Assets under this
Agreement shall be defined as the aggregate of the various amounts described in
subclauses (i) through (vi) below:

 

(i)                     The following
amounts to be paid at the Closing (collectively, the “Closing
Amount”):

 

(A)                              EURO
170 million; plus

 

(B)                                the
Base Petroleum Products Stock Value; plus

 

(C)                                twenty-five
percent (25%) of the Base Capital Expenditures Value; plus

 

(D)                               twenty-five
percent (25%) of the Base Current Assets Value; minus

 

(E)                                 twenty-five
percent (25%) of the Base Scanraff Debt Value.

 

(ii)                  The amount of
the Petroleum Products Stock Value Adjustment.

 

(iii)               The amount of the
Current Assets Value Adjustment.

 

(iv)              The amount of the
Scanraff Debt Value Adjustment.

 

(v)                 The amount of any
Capital Expenditures Value Payment.

 

(vi)              The amount of any
Contingent Consideration.

 

4.2                               Allocation
of Purchase Price

 

The Purchase Price shall be allocated as of the Closing Date, subject
to the Post-Closing Adjustments in Clause 8.1, between the Scanraff Shares and
Scanraff Assets and the Sellers and the Purchaser shall adopt that allocation
for all Tax purposes.

 

4.3                               Contingent
Consideration

 

After the Closing, the Purchaser shall be obliged to pay any Contingent
Consideration to the Shares Seller or any other Hydro Group entity preceding
the Shares Seller as the entity entitled to the Contingent Consideration, as
described in Schedule 4.3.

 

8

 

4.4                               VAT

 

The Sellers and the Purchaser agree that the consideration given under
this Agreement in respect of the sale of the Scanraff Shares and the Scanraff
Assets is exclusive of any VAT. To the extent that VAT is so chargeable then
the Purchaser shall, against delivery of a valid VAT invoice (or equivalent, if
any), in addition to any amounts expressed in this Agreement to be payable by
the Purchaser, pay such VAT and any penalty fee relating thereto.

 

5.                                      Conditions

 

5.1                               Conditions
Precedent

 

The obligations of the Purchaser to purchase
and the obligations of the Sellers to sell the Scanraff Shares and the Scanraff
Assets and to consummate the transactions contemplated by this Agreement, shall
be subject to the fulfillment, or express waiver in writing signed by the
relevant Party at its sole discretion, on or prior to the Closing of each of
the following conditions:

 

(i)                     All Clearance
Decisions shall have been obtained and/or satisfied and any applicable waiting
periods (and any extensions thereof) shall have expired or been terminated.

 

(ii)                  No litigation,
action, suit or other proceeding shall be instituted, pending or threatened
against the Sellers, the Purchaser or Scanraff at the Closing Date, where an
unfavourable judgment, decree or order would prevent, prohibit or make unlawful
the carrying out by the Sellers or the Purchaser of the transactions contemplated
by this Agreement.

 

(iii)               The Sellers shall
have removed all Encumbrances created solely by the Sellers, if any, involving
the Scanraff Shares and the Scanraff Assets.

 

(iv)              No Material Adverse
Effect shall have occurred; provided, that a change, event or effect
resulting from general economic or financial conditions in the business sector
in which Scanraff operates shall not be taken into account.

 

5.2                               Satisfaction
of Clause 5.1(i)

 

(i)                     Each Party
shall give notice to the other Party of the satisfaction of the condition in
Clause 5.1(i) within two (2) Business Days of obtaining the Clearance
Decisions.

 

(ii)                  The Parties
shall take such commercially reasonable efforts as may be necessary to obtain
all Clearance Decisions as quickly as is reasonably possible.  In the event that any governmental body or
agency is not prepared to give its Clearance Decision to the sale and purchase
without a modification of any of the terms and conditions described in this

 

9

 

Agreement, then the Parties shall use their
commercially reasonable efforts to negotiate in good faith with the relevant
authorities in order to obtain such Clearance Decisions and the Parties shall
take such commercially reasonable actions as may be required to achieve such
Clearance Decisions.  Each Party shall
make commercially reasonable efforts to assist the other Party in order to
obtain the Clearance Decisions.

 

(iii)               Each Party agrees
that all requests and inquiries from any government, governmental,
supranational or trade agency, court or other regulatory body in respect of the
Clearance Decisions shall be dealt with by the Parties in consultation with
each other and each Party shall promptly co-operate with and provide all
necessary information and assistance reasonably required by such government,
agency, court or body upon being requested to do so by the other Party.

 

6.                                      Pre-Closing

 

6.1                               The
Sellers’ Obligations in Relation to the Conduct of the Business

 

Each of the Sellers undertakes, save to the extent required under the
Scanraff Shareholders Agreement, to use reasonable endeavors to procure that
between the Date of this Agreement and Closing it shall carry on its activities
relating to Scanraff and the Scanraff Assets in the ordinary course as carried
on prior to the Date of this Agreement, save in so far as agreed in writing by
the Purchaser, such consent not to be unreasonably withheld or delayed.

 

6.2                               Other
Obligations on the Date of this Agreement and Prior to Closing

 

6.2.1                     On the
Date of this Agreement, the Purchaser shall provide to the Sellers reasonable
evidence that the Purchaser will have on the Closing Date sufficient cash,
available lines of credit or other sources of immediately available funds to
enable the Purchaser to complete the transactions contemplated by this
Agreement.

 

6.2.2                     The
Parties shall have entered into the Ancillary Agreements with the parties
thereto.

 

7.                                      Closing

 

7.1                               Date
and Place

 

Subject to satisfaction of the conditions described in Clause 5.1, the
Closing shall take place at 10.00 at the offices of the Sellers’ Lawyers on the
fifth Business Day following notification of the fulfillment or waiver of the
conditions set out in Clause 5.1, or at such other location, time or date as
may be agreed upon between the Purchaser and the Sellers.

 

10

 

7.2                               Payment
on Closing Date

 

On the Closing Date, the Purchaser shall pay the Closing Amount to the
Sellers in immediately available funds by wire transfer to the account of the
Sellers at a bank designated by the Sellers. The Sellers shall designate such
bank and account by written notice to the Purchaser, which notice shall be
given not later than two (2) Business Days prior to the Closing Date.

 

7.3                               Closing
Events

 

On the Closing Date the Sellers shall, at receipt of the Closing Amount
under Clause 7.2 and the releases and payments under Clause 7.4, deliver or
make available to the Purchaser:

 

7.3.1                     The share
certificates (Sw. “aktiebrev”) evidencing the Scanraff Shares, duly endorsed in
favor of  the Purchaser.

 

7.3.2                     The
Shares Seller and the Purchaser shall procure that the Board of Directors of
Scanraff enters the Purchaser as the owner of the Scanraff Shares in the share
register (Sw. ”aktiebok”) of Scanraff.

 

7.3.3                     The
termination of the service agreements and other arrangements set out in Schedule 7.3.3.

 

7.3.4                     The
transfer of those Assigned Contracts covered by an Assigned Contract Consent or
Assigned Contract Novation, as applicable.

 

7.3.5                     The
transfer of the Petroleum Products Stock.

 

7.3.6                     Evidence
of authorization to execute this Agreement.

 

7.3.7                     The
Ancillary Agreements to which the Sellers are a party.

 

7.3.8                     The
written resignations of all board directors of Scanraff that were designated by
the Hydro Group, with each resignation including a release from the applicable
board director of any claim for compensation or payments from Scanraff after
the Closing Date for the board directorship up to and including the Closing
Date.

 

On the Closing Date the Purchaser shall deliver to the Sellers (a)
evidence of authorization to execute this Agreement and (b) the Ancillary
Agreements to which the Purchaser is a party.

 

7.4                               Release
of Guarantees, Payment of Debts and Termination of Group Arrangements

 

7.4.1                     The
Purchaser shall procure as of the Closing the release of the Sellers or any
other member of the Hydro Group from the guarantees or indemnities in respect
of Scanraff given by or binding upon the Sellers or any other member of the
Hydro Group, as specified in Schedule 7.4.1.
Pending such release, the Purchaser

 

11

 

shall indemnify and hold the Sellers and any
member of the Hydro Group harmless against all amounts paid by any of them
pursuant to any such guarantees or indemnities specified in Schedule 7.4.1.

 

7.4.2                     To the
extent such items are shown as Scanraff Debt owed to the Sellers or any other
member of the Hydro Group, the Purchaser shall on the Closing Date pay on
behalf of Scanraff, all debts owed to the Sellers or any other member of the
Hydro Group in respect of Scanraff and specified in Schedule 7.4.2,
together with interest up to and including Closing Date, to the recipient
specified in Schedule 7.4.2.

 

7.5                               Termination
of Scanraff Shareholders’ Agreement

 

The Parties agree that upon satisfaction of all the conditions to
Closing, the Scanraff Shareholders’ Agreement shall terminate, as of the
Closing Date, pursuant to the Termination of Shareholders’ Agreement included
as an Ancillary Agreement.

 

7.6                               Board of Directors of Scanraff

 

7.6.1                     On or
promptly after the Closing Date, the Purchaser shall convene a shareholders
meeting and a board meeting for Scanraff to elect a new Board of Directors,
which action shall be filed with the Swedish Patent and Registration office
promptly thereafter.  A copy of the
registration certificate issued by the Swedish Patent and Registration office
shall be sent to the Shares Seller after registration.

 

7.6.2                     The
Purchaser shall at the next ordinary shareholders meeting of Scanraff grant the
board directors designated by the Hydro Group release from their
responsibilities as board directors; provided, that the auditors of
Scanraff approve such a release.

 

8.                                      Post-Closing
Adjustments

 

8.1                               Petroleum
Products Stock Valuation Statement, Current Assets Valuation Statement, Capital
Expenditures Valuation Statement and Scanraff Debt Valuation Statement

 

The Sellers shall procure that as soon as practicable following the
Closing, but not later than forty-five (45) days following the Closing, there
shall be made written Closing Date valuation statements of the Petroleum
Products Stock (the “Petroleum Products Stock
Valuation Statement”), the Current Assets (the “Current Assets Valuation Statement”), the
Capital Expenditures (the “Capital Expenditures
Valuation Statement”) and the Scanraff Debt (the “Scanraff Debt Valuation Statement”), in
form and substance acceptable to the Purchaser and prepared in accordance with
the procedure set out in Schedule 8.1.

 

12

 

8.2                               Determination
of Petroleum Products Stock Valuation Statement, Current Assets Valuation
Statement, Capital Expenditures Valuation Statement and Scanraff Debt Valuation
Statement

 

8.2.1                     The
Petroleum Products Stock Valuation Statement, the Current Assets Valuation
Statement, the Capital Expenditures Valuation Statement and the Scanraff Debt
Valuation Statement, as agreed or determined in accordance with the procedure
set out in Schedule 8.1:

 

(i)                     shall
constitute the Petroleum Products Stock Valuation Statement, the Current Assets
Valuation Statement, the Capital Expenditures Valuation Statement and the
Scanraff Debt Valuation Statement for purposes of this Agreement; and

 

(ii)                  shall be final
and binding on the Parties, but shall in no way limit, restrict or waive any of
the Parties’ rights as a result of any breach of any representation or warranty
of the other Party or any breach or non-fulfillment of any obligation of any
other Party under this Agreement.

 

8.2.2                     The
Closing Petroleum Products Stock Value shall be derived from the Petroleum
Products Stock Valuation Statement.

 

8.2.3                     The
Closing Current Assets Value shall be derived from the Current Assets Valuation
Statement.

 

8.2.4                     The
Closing Capital Expenditures Value shall be derived from the Capital
Expenditures Valuation Statement.

 

8.2.5                     The
Closing Scanraff Debt Value shall be derived from the Scanraff Debt Valuation
Statement.

 

8.3                               Determination of Petroleum Products Stock Value Adjustment, Current
Assets Value Adjustment, Capital Expenditures Value Payment and Scanraff Debt
Value Adjustment

 

8.3.1                     Petroleum
Products Stock Value Adjustment:

 

(i)                     If the
Closing Petroleum Products Stock Value set forth on the Petroleum Products
Stock Valuation Statement is lower than the Base Petroleum Products Stock
Value, then the Assets Seller shall repay to the Purchaser an amount equal to
the deficit of the Closing Petroleum Products Stock Value below the Base
Petroleum Products Stock Value, as a reduction of the Purchase Price.

 

(ii)                  If the Closing Petroleum
Products Stock Value set forth on the Petroleum Products Stock Valuation
Statement is higher than the Base Petroleum Products Stock Value, then the
Purchaser shall pay to the Assets Seller an amount equal to the excess of the
Closing Petroleum Products Stock Value

 

13

 

over the Base Petroleum Products Stock Value,
as an increase in the Purchase Price.

 

8.3.2                     Current
Assets Value Adjustment:

 

(i)                     If the
Closing Current Assets Value set forth on the Current Assets Valuation
Statement is lower than the Base Current Assets Value, then the Shares Seller
shall repay to the Purchaser an amount equal to twenty-five percent (25%) of
the deficit of the Closing Current Assets Value below the Base Current Assets Value,
as a reduction of the Purchase Price; or

 

(ii)                  If the Closing
Current Assets Value set forth on the Current Assets Valuation Statement is
higher than the Base Current Assets Value, then the Purchaser shall pay to the
Shares Seller an amount equal to twenty-five percent (25%) of the excess of the
Closing Current Assets Value over the Base Current Assets Value, as an increase
in the Purchase Price.

 

8.3.3                     Scanraff
Debt Value Adjustment:

 

(i)                     If the
Closing Scanraff Debt Value set forth on the Scanraff Debt Valuation Statement
is lower than the Base Scanraff Debt Value, then the Purchaser shall pay to the
Shares Seller an amount equal to twenty-five percent (25%) of the deficit of
the Closing Scanraff Debt Value below the Base Scanraff Debt Value, as an increase
in the Purchase Price; or

 

(ii)                  If the Closing
Scanraff Debt Value set forth on the Scanraff Debt Valuation Statement is
higher than the Base Scanraff Debt Value, then the Shares Seller shall repay to
the Purchaser an amount equal to twenty-five percent (25%) of the excess of the
Closing Scanraff Debt Value above the Base Scanraff Debt Value, as a reduction
of the Purchase Price.

 

8.3.4                     Capital
Expenditures Value Payment

 

If the Closing Capital Expenditures Value as
set out in the Capital Expenditures Valuation Statement is higher than the Base
Capital Expenditures Value, then the Purchaser shall pay to the Shares Seller
an amount equal to twenty-five percent (25%) of the excess of the Closing
Capital Expenditures Value over the Base Capital Expenditures Value, as an
increase in the Purchase Price.

 

8.4                               Payment

 

Any payment pursuant to this Clause 8 shall be made on or before ten
(10) Business Days after the date on which the valuation of the Petroleum
Products Stock Value Adjustment, Current Assets Value Adjustment, Capital
Expenditures Value Payment and Scanraff Debt Value Adjustment process described
in Schedule 8.1 is completed.

 

14

 

8.5                               Interest

 

Any payment to be made in accordance with this Clause 8 shall include
interest thereon calculated from the Closing Date to the date of payment in
accordance with the interest rate described in Clause 14.6.

 

9.                                      Representations
and Warranties

 

9.1                               The
Sellers’ Warranties

 

Subject to the disclosures that have been specifically set forth in the
Schedules referred to below in this Clause 9.1 in relation to individual
representations and warranties and in Clause 9.2, each of the Sellers
represents and warrants to the Purchaser that the following statements are true
and accurate, unless any specific date has been specified in this Clause 9.1,
on and as at the Date of this Agreement and will be true and accurate on and as
at the Closing Date:

 

9.1.1                     Corporate

 

(i)                     Each of the
Sellers is a corporation, duly organized and validly existing in Sweden, with
full corporate power to carry on its business as it is now conducted, and to
own, lease or operate the assets and properties being a part of the Petroleum
Products Stock, the Scanraff  Assets and
the Scanraff Shares.

 

(ii)                  Each of the Sellers has full
corporate power and authority to execute and deliver this Agreement and the
Ancillary Agreements, if any, to be executed and delivered by any of the
Sellers and each other document or instrument delivered in connection herewith
and to consummate the transactions contemplated hereby and thereby.

 

(iii)               Each of the Sellers
has duly authorized, executed and delivered this Agreement, and as of the
Closing Date, will have executed and delivered the Ancillary Agreements, if
any, to be executed and delivered by each of the Sellers. This Agreement
constitutes, and, as of the Closing Date, the Ancillary Agreements, if any,
required to be executed and delivered by each of the applicable Sellers will
constitute, the legal, valid and binding obligations of each of the applicable
Sellers, enforceable against each of the applicable Sellers in accordance with
their respective terms.

 

(iv)              Except for the
matters described in Clause 5.1(i), the execution and delivery of this
Agreement and the Ancillary Agreements by each of the Sellers and the
consummation of the transactions contemplated hereby and thereby will not
result in a breach of any of the terms and provisions of or conflict with (a)
the articles of association and other organizational and governing documents of
each of the Sellers; (b) any applicable judgment, decree, order or award of any
court, governmental body or arbitrator; (c) any law or regulation applicable to
the Sellers; or (d) any other instrument

 

15

 

to which the Sellers or, to the Sellers’
Knowledge, Scanraff is a party or by which any of them is bound.

 

9.1.2                     Scanraff
Shares and Scanraff Assets

 

The Scanraff Shares are legally and validly
issued and fully paid up, and have not been issued in violation of any
pre-emption or any other rights. The Shares Seller lawfully owns the Scanraff
Shares, free and clear of any Encumbrances, except as disclosed in Schedule 9.1.2. The Shares Seller has
good and transferable title to the Scanraff Shares and has the absolute right,
power and capacity to sell and deliver the Scanraff Shares to the Purchaser in
accordance with the terms of this Agreement, except as disclosed in Schedule 9.1.2.

 

The Assets Seller lawfully owns, and has good
and transferable title to, the Petroleum Products Stock. The Assets Seller has
the absolute right, power and capacity to sell and deliver the Petroleum
Products Stock to the Purchaser in accordance with the terms of this Agreement,
except as disclosed in Schedule 9.1.2.
The Petroleum Product Stock is free and clear of any Encumbrances, except as
disclosed in Schedule 9.1.2.

 

9.1.3                     Assigned
Contracts

 

The Assigned Contracts are free and clear of
any Encumbrances, except as disclosed in Schedule 9.1.3.

 

The Assigned Contracts were, when entered
into, arm’s length arrangements, that contained fair market and customary terms
and conditions, except as disclosed in Schedule 9.1.3.

 

Each of the Assigned Contracts is a valid and
binding agreement of the Assets Seller, and, to the Sellers’ Knowledge, of the
other parties thereto, subject to the effects of bankruptcy and creditors’
rights generally.

 

The Assets Seller has fulfilled all material
obligations required to have been performed by it or on its part pursuant to each
of the Assigned Contracts prior to the Date of this Agreement, and there is no
condition which would prevent the Purchaser from fulfilling, when due, all of
the Purchaser’s material obligations under the Assigned Contracts which remain
to be performed after the Closing Date.

 

The Assets Seller is not in material default
under any of the Assigned Contracts, except as disclosed in Schedule 9.1.3, and none of the
Assigned Contracts is terminated nor is the other party to such agreements in
such default and there are, to the Sellers’ Knowledge, no circumstances which
are likely to lead to such default, or which may have a Material Adverse Effect
or which may lead to a termination of any one of the Assigned Contracts.

 

16

 

The Purchaser will not be liable, due to
circumstances existing before or upon the Closing Date, to compensate for
damages caused to Third Parties by products sold or services rendered under the
Assigned Contracts.

 

9.1.4                     Petroleum
Products Stock

 

Except as otherwise provided for in Clause
9.1.2 of this Agreement, the Petroleum Products Stock is sold as is (Sw. “i
befintligt skick”).

 

9.1.5                     Employees

 

There are no employees employed by either of
the Sellers and there is no re-employment rights for any former employees of
either of the Sellers.

 

9.1.6                     Information

 

No representation or warranty of any of the
Sellers contained in this Agreement or the Ancillary Agreements and no document
or certificate heretofore or hereafter provided to the Purchaser by or on
behalf of any of the Sellers, contains any untrue statement of material fact or
omits to state a material fact necessary in order to make the statements
contained therein not misleading.  The
provisions of this Clause 9.1.6 shall in no way modify any limitations in
respect of knowledge or materiality that are contained in the other Sellers’
Warranties.

 

9.1.7                     Financial
Statements

 

Except as set out in Schedule 9.1.7:

 

(i)                     The Financial
Statements set out in Schedule 1.1,
Part 8:

 

(a)                                  Have, in all
material respects, been prepared in accordance with and comply with the
Accounting Principles applied on a basis consistent with that of the financial
years 2001 and 2002, except from any results of  the joint reorganization of the refinery business since
April 2002.

 

(b)                                 Reflect the
consolidated and the individual assets, properties, liabilities, cash-flows,
revenues and expenditures of Scanraff in accordance with the Accounting
Principles.

 

(c)                                  Present fairly,
in all material respects, the consolidated financial condition of Scanraff as
of their dates in accordance with the Accounting Principles.

 

(ii)                  To the Sellers’
Knowledge, there are no material liabilities of Scanraff of any kind
whatsoever, whether accrued, contingent, absolute or determined and there are
no existing conditions, situations or set of circumstances

 

17

 

which could reasonably be expected to have a
Material Adverse Effect, other than:

 

(a)                                  Liabilities
reflected in the Financial Statements;

 

(b)                                 Liabilities not
required under Swedish GAAP to be shown on the balance sheets included in the
Financial Statements for reasons other than the contingent nature thereof or
the difficulty of determining the amount thereof; and

 

(c)                                  Liabilities
disclosed in Schedule 9.1.7.

 

(iii)               To the Sellers’
Knowledge, Scanraff makes and keeps accurate books and records reflecting its
assets and properties, revenues, expenditure and liabilities.

 

9.1.8                     Business

 

To the Sellers’ Knowledge, Scanraff has not,
and the Sellers’ part of the Business as conducted does not, violate, in any
material respect any applicable Swedish or foreign laws, regulations or orders,
the enforcement of which would reasonably be expected to have a Material
Adverse Effect.  To the Sellers’ Knowledge,
Scanraff has been granted all requested material permits from the authorities
concerned that are necessary for Scanraff and the Sellers’ part of the
Business.

 

9.1.9                     Taxes

 

To the Sellers’ Knowledge, all Tax Returns,
if any, to be filed by Scanraff in respect of any Tax have been duly and timely
filed with the appropriate Tax Authority and are correct and complete in all
material respects and no deficiency in payment of Tax in respect of the period
up to and including the Closing Date has been, is or will be claimed or made by
any Tax Authority for any year or part of a year in respect of Scanraff.

 

9.1.10              Litigation

 

Except as set out in Schedule 9.1.10:

 

(i)                     To the
Sellers’ Knowledge, there is no final order, decree or judgment of any court or
any governmental, regulatory or other entity, division, commission or agency of
Sweden or any foreign country outstanding against Scanraff or any material
assets or properties of Scanraff.

 

(ii)                  To the Sellers’
Knowledge, there is no material litigation, claim, dispute, action, suit,
investigation or other proceeding of any nature pending or threatened before
any court or any governmental, regulatory or other entity, division, commission
or agency of Sweden or any foreign country

 

18

 

against or involving Scanraff or any material
assets or properties of Scanraff.

 

(iii)               There is no
material litigation, claim, dispute, action, suit, investigation or other
proceeding of any nature pending or, to the Sellers’ Knowledge, threatened
before any court or any governmental, regulatory or other entity, division,
commission or agency which presents a risk of the restraint or prohibition of
the transactions contemplated by this Agreement or the obtaining of
indemnification or other relief in connection with this Agreement, except for
the matters described in Clause 5.1(i).

 

9.1.11              Consents, Approvals
and Clearance Decisions

 

The Clearance Decisions and the consents and
the approvals described in Schedule 9.1.11
are the applicable consents, approvals, authorizations, permits and
other requirements prescribed by any applicable law or regulation or any
governmental bodies or agencies which must be obtained by the Sellers and which
are necessary for the execution and delivery by the Sellers of this Agreement
and the Ancillary Agreements and required for clearance and approval of the
transactions contemplated by this Agreement.

 

9.1.12              Environmental

 

Except as set out in Schedule 9.1.12, to the Sellers’
Knowledge, Scanraff complies in all material respects with all relevant
Environmental Laws and Environmental Permits and has generated, utilized,
stored, delivered for disposal, disposed of, treated, transported, and
otherwise managed all materials, substances, and wastes, whether toxic,
hazardous or otherwise, in compliance with all applicable Environmental Laws
and Environmental Permits.  To the
Sellers’ Knowledge, Scanraff has all Environmental Permits required under
applicable Environmental Laws that are necessary for the operation of its
Business as such Business is being conducted on the Date of this Agreement and
on the Closing Date.  To the Sellers’
Knowledge, in all material respects the Environmental Permits of Scanraff are
valid in accordance with their terms. 
To the Sellers’ Knowledge, there are no actions, orders, claims,
investigations or other proceedings under Environmental Laws or Environmental
Permits outstanding, being taken, made, pending or threatened in connection
with the operations, assets or properties of Scanraff, all which would have a
Material Adverse Effect.  The Purchaser
acknowledges and agrees that the due and diligent inquiry by the Hydro Group
Key Employees for purposes of Sellers’ Knowledge as it applies to this Clause
9.1.12 shall not include obtaining new Phase I or Phase II environmental
investigations, studies or reports in respect of Scanraff or any of its
properties or assets.

 

19

 

9.1.13              Scanraff Debt; Debt
on the Scanraff Assets

 

The Scanraff Debt set out in Schedule 1.1, Part 6, reflects all the
Debt related to Scanraff on and as of June 30, 2003 and there is no other
Debt related to Scanraff other than Scanraff Debt which may appear on the
balance sheet of Scanraff on and as at the Closing Date as part of the
post-Closing adjustments pursuant to Clause 8. 
There is no Debt related to the Scanraff Assets on and as at the Date of
this Agreement and on and as at the Closing Date.  Notwithstanding the foregoing, even if a liability of the Sellers
or Hydro would have been an item otherwise recorded as Debt, then it will not
be treated as Debt for purposes of this Clause 9.1.13 if it involves a matter
covered by any of the other Sellers’ Warranties.

 

9.2                               Sellers
Disclosures

 

The Sellers’ Warranties are subject to and do not cover any matter
(a) which is contained or disclosed in this Agreement or (b) which
comprises all those documents provided in the Data Room that are set out in Schedule 1.1,  Part 7.

 

9.3                               The
Sellers’ Liability besides the Sellers’ Warranties

 

The only Sellers’ Warranties in respect of the Scanraff Shares and the
Scanraff Assets or any part thereof are those contained in this Agreement and
the Ancillary Agreements and the Sellers shall not be liable in respect of any
warranty, representation, indemnity, covenant, undertaking, obligation toward
Third Parties, liability under any statute (including, but not limited to, the
Swedish Sale of Goods Act (Sw. “Köplagen” 1990:931) or the Property Code (Sw.
“Jordabalken” 1970:994) or any local laws, or as amended) or legal principle or
otherwise arising out of, or in connection with, the transactions hereunder,
except where the same is expressly contained in this Agreement and the
Ancillary Agreements and the Purchaser confirms that it has not relied on any
warranty, representation, indemnity, covenant, undertaking or liability under
any statute (including, but not limited to, the Swedish Sale of Goods Act (Sw.
“Köplagen” 1990:931) or the Property Code (Sw. “Jordabalken” 1970:994) or any
local laws, or as amended) or legal principle which is not expressly contained
in this Agreement and the Ancillary Agreements.

 

9.4                               Intentionally
Omitted

 

9.5                               Representations
and Warranties of the Purchaser

 

Subject to the disclosures that have been specifically set forth in the
Schedules referred to below in this Clause 9.5 in relation to individual
representations and warranties, the Purchaser represents and warrants to each
of the Sellers that the following statements are true and accurate, unless any
specific date has been specified below in this Clause 9.5, on and as at the
Date of this Agreement and will be true and accurate on and as at the Closing
Date:

 

20

 

9.5.1                     Corporate

 

(i)                     The Purchaser
is a corporation, duly organized and validly existing in Sweden, with full
corporate power to carry on its business as it is now conducted.

 

(ii)                  The Purchaser
has full corporate power and authority to execute and deliver this Agreement
and the Ancillary Agreements, if any, to be executed and delivered by the
Purchaser and each other document or instrument delivered in connection
herewith and to consummate the transactions contemplated hereby.

 

(iii)               The Purchaser has
duly authorized, executed and delivered this Agreement, and, as of the Closing
Date, will have duly executed and delivered the Ancillary Agreements, if any,
to be executed and delivered by the Purchaser. 
This Agreement constitutes, and, as of the Closing Date, the Ancillary
Agreements, if any, required to be executed and delivered by the Purchaser will
constitute, legal, valid and binding obligations of the Purchaser, enforceable
against the Purchaser in accordance with their respective terms.

 

(iv)              Except for the
matters described in Clause 5.1(i), the execution and delivery of this
Agreement and the Ancillary Agreement by the Purchaser and the consummation of
the transactions contemplated hereby and thereby will not result in a breach of
any of the terms and provisions of or conflict with:

 

(a)                                  the articles of
association of the Purchaser;

 

(b)                                 any applicable
judgment, decree, order or award of any court, governmental body or arbitrator;

 

(c)                                  any law or
regulation applicable to the Purchaser; or

 

(d)                                 any other
instrument to which the Purchaser or, to the Purchaser’s knowledge, Scanraff is
a party or by which any of them is bound.

 

9.5.2                     Financing

 

The Purchaser will have on the Closing Date
(or such other date when payment is required to be made under this Agreement)
sufficient cash, available lines of credit or other sources of immediately
available funds to enable the Purchaser to make all payments it may be required
to make to complete the transactions contemplated by this Agreement.

 

21

 

9.5.3                     The
Purchaser’s Liability Besides this Agreement

 

The Purchaser is not making any
representation or warranty, expressly or implied, of any nature whatsoever,
except as specifically set forth in this Agreement and the Ancillary
Agreements.  Each of the Sellers confirms
that it has not relied on any warranty, representation, indemnity, covenant,
undertaking or liability under any statute or legal principle which is not
expressly contained in this Agreement and the Ancillary Agreements.

 

9.5.4                     Consents,
Approvals and Clearance Decisions

 

The Clearance Decisions and the consents and
the approvals described in Schedule 9.5.4
are the applicable consents, approvals, authorizations, permits and
other requirements prescribed by any applicable law or regulation which must be
obtained by the Purchaser and which are necessary for the execution and
delivery by the Purchaser of this Agreement and the Ancillary Agreements and
required for clearance and approval of the transactions contemplated by this
Agreement.

 

9.5.5                     Break Up Fee

 

If the Closing does not take place due to the
Purchaser not being able to pay the Closing Amount, then the Purchaser shall
pay the Sellers the sum of EURO 10 million as liquidated damages (Sw.
“vite”). Such payment is to be made regardless of the Losses incurred by the
Sellers. The aforesaid liquidated damages are deemed due and payable on the
first Business Day following the date of required payment of the Closing Amount
which should have been made in accordance with Clause 7.2; provided,
that the Purchaser shall pay the aforementioned liquidated damages on
July 1, 2004 if the Closing has not taken place on or before June 30,
2004 solely due to the Purchaser not being able to pay the Closing Amount if
all of the conditions set out in Clause 5 have been satisfied.  The Sellers are not entitled to make any
claim for Losses in addition to the payment required under this Clause 9.5.5
with regard to the Purchaser’s non-ability to pay the Closing Amount and such
payment shall be the Sellers’ sole and exclusive remedy, except the Sellers’
right to enforce the waivers and obligations of the Purchaser contained in this
Clause 9.5.5.

 

Further, if the Closing does not take place
due to the Purchaser not being able to pay the Closing Amount, then the
Purchaser hereby waives until June 30, 2006 the Purchaser’s
pre-emption rights (but no other rights except as provided in this Clause
9.5.5) under the Scanraff Shareholders’ Agreement, Scanraff’s Articles of
Association and the Skandinaviska Raffinaderi Aktiebolaget Scanraff Processing Agreement,
dated as of April 17, 2002 (the “Scanraff
Processing Agreement”), in respect of a sale of the Scanraff Shares
by the Shares Seller to a Third Party. 
It is further agreed that the Purchaser’s and Scanraff’s right to
withhold consent to the sale of any interest in Scanraff, whether directly or
indirectly, to any Third Party, including under the Scanraff

 

22

 

Shareholders’ Agreement and the Scanraff
Processing Agreement, is limited to any sale to any Third Party not having the
financial capabilities to fulfill all of its obligations under the
aforementioned agreements, including, but not limited to, the ability to
finance its allocable portion of the Isocracker upgrade costs involving the
Scanraff refinery and to make all the other required payments as a shareholder
in Scanraff.  For avoidance of doubt,
the Parties acknowledge and agree that even if the Purchaser’s pre-emption
rights have been waived pursuant to this Clause 9.5.5, the Purchaser and
Scanraff shall continue to retain all of their other rights under the Scanraff
Shareholders’ Agreement, Scanraff’s Articles of Association and the Scanraff
Processing Agreement.

 

Furthermore, if the Closing does not take
place due to the Purchaser not being able to pay the Closing Amount, then the
Purchaser hereby undertakes until June 30, 2006 to use its commercially
reasonable efforts in assisting the Sellers to sell the Scanraff Assets and the
Scanraff Shares to a Third Party; provided, that such efforts are at a
de minimis cost, expense or other obligation to the Purchaser.

 

10.                               Sellers’ Indemnifications

 

10.1                        General
Indemnification

 

The Sellers and Hydro, jointly and severally, shall indemnify and hold
the Purchaser Indemnified Parties harmless from and against all Losses incurred
by any of the Purchaser Indemnified Parties and shall, in accordance with
Clause 10.14, defend the Purchaser Indemnified Parties in respect of all
actions, proceedings, suits or demands of any nature involving any of the
Purchaser Indemnified Parties, in each case resulting from, arising out of or
relating to any breach of any representation or warranty of the Sellers or any
breach or non-fulfillment of any covenant, obligation or agreement on the part
of the Sellers and any breach or non-fulfillment of any covenant, obligation or
agreement on the part of Hydro and the other entities comprising the Hydro
Group, of this Agreement and the Ancillary Agreements.  The Purchaser Indemnified Parties shall give
written notice (the “Indemnity Notice”)
to the Sellers and Hydro promptly after becoming aware of (a) any claim for
Losses as to which indemnification may be sought against the Sellers and Hydro
or (b) any action, proceeding, suit or demand of any nature for which the
Purchaser Indemnified Parties seek defense thereof by the Sellers and
Hydro.  All claims for Losses shall be
paid and satisfied by the Sellers and Hydro within sixty (60) days after
receipt of any Indemnity Notice; provided, however, that if any
claim for Losses is arbitrated by the Sellers and Hydro pursuant to Clause 16,
and the Purchaser Indemnified Parties are successful in respect of such
arbitration, then the claim for Losses shall be paid and satisfied by the
Sellers and Hydro within thirty (30) days after the arbitrator’s final decision
is published.  Any payment to be made by
the Sellers and Hydro in accordance with this Clause 10 shall include interest
thereon calculated from the date of receipt by the Sellers of the Indemnity
Notice to the date of payment in accordance with the interest rate described in
Clause 14.6.

 

23

 

10.2                        Limitations

 

Any claim by the Purchaser Indemnified Parties under this Clause 10
shall be made not later than the date that is twenty-four (24) months following
the Closing Date; provided, however, that such limit in time
shall not apply to claims:

 

10.2.1              for breaches of
any Sellers’ Warranties involving environmental matters, which may be made
until sixty (60) months following the Closing Date;

 

10.2.2              for breaches of
any Sellers’ Warranties involving any Taxes, which may be made until three (3)
months after the date such Tax has been finally and irrevocably determined by
the relevant Tax Authority; and

 

10.2.3              for breaches of
any Sellers’ Warranties contained in Clause 9.1.1 (Corporate) and Clause 9.1.2
(Scanraff Shares and Scanraff Assets), which may be made until sixty (60)
months following the Closing Date.

 

If any Losses have occurred before any of the aforesaid dates but the
amount thereof cannot be adequately quantified, the Purchaser Indemnified
Parties may claim compensation for such Losses, provided that the claim is made
within the applicable time period and a quantified claim is thereafter made as
soon as adequate information is available as to the amount.

 

10.3                        Reduction
of Purchase Price at Closing; Purchase Price Adjustment For Post-Closing
Payments

 

10.3.1              Any claims made
by the Purchaser or the other Purchaser Indemnified Parties against the Sellers
or Hydro pursuant to this Agreement shall be paid by the Sellers and Hydro
through a reduction or adjustment of the Purchase Price as the sole and
exclusive remedy.  Any reduction of the
Purchase Price shall be made by the Purchaser by setting off the sum of any
such payments against the Closing Amount to be paid at the Closing if the
amount of a claim has been agreed upon by the Parties and exists on the Closing
Date.  If any such payments are to be
made by the Sellers and Hydro to the Purchaser or the other Purchaser
Indemnified Parties after the Closing Date, then such payments shall be made in
cash and the Purchase Price shall be adjusted and deemed to be reduced by the
amount of such payments.

 

10.3.2              Reduction of the
Purchase Price or adjustment of the Purchase Price as set forth in
Clause 10.3.1 above, shall be made by the amount corresponding to the
Losses incurred by the Purchaser or the other Purchaser Indemnified Parties.

 

10.3.3              Notwithstanding
what is set forth in Clause 10.3.2 above, the amount of any claims made by
any of the Purchaser Indemnified Parties for breaches of the Sellers’
Warranties in respect of matters involving breaches of Clauses 9.1.7
through 9.1.10 or 9.1.12 through 9.1.13 shall be limited to twenty-five percent
(25%) of all Losses incurred by the Purchaser Indemnified Parties which, in
accordance with the Accounting Principles, should have been recorded prior to

 

24

 

the Closing Date in Scanraff’s current
accounts or in the Financial Statements or in any Annual Report of Scanraff.

 

10.4                        Minimum
Claims

 

The Purchaser Indemnified Parties shall be indemnified by the Sellers
and Hydro under this Clause 10 if the aggregate amount of the Losses equals or
exceeds EURO 100,000; provided, however, that in the event the
Losses equal or exceed such amount, the Purchaser Indemnified Parties are
entitled to be indemnified for the full amount of the Losses, subject to the
limitations described in Clause 10.3.

 

10.5                        Maximum
Liability

 

The aggregate liability of the Sellers and Hydro in respect of payments
to the Purchaser and the other Purchaser Indemnified Parties for claims and
Losses in respect of this Agreement shall be as follows:

 

10.5.1              Payments shall
in the aggregate not exceed one hundred percent (100%) of the Purchase Price
for all claims and Losses, except that: 
(a) payments made for Losses related to matters other than those
involving the Petroleum Products Stock shall in the aggregate not exceed the
Purchase Price minus the Base Petroleum Products Stock Value, as
adjusted by the Petroleum Products Stock Value Adjustment and (b) payments
made for Losses incurred by the Purchaser Indemnified Parties in respect of
matters involving breaches of Clauses 9.1.7 through 9.1.10 or 9.1.12 through
9.1.13 which, in accordance with the Accounting Principles, should have been
recorded prior to the Closing Date in Scanraff’s current accounts or in the
Financial Statements or in any Annual Report of Scanraff, shall be subject to
the liability limitation described in Clause 10.5.2 below.

 

10.5.2              Payments shall
in the aggregate not exceed fifty percent (50%) of the Purchase Price for those
claims and Losses related to payments made to the Purchaser Indemnified Parties
that are described in Clause 10.5.1(b) above. 
Furthermore, payments made for Losses related to matters other than
those involving the Petroleum Products Stock shall also be subject to the
Purchase Price limitation described in Clause 10.5.1 (a) above.

 

10.5.3              The aggregate
maximum liability of the Sellers and Hydro for payments to the Purchaser
Indemnified Parties for all claims and Losses under this Agreement shall not
exceed one hundred percent (100%) of the Purchase Price.

 

10.6                        No
Exemption

 

There shall be no exemption from the Sellers’ and Hydro’s liability
under this Clause 10 other than as explicitly set forth in this Agreement and
no representation, warranty, covenant, obligation or agreement of the Sellers
or Hydro set forth in this Agreement shall be deemed waived or otherwise
affected by any commercial or financial analysis, or

 

25

 

any inquiry or investigation which the Purchaser, its advisors,
auditors, legal counsels or other representatives have made with respect to
Scanraff or the Business.

 

10.7                        Notification
by the Purchaser Indemnified Parties

 

In the event that the Purchaser Indemnified Parties shall demand
indemnification or defense from the Sellers and Hydro under this Clause 10, the
Purchaser Indemnified Parties shall notify the Sellers and Hydro without undue
delay, but the Purchaser Indemnified Parties’ failure to do so shall in no
event preclude the Purchaser Indemnified Parties from receiving indemnification
from the Sellers and Hydro under this Clause 10.  The Indemnity Notice shall contain such information and
documentation as is available to the Purchaser Indemnified Parties and which
would enable the Sellers and Hydro to assess the merits of the claim and to act
upon the matters described in the Indemnity Notice.  Unless and until the Purchaser Indemnified Parties provide an
Indemnity Notice to the Sellers and Hydro, the Purchaser Indemnified Parties
shall not be entitled to make a claim for Losses as to which indemnification
may be sought or seek defense of any Third Party Claim.

 

10.8                        Matters
Arising Subsequent to this Agreement

 

The Sellers shall not be liable in respect of any matter, act, omission
or circumstance (or any combination thereof), including the aggravation of a
matter or circumstance and any Losses resulting therefrom, to the extent, but
only to the extent, that the same would not have occurred but for:

 

10.8.1              Acts of the
Purchaser

 

Any act, omission or transaction of the
Purchaser or any member of the Purchaser’s Group or their respective board
directors, officers, employees or agents, in each case occurring after the
Closing Date.

 

10.8.2              Changes in
Legislation

 

(i)                     The passing
of, or any change in, after the Closing Date, any applicable law, rule,
regulation or administrative practice of any government, governmental
department, agency or regulatory body including (without prejudice to the
generality of the foregoing) any increase in the rates of Taxation or any
imposition of Taxation or any withdrawal of relief from Taxation not actually
in effect on the Date of this Agreement; or

 

(ii)                  Any change after
the Closing Date of any generally accepted interpretation or application of any
applicable legislation.

 

10.8.3              Matters Agreed Upon
By the Parties

 

Any action or matter done or omitted to be
done by either Party under this Agreement or otherwise, which results from a
written request, approval or waiver delivered by one Party and acknowledged as
received by the other 

 

26

 

Party, shall not be construed as a breach or
failure by such other Party of any term, covenant, representation, warranty,
obligation, or agreement under this Agreement.

 

10.9                        Insurance

 

The Sellers shall not be liable in respect of any claim to the extent
that the Losses in respect of which such claim is made are actually reimbursed
in full by a policy of insurance maintained by the Sellers or a policy of
insurance that was in place and maintained by Scanraff through the Closing
Date.

 

10.10                 Net Financial
Benefit

 

If the subject of any claim is a tax-deductible item, or relates to an
untaxed reserve, the claim that the Purchaser Indemnified Parties may make
shall be reduced by an amount equivalent to the amount of such actual reduction
in taxes paid under the corporate tax rates applicable to the relevant
Purchaser Indemnified Parties during the relevant year as a result of the
subject of such claim.

 

10.11                 Mitigation of
Losses

 

The Purchaser Indemnified Parties shall procure that all commercially
reasonable steps are taken and all commercially reasonable assistance shall be
given to avoid or mitigate any Losses, which in the absence of mitigation might
give rise to a liability in respect of any claim under this Agreement, any
Sellers’ Warranty or any covenant, obligation or agreement of the Sellers.

 

10.12                 Double Claims

 

The Purchaser Indemnified Parties shall not be entitled to recover from
the Sellers and Hydro under this Agreement more than once in respect of the
same Losses incurred.

 

10.13                 Investigation by
the Sellers

 

In connection with any matter or circumstance that may give rise to a
claim against any of the Sellers under this Agreement for breach of any Sellers’ Warranty or any covenant, obligation or
agreement of the Sellers:

 

10.13.1               the Purchaser
shall allow, and shall procure that Scanraff allows, the Sellers and their
respective financial, accounting or legal advisers such access to its books,
records and premises as may reasonably be requested to investigate the matter
or circumstance alleged to give rise to a claim and whether and to what extent
any amount is payable in respect of such claim; and

 

10.13.2               the Purchaser
shall disclose to the relevant Seller all material of which the Purchaser is
aware which relates to the claim and shall, and shall procure that any other
relevant members of the Purchaser’s Group shall, give, all such information and
assistance, including access to premises and personnel, and the

 

27

 

right to examine and copy or
photograph any assets, accounts, documents and records, as the relevant Seller
or its financial, accounting or legal advisers may reasonably request subject
to the Sellers agreeing in such form as the Purchaser may reasonably require to
keep all such information confidential and to use it only for the purpose of
investigating and defending the claim in question.

 

10.14                 Conduct of Third
Party Actions or Claims

 

If the matter or circumstance that may give rise to a claim against the
Sellers or Hydro in respect of any breach, inaccuracy or non-fulfillment of any
representation, warranty, covenant, obligation or agreement under this
Agreement or any Losses pursuant to Clause 10.1 is a result of or is in
connection with a claim, action, proceeding, suit or demand by or a liability
or obligation to a Third Party (“Third Party
Claim”), then the following shall apply with respect to any Third
Party Claim:

 

10.14.1               no admissions
in relation to any Third Party Claim shall be made by or on behalf of the
Purchaser or any other member of the Purchaser’s Group;

 

10.14.2               with respect to
the settlement or compromise of any Third Party Claim:  (a) if the Purchaser declines to accept a bona
fide offer of settlement or compromise that is recommended by the
Sellers, then the maximum liability of the Sellers for such Third Party Claim
shall not exceed the amount for which the Sellers would have been liable had
such settlement or compromise been accepted and (b) if the Sellers decline to
accept a bona  fide offer of settlement or compromise that is
recommended by the Purchasers, then the Sellers shall be liable for whatever
outcome results from such Third Party Claim; provided, however,
that the Sellers may not settle or compromise any Third Party Claim without
either the prior written consent of the Purchaser or a full and complete
release of the Purchaser and the other Purchaser Indemnified Parties from any
form of liability or obligation for any such Third Party Claim;

 

10.14.3               the Sellers
shall have the right to assume and control the defense (but not the settlement)
of any Third Party Claim, including the employment of counsel reasonably
acceptable to the Purchaser; provided, however, that if the
Sellers fail to respond or do not admit responsibility for any Third Party
Claim, then the Purchaser may take such necessary and reasonable steps to
defend the Third Party Claim and all reasonable fees, costs and expenses
therewith, including reasonable attorney fees and expenses, may be included as
part of any asserted Losses; and, provided, further, that if the
Purchaser fails to respond to the Sellers’ written notices within thirty (30)
days after receipt thereof, then the Sellers may take any reasonable and
necessary action with respect to any Third Party Claim;

 

10.14.4               the Purchaser
and the other Purchaser Indemnified Parties shall fully cooperate with the
Sellers in connection with the defense of any Third Party Claim, including,
without limitation, (a) providing information to the Sellers regarding the
Third Party Claim, (b) upon two (2) Business Days prior notice and during

 

28

 

normal business hours, provide
reasonable access to the premises and personnel of the Purchaser or Scanraff
and the right to examine and copy or photograph (at the Sellers’ sole cost and
expense) any assets, accounts, documents and records as the Sellers or their
attorneys or agents may reasonably request; and

 

10.14.5               the Sellers
shall keep the Purchaser reasonably informed regarding the status of any Third
Party Claim, including providing the Purchaser with copies of documents, pleadings
and other materials relating to any Third Party Claim, as reasonably requested
by the Purchaser from time to time.

 

11.                               Restrictions on the
Sellers, Hydro and the Hydro Group

 

11.1                        Restrictions

 

The Sellers and Hydro undertake with the Purchaser that none of the
Sellers, Hydro or any other entity comprising the Hydro Group (so long as such
entity is part of the Hydro Group) shall during a period of two (2) years from
the Closing Date carry on, be engaged in or be economically interested in the
business of refining crude oil and selling refined products to Third Parties in
the same geographical area as carried out by Scanraff or the Assets Seller
prior to the Closing (the “Restricted
Business”) and which is in competition with the Restricted Business.

 

11.2                        Exceptions

 

The restrictions in Clause 11.1 shall not operate to prohibit the
Sellers, Hydro  or any other entity
comprising the Hydro Group from:

 

11.2.1              holding or being
interested in up to fifteen percent (15%) of the outstanding issued share capital
of a company listed on any recognized stock exchange;

 

11.2.2              fulfilling any
obligation pursuant to this Agreement and any agreement to be entered into
pursuant to this Agreement;

 

11.2.3              acquiring or
holding the whole or part of any business or company which engages in a
Restricted Business, if the part attributed to the Restricted Business
represents (and continues to represent) less than twenty percent (20%) of the
gross revenues of such business or company; or

 

11.2.4              being engaged in
any business retained on the Closing Date by the Hydro Group.

 

12.                               Confidentiality

 

12.1                        Announcements

 

No announcement or circular in connection with the existence or the
subject matter of this Agreement shall be made or issued by or on behalf of any
entity comprising the Hydro Group or the Purchaser’s Group without the prior
written approval of the Sellers and the Purchaser. This shall not affect any
announcement or circular required by

 

29

 

applicable law or any regulatory body or the rules of any recognized
stock exchange on which the shares of either Party (or any other company
belonging to, in the case of the Sellers, the Hydro Group, or, in the case of
the Purchaser, the Purchaser’s Group) are listed but the Party (or any other
company belonging to, in the  case of
the Sellers, the Hydro Group, or, in the case of the Purchaser, the Purchaser’s
Group) with an obligation to make an announcement or issue a circular shall
consult with the other Party insofar as is reasonably practicable before
complying with such an obligation.

 

12.2                        Disclosure

 

12.2.1              No Disclosure

 

Subject to Clause 12.1 and Clause 12.2.2,
each of the Parties shall treat as strictly confidential and not disclose or
use any information received or obtained as a result of entering into this
Agreement (or any agreement entered into pursuant to this Agreement) which
relates to:

 

(i)                     the
provisions of this Agreement and any agreement entered into pursuant to this
Agreement; or

 

(ii)                  the negotiations
relating to this Agreement (and any such other agreements).

 

The Sellers shall treat as strictly
confidential and not disclose any information relating to Scanraff, the
Scanraff Shares and the Scanraff Assets following the Closing and any other
information relating to the Business (including future plans and targets) of
Scanraff.

 

The Purchaser shall treat as strictly
confidential and not disclose or use any information relating to the business,
financial or other affairs (including future plans and targets) of the Hydro
Group, exclusive of Scanraff, the Scanraff Shares and the Scanraff Assets.

 

12.2.2              Exceptions

 

Clause 12.2.1 shall not prohibit disclosure
or use of any information if and to the extent:

 

(i)                     the
disclosure or use is required by applicable law, any regulatory body or any
recognized stock exchange on which the shares of any Party (or any other
company belonging to, in the  case of
the Sellers, the Hydro Group, or, in the case of the Purchaser, the Purchaser’s
Group) are listed;

 

(ii)                  the disclosure
or use is required for the purpose of any judicial proceedings arising out of
this Agreement or any other agreement entered into under or pursuant to this
Agreement or the disclosure is made to a Tax Authority in connection with the
Tax affairs of the disclosing Party;

 

30

 

(iii)               the disclosure is
made to professional advisers of any Party on terms that such professional
advisers undertake to comply with the provisions of Clause 12.2 in respect of
such information as if they were a Party to this Agreement;

 

(iv)              the information is
or becomes publicly available (other than by breach of the Confidentiality
Agreement or of this Agreement);

 

(v)                 the other Party
has given prior written approval to the disclosure or use;

 

(vi)              the information has
been previously known on a non-confidential basis by such Party; or

 

(vii)           the information is
independently developed after Closing;

 

provided that prior to disclosure or use of
any information pursuant to Clause 12.2.2 (i) or (ii), the Party concerned
shall promptly notify the other Party of such requirement with a view to
providing the other Party with the opportunity to contest such disclosure or
use or otherwise to agree the timing and content of such disclosure or use.

 

13.                               Termination

 

Prior to the Closing, this Agreement can be terminated if any of the
following occurs:

 

(i)                     The Parties
mutually agree in writing to terminate this Agreement;

 

(ii)                  By either Party
if the Closing has not taken place on or before June 30, 2004;

 

(iii)               By either Party if
any applicable law or regulation makes consummation of the transactions
contemplated hereby illegal or otherwise prohibited or if consummation of the
transactions would violate any non-appealable final order, decree or judgment
of any court or governmental body having competent jurisdiction; or

 

(iv)              By either Party if a
breach or default of any provisions of this Agreement has been committed by the
other Party (including, without limitation, a breach of any representation or
warranty of such other Party), which breach or default (a) has not been waived
by the non-defaulting Party, (b) shall not have been cured by the defaulting
Party within thirty (30) days following the defaulting Party’s awareness of
such breach or default and (c) results in the occurrence of a Material Adverse
Effect, but this shall not limit the Sellers’ right to terminate this Agreement
if the Purchaser is in breach of Clause 9.5.2.

 

Any Party desiring to terminate this Agreement pursuant to subclauses
(ii) through (iv) of this Clause 13 shall give written notice of such
termination to the other Party hereto. If

 

31

 

this Agreement is terminated as permitted in this Clause 13, such
termination shall be without liability of either Party (or any stockholder,
director, officer, employee, agent, consultant or representative of such Party)
to the other Party to this Agreement (as a result of such act of termination); provided, however, that if such termination shall result from the
(a) willful failure of a Party to fulfill a material condition of this
Agreement, (b) failure to perform a material covenant of this Agreement, or (c)
breach by a Party of any material representation or warranty or agreement
contained herein, such Party shall be liable for any and all Losses incurred or
suffered by the other Party as a result of such failure or breach.  The Parties expressly agree that
Clause 9.5.2 is a material representation and warranty.

 

The provisions of Clauses 9.5.5, 10, 12, 13, 14.2 through 14.8, 15 and
16 shall survive any termination pursuant to this Clause 13.  This Agreement cannot be terminated after
the Closing Date.

 

14.                               Other Provisions

 

14.1                        Further
Assurances

 

Each of the Parties and with respect to their respective Affiliates
shall cause, shall from time to time execute and deliver to the other Party
such documents and perform such acts, documents and things as any Party may
reasonably request or require to transfer the Scanraff Shares and the Scanraff
Assets to the Purchaser, to vest in the Purchaser all right, title and interest
of the Purchaser in and to the Scanraff Shares and the Scanraff Assets in
accordance with this Agreement and to give any Party the full benefit of this
Agreement.

 

14.2                        Whole
Agreement

 

This Agreement contains the whole agreement between the Parties
relating to the subject matter of this Agreement at the date hereof to the
exclusion of any terms implied by law which may be excluded by contract and
supersedes any previous written or oral agreement between the Parties in
relation to the matters dealt with in this Agreement.

 

14.3                        No
Assignment

 

Neither Party may, without the prior written consent of the other
Party, assign, grant any security interest over, hold on trust or otherwise transfer
whole or any part of this Agreement, except to a wholly owned Affiliate,
provided that the assigning Party shall be jointly liable with the Affiliate
under this Agreement and the Affiliate signs a copy of this Agreement accepting
all its terms including for the avoidance of doubt this Clause 14.3 and Clause
15 and Clause 16.

 

14.4                        Variation

 

No variation, amendment, waiver or assignment of this Agreement or any
of the Ancillary Agreements or any provision hereof or thereof shall be
effective unless in writing and signed by or on behalf of each of the Parties
hereto or thereto.

 

32

 

14.5                        Costs

 

Each of the Parties shall bear all fees and costs of auditors, bankers
or financial, legal or other advisers retained by it in connection with the
preparation for or consummation of the transactions contemplated hereunder, and
no such fees or costs will be charged to Scanraff.

 

14.6                        Interest

 

If any Party defaults in the payment when due of any sum payable under
this Agreement, (howsoever determined) the liability of that Party shall be
increased to include interest on such sum from the date when such payment is
due until the date of actual payment (as well after as before judgment) at a
rate per annum two and one-half (2.5) percentage points above the rate (Sw.
“referensränta”) from time to time of Bank of Sweden. Such interest shall
accrue from day to day.

 

14.7                        Notices

 

14.7.1              Any notice in
connection with this Agreement shall be:

 

(i)       in writing and in English;

 

(ii)      delivered by hand, fax with
confirmation of receipt, registered post or by courier using an internationally
recognized courier company.

 

14.7.2     A notice to any of the
Sellers shall be sent to such Party at the following address, or such other
person or address as the Sellers may notify to the Purchaser from time to time:

 

c/o Norsk Hydro Sverige AB

Tegeluddsvägen 76

Box 273 25

S-102 54 Stockholm

Sweden

Fax: +46-8-667-63-29

Attention: Managing Director

 

With a copy to:

 

Norsk Hydro ASA

Legal Department

0240 Oslo

Norway

Fax: +47-22-53-20-26

       
+47-22-53-22-34

 

33

 

14.7.3     A notice to the Purchaser
shall be sent to such Party at the following address, or such other person or
address as the Purchaser may notify to the Sellers from time to time:

 

Preem Petroleum AB

Sandhamnsgatan 51

SE-115 90 Stockholm

Sweden

Fax: +46-8-663-49-23

Attention:        Michael Löw

President and CEO

 

With a copy to:

 

LeBoeuf, Lamb, Greene & MacRae, L.L.P.

125 West 55th Street

New York, New York 10019

United States

Fax: +1-212-424-8500

Attention:        John R. Fallon, Jr., Esq.

 

14.7.4     A notice shall be
effective upon receipt and shall be deemed to have been received:

 

(i)       at the time of delivery, if
delivered by hand, registered post or courier;

 

(ii)      at the time of transmission
in legible form, if delivered by fax in legible form with confirmation of
receipt, at the time of transmission in legible form, if delivered during
normal business hours, or on the nest business day if  delivered outside of normal business hours if delivered by fax.

 

14.8        Invalidity

 

14.8.1     If any provision in this
Agreement shall be held to be illegal, invalid or unenforceable, in whole or in
part, such provision or part shall to that extent be deemed not to form part of
this Agreement but the legality, validity or enforceability of the remainder of
this Agreement shall not be affected;

 

14.8.2     If any illegal, invalid
or unenforceable provision would be legal, valid and enforceable if some part
of it were deleted or modified, the provision shall apply with whatever
deletion or modification is necessary to give effect to the commercial
intention of the Parties.

 

15.          Governing Law

 

This Agreement shall be solely governed by and construed in accordance
with material Swedish law, excluding, however, the Swedish Act on International
Sale of Goods (Sw:

 

34

 

Lagen 1987:822) om internationella köp) and without reference to its
conflict of interest law principles.

 

16.          Arbitration and Submission to Jurisdiction

 

Any dispute, controversy or claim arising out of or in connection with
this Agreement or the breach, termination or invalidity thereof, shall be
finally settled in accordance with the Rules of the Arbitration Institute of
the Stockholm Chamber of Commerce. The place of arbitration shall be Stockholm.
The arbitration proceedings shall be conducted in English.

 

SIGNATURE
PAGES FOLLOW

 

35

 

This Purchase and Sale Agreement has been made in three (3) original
copies, with each Party taking one.

 

	
  HYDRO R&M HOLDING AB

  	
  PREEM PETROLEUM AB

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name: Bengt-Göran Markeborn

  	
   

  	
  Name: Michael Löw

  	
   

  
	
  Title:   Director

  	
   

  	
  Title:   President and
  CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Per Höjgård

  	
   

  
	
   

  	
   

  	
  Title:   Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  NORSK HYDRO LAGRINGS &

  DISTRIBUTIONS AB

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name: Bengt-Göran Markeborn

  	
   

  	
   

  	
   

  
	
  Title:   Director,
  Authorized Signator

  	
   

  

 

 

JOINDER

 

Norsk Hydro ASA has executed and delivered this Purchase and Sale
Agreement for purposes of confirming its covenants and obligations to Preem
Petroleum AB (and, as applicable, to the other Purchaser Indemnified Parties)
under Clause 3.2, Clause 10 and Clause 11 of this Purchase and Sale Agreement.

 

	
   

  	
  NORSK HYDRO ASA

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Bengt-Göran Markeborn 

  
	
   

  	
  Title:   Authorized
  Signator

  

 

36

 

JOINDER

 

Skandinaviska Raffinaderi AB Scanraff and Preem Holdings AB have
executed and delivered this Purchase and Sale Agreement for purposes of
confirming their covenants, obligations and limitations, as Purchaser
Indemnified Parties, to Hydro R&M Holding AB, Norsk Hydro Lagrings och
Distribusjon AB and Norsk Hydro ASA under this Purchase and Sale
Agreement.  Skandinaviska Raffinaderi AB
Scanraff has also executed and delivered this Purchase and Sale Agreement for
purposes of confirming its consent and agreement to the matters contained in
Clause 9.5.5 of this Purchase and Sale Agreement.

 

	
  SKANDINAVISKA RAFFINADERI AB SCANRAFF

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name: Per Olsson 

  	
   

  
	
  Title:   President

  	
   

  
	
   

  	
   

  
	
  PREEM HOLDINGS AB

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name: John P. Oswald 

  	
   

  
	
  Title:   Chairman

  	
   

  

 

37

 

Schedule 1.1

Part 1

Ancillary Agreements

 

 

1.         Agreement
to terminate the Shareholders’ Agreement among Preem Petroleum AB, Hydro
R&M Holding AB and Skandinaviska Raffinaderi Aktiebolag Scanraff dated as
of 17 April 2002

 

2.         Agreement
to terminate the “commission agreement” among Skandinaviska Raffinaderi
Aktiebolag Scanraff, Preem Petroleum AB and Norsk Hydro Lagrings &
Distributions AB dated 29 December 2000

 

3.         Agreement
to terminate the “commission agreement” among Skandinaviska Kracker
Aktiebolaget Scancracker, Preem Petroleum AB and Norsk Hydro Lagrings &
Distributions AB dated 29 December 2000

 

4.         Assigned
Contract Consents and Assigned Contract Novations, as applicable, and as agreed
upon

 

5.         Supply
Agreements, each between Preem Petroleum AB and Norsk Hydro Olje AB dated as of
17 September 2003 (two agreements)

 

 

Schedule 1.1

Part 2

Assigned Contracts

 

 

1.            Sales
Agreement between Norsk Hydro Lagrings och Distribusjon AB and Fuel and Marine Marketing Scandinavia AB, dated 28
June 2001

 

2.            Sales
Agreement for Mineral Oil Products between Norsk Hydro Lagrings och
Distribution AB and Hydro Texaco A/S, Denmark, dated 3 February 2003

 

3.            CIF Term Contract
Gasoil 0.2 pct. between Norsk Hydro Lagrings och Distribution AB and Norske
Shell A/S, dated 23 January 2003

 

4.            FOB Term Contract
Gasoil 0,2 pct. between Norsk Hydro Lagrings och Distribution AB and Norske
Shell A/S, dated 23 January 2003

 

5.            Sales Agreement for
Mineral Oil Products between Norsk Hydro Lagrings och Distribution  AB and Hydro Texaco a.s, Norway, dated 17
January 2003

 

6.            Sales Agreement for
Mineral Oil Products between Norsk Hydro Lagrings och Distribution AB and Hydro
Texaco a.s, Norway, dated 17 January 2003

 

7.            Supply Agreement for
Gasoline and Gasoil between Norsk Hydro Lagrings och Distribution AB and Norsk
Hydro Olje AB, dated 17 January 2003

 

8.            Sales Agreement for
Mineral Oil Products between Norsk Hydro Lagrings och Distribution AB and
Statoil ASA, dated 2 May 2003

 

9.            Sale and Purchase
Agreement Scanraff propylene between Lyondell Chemie Nederland B.V. and Norsk
Hydro ASA and Preem Petroleum AB, not dated

 

10.         Sulphur Contract
reference No. 12012 between Norsk Hydro ASA and BCT Chemtrade Corporation,
dated 27 September 1999

 

 

 

 

Schedule 1.1

Part
3

Base
Capital Expenditures Value

 

 

EURO
0

 

 

Schedule 1.1

Part 4

Base Current Assets Value

 

 

SEE ATTACHED

 

 

SCHEDULE 1.1

 PART
4 

Base Current Assets Value

As of June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT ASSETS:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash & cash equivalents

  	
   

  	
  55

  	
   

  	
  6

  	
   

  
	
  Trade accounts receivables

  	
   

  	
  3,649

  	
   

  	
  398

  	
   

  
	
  Inventories

  	
   

  	
  55,992

  	
   

  	
  6,111

  	
   

  
	
  Prepaid expenses and other current assets

  	
   

  	
  94,525

  	
   

  	
  10,316

  	
   

  
	
  TOTAL CURRENT ASSETS

  	
   

  	
  154,221

  	
   

  	
  16,831

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source:
  Svenska Riksbanken):

  	
   

  	
   

  	
   

  	
  9.1630

  	
   

  

 

 

Schedule 1.1

Part 5

Base Petroleum Products Stock Value

 

 

SEE ATTACHED

 

 

SCHEDULE 1.1 PART 5 Base Petroleum
Products Stock Value

As of
June 30, 2003

 

	
   

  	
   

  	
  June 30,
  2003 price quotations

  	
   

  	
   

  	
   

  	
  Mark-to-market
  value

  	
   

  	
   

  	
   

  
	
  Product

  	
   

  	
  Quotation

  	
   

  	
   

  	
   

  	
  Price
  quotation

  	
   

  	
  Quality/freight
  correction

  	
   

  	
  Net price

  	
   

  	
  Carrying
  quantity

  	
   

  	
  Mark-tomarket
  value

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (US$)

  	
   

  	
  (US$)

  	
   

  	
  (US$)

  	
   

  	
  (Mt)

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr 1,000)

  	
   

  	
  (Eur 1,000)

  	
   

  	
   

  	
   

  
	
  PRODUCTS *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Propane

  	
   

  	
  Platt’s
  Propane NWE FOB Sea Avg

  	
   

  	
  US$/Mt

  	
   

  	
  261.00

  	
   

  	
  (32.00

  	
  )

  	
  229.00

  	
   

  	
  94

  	
   

  	
  22

  	
   

  	
  172

  	
   

  	
  19

  	
   

  	
   

  	
   

  
	
  Propylene

  	
   

  	
  Contract
  price formula estimate

  	
   

  	
  US$/Mt

  	
   

  	
  555.00

  	
   

  	
  —

  	
   

  	
  555.00

  	
   

  	
  1,594

  	
   

  	
  885

  	
   

  	
  7,080

  	
   

  	
  774

  	
   

  	
   

  	
   

  
	
  Butane

  	
   

  	
  Platt’s
  Butane NWE FOB Sea Avg

  	
   

  	
  US$/Mt

  	
   

  	
  201.00

  	
   

  	
  (35.00

  	
  )

  	
  166.00

  	
   

  	
  352

  	
   

  	
  58

  	
   

  	
  468

  	
   

  	
  51

  	
   

  	
   

  	
   

  
	
  CCS

  	
   

  	
  Platt’s
  Unleaded NWE CIF ARA Avg

  	
   

  	
  US$/Mt

  	
   

  	
  288.50

  	
   

  	
  (25.00

  	
  )

  	
  263.50

  	
   

  	
  2,352

  	
   

  	
  620

  	
   

  	
  4,960

  	
   

  	
  542

  	
   

  	
   

  	
   

  
	
  UMS 95 S

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (4.00

  	
  )

  	
  290.00

  	
   

  	
  23,850

  	
   

  	
  6,917

  	
   

  	
  55,349

  	
   

  	
  6,053

  	
   

  	
   

  	
   

  
	
  UMS 95 DK

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (6.00

  	
  )

  	
  288.00

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  UMS 98 S

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  15.75

  	
   

  	
  309.75

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Hexate

  	
   

  	
  Platt’s
  Premium Unleaded NWE FOB Barges Avg

  	
   

  	
  US$/Mt

  	
   

  	
  289.75

  	
   

  	
  (35.00

  	
  )

  	
  254.75

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Reformate

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (2.50

  	
  )

  	
  291.50

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  GOO 0.09%

  	
   

  	
  Platt’s
  GO 0.2 NWE CIF ARA Avg

  	
   

  	
  US$/Mt

  	
   

  	
  239.75

  	
   

  	
  (3.50

  	
  )

  	
  236.25

  	
   

  	
  4,767

  	
   

  	
  1,126

  	
   

  	
  9,012

  	
   

  	
  986

  	
   

  	
   

  	
   

  
	
  GOO 0.2%

  	
   

  	
  Platt’s
  GO 0.2 NWE FOB ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  229.25

  	
   

  	
  1.00

  	
   

  	
  230.25

  	
   

  	
  23,161

  	
   

  	
  5,333

  	
   

  	
  42,676

  	
   

  	
  4,667

  	
   

  	
   

  	
   

  
	
  G +2 0.05%

  	
   

  	
  Platt’s
  GO EN 590 NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  251.50

  	
   

  	
  (12.40

  	
  )

  	
  239.10

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  GOM MK1

  	
   

  	
  Platt’s
  GO EN 590 NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  251.50

  	
   

  	
  35.00

  	
   

  	
  286.50

  	
   

  	
  1,621

  	
   

  	
  464

  	
   

  	
  3,716

  	
   

  	
  406

  	
   

  	
   

  	
   

  
	
  HLS 1.0-400

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
  %

  	
  US$/Mt

  	
   

  	
  178.00

  	
   

  	
  —

  	
   

  	
  178.00

  	
   

  	
  7,393

  	
   

  	
  1,316

  	
   

  	
  10,531

  	
   

  	
  1,152

  	
   

  	
   

  	
   

  
	
  RNS

  	
   

  	
  Platt’s
  HSFO 3.5 NWE CIF ARA Avg

  	
  %

  	
  US$/Mt

  	
   

  	
  151.50

  	
   

  	
  9.00

  	
   

  	
  160.50

  	
   

  	
  412

  	
   

  	
  66

  	
   

  	
  529

  	
   

  	
  58

  	
   

  	
   

  	
   

  
	
  SCTNS

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargo High

  	
  %

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  4.50

  	
   

  	
  147.00

  	
   

  	
  12,524

  	
   

  	
  1,841

  	
   

  	
  14,733

  	
   

  	
  1,611

  	
   

  	
   

  	
   

  
	
  SC303

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargi High

  	
  %

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  —

  	
   

  	
  142.50

  	
   

  	
  3,880

  	
   

  	
  553

  	
   

  	
  4,425

  	
   

  	
  484

  	
   

  	
   

  	
   

  
	
  SC401

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargo High

  	
  %

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  8.50

  	
   

  	
  151.00

  	
   

  	
  3,354

  	
   

  	
  506

  	
   

  	
  4,053

  	
   

  	
  443

  	
   

  	
   

  	
   

  
	
  Sulphur

  	
   

  	
  BCT
  contract relevant for vessel lifting during first half 2003

  	
   

  	
  US$/Mt

  	
   

  	
  40.00

  	
   

  	
  —

  	
   

  	
  40.00

  	
   

  	
  1,844

  	
   

  	
  74

  	
   

  	
  590

  	
   

  	
  65

  	
   

  	
   

  	
   

  
	
  MTBE

  	
   

  	
  Platt’s
  Barges FOB Rdm high

  	
   

  	
  US$/Mt

  	
   

  	
  338.00

  	
   

  	
  12.00

  	
   

  	
  350.00

  	
   

  	
  1,418

  	
   

  	
  496

  	
   

  	
  3,972

  	
   

  	
  434

  	
   

  	
   

  	
   

  
	
  DSVGO

  	
   

  	
  Platt’s
  LS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  203.00

  	
   

  	
  —

  	
   

  	
  203.00

  	
   

  	
  30,810

  	
   

  	
  6,254

  	
   

  	
  50,051

  	
   

  	
  5,473

  	
   

  	
   

  	
   

  
	
  VGO

  	
   

  	
  Platt’s
  HS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  183.00

  	
   

  	
  —

  	
   

  	
  183.00

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  ULTRA

  	
   

  	
  Platt’s
  LS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  203.00

  	
   

  	
  20.00

  	
   

  	
  223.00

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Naptha

  	
   

  	
  Platt’s
  NAFTA Physical CIF NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  257.50

  	
   

  	
  (7.00

  	
  )

  	
  250.50

  	
   

  	
  5,522

  	
   

  	
  1,383

  	
   

  	
  11,070

  	
   

  	
  1,211

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  124,948

  	
   

  	
  27,915

  	
   

  	
  223,386

  	
   

  	
  24,429

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil LS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gullfaks
  A

  	
   

  	
   

  	
   

  	
  US$/Bbl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  0.8500

  	
   

  
	
  Gullfaks C

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  1.160

  	
   

  	
  29.490

  	
   

  	
  10,666

  	
   

  	
  2,333

  	
   

  	
  18,668

  	
   

  	
  2,042

  	
   

  	
  0.8485

  	
   

  
	
  DUC

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  0.750

  	
   

  	
  29.080

  	
   

  	
  21,467

  	
   

  	
  4,652

  	
   

  	
  37,226

  	
   

  	
  4,071

  	
   

  	
  0.8445

  	
   

  
	
  Subtotal crude oil LS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  32,133

  	
   

  	
  6,985

  	
   

  	
  55,895

  	
   

  	
  6,112

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil HS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Iran LT

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  (2.150

  	
  )

  	
  25.720

  	
   

  	
  119,486

  	
   

  	
  22,593

  	
   

  	
  180,800

  	
   

  	
  19,772

  	
   

  	
  0.8560

  	
   

  
	
  Iran Heavy

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  (2.550

  	
  )

  	
  25.320

  	
   

  	
  23,949

  	
   

  	
  4,384

  	
   

  	
  35,080

  	
   

  	
  3,836

  	
   

  	
  0.8705

  	
   

  
	
  REB (Ural)

  	
   

  	
  Platts
  brt dtd+ uraldiff

  	
   

  	
  US$/Bbl

  	
   

  	
  26.655

  	
   

  	
  0.070

  	
   

  	
  26.725

  	
   

  	
  16,477

  	
   

  	
  3,207

  	
   

  	
  25,666

  	
   

  	
  2,807

  	
   

  	
  0.8640

  	
   

  
	
  Flotta (pipeline)

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  —

  	
   

  	
  28.330

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  5

  	
   

  	
  1

  	
   

  	
  0.8000

  	
   

  
	
  Subtotal crude oil HS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  159,915

  	
   

  	
  30,185

  	
   

  	
  241,552

  	
   

  	
  26,415

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aspedalen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude mix

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  —

  	
   

  	
  28.330

  	
   

  	
  6,250

  	
   

  	
  1,311

  	
   

  	
  10,490

  	
   

  	
  1,147

  	
   

  	
  0.8500

  	
   

  
	
  Iran LT

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  —

  	
   

  	
  27.870

  	
   

  	
  46,351

  	
   

  	
  9,497

  	
   

  	
  75,999

  	
   

  	
  8,311

  	
   

  	
  0.8560

  	
   

  
	
  Subtotal Aspedalen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  52,601

  	
   

  	
  10,808

  	
   

  	
  86,489

  	
   

  	
  9,458

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  26.488

  	
   

  	
  244,649

  	
   

  	
  47,977

  	
   

  	
  383,936

  	
   

  	
  41,986

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  369,597

  	
   

  	
  75,891

  	
   

  	
  607,322

  	
   

  	
  66,414

  	
   

  	
   

  	
   

  

 

 

*) Include volumes reported on stock at
Scanraff plus crude oil cargos in shipment to Scanraff. Account payables on
crude oil cargos in shipment to be settled by Norsk Hydro

 

	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/US$ mid rate (source:
  Svenska Riksbanken):

  	
   

  	
  8.0025 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 Eur/US$ mid rate (source:
  European Central Bank):

  	
   

  	
  1.1427

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

38

 

SCHEDULE 1.1 PART 5 Petroleum Products Stock Value
(Deadstock Adjustment and Net Stock Value)

As of June 30, 2003

 

	
   

  	
   

  	
  June 30,
  2003 price reference

  	
   

  	
  Deadstock
  value adjustment

  	
   

  
	
  Storage/product

  	
   

  	
  Quotation/reference

  	
   

  	
  Net price

  (US$/Mt)

  	
   

  	
  Deadstock

  volume

  (m3)

  	
   

  	
  Crude

  price

  (US$/bbl)

  	
   

  	
  Product

  price

  (US$/Mt)

  	
   

  	
  Crude

  weight

  percent

  	
   

  	
  Product

  weight

  percent

  	
   

  
	
  PRODUCTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Naptha, tank storage

  	
   

  	
  Platt’s
  NAFTA Physical CIF NWE

  	
   

  	
  250.50

  	
   

  	
  1,887

  	
   

  	
  26.49

  	
   

  	
  250.50

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Propylene

  	
   

  	
  Contract
  price formula estimate

  	
   

  	
  555.00

  	
   

  	
  113

  	
   

  	
  26.49

  	
   

  	
  555.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Motor gasoline, tank storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  	
  4,750

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Motor gasoline, underground storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  	
  150

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Gasoil, tank storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  	
  4,259

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Gasoil, underground storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  	
  375

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  VGO, tank storage

  	
   

  	
  Platt’s
  HS VGO Cargoes FOB NWE High

  	
   

  	
  203.00

  	
   

  	
  2,835

  	
   

  	
  26.49

  	
   

  	
  203.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Sulphur tank

  	
   

  	
  BCT
  contract relevant for vessel lifting H1 2003

  	
   

  	
  40.00

  	
   

  	
  147

  	
   

  	
  26.49

  	
   

  	
  40.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  LSFO, tank storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
  %

  	
  178.00

  	
   

  	
  1,698

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  LSFO, underground storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
  %

  	
  178.00

  	
   

  	
  300

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  HSFO, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  2,951

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  HSFO, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  325

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  19,790

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil Scanraff, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  16,600

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Crude oil Scanraff, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  3,350

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Crude oil Scanraff, pipes/process units

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  635

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
  Crude oil Aspedalen, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  	
  7,303

  	
   

  	
  27.75

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  27,888

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL DEADSTOCKS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  47,678

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																	

 

	
   

  	
   

  	
  Deadstock
  value adjustment

  	
   

  
	
  Storage/product

  	
   

  	
  Extraction

  cost ksek

  	
   

  	
  Quantity

  recoverable percent

  	
   

  	
  Discount

  factor *) factor

  	
   

  	
  Deadstock

  full value (US$1,000)

  	
   

  	
  Deadstock

  adjusted value (US$1,000)

  	
   

  	
  Deadstock value adjustment

  	
   

  
	
  (US$1,000)

  	
   

  	
  (Skr 1,000)

  	
   

  	
  (Eur 1,000)

  	
   

  
	
  PRODUCTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Naptha, tank storage

  	
   

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  345

  	
   

  	
  78

  	
   

  	
  (267

  	
  )

  	
  (2,137

  	
  )

  	
  (234

  	
  )

  
	
  Propylene

  	
   

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (211

  	
  )

  	
  (23

  	
  )

  
	
  Motor gasoline, tank
  storage

  	
   

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  1,025

  	
   

  	
  215

  	
   

  	
  (809

  	
  )

  	
  (6,477

  	
  )

  	
  (708

  	
  )

  
	
  Motor gasoline,
  underground storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (209

  	
  )

  	
  (23

  	
  )

  
	
  Gasoil, tank storage

  	
   

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  843

  	
   

  	
  184

  	
   

  	
  (659

  	
  )

  	
  (5,275

  	
  )

  	
  (577

  	
  )

  
	
  Gasoil, underground
  storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  74

  	
   

  	
  15

  	
   

  	
  (60

  	
  )

  	
  (476

  	
  )

  	
  (52

  	
  )

  
	
  VGO, tank storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  524

  	
   

  	
  107

  	
   

  	
  (416

  	
  )

  	
  (3,332

  	
  )

  	
  (364

  	
  )

  
	
  Sulphur tank

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  11

  	
   

  	
  4

  	
   

  	
  (7

  	
  )

  	
  (54

  	
  )

  	
  (6

  	
  )

  
	
  LSFO, tank storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  293

  	
   

  	
  62

  	
   

  	
  (231

  	
  )

  	
  (1,849

  	
  )

  	
  (202

  	
  )

  
	
  LSFO, underground
  storage

  	
   

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  52

  	
   

  	
  10

  	
   

  	
  (42

  	
  )

  	
  (337

  	
  )

  	
  (37

  	
  )

  
	
  HSFO, tank storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  434

  	
   

  	
  100

  	
   

  	
  (334

  	
  )

  	
  (2,675

  	
  )

  	
  (293

  	
  )

  
	
  HSFO, underground
  storage

  	
   

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  48

  	
   

  	
  10

  	
   

  	
  (38

  	
  )

  	
  (304

  	
  )

  	
  (33

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,713

  	
   

  	
  797

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil Scanraff,
  underground storage

  	
   

  	
  7,000

  	
   

  	
  40

  	
  %

  	
  0.2394

  	
   

  	
  2,731

  	
   

  	
  248

  	
   

  	
  (2,483

  	
  )

  	
  (19,872

  	
  )

  	
  (2,173

  	
  )

  
	
  Crude oil Scanraff,
  tank storage

  	
   

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  551

  	
   

  	
  112

  	
   

  	
  (439

  	
  )

  	
  (3,510

  	
  )

  	
  (384

  	
  )

  
	
  Crude oil Scanraff,
  pipes/process units

  	
   

  	
  —

  	
   

  	
  100

  	
  %

  	
  0.2394

  	
   

  	
  104

  	
   

  	
  24

  	
   

  	
  (81

  	
  )

  	
  (646

  	
  )

  	
  (71

  	
  )

  
	
  Crude oil Aspedalen,
  underground storage

  	
   

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.8264

  	
   

  	
  1,275

  	
   

  	
  777

  	
   

  	
  (499

  	
  )

  	
  (3,991

  	
  )

  	
  (436

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,662

  	
   

  	
  1,160

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL DEADSTOCKS

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,375

  	
   

  	
  1,957

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  
																			

 

*) 10% discount rate, 15 years for Scanraff
storage.10% discount rate, 2 years for Aspedalen storage.

 

Base Petroleum Stock Value Net of
Deadstock Adjustment:

 

	
   

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Market value of refined products,
  components and feedstock storage

  	
   

  	
  27,915

  	
   

  	
  223,386

  	
   

  	
  24,429

  	
   

  
	
  Market value of crude oil storage

  	
   

  	
  47,977

  	
   

  	
  383,936

  	
   

  	
  41,986

  	
   

  
	
  Total market value

  	
   

  	
  75,891

  	
   

  	
  607,322

  	
   

  	
  66,414

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deadstock value adjustment refined
  products, components and feedstock storage

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
  Deadstock value adjustment crude oil

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
  Total deadstock value adjustment

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net market value of crude oil and product
  storage

  	
   

  	
  69,474

  	
   

  	
  555,964

  	
   

  	
  60,798

  	
   

  

 

	
  Exchange rates:

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/US$mid rate (source:
  Svenska Riksbanken):

  	
   

  	
  8.0025

  	
   

  
	
  June 30, 2003 Eur/US$mid rate (source:
  European Central Bank):

  	
   

  	
  1.1427

  	
   

  

 

 

Current Assets Valuation Statement

June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT ASSETS:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash & cash equivalents

  	
   

  	
  55

  	
   

  	
  6

  	
   

  
	
  Trade accounts receivables

  	
   

  	
  3,649

  	
   

  	
  398

  	
   

  
	
  Inventories

  	
   

  	
  55,992

  	
   

  	
  6,111

  	
   

  
	
  Prepaid expenses and other current assets

  	
   

  	
  94,525

  	
   

  	
  10,316

  	
   

  
	
  TOTAL CURRENT
  ASSETS

  	
   

  	
  154,221

  	
   

  	
  16,831

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source: Svenska
  Riksbanken):

  	
   

  	
   

  	
   

  	
  9.1630

  	
   

  

 

 

 

Scanraff Debt Valuation
Statement

June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT
  LIABILITIES:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trade accounts payables

  	
   

  	
  49,712

  	
   

  	
  5,425

  	
   

  
	
  Prepayment of processing fee from Norsk
  Hydro

  	
   

  	
  13,562

  	
   

  	
  1,480

  	
   

  
	
  Commissionary debt to Norsk Hydro

  	
   

  	
  28,101

  	
   

  	
  3,067

  	
   

  
	
  Provisions and other current liabilities

  	
   

  	
  271,454

  	
   

  	
  29,625

  	
   

  
	
   

  	
   

  	
  362,829

  	
   

  	
  39,597

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LONG-TERM DEBT:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt to Preem

  	
   

  	
  1,248,000

  	
   

  	
  136,200

  	
   

  
	
  Long-term debt to Norsk Hydro

  	
   

  	
  416,000

  	
   

  	
  45,400

  	
   

  
	
   

  	
   

  	
  1,664,000

  	
   

  	
  181,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL DEBT

  	
   

  	
  2,026,829

  	
   

  	
  221,197

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source:
  Svenska Riksbanken):

  	
   

  	
   

  	
   

  	
  9.1630

  	
   

  

 

 

Schedule 1.1

Part 6

Base Scanraff Debt Value

 

 

SEE ATTACHED

 

 

1.1, part 6 Base Scanraff Debt Value

June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT
  LIABILITIES:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trade accounts payables

  	
   

  	
  49,712

  	
   

  	
  5,425

  	
   

  
	
  Prepayment of processing fee from Norsk
  Hydro

  	
   

  	
  13,562

  	
   

  	
  1,480

  	
   

  
	
  Commissionary debt to Norsk Hydro

  	
   

  	
  28,101

  	
   

  	
  3,067

  	
   

  
	
  Provisions and other current liabilities

  	
   

  	
  271,454

  	
   

  	
  29,625

  	
   

  
	
   

  	
   

  	
  362,829

  	
   

  	
  39,597

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LONG-TERM DEBT:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt to Preem

  	
   

  	
  1,248,000

  	
   

  	
  136,200

  	
   

  
	
  Long-term debt to Norsk Hydro

  	
   

  	
  416,000

  	
   

  	
  45,400

  	
   

  
	
   

  	
   

  	
  1,664,000

  	
   

  	
  181,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL DEBT

  	
   

  	
  2,026,829

  	
   

  	
  221,197

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source:
  Svenska Riksbanken):

  	
   

  	
   

  	
   

  	
  9.1630

  	
   

  

 

 

Schedule 1.1

Part 7

Data Room and Index

 

 

SEE ATTACHED

 

 

SCANRAFF

 

Company: Skandinaviska
Raffinaderi AB Scanraff (“Scanraff”), Skandinaviska Kracker AB (“Scancracker”)

 

Table of Contents

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1

  	
   

  	
  Corporate
  Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Documents
  relating to changes in the legal structure of the Group Companies
  (acquisitions, divestitures, spin-offs, change of legal form) within the last
  three years, including all information and documentation on current merger
  between Skandinaviska Raffinaderi AB och Skandinaviska Kracker AB including
  merger plans, statements from auditors etc

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1.1

  	
   

  	
   

  	
   

  	
  Internal memorandum regarding
  unitisation of ownership shares at Scanraff

  	
   

  	
  2002-02-27

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.1.2

  	
   

  	
   

  	
   

  	
  Internal memorandum of
  Scanraff unitisation transaction summary

  	
   

  	
  2002-06-03

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.1.3

  	
   

  	
   

  	
   

  	
  Memorandum of understanding
  between Preem Petroleum AB and Norsk Hydro ASA

  	
   

  	
  2002-03-05

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.1.4

  	
   

  	
   

  	
   

  	
  Transaction structure
  agreement between Scanraff, Preem Petroleum AB and Hydro R&M Holding AB

  	
   

  	
  2002-04-17

  	
   

  	
  6

  	
   

  	
  English

  
	
  1.1.5

  	
   

  	
   

  	
   

  	
  Confirmation agreement between
  Scanraff, Preem Petroleum AB and Hydro R&M Holding AB

  	
   

  	
  not dated

  	
   

  	
  18

  	
   

  	
  English

  
	
  1.2

  	
   

  	
  List of branch offices and places of
  business wherever they are located

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.2.1

  	
   

  	
   

  	
   

  	
  Information

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.3

  	
   

  	
  List of ownership interests or other equity
  investments in other companies, partnerships or entities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.4

  	
   

  	
  All shareholders’ agreements; including
  consortium agreements, partnership agreements, joint venture agreements and
  other similar agreements regarding the control of the Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.4.1

  	
   

  	
   

  	
   

  	
  Shareholders’ agreement
  between Preem Petroleum AB, Hydro R&M Holding AB

  	
   

  	
  2002-04-17

  	
   

  	
  19

  	
   

  	
  English

  
	
  1.5

  	
   

  	
  Share certificates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.5.1

  	
   

  	
   

  	
   

  	
  Information about share
  certificates

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.5.2

  	
   

  	
   

  	
   

  	
  Share certificate no. 2 140
  701 - 2 281 400 in Scanraff

  	
   

  	
  2002-08-12

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.5.3

  	
   

  	
   

  	
   

  	
  Share certificate no. 2 000
  001 - 2 140 700 in Scanraff

  	
   

  	
  2002-08-12

  	
   

  	
  1

  	
   

  	
  Swedish

  
													

 

1

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1.5.4

  	
   

  	
   

  	
   

  	
  Share certificate no. 429
  651-859 300 in Scanraff

  	
   

  	
  1985-06-16

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.6

  	
   

  	
  Share registers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.6.1

  	
   

  	
   

  	
   

  	
  Share register in Scancracker

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.6.2

  	
   

  	
   

  	
   

  	
  Share register in Scanraff

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.7

  	
   

  	
  Articles of association and registration
  certificates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7.1

  	
   

  	
   

  	
   

  	
  Articles of association for
  Scanraff including validation from the Patent- and Registration Office

  	
   

  	
  2002-05-07

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  1.7.2

  	
   

  	
   

  	
   

  	
  Registration certificate for
  Scanraff including note regarding pending registration matters

  	
   

  	
  2002-09-25

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  1.7.3

  	
   

  	
   

  	
   

  	
  Registration certificate for
  Scancracker

  	
   

  	
  2002-09-25

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8

  	
   

  	
  Minutes from shareholders’ meetings within
  the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.8.1

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scanraff

  	
   

  	
  2002-05-07

  	
   

  	
  7

  	
   

  	
  Swedish

  
	
  1.8.2

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary
  general meeting in Scanraff

  	
   

  	
  2001-12-11

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.3

  	
   

  	
   

  	
   

  	
  Minutes from extra-ordinary
  general meeting in Scanraff

  	
   

  	
  2001-11-12

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
  1.8.4

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary general
  meeting in Scanraff

  	
   

  	
  2001-09-03

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.5

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scanraff

  	
   

  	
  2001-06-08

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.8.6

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scanraff

  	
   

  	
  2001-05-17

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.8.7

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scancracker

  	
   

  	
  2002-05-07

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  1.8.8

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary
  general meeting in Scancracker

  	
   

  	
  2001-12-11

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.9

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary
  general meeting in Scancracker

  	
   

  	
  2001-09-03

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.10

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scancracker

  	
   

  	
  2001-06-08

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.8.11

  	
   

  	
   

  	
   

  	
  Minutes from annual general
  meeting in Scancracker

  	
   

  	
  2000-05-15

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9

  	
   

  	
  Minutes from board meetings and meetings of
  other executive corporate bodies, if any, within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.9.1

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2002-05-07

  	
   

  	
  4

  	
   

  	
  Swedish/ English

  
	
  1.9.2

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2002-03-05

  	
   

  	
  7

  	
   

  	
  English

  
	
  1.9.3

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2001-10-31

  	
   

  	
  7

  	
   

  	
  English

  
												

 

2

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1.9.4

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2001-06-08

  	
   

  	
  10

  	
   

  	
  English

  
	
  1.9.5

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2001-03-27

  	
   

  	
  6

  	
   

  	
  English

  
	
  1.9.6

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2000-11-08

  	
   

  	
  9

  	
   

  	
  English

  
	
  1.9.7

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2000-05-25

  	
   

  	
  11

  	
   

  	
  English

  
	
  1.9.8

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  2000-03-16

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.9.9

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scanraff

  	
   

  	
  1999-05-20

  	
   

  	
  8

  	
   

  	
  English

  
	
  1.9.10

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2002-05-07

  	
   

  	
  4

  	
   

  	
  Swedish/  English

  
	
  1.9.11

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2002-03-05

  	
   

  	
  2

  	
   

  	
  English

  
	
  1.9.12

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2001-10-31

  	
   

  	
  2

  	
   

  	
  English

  
	
  1.9.13

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2001-06-08

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9.14

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2001-02-27

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9.15

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2000-11-08

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9.16

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  2000-05-25

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.9.17

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker, not signed

  	
   

  	
  2000-03-16

  	
   

  	
  6

  	
   

  	
  English

  
	
  1.9.18

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  1999-11-10

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9.19

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  1999-05-20

  	
   

  	
  3

  	
   

  	
  English

  
	
  1.9.20

  	
   

  	
   

  	
   

  	
  Minutes from board meeting in
  Scancracker

  	
   

  	
  1999-03-16

  	
   

  	
  2

  	
   

  	
  English

  
	
  1.10

  	
   

  	
  Procedural rules for the board of directors
  (Sw:
  arbetsordning för styrelsen) and instructions for the managing
  director (Sw:
  vd-instruktion) and guidelines for financial reporting (Sw:
  riktlinjer för ekonomisk rapportering)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.10.1

  	
   

  	
   

  	
   

  	
  Procedural rules for the board
  of directors and instructions for the managing director

  	
   

  	
  2000-05-25

  	
   

  	
  5

  	
   

  	
  English

  
	
  1.11

  	
   

  	
  Information relating to convertible debt
  instruments, debt instruments combined with warrants to subscribe for new
  shares, participating debentures and other financial instruments which could
  entitle the holder to obtain shares in any of the Companies together with a
  table stating the potential dilution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.12

  	
   

  	
  Information on any pending registration
  matters at the company register

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  2

  	
   

  	
  Links with the Hydro ASA Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Description of inter-company relationships
  with the Norsk Hydro Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.1

  	
   

  	
   

  	
   

  	
  Information

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  2.1.2

  	
   

  	
   

  	
   

  	
  Description of inter-company
  relationships with the Norsk Hydro Group

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  2.2

  	
   

  	
  Costs of services purchased from the Norsk
  Hydro ASA group in the years 1999, 2000 and 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Information

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  2.3

  	
   

  	
   

  	
   

  	
  Budgeted costs of services purchased from
  the Norsk Hydro ASA group in year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Not in

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Financial and Guarantee Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Description of accounting principles and
  description of any material changes to accounting principles during last
  three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1.1

  	
   

  	
   

  	
   

  	
  Internal accounting rules
  applied within Scanraff

  	
   

  	
  1999-12-21

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
  3.1.2

  	
   

  	
   

  	
   

  	
  Details of accounting plan
  applied within Scanraff

  	
   

  	
  2000-11-30

  	
   

  	
  45

  	
   

  	
  Swedish

  
	
  3.2

  	
   

  	
  Annual reports (from the last three years)
  (for monthly reports see 7.2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2.1

  	
   

  	
   

  	
   

  	
  Annual report for Scanraff
  2001

  	
   

  	
  2002-03-05

  	
   

  	
  16

  	
   

  	
  Swedish

  
	
  3.2.2

  	
   

  	
   

  	
   

  	
  Annual report for Scancracker
  2001

  	
   

  	
  2002-03-05

  	
   

  	
  12

  	
   

  	
  Swedish

  
	
  3.2.3

  	
   

  	
   

  	
   

  	
  Annual report for Scancracker
  2000

  	
   

  	
  2001-02-27

  	
   

  	
  12

  	
   

  	
  Swedish

  
	
  3.2.4

  	
   

  	
   

  	
   

  	
  Annual report for Scanraff
  2000

  	
   

  	
  2001-02-27

  	
   

  	
  16

  	
   

  	
  Swedish

  
	
  3.2.5

  	
   

  	
   

  	
   

  	
  Annual report for Scanraff 1999

  	
   

  	
  2000-03-16

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
  3.2.6

  	
   

  	
   

  	
   

  	
  Annual report for Scancracker
  1999

  	
   

  	
  2000-03-16

  	
   

  	
  13

  	
   

  	
  Swedish

  
	
  3.3

  	
   

  	
  Fixed asset register

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.3.1

  	
   

  	
   

  	
   

  	
  Fixed asset register

  	
   

  	
  2001-12-31

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  3.3.2

  	
   

  	
   

  	
   

  	
  Replacement values

  	
   

  	
  2001-10-23

  	
   

  	
  3

  	
   

  	
  English

  
	
  3.4

  	
   

  	
  General description of the Group’s
  financing arrangements, including loan and pledge agreements and other
  securities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.4.1

  	
   

  	
   

  	
   

  	
  Repayment plan regarding
  Scanraff

  	
   

  	
  2002-06-27

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  3.4.2

  	
   

  	
   

  	
   

  	
  Description of loans from
  Norsk Hydro ASA

  	
   

  	
  2002-06-30

  	
   

  	
  5

  	
   

  	
  English

  
	
  3.4.3

  	
   

  	
   

  	
   

  	
  Loan agreement between
  Scanraff and Norsk Hydro ASA, not signed

  	
   

  	
  2002-07-01

  	
   

  	
  2

  	
   

  	
  English

  
												

 

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  3.4.4

  	
   

  	
   

  	
   

  	
  Loan agreement between Norsk
  Hydro ASA, Hydro Finans and Scanraff

  	
   

  	
  2002-04-01

  	
   

  	
  4

  	
   

  	
  English

  
	
  3.4.5

  	
   

  	
   

  	
   

  	
  Loan agreement between
  Scanraff and Norsk Hydro ASA

  	
   

  	
  2002-04-01

  	
   

  	
  2

  	
   

  	
  English

  
	
  3.4.6

  	
   

  	
   

  	
   

  	
  Overview of financing
  arrangements

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.5

  	
   

  	
  Details of guarantees and sureties issued
  by any third party for loans taken by a Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  Information regarding loans to and
  securities in favour of shareholders, directors, chief executive officer,
  other employees or persons closely associated with these persons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6.1

  	
   

  	
   

  	
   

  	
  Description

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.7

  	
   

  	
  Details of investment grants, other grants
  and subsidies given to a Group Company by a governmental agency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.8

  	
   

  	
  Foreign exchange and commodity exchange
  exposures and hedging strategies; specification of outstanding amounts under
  hedging instruments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Tax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Tax returns, notices of assessment and
  filings years 1999, 2000 and 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.1

  	
   

  	
   

  	
   

  	
  Notice of assessment for
  Scancracker 2001

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.2

  	
   

  	
   

  	
   

  	
  Notice of assessment for
  Scancracker 2000

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.3

  	
   

  	
   

  	
   

  	
  Notice of assessment for
  Scancracker 1999

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.4

  	
   

  	
   

  	
   

  	
  Notice of assessment for
  Scanraff 2001

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.5

  	
   

  	
   

  	
   

  	
  Notice of assessment for Scanraff
  2000

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.6

  	
   

  	
   

  	
   

  	
  Notice of assessment for
  Scanraff 1999

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.7

  	
   

  	
   

  	
   

  	
  Decision about reduced tax
  from the tax authorities regarding Scanraff

  	
   

  	
  2000-03-17

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  4.1.8

  	
   

  	
   

  	
   

  	
  Tax return for Scancracker
  2002

  	
   

  	
  14

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.9

  	
   

  	
   

  	
   

  	
  Tax return for Scancracker
  2001

  	
   

  	
  15

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.10

  	
   

  	
   

  	
   

  	
  Tax return for Scancracker
  2000

  	
   

  	
  15

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.11

  	
   

  	
   

  	
   

  	
  Tax return for Scanraff 2002

  	
   

  	
  33

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.1.12

  	
   

  	
   

  	
   

  	
  Tax return for Scanraff 2001

  	
   

  	
  26

  	
   

  	
  Swedish

  	
   

  	
   

  

 

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  4.1.13

  	
   

  	
   

  	
   

  	
  Tax return for Scanraff 2000

  	
   

  	
  22

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  4.2

  	
   

  	
  Tax audits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Correspondence with tax authorities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3.1

  	
   

  	
   

  	
   

  	
  Appeal by Scanraff to the Supreme
  Administrative Court

  	
   

  	
  2001-02-07

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  4.3.2

  	
   

  	
   

  	
   

  	
  Application to the Swedish tax
  by Preem Petroleum AB and Norsk Hydro Lagrings och Distributions AB regarding
  Scanraff and Scancracker

  	
   

  	
  2001-02-16

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
  4.3.3

  	
   

  	
   

  	
   

  	
  Decision by the Swedish tax authority
  regarding Scanraff

  	
   

  	
  2001-04-04

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  4.3.4

  	
   

  	
   

  	
   

  	
  Decision by the Swedish tax
  authority regarding Scancracker

  	
   

  	
  2001-04-04

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  4.3.5

  	
   

  	
   

  	
   

  	
  Information regarding
  commission relationship

  	
   

  	
  2002-09-30

  	
   

  	
  3

  	
   

  	
  Swedish, English

  
	
  5

  	
   

  	
  Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
   

  	
   

  	
  Budget for years 2002, 2003 and 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1.1

  	
   

  	
   

  	
   

  	
  Investment budget 2002

  	
   

  	
  2002-03-20

  	
   

  	
  8

  	
   

  	
  English

  
	
  5.1.2

  	
   

  	
   

  	
   

  	
  Investment budget 2002

  	
   

  	
  2002-03-20

  	
   

  	
  8

  	
   

  	
  English

  
	
  5.1.3

  	
   

  	
   

  	
   

  	
  Scanraff activity plan 2002

  	
   

  	
  2001-10-10

  	
   

  	
  31

  	
   

  	
  English

  
	
  5.1.4

  	
   

  	
   

  	
   

  	
  Investment budget 1992 - 2002
  for Scanraff including Scancracker

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  5.1.5

  	
   

  	
   

  	
   

  	
  Investment budget 2002 for
  Scanraff and Scancracker

  	
   

  	
  2001-10-01

  	
   

  	
  233

  	
   

  	
  English

  
	
  5.1.6

  	
   

  	
   

  	
   

  	
  Investment budget 2001 for
  Scanraff and Scancracker

  	
   

  	
  2000-10-12

  	
   

  	
  27

  	
   

  	
  English

  
	
  5.1.7

  	
   

  	
   

  	
   

  	
  Investment budget 2001 for
  Scanraff

  	
   

  	
  2000-09-28

  	
   

  	
  178

  	
   

  	
  English

  
	
  5.1.8

  	
   

  	
   

  	
   

  	
  Investment budget 2001 for
  Scanraff

  	
   

  	
  2000-09-28

  	
   

  	
  35

  	
   

  	
  English

  
	
  5.1.9

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  2001 replacements and renewals Scanraff

  	
   

  	
  2000-11-30

  	
   

  	
  4

  	
   

  	
  English

  
	
  5.1.10

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  2001 replacements and renewals Scancracker

  	
   

  	
  2000-11-30

  	
   

  	
  1

  	
   

  	
  English

  
	
  5.1.11

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  2000 replacements and renewals Scanraff

  	
   

  	
  1999-11-16

  	
   

  	
  2

  	
   

  	
  English

  

 

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  5.1.12

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  2000 replacements and renewals Scancracker

  	
   

  	
  1999-11-16

  	
   

  	
  1

  	
   

  	
  English

  
	
  5.1.13

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  1999 replacements and renewals Scanraff

  	
   

  	
  1998-11-18

  	
   

  	
  3

  	
   

  	
  English

  
	
  5.1.14

  	
   

  	
   

  	
   

  	
  Scanraff investment budget
  1999 replacements and renewals Scancracker

  	
   

  	
  1998-11-18

  	
   

  	
  1

  	
   

  	
  English

  
	
  5.2

  	
   

  	
  Year 2002 estimate including variance
  analysis versus year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2.1

  	
   

  	
   

  	
   

  	
  Scanraff crude charge,
  products and gross margin July 2002

  	
   

  	
  2002-08-09

  	
   

  	
  1

  	
   

  	
  English

  
	
  5.3

  	
   

  	
  Monthly budget 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.3.1

  	
   

  	
   

  	
   

  	
  Scanraff production budget
  2002

  	
   

  	
  2002-08-26

  	
   

  	
  2

  	
   

  	
  English

  
	
  5.3.2

  	
   

  	
   

  	
   

  	
  Scanraff budget rapport 2002

  	
   

  	
  2002-08-29

  	
   

  	
  7

  	
   

  	
  Swedish

  
	
  6

  	
   

  	
  Real Estate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
   

  	
  List of owned and leased real properties,
  of site-leaseholds (Sw: tomträtt) and leaseholds (Sw: arrende),
  together with information on lease agreements (lessee) and purchase
  agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1.1

  	
   

  	
   

  	
   

  	
  List over properties including
  a map

  	
   

  	
  —

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  6.2

  	
   

  	
  Details of real property and site-leasehold
  mortgages and pledge agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3)

  	
   

  	
   

  	
   

  	
  Details of permit obligations and of
  investigations and proceedings by authorities (threatened, pending and during
  the three preceding years), for example as regards building permits,
  prescriptions, nature conservation and natural resources and mandatory
  control of ventilation (Sw: OVK)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.3.1

  	
   

  	
   

  	
   

  	
  General description

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  6.3.2

  	
   

  	
   

  	
   

  	
  City plan for the eastern part
  of Scanraff’s oil refineries

  	
   

  	
  2001-11-08

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  6.4

  	
   

  	
  Site-leasehold agreements (lessor/lessee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.5

  	
   

  	
  Leasehold agreements (lessor)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.6

  	
   

  	
  Lease agreements (lessor/lessee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.7

  	
   

  	
  List of real properties and site-leaseholds
  sold within the last three years and agreements relating thereto

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

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  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.8

  	
   

  	
  Miscellaneous

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.8.1

  	
   

  	
   

  	
   

  	
  Exploitation agreement between
  Scanraff and Lysekils kommun

  	
   

  	
  2002-01-02

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  7

  	
   

  	
  Production and Products

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
   

  	
  Available material containing description
  of facilities and production process

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1.1

  	
   

  	
   

  	
   

  	
  Company description Scanraff

  	
   

  	
  2002-06-04

  	
   

  	
  7

  	
   

  	
  English

  
	
  7.1.2

  	
   

  	
   

  	
   

  	
  Scanraff technical description

  	
   

  	
  2001-02-02

  	
   

  	
  22

  	
   

  	
  Swedish

  
	
  7.1.3

  	
   

  	
   

  	
   

  	
  Description of Scanraff’s
  buildings from a safety perspective

  	
   

  	
  2001-01-22

  	
   

  	
  30

  	
   

  	
  Swedish

  
	
  7.1.4

  	
   

  	
   

  	
   

  	
  Scanraff import/export
  procedure

  	
   

  	
  1999-06-17

  	
   

  	
  12

  	
   

  	
  English

  
	
  7.1.5

  	
   

  	
   

  	
   

  	
  Safety requirements during stay
  in port

  	
   

  	
  not dated

  	
   

  	
  23

  	
   

  	
  English

  
	
  7.2

  	
   

  	
  Reports regarding production and products

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.2.1

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  June and July 2002

  	
   

  	
  44

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.2

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  May 2002

  	
   

  	
  41

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.3

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  April 2002

  	
   

  	
  41

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.4

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  March 2002

  	
   

  	
  40

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.5

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  February 2002

  	
   

  	
  37

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.6

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  January 2002

  	
   

  	
  40

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.7

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  December 2001

  	
   

  	
  39

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.8

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  December 2000

  	
   

  	
  42

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.9

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  December 1999

  	
   

  	
  31

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.10

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  December 1998

  	
   

  	
  33

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.11

  	
   

  	
   

  	
   

  	
  Monthly report for Scanraff
  December 1997

  	
   

  	
  33

  	
   

  	
  English

  	
   

  	
   

  
	
  7.2.12

  	
   

  	
   

  	
   

  	
  Refinery EDC/UEDC-1996 for
  Scanraff

  	
   

  	
  1997-01-09

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.2.13

  	
   

  	
   

  	
   

  	
  Product specifications

  	
   

  	
  2001-01-23

  	
   

  	
  128

  	
   

  	
  English

  
	
  7.2.14

  	
   

  	
   

  	
   

  	
  Details input production
  prices June 2002 prognosis

  	
   

  	
  17

  	
   

  	
  Norwegian

  	
   

  	
   

  
	
  7.2.15

  	
   

  	
   

  	
   

  	
  Details of input production prices March 2002 prognosis

  	
   

  	
  17

  	
   

  	
  Norwegian

  	
   

  	
   

  
	
  7.2.16

  	
   

  	
   

  	
   

  	
  Details of input production prices December 2001

  	
   

  	
  11

  	
   

  	
  Norwegian

  	
   

  	
   

  

 

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  7.2.17

  	
   

  	
   

  	
   

  	
  Details of input production prices December 2000

  	
   

  	
  11

  	
   

  	
  Norwegian

  	
   

  	
   

  
	
  7.2.18

  	
   

  	
   

  	
   

  	
  Details of input production prices UB December 1999

  	
   

  	
  11

  	
   

  	
  Norwegian

  	
   

  	
   

  
	
  7.3

  	
   

  	
  Technical key figures regarding production
  and products

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.3.1

  	
   

  	
   

  	
   

  	
  Refinery utilisation 2002

  	
   

  	
  2002-08-08

  	
   

  	
  1

  	
   

  	
  English

  
	
  7.3.2

  	
   

  	
   

  	
   

  	
  Products facts

  	
   

  	
  2002-04-12

  	
   

  	
  1

  	
   

  	
  English

  
	
  7.3.3

  	
   

  	
   

  	
   

  	
  Energy consumptions facts

  	
   

  	
  2002-03-22

  	
   

  	
  1

  	
   

  	
  English

  
	
  7.3.4

  	
   

  	
   

  	
   

  	
  Scanraff’s production program

  	
   

  	
  2000-09-21

  	
   

  	
  12

  	
   

  	
  Swedish

  
	
  7.4

  	
   

  	
  Information on staffing and shifts

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.4.1

  	
   

  	
   

  	
   

  	
  Organisation chart of Scanraff
  production

  	
   

  	
  2001-01-08

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  7.5

  	
   

  	
  Any audits and technical reports (whether
  internal or performed by third parties)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.5.1

  	
   

  	
   

  	
   

  	
  Scanraff main investment
  projects

  	
   

  	
  2001-01-23

  	
   

  	
  6

  	
   

  	
  English

  
	
  7.5.2

  	
   

  	
   

  	
   

  	
  Energy efficiency study,
  Scanraff

  	
   

  	
  January 2002

  	
   

  	
  111

  	
   

  	
  English

  
	
  7.5.3

  	
   

  	
   

  	
   

  	
  Survey report, engineering and
  risk management practice, Scanraff

  	
   

  	
  2001-05-17

  	
   

  	
  52

  	
   

  	
  English

  
	
  7.5.4

  	
   

  	
   

  	
   

  	
  Scanraff gasoline study,
  refinery profitability services

  	
   

  	
  February 2000

  	
   

  	
  149

  	
   

  	
  English

  
	
  7.5.5

  	
   

  	
   

  	
   

  	
  Memorandum Scanraff
  Brofjorden, including report: Brofjorden IGCC

  	
   

  	
  1998-02-11

  	
   

  	
  21

  	
   

  	
  Swedish/ Norwegian

  
	
  7.5.6

  	
   

  	
   

  	
   

  	
  Letter of intent between
  Scanraff and Vattenfall AB

  	
   

  	
  1997-04-11

  	
   

  	
  6

  	
   

  	
  English

  
	
  7.5.7

  	
   

  	
   

  	
   

  	
  Letter of intent between
  Scanraff and Vattenfall

  	
   

  	
  not dated

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  7.5.8

  	
   

  	
   

  	
   

  	
  Letter of intent between
  Scanraff and Vattenfall

  	
   

  	
  1990-06-26

  	
   

  	
  13

  	
   

  	
  Swedish

  
	
  7.5.9

  	
   

  	
   

  	
   

  	
  Report regarding Scanraff’s
  crude oil storage, Brofjorden

  	
   

  	
  1990-02-26

  	
   

  	
  127

  	
   

  	
  Swedish/ Norwegian

  
	
  7.5.10

  	
   

  	
   

  	
   

  	
  Summary report regarding heating
  project Scanraff/Fyrstad

  	
   

  	
  May 1997

  	
   

  	
  25

  	
   

  	
  Swedish

  
	
  7.5.11

  	
   

  	
   

  	
   

  	
  Report: Possible utilization
  of proposed Scanraff crude terminal

  	
   

  	
  November 1994

  	
   

  	
  35

  	
   

  	
  English

  
	
  7.5.12

  	
   

  	
   

  	
   

  	
  Feasibility study for extended
  use of Aspedalens crude oil supply

  	
   

  	
  1994-10-31

  	
   

  	
  18

  	
   

  	
  Swedish and English

  
	
  7.5.13

  	
   

  	
   

  	
   

  	
  Feasibility study phase 2
  report regarding Scanraff crude oil caverns, Aspedalen

  	
   

  	
  October 1994

  	
   

  	
  109

  	
   

  	
  English

  
	
  7.5.14

  	
   

  	
   

  	
   

  	
  Prefeasibility study report
  regarding Scanraff crude oil caverns, Aspedalen

  	
   

  	
  June 1994

  	
   

  	
  29

  	
   

  	
  English

  

 

9

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
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  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  7.6

  	
   

  	
  The Gas oil project

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.6.1

  	
   

  	
   

  	
   

  	
  Scanraff Isocracker Project,
  Final report

  	
   

  	
  October 2001

  	
   

  	
  76

  	
   

  	
  English

  
	
  7.6.2

  	
   

  	
   

  	
   

  	
  Summary of screening study

  	
   

  	
  2001-03-28

  	
   

  	
  41

  	
   

  	
  English

  
	
  7.6.3

  	
   

  	
   

  	
   

  	
  Scanraff gas oil 2005
  screening study

  	
   

  	
  April 2001

  	
   

  	
  80

  	
   

  	
  English

  
	
  7.6.4

  	
   

  	
   

  	
   

  	
  Gas oil study: Refinery
  production 1998 compared with different scenario year 2000 and 2005

  	
   

  	
  1998-02-25

  	
   

  	
  26

  	
   

  	
  English

  
	
  7.6.5

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, Gas oil
  project (“GOP”) steering
  committee meeting

  	
   

  	
  2002-08-30

  	
   

  	
  4

  	
   

  	
  English

  
	
  7.6.6

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, GOP
  steering committee meeting

  	
   

  	
  2002-03-06

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.6.7

  	
   

  	
   

  	
   

  	
  Scanraff, GOP project
  objectives statement

  	
   

  	
  2002-02-08

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.6.8

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, GOP
  steering committee meeting

  	
   

  	
  2002-02-04

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.6.9

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, GOP
  steering committee meeting

  	
   

  	
  2001-12-20

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.6.10

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, GOP
  steering committee meeting

  	
   

  	
  2001-11-19

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.6.11

  	
   

  	
   

  	
   

  	
  Scanraff, GOP steering
  committee purpose and tasks note

  	
   

  	
  2001-10-23

  	
   

  	
  5

  	
   

  	
  English

  
	
  7.6.12

  	
   

  	
   

  	
   

  	
  Internal memo regarding
  request for approval of plan for Scanraff GOP

  	
   

  	
  2002-05-22

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.6.13

  	
   

  	
   

  	
   

  	
  Controller memo regarding GOP
  investment

  	
   

  	
  2002-05-10

  	
   

  	
  1

  	
   

  	
  English

  
	
  7.6.14

  	
   

  	
   

  	
   

  	
  Scanraff GOP, basis of
  decision

  	
   

  	
  2002-03-18

  	
   

  	
  27

  	
   

  	
  English

  
	
  7.6.15

  	
   

  	
   

  	
   

  	
  Scanraff GOP, basis of
  decision

  	
   

  	
  2002-05-13

  	
   

  	
  14

  	
   

  	
  English

  
	
  7.6.16

  	
   

  	
   

  	
   

  	
  Scanraff GOP, Economics

  	
   

  	
  2002-05-14

  	
   

  	
  9

  	
   

  	
  English

  
	
  7.6.17

  	
   

  	
   

  	
   

  	
  Capital expenditure proposal

  	
   

  	
  2002-05-07

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.6.18

  	
   

  	
   

  	
   

  	
  Minutes of Scanraff, ICR
  steering committee meeting

  	
   

  	
  2001-10-16

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.6.19

  	
   

  	
   

  	
   

  	
  See also 13.4.3 “Environmental
  application from Scanraff to Vänersborgs tingsrätt, Miljödomstolen”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.6.20

  	
   

  	
   

  	
   

  	
  Internal memo regarding
  Scanraff Isocracker Project - health, safety and environment

  	
   

  	
  2002-02-25

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.7

  	
   

  	
  Investment and maintenance programs since
  1999

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.7.1

  	
   

  	
   

  	
   

  	
  Scope and key targets for the
  2002 turnaround for Scanraff

  	
   

  	
  2002-02-19

  	
   

  	
  3

  	
   

  	
  English

  
													

 

10

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  7.7.2

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2002-08-15

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  7.7.3

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2002-06-03

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
  7.7.4

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2002-04-04

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.5

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2002-01-22

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  7.7.6

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-10-12

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  7.7.7

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-09-24

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.8

  	
   

  	
   

  	
   

  	
  Minutes meeting technical committee

  	
   

  	
  2001-08-24

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.9

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-05-11

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  7.7.10

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-04-19

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  7.7.11

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-03-01

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  7.7.12

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2001-02-07

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.13

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2000-12-15

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.14

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2000-10-25

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  7.7.15

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2000-10-03

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.16

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2000-08-17

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  7.7.17

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  2000-05-15

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  7.7.18

  	
   

  	
   

  	
   

  	
  Minutes meeting technical
  committee

  	
   

  	
  1999-12-16

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  7.7.19

  	
   

  	
   

  	
   

  	
  Controller memo regarding
  Scancracker Propylene Project

  	
   

  	
  2001-03-21

  	
   

  	
  5

  	
   

  	
  English

  
	
  7.7.20

  	
   

  	
   

  	
   

  	
  Internal memo regarding
  Propylene export — Scanraff

  	
   

  	
  2000-05-02

  	
   

  	
  3

  	
   

  	
  English

  
	
  7.7.21

  	
   

  	
   

  	
   

  	
  Memo regarding capital
  expenditure proposal

  	
   

  	
  2000-05-30

  	
   

  	
  5

  	
   

  	
  English

  
	
  7.7.22

  	
   

  	
   

  	
   

  	
  Capital expenditure proposal

  	
   

  	
  2001-04-01

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.7.23

  	
   

  	
   

  	
   

  	
  Capital expenditure proposal

  	
   

  	
  2000-05-01

  	
   

  	
  2

  	
   

  	
  English

  
	
  8

  	
   

  	
  Sales and Marketing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Sales break-down on products, customers and
  markets for 1999, 2000, 2001 and per 30.06.2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1.1

  	
   

  	
   

  	
   

  	
  Sales break-down Scanraff 2002

  	
   

  	
  2002

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  8.1.2

  	
   

  	
   

  	
   

  	
  Sales break-down Scanraff 2001

  	
   

  	
  2001

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  8.1.3

  	
   

  	
   

  	
   

  	
  Sales break-down Scanraff 2000

  	
   

  	
  2000

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  8.1.4

  	
   

  	
   

  	
   

  	
  Sales break-down Scanraff 1999

  	
   

  	
  1999

  	
   

  	
  4

  	
   

  	
  Swedish

  

 

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  document

  	
   

  	
  Pages

  	
   

  	
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  8.2

  	
   

  	
  Sales agreement with affiliates (contract
  value above approximately MSEK 5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.3

  	
   

  	
  Sales agreement with third parties
  (contract value above approximately MSEK 5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.3.1

  	
   

  	
   

  	
   

  	
  Sales agreement between
  Lysekils Energi and Scanraff

  	
   

  	
  2002-03-24

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  8.4

  	
   

  	
  Agreements with the agents and distributors
  (contract value above approximately MSEK 5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.5

  	
   

  	
  Long term shipping and transportation
  agreements (duration of more than 12 months)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Agreements and Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Agreements for the acquisition or
  divestiture of businesses/material assets/shares/real property/site
  leaseholds within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Any agreements with affiliated companies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2.1

  	
   

  	
   

  	
   

  	
  Processing agreement between
  Preem Petroleum AB, Hydro R&M Holding AB and Scanraff

  	
   

  	
  2002-04-17

  	
   

  	
  19

  	
   

  	
  English

  
	
  9.2.2

  	
   

  	
   

  	
   

  	
  Service agreement with Scancracker

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  All material agreements and all agreements
  with a value above MSEK 5, including the processing agreement between Norsk
  Hydro ASA and Preem

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3.1

  	
   

  	
   

  	
   

  	
  Agreement concerning the ports
  in Brofjorden between Oljekonsumenternas förbund, Lysekils kommunstyrelse and
  Scanraff

  	
   

  	
  1977-06-21

  	
   

  	
  8

  	
   

  	
  Swedish

  
	
  9.3.2

  	
   

  	
   

  	
   

  	
  Agreement between Lysekils
  kommun and Scanraff regarding delivery of water

  	
   

  	
  1997-04-04

  	
   

  	
  7

  	
   

  	
  Swedish

  
	
  9.3.3

  	
   

  	
   

  	
   

  	
  Entrepreneur agreement between
  Vakttjänst and Scanraff

  	
   

  	
  2001-04-06

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  9.4

  	
   

  	
  General purchase agreements and/or sales
  terms and conditions (including warranty arrangements) used in the business
  of the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
													

 

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  document

  	
   

  	
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  10

  	
   

  	
  IT and Intellectual Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Description of the material intellectual
  property rights used or under development by each Group Company in its
  business, and information about whether these intellectual property rights
  are owned by the Group Company or used under license agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.1

  	
   

  	
   

  	
   

  	
  General description of
  intellectual property rights

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.2

  	
   

  	
   

  	
   

  	
  Description of a partly
  in-house developed commercial information system - Ramsys

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  10.1.3

  	
   

  	
   

  	
   

  	
  Information regarding
  IT-systems

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  10.2

  	
   

  	
  List of all intellectual property rights
  held by each Group Company (including those which are not currently used in
  the business)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.3

  	
   

  	
   

  	
   

  	
  Details of all pending applications and
  current matters regarding intellectual property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.4

  	
   

  	
  Patent registrations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.5

  	
   

  	
  Trade mark registrations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.6

  	
   

  	
  Other registered intellectual property
  rights

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.7

  	
   

  	
  List of licenses and service agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.7.1

  	
   

  	
   

  	
   

  	
  List of licenses and service
  agreements

  	
   

  	
  2

  	
   

  	
  English

  	
   

  	
   

  
	
  10.8

  	
   

  	
  License agreements regarding intellectual
  property rights, including license agreements regarding computer software
  (Group Company licensee) in excess of SEK 500.000 yearly

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.9

  	
   

  	
  Licenses to a third party, pledges and
  other encumbrances on intellectual property rights owned by a Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.10

  	
   

  	
  Infringements of owned or third party
  intellectual property rights within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.11

  	
   

  	
  Rights held by directors and employees in
  respect of intellectual property rights owned or used by the Group including
  details of remuneration

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
													

 

13

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.12

  	
   

  	
  Intellectual property rights being retained
  in the vendor group which are or have been used by the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Research and Development

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Quality Assurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1

  	
   

  	
  QA-manual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1.1

  	
   

  	
   

  	
   

  	
  Scanraff company manual

  	
   

  	
  2002-08-26

  	
   

  	
  186

  	
   

  	
  Swedish

  
	
  12.1.2

  	
   

  	
   

  	
   

  	
  Scanraff’s quality policies

  	
   

  	
  2002-08-20

  	
   

  	
  8

  	
   

  	
  Swedish

  
	
  12.1.3

  	
   

  	
   

  	
   

  	
  Management system and quality
  facts

  	
   

  	
  2002-01-15

  	
   

  	
  1

  	
   

  	
  English

  
	
  12.2

  	
   

  	
  Certifications (ISO)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.2.1

  	
   

  	
   

  	
   

  	
  General description of certificates

  	
   

  	
  —

  	
   

  	
  1

  	
   

  	
  English

  
	
  12.2.2

  	
   

  	
   

  	
   

  	
  SS-EN ISO 14001 certificate

  	
   

  	
  2000-09-20

  	
   

  	
  1

  	
   

  	
  English

  
	
  12.2.3

  	
   

  	
   

  	
   

  	
  SS-EN ISO 9002 certificate

  	
   

  	
  2001-01-31

  	
   

  	
  1

  	
   

  	
  English

  
	
  12.2.4

  	
   

  	
   

  	
   

  	
  OHS AS 18001 certificate

  	
   

  	
  1999-12-10

  	
   

  	
  2

  	
   

  	
  English

  
	
  12.3

  	
   

  	
  Reports from any audits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.3.1

  	
   

  	
   

  	
   

  	
  Audit report

  	
   

  	
  2002-01-21

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  13

  	
   

  	
  Environment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1

  	
   

  	
  Annual environmental reports (within the
  last three years)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.1.1

  	
   

  	
   

  	
   

  	
  Annual environmental report
  2001 Scanraff

  	
   

  	
  2002-03-27

  	
   

  	
  28

  	
   

  	
  Swedish

  
	
  13.1.2

  	
   

  	
   

  	
   

  	
  Annual environmental report
  2000 Scanraff

  	
   

  	
  2001-03-30

  	
   

  	
  28

  	
   

  	
  Swedish

  
	
  13.1.3

  	
   

  	
   

  	
   

  	
  Annual environmental report
  1999 Scanraff

  	
   

  	
  2000-03-31

  	
   

  	
  42

  	
   

  	
  Swedish

  
	
  13.1.4

  	
   

  	
   

  	
   

  	
  Environmental statistics
  1976-2001 Scanraff

  	
   

  	
  14

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  13.2

  	
   

  	
  List of properties owned, leased or
  operated by the Group or for which the Group has retained or assumed
  liabilities, with a description of the type of operations conducted at such
  properties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 13.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

14

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  13.3

  	
   

  	
  Description of the operations carried out
  by the Group and the possible environmental impact caused by the operations
  and the Group’s products, including operations by divested, liquidated or
  otherwise terminated businesses (unless provided for in 13.1 above)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 13.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.4

  	
   

  	
  Environmental licenses, consents, permits
  and registrations from or with statutory or regulatory bodies relevant for
  the Group and any applications therefore (unless provided for 13.1 above

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.4.1

  	
   

  	
   

  	
   

  	
  Environmental
  conditions/permits

  	
   

  	
  2001-04-26

  	
   

  	
  11

  	
   

  	
  Swedish

  
	
  13.4.2

  	
   

  	
   

  	
   

  	
  Environmental systems

  	
   

  	
  2001-01-21

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
  13.4.3

  	
   

  	
   

  	
   

  	
  Environmental application from
  Scanraff to Vänersborgs tingsrätt, Miljödomstolen, including statement from
  Lysekils kommun

  	
   

  	
  2001-10-30

  	
   

  	
  88

  	
   

  	
  Swedish

  
	
  13.4.4

  	
   

  	
   

  	
   

  	
  Judicial decision from Koncessionsnämnden
  för miljöskydd

  	
   

  	
  1991-12-16

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  13.4.5

  	
   

  	
   

  	
   

  	
  Judgement from Vänersborgs tingsrätt,
  Miljödomstolen

  	
   

  	
  2000-05-30

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  13.5

  	
   

  	
  Licenses, consents, permits and
  registrations concerning safety from or with statutory or regulatory bodies
  relevant for the Group and any applications therefore (unless provided for in
  13.1 above)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 12.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.6

  	
   

  	
  Information about pending or ongoing
  activities to ensure compliance with all applicable environmental legislation
  and description of investment needs (unless provided for 13.1 above)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 13.1 and 15.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.7

  	
   

  	
  Details of environmental control programs
  (within the last three years)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.7.1

  	
   

  	
   

  	
   

  	
  Environmental control program
  Scanraff including amendments

  	
   

  	
  1988-11-08

  	
   

  	
  37

  	
   

  	
  Swedish

  
	
  13.7.2

  	
   

  	
   

  	
   

  	
  Decision from Länsstyrelsen
  regarding program for finding leakages, Scanraff

  	
   

  	
  1997-01-27

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  13.8

  	
   

  	
  Details on reporting system for safety,
  health and environment and statistics for fires, gas releases, oil spills,
  emissions to water and air, deposits of hazardous material and lost workday
  injury frequency for 1999 and onwards

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.8.1

  	
   

  	
   

  	
   

  	
  Safety, health and
  environmental statistics 2002, Scanraff

  	
   

  	
  4

  	
   

  	
  English

  	
   

  	
   

  
	
  13.8.2

  	
   

  	
   

  	
   

  	
  Safety, health and
  environmental statistics 2001, Scanraff

  	
   

  	
  4

  	
   

  	
  English

  	
   

  	
   

  
	
  13.8.3

  	
   

  	
   

  	
   

  	
  Safety, health and
  environmental statistics 2000, Scanraff

  	
   

  	
  4

  	
   

  	
  English

  	
   

  	
   

  
												

 

15

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  13.8.4

  	
   

  	
   

  	
   

  	
  Safety, health and
  environmental statistics 1999, Scanraff

  	
   

  	
  4

  	
   

  	
  English

  	
   

  	
   

  
	
  13.9

  	
   

  	
  Internal or external reports related to
  environmental and safety assessments, audits, investigations or “clean-ups”
  at the facilities owned, leased or operated by the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.9.1

  	
   

  	
   

  	
   

  	
  See 7.5.3: Survey report,
  engineering and risk management practice, Scanraff

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.10

  	
   

  	
  HESS manual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 12.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.11

  	
   

  	
  Details of remarks, investigations or any
  actual or proposed enforcement action under any planning and building,
  environmental or other legislation relating to environmental matters (for
  example health care) and safety and other correspondence with authorities in
  these matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.12

  	
   

  	
  Details and copies of documents relating to
  threatened, pending or resolved civil or criminal disputes or administrative
  actions under environmental laws or concerning environmental issues where a
  Group Company is or has been a party or is or has otherwise been involved

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.12.1

  	
   

  	
   

  	
   

  	
  See 7.6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.12.2

  	
   

  	
   

  	
   

  	
  Description

  	
   

  	
  —

  	
   

  	
  1

  	
   

  	
  English

  
	
  13.12.3

  	
   

  	
   

  	
   

  	
  Police Report

  	
   

  	
  2000-09-27

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  13.13

  	
   

  	
  Agreements pursuant to which the Group has
  remained liable for environmental claims relating to divested property,
  assets or businesses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.14

  	
   

  	
  Agreements pursuant to which a third party
  has remained liable for environmental claims relating to acquired property,
  assets or businesses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.15

  	
   

  	
  Details of hazardous substances used or
  applied in the Group’s business (within the last three years)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.15.1

  	
   

  	
   

  	
   

  	
  List of chemicals 2001,
  Scanraff

  	
   

  	
  4

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  13.15.2

  	
   

  	
   

  	
   

  	
  List of industrial disposal
  2001, Scanraff

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  13.16

  	
   

  	
  Details of recycling practices, waste treatments,
  storage or disposal sites used or owned by the Group and details of any
  spill, leakage, deposit, emission, discharge or release of any pollutants,
  contaminates, hazardous, flammable or toxic substances, materials or waste at
  the site (within the last three years)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

16

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  14

  	
   

  	
  Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.1

  	
   

  	
  List of all existing policies of the Group
  (distinguish Group cover from individual cover, including details of premium,
  renewal date and amount insured)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.1.1

  	
   

  	
   

  	
   

  	
  General description

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  14.1.2

  	
   

  	
   

  	
   

  	
  Correspondence regarding
  Scanraff’s insurance cover

  	
   

  	
  2002-08-21-2002-09-12

  	
   

  	
  3

  	
   

  	
  Norwegian

  
	
  14.1.3

  	
   

  	
   

  	
   

  	
  Property management insurance,
  policy number P/100077/02/0/00-01

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Norwegian

  
	
  14.1.4

  	
   

  	
   

  	
   

  	
  Business interruption
  insurance, policy number P/100007/02/0/00-01

  	
   

  	
  not dated

  	
   

  	
  2

  	
   

  	
  Norwegian

  
	
  14.1.5

  	
   

  	
   

  	
   

  	
  Insurance contract
  M/100196/02/0/00, with Industriforsikring a.s

  	
   

  	
  2002-03-12

  	
   

  	
  2

  	
   

  	
  English

  
	
  14.1.6

  	
   

  	
   

  	
   

  	
  Insurance contract
  M/100186/02/0/00, with Industriforsikring a.s

  	
   

  	
  2002-03-12

  	
   

  	
  2

  	
   

  	
  English

  
	
  14.1.7

  	
   

  	
   

  	
   

  	
  Insurance contract
  C/100462/02/0/00, with Industriforsikring a.s

  	
   

  	
  2002-02-02

  	
   

  	
  3

  	
   

  	
  English

  
	
  14.1.8

  	
   

  	
   

  	
   

  	
  Insurance contract
  M/100040/02/0/00, with Industriforsikring a.s

  	
   

  	
  2002-09-05

  	
   

  	
  4

  	
   

  	
  English

  
	
  14.1.9

  	
   

  	
   

  	
   

  	
  See 7.5.3: “Survey report,
  engineering and risk management practice, Scanraff”

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.2

  	
   

  	
  Details of outstanding or pending claims by
  the Group and circumstances which may give rise to claims

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.3

  	
   

  	
  Insurance claims record of the Group within
  the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Management and Employment Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.1

  	
   

  	
  Organisation chart of all employees and
  information regarding major organisational changes of the work force within
  the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.1.1

  	
   

  	
   

  	
   

  	
  Organisation chart

  	
   

  	
  2002-05-08

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  15.1.2

  	
   

  	
   

  	
   

  	
  Personnel information sheet

  	
   

  	
  2002-02-08

  	
   

  	
  1

  	
   

  	
  English

  
	
  15.1.3

  	
   

  	
   

  	
   

  	
  Hydro Energy organisation
  chart oil trading and refining

  	
   

  	
  2002-09-02

  	
   

  	
  2

  	
   

  	
  English

  
	
  15.1.4

  	
   

  	
   

  	
   

  	
  Personnel information sheet

  	
   

  	
  2002-02-08

  	
   

  	
  1

  	
   

  	
  English

  
												

 

17

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  15.1.5

  	
   

  	
   

  	
   

  	
  General description employment
  structure [TO BE PROVIDED]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.1.6

  	
   

  	
   

  	
   

  	
  Function description internal
  Hydro Energy business sector

  	
   

  	
  2002-02-11

  	
   

  	
  2

  	
   

  	
  English

  
	
  15.1.7

  	
   

  	
   

  	
   

  	
  Internal function description
  Hydro Energy

  	
   

  	
  2002-04-10

  	
   

  	
  3

  	
   

  	
  English

  
	
  15.1.8

  	
   

  	
   

  	
   

  	
  Internal function description
  Hydro Energy

  	
   

  	
  2002-04-11

  	
   

  	
  2

  	
   

  	
  English

  
	
  15.2

  	
   

  	
  List of key personnel

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.2.1

  	
   

  	
   

  	
   

  	
  See 15.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.3

  	
   

  	
  Standard form employment agreement used by
  the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.3.1

  	
   

  	
   

  	
   

  	
  Standard form employment
  agreement

  	
   

  	
  7

  	
   

  	
  English

  	
   

  	
   

  
	
  15.4

  	
   

  	
  Bonus or other profit-related schemes and
  details of beneficiaries/ participants

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.4.1

  	
   

  	
   

  	
   

  	
  Bonus plan rules 2002 Norway

  	
   

  	
  2002-08-22

  	
   

  	
  2

  	
   

  	
  English

  
	
  15.4.2

  	
   

  	
   

  	
   

  	
  Description of bonus systems
  etc.

  	
   

  	
  2002-10-01

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  15.5

  	
   

  	
  Equity incentive plans, such as warrants
  and convertibles, and details of beneficiaries/ participants, together with
  any agreements relating to such plans

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.6

  	
   

  	
  Details of insurance, health care and other
  employee benefits in the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.7

  	
   

  	
  Details of the Group’s pension schemes
  (other than state schemes) and latest actuarial or funding reports and
  membership data

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.7.1

  	
   

  	
   

  	
   

  	
  Norsk Hydros pensjonsordninger

  	
   

  	
  2002-01-01

  	
   

  	
  14

  	
   

  	
  Norwegian

  
	
  15.7.2

  	
   

  	
   

  	
   

  	
  Details regarding (collective
  bargaining agreements) including pension agreements within Scanraff

  	
   

  	
  2002-09-12

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  15.7.3

  	
   

  	
   

  	
   

  	
  Details regarding employer’s
  contributions for social insurance

  	
   

  	
  2002-04-03

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
  15.8

  	
   

  	
  Employee handbooks and employee policies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.8.1

  	
   

  	
   

  	
   

  	
  Personnel manual

  	
   

  	
  2001-01-01

  	
   

  	
  94

  	
   

  	
  English

  
	
  15.8.2

  	
   

  	
   

  	
   

  	
  Personnel handbook, 2001

  	
   

  	
  151

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  15.9

  	
   

  	
  Information on employee trusts and
  foundations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.10

  	
   

  	
  Details of dismissals and redundancies
  within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

18

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  15.11

  	
   

  	
  Severance agreements etc. under which the
  Group has outstanding liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.12

  	
   

  	
  Employment agreements, which may be
  terminated due to the contemplated transaction (and trigger rights to
  severance payment etc.)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.13

  	
   

  	
  Details of collective bargaining agreements
  and other agreements between the Group and trade unions, works councils or
  other employee representative bodies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.13.1

  	
   

  	
   

  	
   

  	
  Details regarding collective
  bargaining agreements (including pension agreements) within Scanraff

  	
   

  	
  2002-09-12

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  15.14

  	
   

  	
  Information on investigations and
  proceedings by authorities relating to employment matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.14.1

  	
   

  	
   

  	
   

  	
  Summon filed by Svenska Metall
  Industriarbetareförbundet (Metall)

  	
   

  	
  2002-06-25

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  15.14.2

  	
   

  	
   

  	
   

  	
  Correspondence related to proceedings at
  Arbetsdomstolen

  	
   

  	
  2002-08-22

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
  15.14.3

  	
   

  	
   

  	
   

  	
  Correspondence related to proceedings at
  Arbetsdomstolen

  	
   

  	
  2002-09-18

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
  15.15

  	
   

  	
  List of personnel providing services to the
  Group employed by the vendor or affiliated company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.16

  	
   

  	
  Agreements with consultants, agents and independent
  contractors

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 2.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Anti-Trust/ Competition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Claims and Litigation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.1

  	
   

  	
  Details of proceedings involving the Group
  (pending, threatened or completed within the last three years) with a values
  above MSEK 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.2

  	
   

  	
  Details of other claims made by/against the
  Group (pending or handled within the last three years) with a value above
  MSEK 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.3

  	
   

  	
  Details of disputes with the authorities
  regarding taxes or charges and previous, current or expected investigations
  and audits, during the past five years, with a value above MSEK 1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
												

 

19

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  18

  	
   

  	
  Legal Compliance and Permits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.1

  	
   

  	
  Material licenses, consents, permits and
  registrations from or with statutory or regulatory bodies relevant to the
  Group and any applications therefore (unless provided for in 13 above)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.2

  	
   

  	
  Special arrangements, understandings and
  commitments agreed by the Group with statutory or regulatory bodies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.2.1

  	
   

  	
   

  	
   

  	
  Rescue service agreement
  between Lysekils kommun and Scanraff, not signed

  	
   

  	
  1992-10-23

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  18.3

  	
   

  	
  Orders, judgements or decrees imposing any
  liability or restriction on the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.4

  	
   

  	
  Details of any current investigations or
  disciplinary proceedings by statutory or regulatory bodies against the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.5

  	
   

  	
  List of any governmental or EU grants
  received or receivable, in particular those which may become repayable,
  require renewed consent, etc. upon change of ownership of the company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
												

 

20

 

Supplementary index

 

Company: Skandinaviska Raffinaderi AB Scanraff
(“Scanraff”), Skandinaviska Kracker AB (“Scancracker”)

 

Table of Contents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  Authorizations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection (not in
  dataroom)

  	
   

  	
  1971-08-03

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection (not in
  dataroom)

  	
   

  	
  1974-12-13

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection (not in
  dataroom)

  	
   

  	
  1975-11-04

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1978-05-17

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1979-11-02

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1980-04-30

  	
   

  	
  12

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1981-01-09

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1981-04-03

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1981-11-06

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1983-07-01

  	
   

  	
  25

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1990-03-23

  	
   

  	
  16

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1991-04-24

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1991-12-16

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1992-10-20

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1992-11-11

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1993-06-15

  	
   

  	
  2

  	
   

  	
  Swedish

  

 

1

 

	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1995-09-06

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1996-06-17

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1998-12-03

  	
   

  	
  7

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government (not in dataroom)

  	
   

  	
  1971-09-24

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1979-09-13

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1981-09-24

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1992-12-17

  	
   

  	
  9

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1996-10-10

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1997-01-30

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Swedish Government Incorrect
  index. The decision is not from the Swedish Government. See decision from the
  national licensing board for environment protection 1998-12-03.

  	
   

  	
  1998-12-03

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  2002-06-13

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  1999-08-17

  	
   

  	
  23

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  2000-05-30

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision from
  the Environmental Court

  	
   

  	
  2000-05-30

  	
   

  	
  49

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  2000-06-22

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Decision
  from the Supreme Environmental Court Incorrect
  index. The decision is not from the Supreme Environmental Court. See decision
  from the Environmental Court 1999-08-17.

  	
   

  	
  1999-08-17

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Decision
  from the Supreme Environmental Court

  	
   

  	
  2001-02-16

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Partial
  verdict from the Environmental Court (new document)

  	
   

  	
  2002-10-18

  	
   

  	
  13

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report August 2003 (new document 2003-09-11)

  	
   

  	
  August 2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report July 2003 (new document 2003-09-11)

  	
   

  	
  July 2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report June 2003 (new document 2003-08-27)

  	
   

  	
  June 2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report May 2003 (new document 2003-08-27)

  	
   

  	
  May 2003

  	
   

  	
  36

  	
   

  	
  Swedish

  

 

2

 

	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
  Environmental
  Report April 2003 (new document 2003-08-27)

  	
   

  	
  April 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report March 2003 (new document 2003-08-27)

  	
   

  	
  March 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report February 2003 (new document 2003-08-27)

  	
   

  	
  February 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environental
  Report January 2003 (new document 2003-08-27)

  	
   

  	
  January 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Environmental
  Report 2002 (new document 2003-06-19)

  	
   

  	
  2002

  	
   

  	
  82

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Fax from Per
  Olsson, Scanraff regarding Hydro warranties in connection with the ongoing
  sale of Hydro’s shares in Scanraff to Preem Petroleum, including enclosures
  (new document 2003-09-15)

  	
   

  	
  2003-09-10

  	
   

  	
  8

  	
   

  	
  English

  
	
  1.9 Minutes from
  board meetings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.9.21

  	
   

  	
  Minutes from
  board meeting in Scanraff including loan agreements

  	
   

  	
  2001-06-28

  	
   

  	
  7

  	
   

  	
  English

  
	
  1.9.22

  	
   

  	
  Minutes from
  board meeting in Scanraff

  	
   

  	
  2001-12-11

  	
   

  	
  2

  	
   

  	
  English

  
	
  7.1 Available material containing description of facilities and
  production process

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.1.6

  	
   

  	
  Scanraff
  allocation procedur

  	
   

  	
  1999-05-12/
  2000-08-29

  	
   

  	
  17

  	
   

  	
  English

  

 

3

 

SCANRAFF

 

Company: Norsk Hydro Lagrings och
Distribution AB

 

Table of Contents

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1

  	
   

  	
  Corporate Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Documents relating to changes in the legal structure of the Group
  Companies (acquisitions, divestitures, spin-offs, change of legal form)
  within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1.1

  	
   

  	
   

  	
   

  	
  Information on transfer of ownership from
  NOAB to R&M Holdings

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.2

  	
   

  	
  List of branch offices and places of business wherever they are
  located

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3

  	
   

  	
  List of ownership interests or other equity investments in other
  companies, partnerships or entities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.4

  	
   

  	
  All shareholders’ agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.5

  	
   

  	
  Share certificates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.5.1

  	
   

  	
   

  	
   

  	
  Share certificate 1-70.000

  	
   

  	
  June 1978

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.5.2

  	
   

  	
   

  	
   

  	
  Share certificate 70.000-120.000

  	
   

  	
  1979-01-18

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.6

  	
   

  	
  Share registers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7

  	
   

  	
  Articles of association and registration certificate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7.1

  	
   

  	
   

  	
   

  	
  Articles of association

  	
   

  	
  1986-05-22

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  1.7.2

  	
   

  	
   

  	
   

  	
  Registration certificate

  	
   

  	
  2002-09-25

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.8

  	
   

  	
  Minutes from general meetings within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.8.1

  	
   

  	
   

  	
   

  	
  Minutes from general meeting

  	
   

  	
  2002-06-15

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.2

  	
   

  	
   

  	
   

  	
  Minutes from general meeting

  	
   

  	
  2001-03-29

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.3

  	
   

  	
   

  	
   

  	
  Minutes from general meeting

  	
   

  	
  2000-03-31

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.9

  	
   

  	
  Minutes from board meetings and meetings of other executive corporate
  bodies, if any, within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1.9.1

  	
   

  	
   

  	
   

  	
  Minutes from board meeting

  	
   

  	
  2002-06-15

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.9.2

  	
   

  	
   

  	
   

  	
  Minutes from board meeting

  	
   

  	
  2001-03-29

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.9.3

  	
   

  	
   

  	
   

  	
  Minutes from board meeting

  	
   

  	
  2000-03-31

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.10

  	
   

  	
  Procedural rules for the board of directors (Sw: arbetsordning för styrelsen)
  and instructions for the managing director (Sw: vd-instruktion) and
  guidelines for financial reporting (Sw: riktlinjer för ekonomisk rapportering)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.10.1

  	
   

  	
   

  	
   

  	
  Procedural rules for the board of directors

  	
   

  	
  1999-06-18

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  1.11

  	
   

  	
  Information relating to convertible debt instruments, debt
  instruments combined with warrants to subscribe for new shares, participating
  debentures and other financial instruments which could entitle the holder to
  obtain shares in any of the Companies together with a table stating the
  potential dilution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.12

  	
   

  	
  Information on any pending registration matters at the company
  register

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Links with the Hydro ASA Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  General description

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.1

  	
   

  	
   

  	
   

  	
  Information regarding inter-company
  relationship

  	
   

  	
  not dated

  	
   

  	
  2

  	
   

  	
  English

  
	
  2.2

  	
   

  	
  Costs of services purchased from the Norsk Hydro ASA group in the
  years 1999, 2000 and 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  see 2.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Budgeted costs of services purchased from the Norsk Hydro ASA group
  in year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Financial and Guarantee Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Description of accounting principles and description of any material
  changes to accounting principles during last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  See Hydro Accounting Manual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1.1

  	
   

  	
   

  	
   

  	
  Refinary assets IM financial statements
  1999-2002

  	
   

  	
  not dated

  	
   

  	
  12

  	
   

  	
  English

  
	
  3.2

  	
   

  	
  Annual reports (from the last three years) and interim reports for
  the year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 7.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2.1

  	
   

  	
   

  	
   

  	
  Annual report 2001

  	
   

  	
  2002-03-20

  	
   

  	
  11

  	
   

  	
  Swedish

  
	
  3.2.2

  	
   

  	
   

  	
   

  	
  Annual report 2000

  	
   

  	
  2001-03-29

  	
   

  	
  11

  	
   

  	
  Swedish

  

 

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  Document

  	
   

  	
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  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  3.2.3

  	
   

  	
   

  	
   

  	
  Annual report 1999

  	
   

  	
  11

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  3.2.4

  	
   

  	
   

  	
   

  	
  Income statement and balance
  sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  22

  	
   

  	
  English

  
	
  3.2.5

  	
   

  	
   

  	
   

  	
  Income statement and balance
  sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  10

  	
   

  	
  English

  
	
  3.2.6

  	
   

  	
   

  	
   

  	
  Income statement and balance
  sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  10

  	
   

  	
  English

  
	
  3.2.7

  	
   

  	
   

  	
   

  	
  Income statement and balance
  sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  4

  	
   

  	
  English

  
	
  3.2.8

  	
   

  	
   

  	
   

  	
  Income statement and balance
  sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  10

  	
   

  	
  English

  
	
  3.2.9

  	
   

  	
   

  	
   

  	
  List of customer open items
  and balance sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  14

  	
   

  	
  English

  
	
  3.2.10

  	
   

  	
   

  	
   

  	
  List of customer open items
  and balance sheet, US GAAP reporting

  	
   

  	
  2002-09-03

  	
   

  	
  14

  	
   

  	
  English

  
	
  3.2.11

  	
   

  	
   

  	
   

  	
  Customer open items analysis
  (overdue items balance)

  	
   

  	
  2002-09-03

  	
   

  	
  3

  	
   

  	
  English

  
	
  3.2.12

  	
   

  	
   

  	
   

  	
  Customer open items analysis
  (overdue items balance)

  	
   

  	
  2002-09-03

  	
   

  	
  3

  	
   

  	
  English

  
	
  3.2.13

  	
   

  	
   

  	
   

  	
  Customer open items analysis
  (overdue items balance)

  	
   

  	
  2002-09-03

  	
   

  	
  3

  	
   

  	
  English

  
	
  3.2.14

  	
   

  	
   

  	
   

  	
  List of vendor open items

  	
   

  	
  2002-09-03

  	
   

  	
  10

  	
   

  	
  English

  
	
  3.2.15

  	
   

  	
   

  	
   

  	
  List of vendor open items

  	
   

  	
  2002-09-03

  	
   

  	
  12

  	
   

  	
  English

  
	
  3.2.16

  	
   

  	
   

  	
   

  	
  Customer sales reporting
  periods 2002-06-01

  	
   

  	
  2002-09-03

  	
   

  	
  5

  	
   

  	
  English

  
	
  3.2.17

  	
   

  	
   

  	
   

  	
  Customer sales reporting
  periods 2001-12-01

  	
   

  	
  2002-09-03

  	
   

  	
  7

  	
   

  	
  English

  
	
  3.2.18

  	
   

  	
   

  	
   

  	
  Vendor business reporting
  periods 2001-12-01

  	
   

  	
  2002-09-03

  	
   

  	
  7

  	
   

  	
  English

  
	
  3.2.19

  	
   

  	
   

  	
   

  	
  Vendor business reporting
  periods 2002-06-01

  	
   

  	
  2002-09-03

  	
   

  	
  6

  	
   

  	
  English

  
	
  3.3

  	
   

  	
  Management reporting including budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.3.1

  	
   

  	
   

  	
   

  	
  Refining – Key Financials
  -2002

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.3.2

  	
   

  	
   

  	
   

  	
  Refining – Key Financials 2001

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.3.3

  	
   

  	
   

  	
   

  	
  Refining – Key Financials 2000

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.3.4

  	
   

  	
   

  	
   

  	
  Refining – Key Financials 1999

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  3.4

  	
   

  	
  General description of the Group’s financing arrangements, including
  pledge agreements and other securities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 2.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  Details of guarantees and sureties issued by any third party for
  loans taken by a Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 2.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  Information regarding loans to and securities
  in favour of shareholders, directors,
  chief executive officer, other employees or persons closely associated with
  these persons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.7

  	
   

  	
  Details of investment grants, other grants and subsidies given to a
  Group Company by a governmental agency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.8

  	
   

  	
  Foreign exchange and commodity exchange exposures and hedging
  strategies; specification of outstanding amounts under hedging instruments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Tax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Tax returns, notices of assessment and filings years 1999, 2000 and
  2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.1

  	
   

  	
   

  	
   

  	
  Final tax decision

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  4.1.2

  	
   

  	
   

  	
   

  	
  Final tax decision

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  4.1.3

  	
   

  	
   

  	
   

  	
  Tax return 2002

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  4.1.4

  	
   

  	
   

  	
   

  	
  Tax return 2001

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  4.1.5

  	
   

  	
   

  	
   

  	
  Tax return 2000

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  4.2

  	
   

  	
  Tax audits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.2.1

  	
   

  	
   

  	
   

  	
  Letter from the tax authority to Norsk
  Hydro Lagrings and Distribution AB

  	
   

  	
  2002-01-28

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  4.3

  	
   

  	
  Correspondence with tax authorities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
   

  	
  Budget years 2002, 2003 and 2004

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 3.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.2

  	
   

  	
  Year 2002 estimate including variance analysis versus year 2002
  budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 3.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.3

  	
   

  	
  Monthly budget 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See 3.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Real Estate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  7

  	
   

  	
  Production and Products

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Sales and Marketing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1

  	
   

  	
  Sales break-down on products, customers and markets for 1999, 2000,
  2001 and per 30.06.2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 8.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2

  	
   

  	
  Material sales agreement with affiliates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2.1

  	
   

  	
   

  	
   

  	
  General description, see 2.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2.2

  	
   

  	
   

  	
   

  	
  FCCU-FEED agreement between Norsk Hydro
  Lagrings och Distrubution AB and Preem Petroleum AB

  	
   

  	
  2002-01-07

  	
   

  	
  5

  	
   

  	
  English

  
	
  8.2.3

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  betweenNorsk Hydro Lagrings och Distribution AB and Hydro Texaco A.S

  	
   

  	
  2002-01-01

  	
   

  	
  10

  	
   

  	
  English

  
	
  8.2.4

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk Hydro och Lagrings och Distribution AB and Hydro Texaco A/S

  	
   

  	
  2002-01-17

  	
   

  	
  20

  	
   

  	
  English

  
	
  8.2.5

  	
   

  	
   

  	
   

  	
  Supply agreement for gasoline and gasoil
  for 2002 with Norsk
  Hydro Olje AB

  	
   

  	
  2002-04-24

  	
   

  	
  11

  	
   

  	
  English

  
	
  8.2.6

  	
   

  	
   

  	
   

  	
  Propylene handling agreement between Norsk
  Hydro Lagrings och Distriution AB and Preem, not signed

  	
   

  	
  not dated

  	
   

  	
  2

  	
   

  	
  English

  
	
  8.2.7

  	
   

  	
   

  	
   

  	
  Propylene marketing agreement between
  Lyondell Chemie Nederland B.V and Norsk Hydro ASA and Preem Petrolium AB

  	
   

  	
  not dated

  	
   

  	
  17

  	
   

  	
  English

  
	
  8.2.8

  	
   

  	
   

  	
   

  	
  Sulphur agreement between
  Norsk Hydro ASA and BCT Chemtrade Corporation

  	
   

  	
  1999-09-27

  	
   

  	
  6

  	
   

  	
  English

  
	
  8.2.9

  	
   

  	
   

  	
   

  	
  Draft of CCS sales contract
  2000 between Norsk Hydro Lagrings och Distribution AB

  	
   

  	
  not dated

  	
   

  	
  10

  	
   

  	
  English

  
	
  8.2.10

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Hydro Texaco A/S Danmark 2000

  	
   

  	
  2000-02-07

  	
   

  	
  13

  	
   

  	
  English

  
	
  8.2.11

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Hydro Texaco A/S Danmark 2001

  	
   

  	
  2001-01-02

  	
   

  	
  17

  	
   

  	
  English

  
	
  8.2.12

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Hydro Texaco a.s Norge, 2001

  	
   

  	
  2001-01-08

  	
   

  	
  13

  	
   

  	
  English

  

 

8

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  8.2.13

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Hydro Texaco a.s Norge, 2001
  (gasoline)

  	
   

  	
  2001-01-08

  	
   

  	
  10

  	
   

  	
  English

  
	
  8.3

  	
   

  	
  Material sales agreement with third parties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.3.1

  	
   

  	
   

  	
   

  	
  Agreement between NORSK HYDRO
  LAGRINGS OCH DISTRIBUTION AB and Bransch Sweden

  	
   

  	
  2002-05-29

  	
   

  	
  9

  	
   

  	
  English

  
	
  8.3.2

  	
   

  	
   

  	
   

  	
  CIF-term agreement gas oil 0,2 PCT between
  Norsk Hydro Lagrings och Distribution AB and Shell Rhine Supply & Trading
  Services B.V

  	
   

  	
  2002-03-21

  	
   

  	
  4

  	
   

  	
  English

  
	
  8.3.3

  	
   

  	
   

  	
   

  	
  FOB term agreement gas oil 0,2 PCT between
  Norsk Hydro Lagrings och Distribution AB and Shell Rhine Supply & Trading
  Services B.V

  	
   

  	
  2002-03-21

  	
   

  	
  5

  	
   

  	
  English

  
	
  8.3.4

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk Hydro Lagrings och Distribution AB and Louis Dreyfus Refining
  and Marketing Limited

  	
   

  	
  2002-02-07

  	
   

  	
  16

  	
   

  	
  English

  
	
  8.3.5

  	
   

  	
   

  	
   

  	
  Sales agreement between Norsk Hydro
  Lagrings och Distribution AB and Fuel and Marine Marketing Scandinavia AB

  	
   

  	
  2001-10-19

  	
   

  	
  17

  	
   

  	
  English

  
	
  8.3.6

  	
   

  	
   

  	
   

  	
  Diesel agreement 2002 between Norsk Hydro
  Lagrings och Distribution AB and Fortum Oil and Gas Oy including
  correspondence

  	
   

  	
  2002-01-10

  	
   

  	
  15

  	
   

  	
  English

  
	
  8.3.7

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Den Norske Stats Oljeselskap A.S, not
  signed

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  English

  
	
  8.3.8

  	
   

  	
   

  	
   

  	
  Confirmation of term agreement between Norsk Hydro Lagrings och Distribution AB and
  A/S Dansk Shell

  	
   

  	
  2002-05-07

  	
   

  	
  3

  	
   

  	
  English

  
	
  8.3.9

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Statoil Norge

  	
   

  	
  not dated

  	
   

  	
  7

  	
   

  	
  English

  
	
  8.3.10

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between NORSK HYDRO LAGRINGS OCH DISTRIBUTION AB and Statoil Norge

  	
   

  	
  not dated

  	
   

  	
  7

  	
   

  	
  English

  
	
  8.3.11

  	
   

  	
   

  	
   

  	
  Corespondence regarding CCS agreement
  between Norsk
  Hydro Lagrings och Distribution AB and Louis Dreyfus Energy Ltd

  	
   

  	
  not dated

  	
   

  	
  9

  	
   

  	
  English

  
	
  8.3.12

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Den Norske Stats Oljeselskap a.s

  	
   

  	
  2001-03-05

  	
   

  	
  7

  	
   

  	
  English

  
	
  8.3.13

  	
   

  	
   

  	
   

  	
  FOB term contract between Norsk Hydro Lagrings och Distribution AB and
  Shell Rhine Supply

  	
   

  	
  2001-03-02

  	
   

  	
  7

  	
   

  	
  English

  

 

9

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  8.3.14

  	
   

  	
   

  	
   

  	
  Sales agreement between Norsk Hydro Lagrings och Distribution AB and
  BP Oil International Ltd

  	
   

  	
  2000-12-20

  	
   

  	
  9

  	
   

  	
  English

  
	
  8.3.15

  	
   

  	
   

  	
   

  	
  Sales agreement between Norsk Hydro Lagrings och Distribution AB and
  Fuel and Marine Marketing AB

  	
   

  	
  2000-09-18

  	
   

  	
  27

  	
   

  	
  English

  
	
  8.3.16

  	
   

  	
   

  	
   

  	
  Correspondence regrding agreement between
  ROP and Våtgass

  	
   

  	
  2001-01-01

  	
   

  	
  4

  	
   

  	
  Swedish/Norwegian

  
	
  8.3.17

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Louis Dreyfus Ltd

  	
   

  	
  2000-01-17

  	
   

  	
  10

  	
   

  	
  English

  
	
  8.3.18

  	
   

  	
   

  	
   

  	
  Sales agreement for mineral oil products
  between Norsk
  Hydro Lagrings och Distribution AB and Louis Dreyfus Ltd

  	
   

  	
  2001-01-30

  	
   

  	
  28

  	
   

  	
  English

  
	
  8.3.19

  	
   

  	
   

  	
   

  	
  Sales agreement between Norsk Hydro Lagrings och Distribution AB and
  Fuel and Marine Marketing AB

  	
   

  	
  not dated

  	
   

  	
  23

  	
   

  	
  English

  
	
  8.4

  	
   

  	
  Historical sales agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.4.1

  	
   

  	
   

  	
   

  	
  Agreement between Litasco and Norsk Hydro
  Lagrings och Distribution AB

  	
   

  	
  not dated

  	
   

  	
  4

  	
   

  	
  English

  
	
  8.5

  	
   

  	
  Agreements with the agents and distributors (contract value above
  approximately MSEK 5)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.6

  	
   

  	
  Long term shipping and transportation agreements (duration of more
  than 12 months)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.6.1

  	
   

  	
   

  	
   

  	
  Shipping agreement between Raffinering og Produktforsyning and
  Sjötransport

  	
   

  	
  2002-08-01

  	
   

  	
  2

  	
   

  	
  Norwegian

  
	
  8.6.2

  	
   

  	
   

  	
   

  	
  Shipping agreement between Raffinering og Produktforsyning and
  Sjötransport

  	
   

  	
  2001-05-31

  	
   

  	
  3

  	
   

  	
  Norwegian

  
	
  8.6.3

  	
   

  	
   

  	
   

  	
  Shipping agreement between Raffinering og Produktforsyning and
  Sjötransport

  	
   

  	
  2002-06-05

  	
   

  	
  2

  	
   

  	
  Norwegian

  
	
  8.6.4

  	
   

  	
   

  	
   

  	
  Agreement between K/S
  Stenstraum and Norsk Hydro ASA including substitution and novation agreement

  	
   

  	
  1996-06-06

  	
   

  	
  19

  	
   

  	
  English

  
	
  8.6.5

  	
   

  	
   

  	
   

  	
  Agreement between Fram Services
  Ltd. and Norsk Hydro a.s

  	
   

  	
  1992-01-07

  	
   

  	
  37

  	
   

  	
  English

  
	
  9

  	
   

  	
  Agreements and Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1

  	
   

  	
  Agreements for the acquisition or divestiture of businesses/material
  assets/shares/real property/site leaseholds within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1.1

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.2

  	
   

  	
  Agreements which involve both the business of the Group and the
  companies/businesses being retained in the vendor’s group after the
  contemplated transaction

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3

  	
   

  	
  Any agreements between Scanraff and its affiliated companies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3.1

  	
   

  	
   

  	
   

  	
  Product exchange agreement between Norsk
  Hydro Olje AB and Preem Petroleum AB, not signed

  	
   

  	
  1997-01-31

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  9.3.2

  	
   

  	
   

  	
   

  	
  Termination of product
  exchange agreement

  	
   

  	
  2000-11-22

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  9.3.3

  	
   

  	
   

  	
   

  	
  Correspondence and agreement
  between Norsk Hydro ASA and Preem Petroleum AB regarding joint crude oil
  supply to Scanraff, agreement not signed

  	
   

  	
  2002-01-09 2000-07-07

  	
   

  	
  19

  	
   

  	
  English

  
	
  9.3.4

  	
   

  	
   

  	
   

  	
  Recap DSVGO/VGO - and
  CCS-agreements, Q1 year 2000 between Preem Petroleum AB and Hydro R&M

  	
   

  	
  1999-12-14

  	
   

  	
  13

  	
   

  	
  English

  
	
  9.3.5

  	
   

  	
   

  	
   

  	
  Confirmation from Scanraff

  	
   

  	
  2000-01-28

  	
   

  	
  2

  	
   

  	
  English

  
	
   

  	
   

  	
  9.4Other material agreements and all agreement with a value above
  MSEK 5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.5

  	
   

  	
  General purchase agreements and/or sales terms and conditions
  (including warranty arrangements) used in the business of the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Supply agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Supply agreements
  with affiliates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.1

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Preem Petroleum AB

  	
   

  	
  2001-01-23

  	
   

  	
  14

  	
   

  	
  Swedish

  
	
  10.1.2

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Preem Petroleum AB

  	
   

  	
  2000-11-28

  	
   

  	
  4

  	
   

  	
  English

  
	
  10.1.3

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Preem Petroleum AB

  	
   

  	
  2000-11-28

  	
   

  	
  2

  	
   

  	
  English

  
	
  10.1.4

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Norsk Hydro Olje AB 1999

  	
   

  	
  1999-04-19

  	
   

  	
  13

  	
   

  	
  English

  
	
  10.1.5

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Norsk Hydro Olje AB 2000

  	
   

  	
  2000-01-24

  	
   

  	
  7

  	
   

  	
  English

  
	
  10.1.6

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Norsk Hydro Olje AB 2001

  	
   

  	
  2000-12-27

  	
   

  	
  16

  	
   

  	
  English

  
	
  10.2

  	
   

  	
  Supply agreements
  with third parties

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.2.1

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro ASA
  and Litasco

  	
   

  	
  2001-11-20

  	
   

  	
  1

  	
   

  	
  English

  
	
  10.2.2

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Fortum Oil and Gas 2001

  	
   

  	
  2001-02-09

  	
   

  	
  14

  	
   

  	
  English

  

 

11

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  10.2.3

  	
   

  	
   

  	
   

  	
  Supply agreement between Norsk Hydro
  Lagrings- och Distribution AB and Fortum Oil and Gas 2000

  	
   

  	
  2000-04-07

  	
   

  	
  13

  	
   

  	
  English

  
	
  11

  	
   

  	
  IT and Intellectual Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Scanraff Scancracker 10

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Research and Development

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Quality Assurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Environment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Management and Employment Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.1

  	
   

  	
  Organisation chart of all employees and information regarding major
  organisational changes of the work force within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Anti-Trust/ Competition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.1

  	
   

  	
  Information about any comments from competition authorities relating
  to the Group or any other competition law problems

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.2

  	
   

  	
  Applications, notifications, decisions, comfort letters,
  investigations etc. to and by competition authorities or courts (threatened,
  pending and during the last three years)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.3

  	
   

  	
  Description of applied discounts and rebate arrangements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

12

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  18

  	
   

  	
  Claims and Litigation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  Legal Compliance and Permits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.1

  	
   

  	
  Material licenses, consents, permits and registrations from or with
  statutory or regulatory bodies relevant to the Group and any applications
  therefore

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.1.1

  	
   

  	
   

  	
   

  	
  Credit permit issued by
  Generaltullstyrelsen

  	
   

  	
  1997-02-07

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  19.2

  	
   

  	
  Special arrangements, understandings and commitments agreed by the
  Group with statutory or regulatory bodies

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.3

  	
   

  	
  Orders, judgements or decrees imposing any liability or restriction
  on the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.4

  	
   

  	
  Details of any current investigations or disciplinary proceedings by
  statutory or regulatory bodies against the Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.5

  	
   

  	
  List any governmental or EU grants received or receivable, in
  particular those which may become repayable, require renewed consent, etc.
  upon change of ownership of the company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

13

 

Supplementary index

 

SCANRAFF

 

Company: Norsk Hydro Lagrings
och Distribution AB

 

Table of Contents

 

	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  8.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2.7

  	
   

  	
  Propylene
  marketing agreement between Lyondell Chemie Nederland B.V and Norsk Hydro ASA
  and Preem Petroleum AB

  	
   

  	
  not dated

  	
   

  	
  17

  	
   

  	
  English

  
	
   

  	
   

  	
  Not in
  data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.2.13

  	
   

  	
  Sales
  Agreement between Norsk Hydro Lagrings och Distribusjon AB and Fuel and
  Marine Marketing Scandinavia AB

  	
   

  	
  2001-06-28

  	
   

  	
  16

  	
   

  	
  English

  
	
  8.2.14

  	
   

  	
  Sales
  Agreement for Mineral Oil Products between Norsk Hydro Lagrings och
  Distribution AB and Hydro Texaco A/S, Denmark

  	
   

  	
  2003-02-03

  	
   

  	
  9

  	
   

  	
  English

  
	
  8.2.15

  	
   

  	
  CIF Term
  Contract Gasoil 0.2 pct. between Norsk Hydro Lagrings och Distribution AB and
  Norske Shell A/S

  	
   

  	
  2003-01-23

  	
   

  	
  4

  	
   

  	
  English

  
	
  8.2.16

  	
   

  	
  FOB Term
  Contract Gasoil 0,2 pct. between Norsk Hydro Lagrings och Distribution AB and
  Norske Shell A/S

  	
   

  	
  2003-01-23

  	
   

  	
  4

  	
   

  	
  English

  
	
  8.2.17

  	
   

  	
  Sales
  Agreement for Mineral Oil Products between Norsk Hydro Lagrings och
  Distribution AB and Hydro Texaco a.s, Norway

  	
   

  	
  2003-01-17

  	
   

  	
  8

  	
   

  	
  English

  
	
  8.2.18

  	
   

  	
  Sales
  Agreement for Mineral Oil Products between Norsk Hydro Lagrings och
  Distribution AB and Hydro Texaco a.s, Norway

  	
   

  	
  2003-01-17

  	
   

  	
  6

  	
   

  	
  English

  
	
  8.2.19

  	
   

  	
  Supply
  Agreement for Gasoline and Gasoil between Norsk Hydro Lagrings och
  Distribution AB and Norsk Hydro Olje AB

  	
   

  	
  2003-01-17

  	
   

  	
  8

  	
   

  	
  English

  
	
  8.2.20

  	
   

  	
  Sales
  Agreement for Mineral Oil Products between Norsk Hydro Lagrings och
  Distribution AB and Statoil ASA

  	
   

  	
  2003-05-02

  	
   

  	
  6

  	
   

  	
  English

  
	
  8.2.21

  	
   

  	
  Sale and
  Purchase Agreement Scanraff propylene between Lyondell Chemie Nederland B.V.
  and Norsk Hydro ASA and Preem Petroleum AB

  	
   

  	
  Not dated

  	
   

  	
  16

  	
   

  	
  English

  
	
  8.2.22

  	
   

  	
  Sulphur
  Contract reference No. 12012 between Norsk Hydro ASA and BCT Chemtrade
  Corporation

  	
   

  	
  1999-09-27

  	
   

  	
  7

  	
   

  	
  English

  
	
  8.6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.6.5

  	
   

  	
  Agreement
  between Fram Services Ltd. and Norsk Hydro a.s

  	
   

  	
  1992-01-07

  	
   

  	
  39

  	
   

  	
  English

  
	
  8.6.6

  	
   

  	
  Hydro
  Energy Division - Tanker shipping terms and conditions (new document)

  	
   

  	
  October 2000

  	
   

  	
  21

  	
   

  	
  English

  
	
  9.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.3.1

  	
   

  	
  Product
  exchange agreement between Norsk Hydro Olje AB and Preem Petroleum AB, not
  signed

  	
   

  	
  1997-01-30

  	
   

  	
  10

  	
   

  	
  Swedish

  

 

 

	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
   

  	
  Please note that this information is now
  provided in the dataroom

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.1

  	
   

  	
  Supply
  agreement between Norsk Hydro Lagrings- och Distribution AB and Preem
  Petroleum AB

  	
   

  	
  2001-01-23

  	
   

  	
  14

  	
   

  	
  Swedish

  
	
   

  	
   

  	
  Please note that this information is now
  provided in the dataroom

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.2

  	
   

  	
  Supply
  agreement between Norsk Hydro Lagrings- och Distribution AB and Preem
  Petroleum AB

  	
   

  	
  2000-11-28

  	
   

  	
  4

  	
   

  	
  English

  
	
   

  	
   

  	
  Please note that this information is now
  provided in the dataroom

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1.3

  	
   

  	
  Supply
  agreement between Norsk Hydro Lagrings- och Distribution AB and Preem
  Petroleum AB

  	
   

  	
  2000-11-28

  	
   

  	
  2

  	
   

  	
  English

  
	
   

  	
   

  	
  Please note that this information is now
  provided in the dataroom

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCANRAFF

 

Company: Hydro R&M Holding AB (former
Hydro Aluminium Conductor AB) (“Hydro R&M”)

 

Table of Contents

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1

  	
   

  	
  Corporate Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
   

  	
  Documents relating to changes in the legal structure of the Group
  Companies (acquisitions, divestitures, spin-offs, change of legal form)
  within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1.1

  	
   

  	
   

  	
   

  	
  Share purchase agreement between Hydro
  R&M Holding AS and Hydro R&M

  	
   

  	
  2002-04-15

  	
   

  	
  2

  	
   

  	
  English

  
	
  1.1.2

  	
   

  	
   

  	
   

  	
  Notice of Norsk Hydro re-organisation of
  shareholdings in Scanraff and Scancracker

  	
   

  	
  2002-04-12

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.1.3

  	
   

  	
   

  	
   

  	
  Share purchase agreement between Hydro
  Aluminium Conductors AS and Hydro R&M

  	
   

  	
  2002-04-11

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.2

  	
   

  	
  List of branch offices and places of business wherever they are
  located

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See articles of association

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3

  	
   

  	
  List of ownership interests or other equity investments in other
  companies, partnerships or entities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3.1

  	
   

  	
   

  	
   

  	
  List of ownership rights

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.4

  	
   

  	
  All shareholders’ agreements; including consortium agreements,
  partnership agreements, joint venture agreements and other similar agreements
  regarding the control of the Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.5

  	
   

  	
  Share certificates

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.6

  	
   

  	
  Share registers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7

  	
   

  	
  Articles of association and registration certificate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7.1

  	
   

  	
   

  	
   

  	
  Articles of association including
  validation from the Patent- and Registration Office

  	
   

  	
  2002-04-12

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.7.2

  	
   

  	
   

  	
   

  	
  Registration certificate

  	
   

  	
  2002-09-25

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.8

  	
   

  	
  Minutes from annual and extraordinary general meetings within the
  last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.8.1

  	
   

  	
   

  	
   

  	
  Minutes from annual general meeting

  	
   

  	
  2002-06-12

  	
   

  	
  4

  	
   

  	
  Swedish

  

 

1

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  1.8.2

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary general meeting

  	
   

  	
  2002-04-12

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.3

  	
   

  	
   

  	
   

  	
  Minutes from annual general meeting

  	
   

  	
  2001-05-30

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.4

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary general meeting

  	
   

  	
  2000-08-22

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.8.5

  	
   

  	
   

  	
   

  	
  Minutes from extraordinary general meeting

  	
   

  	
  2000-03-27

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.8.6

  	
   

  	
   

  	
   

  	
  Minutes from annual general meeting

  	
   

  	
  1999-04-15

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.9

  	
   

  	
  Minutes from board meetings and meetings of other executive corporate
  bodies, if any, within the last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.9.1

  	
   

  	
   

  	
   

  	
  Minutes from board meeting

  	
   

  	
  2002-04-12

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  1.10

  	
   

  	
  Procedural rules for the board of directors (Sw: arbetsordning för styrelsen)
  and instructions for the managing director (Sw: vd-instruktion) and
  guidelines for financial reporting (Sw: riktlinjer för ekonomisk rapportering)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in data room

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.11

  	
   

  	
  Information relating to convertible debt instruments, debt
  instruments combined with warrants to subscribe for new shares, participating
  debentures and other financial instruments which could entitle the holder to
  obtain shares in any of the Companies together with a table stating the
  potential dilution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.12

  	
   

  	
  Information on any pending registration matters at the company
  register

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Links with the Hydro ASA Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
   

  	
  Description of inter-company relationships with the Norsk Hydro Group

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1.1

  	
   

  	
   

  	
   

  	
  Description of inter-company relationships

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.2

  	
   

  	
  Costs of services purchased from the Norsk Hydro ASA group in the
  years 1999, 2000 and 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.3

  	
   

  	
  Budgeted costs of services purchased from the Norsk Hydro ASA group
  in year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Financial and Guarantee Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
   

  	
  Description of accounting principles and description of any material
  changes to accounting principles during last three years

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  See Hydro Accounting Manual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.2

  	
   

  	
  Annual reports (from the last three years) and interim reports for
  the year 2002

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  3.2.1

  	
   

  	
   

  	
   

  	
  Annual report for 2001

  	
   

  	
  2002-06-07

  	
   

  	
  9

  	
   

  	
  Swedish

  
	
  3.2.2

  	
   

  	
   

  	
   

  	
  Annual report for 2000

  	
   

  	
  2001-05-20

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  3.2.3

  	
   

  	
   

  	
   

  	
  Annual report for 1999

  	
   

  	
  2000-03-06

  	
   

  	
  8

  	
   

  	
  Swedish

  
	
  3.3

  	
   

  	
  General description of the Group’s financing arrangements, including
  pledge agreements and other securities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not in dataroom

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.4

  	
   

  	
  Details of guarantees and sureties issued by any third party for
  loans taken by a Group Company

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.5

  	
   

  	
  Information regarding loans to and
  securities in favour of shareholders, directors,
  chief executive officer, other employees or persons closely associated with
  these persons

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.6

  	
   

  	
  Details of investment grants, other grants and subsidies given to a
  Group Company by a governmental agency

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.7

  	
   

  	
  Foreign exchange and commodity exchange exposures and hedging
  strategies; specification of outstanding amounts under hedging instruments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Tax

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
   

  	
  Tax returns, notices of assessment
  and filings years 1999, 2000 and 2001

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.1

  	
   

  	
   

  	
   

  	
  Final tax decision 2001

  	
   

  	
  not dated

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  4.1.2

  	
   

  	
   

  	
   

  	
  Specification of withdrawal
  from tax account

  	
   

  	
  2001-12-03

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
  4.1.3

  	
   

  	
   

  	
   

  	
  Basic decision about yearly
  taxation

  	
   

  	
  2001-11-20

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  4.1.4

  	
   

  	
   

  	
   

  	
  Tax return 2002

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  4.1.5

  	
   

  	
   

  	
   

  	
  Tax return 2001

  	
   

  	
  not dated

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
  4.1.6

  	
   

  	
   

  	
   

  	
  Tax return 2000

  	
   

  	
  not dated

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  4.1.7

  	
   

  	
   

  	
   

  	
  Tax return 1999

  	
   

  	
  not dated

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  4.2

  	
   

  	
  Tax audits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.3

  	
   

  	
  Correspondence with tax authorities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  5

  	
   

  	
  Budget

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Real Estate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Production and Products

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Sales and Marketing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Agreements and Transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  IT and Intellectual Property

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1

  	
   

  	
  Description of the material intellectual property rights used or
  under development by each Group Company in its business, and information
  about whether these intellectual property rights are owned by the Group
  Company or used under license agreements

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Research and Development

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Quality Assurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Environment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Insurance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  15

  	
   

  	
  Management and Employment Matters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Anti-Trust/ Competition

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Claims and Litigation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Legal Compliance and Permits

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  not applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5

 

Schedule 1.1

Part 8

Financial Statements

 

Attached audited consolidated Annual Report
of Scanraff for the financial year ending December 31, 2002.

 

 

Information om Annual Reporting template

014212e AB-F-max.xls (version 2002-02-10)

 

This is a “complete version” of a year-end
annual reporting package for individual companies (or a parent company of a
subgroup which does not prepare consolidated financial statements) with income
statements classified according to function in accordance to Swedish Annual
Accounts Act.

 

Note! Users are
advised to utilize the attached model at their own risk. KPMG is not
responsible for its functionality in all respects. Clients who have acquired or
in some other way received this template are advised to consult their in house
accountants or confer with the nearest KPMG office.

 

The aim
of this model is

•                  to completely
cover the basic requirements in identifying line items so that users need not
add any additional categories in the Income Statement, Balance Sheet, Statement
of Cash Flow or Disclosures/Notes. However, additional rows may be required for
inserting text information/comments as Disclosures/Notes.

•                  to calculate
totals and/or link items to their respective categories such as Statement of
Cash Flows for example, so that users are not required to re-input the
information.

•                  to highlight any
incorrect amounts or incomplete data which the user might have input.

•                  to easily change
the fiscal year reporting by using the macro.

•                  to instruct the
user that items that may not be relevant or in use can be manually edited. They
are identified by a red symbol in column A. Items identified by a blue symbol
in column B could be deleted completely without affecting the links within the
template.

 

Techniques on using
the model:

•                  Input
information only in the yellow shaded cells.

•                  Text spread out
in more than one row could be realigned to achieve a presentable layout by:

1) Inserting a few rows where the text is to
be placed.

2) Writing the text regardless of the column
width.

3) Highlighting the area where the text is
intended.

4) Going to toolbar, under Edit scroll down
to Fill and select Justify.

•                  The appropriate
way to use this model is to input information in the following order:

- Income Statement

-Balance Sheet

-Memorandum items

-Statement of Cash Flows

-Disclosures/Notes

-Administration Report

•                  Rows not used
should not be deleted but hidden by using the macro. Rows specifically intended
for text purposes (e.g.. in Disclosures/Notes section) however could be deleted
if required. They are identified by a blue symbol in the column B.

•                  Notes are to be
numbered manually and then linked to the relevant row item in the Income
Statement and/or Balance Sheet.

•                  When all the
sections in this model have been completed and all vacant rows hidden, the
report is ready to be printed. However, the report should be viewed in the
print preview mode to check the

 

 

layout before printing.

•                  Final
adjustments can be made by inserting appropriate page-breaks in the notes.
Start by printing out the “Annual Report”. Then complete the information (page
number) on the worksheet “F-Page” before printing that page and the report.

 

Please note:

•                  The Swedish
Annual Account Act does not require comparative figures notes for the Balance
Sheet items. However, inclusion of comparative figures are in practice.

•                  The space
between column A and B is reserved to insert a note number should it be
required.

•                  The template is
protected but without a password.

•                  To fully benefit
from the model, a certain level of Excel experience is beneficial.

•                  The year-change
macro employs pre-defined selected cells thus if adjustments to the notes are
made (not Excel’s built-in note function) for example addition, deletion or
moving of notes, these predefined year-change macro may require editing.

•                  The macros have
been programmed in Excel version 4.0. However, some swedish versions of Excel
97 (release 2b) do not support Excel 4.0 codes; which may cause the macro to
stop functioning.

 

Existing versions of this model

•                  Maximum version
models for groups, functional and type of expenditure income statements.

•                  Maximum version
models for individual companies, functional and type of expenditure income
statements.

•                  Mini version for
smaller individual companies and cost center based income statements.

 

This model is based upon PCs running Excel on
Windows as an operating platform.

Macintosh user are required to run special
layout conversions.

 

Comments on the
model may be sent to Göran Arnell, KPMG,

Financial Accounting Advisory in Stockholm
+46-8-723 91 00.

 

 

Annual Reporting template

014212e AB-F-max.xls (version 2002-02-10)

 

Previous editions (YYMM) = 9709, 9710, 9711,
9712, 9801, 9804, 0002

and 0103

 

Updates in version 2000-08-18

1)              Fixed 
- Certain previous index formulas incorrectly summed up comparative year
in notes.

 

2)              Fixed - Certain formulas in the Statement
of Cash Flows. Notes contained reference cells or incorrect row displacement in
the Statement of Cash Flows.

 

3)              This model contains Statement of Cash
Flow only according to recommendations by Swedish Financial Accounting Standards
Council (RR 7). The earlier version of the statement of changes in financial
position according to Swedish Institute of Authorized Public Accountants
recommendations number 10 is removed.

 

Updates in version 2001-03-07

1)              Implementation of accounting for leasing
contracts according to Swedish Accounting Standards Board regulation BFNAR
2000:4.

 

2)              Implementation of accounting for leasing
contracts according to
Swedish Financial Accounting Standards Council’s new leasing recommendations RR
6:99.

 

3)              Implementation
of accounting for allocated company related funds from SPP.

 

4)              New disclosure section in the administration report
referring to currency exposure and exchange policies (previously disclosed in
notes to the financial statements) together with repurchase of own shares.

 

5)              New notes on the accounts relating to
exchange rate differences affecting results.

 

6)              Prepared for Swedish Financial Accounting
Standards Council’s forthcoming
income tax recommendation RR 9.

 

7)              Implementation of certain changes in the
Statement of Cash
Flow which were separately dealt with in KFA-model 014230.

 

 

 

Updates in version 2002-01-08

1)              Changes resulting form implementation of
Swedish Financial Accounting Standards Council’s recommendations

-RR 9 Income taxes

-RR 10 Contract assignments

-RR 11 Earnings

-RR 12 Tangible assets

-RR 13 Associated companies

-RR 14 Joint ventures

 

2)              Taken into account BFNAR and BFNs
regulations where appropriate

-BFNAR 1999:1 Merger of wholly-owned limited
company

-BFNAR 2000:2 Application of recommendations
by Swedish Financial Accounting Standards Council and pronouncement.

-BFNAR 2000:3 Accounting for inventories

-BFNAR 2001:1 Income taxes

 

3)              The recommendations from Swedish
Financial Accounting Standards Council in effect from 2002 has not been
included in this update even though its application is permitted.

 

4)              Description of general accounting
principles must be stated more precisely. Several variations are possible.

 

Updates in version 2002-02-10

1)              As
an alternative to the complete note about equity there is now an alternative simplified note.

 

Note:

1)              Small non-listed companies
(10/24-company) need not prepare consolidated accounts (ÅRL 7:3, alterations
applicable from 2000)

 

2)              Exemption requirements for shortened
income statements (due to competition) is removed for companies which are not
required to undergo financial analysis/ cash flow analysis. However these
statements do require disclosure of net turnover as per (ÅRL 4:11, amendments
in effect from 2000).

 

 

 

 

The Board of Directors and the Managing
Director of

 

Skandinaviska Raffinaderi
AB Scanraff

Corporate Reg. No 556041-9433

 

submit the following

 

Annual Report

 

for the financial year January 1 -
December 31, 2002

 

Table of contents

 

	
  Administration Report

  	
   

  
	
  Income Statement

  	
   

  
	
  Balance Sheet

  	
   

  
	
  Pledged
  Assets and Contingent Liabilities

  	
   

  
	
  Statement of Cash Flows

  	
   

  
	
  Notes to the financial
  statements

  	
   

  
	
  Signing of the Annual Report

  	
   

  

 

 

Skandinaviska
Raffinaderi AB Scanraff

Corporate Reg. No 556041-9433

 

Administration Report

 

General
information on the company and the business

Preem Petroleum AB owns 75 % of
Scanraff. Preem Petroleum AB is part of a group of companies with the parent
company Corral Petroleum Holdings AB. Remaining part of the shares, 25 %, is
owned by Hydro R & M Holding AB.

 

In 2002 Preem Petroleum and
Norsk Hydro co-ordinated their activities in Scanraff and Skandinaviska Kracker
AB Scancracker with ownership and process rights (licenses) allocated 75 %
Preem Petroleum and 25 % Norsk Hydro. This alteration became effective on
April 1, 2002, whereby Norsk Hydro paid a shareholder’s contribution to
Scanraff amounting to 10.7 million SEK. Scanraff acquired all shares of Scancracker
by a directed new share issue at premium rate from Scanraff to Preem Petroleum
and Norsk Hydro. Thereby Scancracker became a wholly owned subsidiary to
Scanraff. Finally in October, Scancracker was merged into Scanraff. The merger
has caused a negative merger difference of 138.9 million SEK, which has reduced
the free reserves and surplus. In addition the merger has made it impossible to
compare the income statement and balance sheet over the years.

 

The Scancracker process units,
which are totally integral parts of the refinery, were previously operated by
Scanraff in accordance with the Service Agreement established between Scanraff
and Scancracker.

 

Scanraff refines crude oil
supplied by the shareholders. The company is acting as a commission agent for
Preem Petroleum AB and Norsk Hydro Lagrings och Distributions AB. Scanraff
receives compensation from the principals corresponding to actual costs.

 

In 2002, 8.7 (9.3) million
tonnes of crude oil were refined. The process units of the refinery were shut
down in the autumn for planned turnaround during approximately five weeks. For
the rest of the year the process units were utilised at a maximum. Since the
refinery margins were weak during a large part of the year there have been
periods with reduced charge.

 

Totally 507 million SEK,
excluding the turnaround, were invested during the period. A new propylene unit
was brought into operation in June. In addition, a revamp of the wastewater
treatment plant was made and continued investments for operational optimisation,
operational availability and operational safety were made. A revamp for
delivery of waste heat to the community of Lysekil was also accomplished.
Lysekils Energi AB is responsible for the pipeline network outside the
refinery.

 

In May 2002, the Scanraff Board
approved an investment amounting to 3,300 million SEK to meet more stringent
specifications from EU for diesel and gasoline from year 2005. Approval has
also been received from the Boards of Preem Petroleum and Norsk Hydro. During
the autumn the Environmental Court has given the permit to start this
investment. However, Preem Petroleum and Norsk Hydro have decided to further
evaluate the economic consequences of the project before approval to start
construction is given. So far, 77 million SEK have been invested.

 

11

 

Scanraff’s management system is
certified according to the requirements of ISO 9002, ISO 14001 and for plant
safety and work environment according to OHS 18001.

 

Turnaround

The refinery was shut down for
turnaround during September and October. At this type of inspections the
surveillance of the refinery is made in accordance with actual safety
regulations. Preventive maintenance work is also made during these shutdowns to
maintain the technical standard of the units. Totally 248 million SEK were
invested during the 2002 turnaround.

 

Expectations of
future developments

The development will mean
continued demand for environmental class oil products. Decision has been taken
in EU about continuous introduction of totally desulphurised gasoline and
diesel from 2005 to 2009. Initiative has also been taken on a ministerial level
within EU to reduce the maximum sulphur content in bunker fuel to 1.5 % for
vessels trafficking the Baltic and the North Sea.

 

Scanraff’s approved Gas Oil
Project will give good presumptions to effectively meet these demands. There
will be further studies for adaptation of the gasoline production to the
specifications expected from 2005 and onwards and for continued optimisation of
the refinery.

 

Delivery of waste heat to a
district heating network in Uddevalla is investigated in co-ordination with the
parties involved which can lead to increased use of the refinery surplus heat.

 

Plant safety and work
environment will also in the future be highly prioritised areas. Among other
things a new risk based inspection system will be introduced.

 

Environmental
issues

Scanraff conduct their
activities according to the Environmental Code. Influence on the environment is
pricipally coming from emissions to air of carbon dioxide, nitrogen oxides,
sulphur oxides and volatile hydrocarbons. For 2002 the company has 53 valid
environmental regulations including capacity/feedstock limitations, emission to
air and water, noise, waste and oil preparedness. All refinery activities are
controlled by the regulations, and 50 of them have been accomplished.
Provisions for future clearing and restoration expenditures have not been made,
see also note 23.

 

From mid 2002 more stringent
regulations are valid for the wastewater treatment plant and an extensive
revamp has been accomplished during the year. The three terms, which are not
completely fulfilled, regulates the quality of the cleaned water. These
regulations are expected to be accomplished after trimming of the unit.

 

The County Administration Board
establishes the emission control program. The program describes in detail the
control and reporting valid for Scanraff’s internal control regarding crude oil
consumption and production, emissions to air and water, noise and waste.
Receiver control is principally made by the regional co-ordination
organisations of which Scanraff is a member. Environmental report according to
the Environmental Code is sent every year to The Swedish Environmental Protection
Agency, The County Administration Board and The Community of Lysekil.

 

A spillage of diesel to the
ground has implied the supervising authority to submit the matter to the public
prosecution authorities in year 2000 for consideration of legal proceedings. A
decision has not yet been taken in this matter.

 

12

 

During the year the
Environmental Court started a consideration of Scanraff’s application regarding
revamp of the refinery for production of fuels adapted to EU and increased
production. The application results in a reconsideration of the total refinery
activity and principal negotiations regarding the regulations remain. The
alterations of the activity described in the

application have in a partial
decision been judged as permissible and permit has been given to start
construction. The conviction has been appealed and cancellation has been
required. The Appeal Environmental Court has rejected the requirement of
cancellation and handles now the appeal regarding the permit.

 

Treatment of
the Company’s loss

The accumulated deficit
according to the balane sheet amounts to 128,190,880 SEK. The Board of
Directors and the Managing Director propose that an amount of 128,190,880 SEK
of the share premium reserve is used to cover the accumulated deficit.

 

For further information on the
Company’s results of operations and financial position, reference is made to
the following Income Statement, Balance Sheet, Statement of Cash Flows and
pertaining Notes to the financial statements.

 

13

 

Income Statement

 

	
  Amounts in kSEK

  	
   

  	
  Note

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net sales

  	
   

  	
  1

  	
   

  	
  877,520

  	
   

  	
  718,605

  	
   

  
	
  Production expenses

  	
   

  	
   

  	
   

  	
  -841,924

  	
   

  	
  -695,058

  	
   

  
	
  Gross profit/loss

  	
   

  	
   

  	
   

  	
  35,596

  	
   

  	
  23,547

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Administrative expenses

  	
   

  	
   

  	
   

  	
  -32,029

  	
   

  	
  -24,255

  	
   

  
	
  Other operating income

  	
   

  	
  3

  	
   

  	
  64,264

  	
   

  	
  64,309

  	
   

  
	
  Operating
  profit/loss

  	
   

  	
  2, 4, 5,8

  	
   

  	
  67,831

  	
   

  	
  63,601

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Result
  from financial items

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest income

  	
   

  	
  6

  	
   

  	
  821

  	
   

  	
  967

  	
   

  
	
  Interest expenses

  	
   

  	
  7

  	
   

  	
  -68,652

  	
   

  	
  -64,568

  	
   

  
	
  Profit/loss after
  financial items

  	
   

  	
  8

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appropriations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appropriations, other

  	
   

  	
  9

  	
   

  	
  —

  	
   

  	
  130,812

  	
   

  
	
  Income before
  allocation

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  130,812

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allocated on the principals

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  -130,812

  	
   

  
	
  Income before tax

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Income taxes

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Net profit (loss)
  for the year

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  

 

14

 

Balance Sheet

 

	
  Amounts in kSEK

  	
   

  	
  Note

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fixed assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tangible
  fixed assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land and buildings

  	
   

  	
  10

  	
   

  	
  167,666

  	
   

  	
  158,112

  	
   

  
	
  Plant and machinery

  	
   

  	
  12

  	
   

  	
  2,199,488

  	
   

  	
  1,357,890

  	
   

  
	
  Turnaround

  	
   

  	
  12

  	
   

  	
  232,838

  	
   

  	
  26,133

  	
   

  
	
  Equipment, tools, fixtures and fittings

  	
   

  	
  13

  	
   

  	
  55,014

  	
   

  	
  53,113

  	
   

  
	
  Construction in progress and

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  advance payments for tangible fixed assets

  	
   

  	
  14

  	
   

  	
  226,611

  	
   

  	
  96,329

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2,881,617

  	
   

  	
  1,691,577

  	
   

  
	
  Financial
  assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term receivables

  	
   

  	
  15

  	
   

  	
  3,681

  	
   

  	
  3,721

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  3,681

  	
   

  	
  3,721

  	
   

  
	
  Total fixed assets

  	
   

  	
   

  	
   

  	
  2,885,298

  	
   

  	
  1,695,298

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventories
  etc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Raw materials and consumables

  	
   

  	
   

  	
   

  	
  54,555

  	
   

  	
  52,581

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  54,555

  	
   

  	
  52,581

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  receivables

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts receivable - trade

  	
   

  	
   

  	
   

  	
  4,309

  	
   

  	
  136,015

  	
   

  
	
  Other receivables

  	
   

  	
   

  	
   

  	
  3,178

  	
   

  	
  10,835

  	
   

  
	
  Prepaid expenses

  	
   

  	
  16

  	
   

  	
  64,605

  	
   

  	
  41,227

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  72,092

  	
   

  	
  188,077

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash
  and bank balances

  	
   

  	
   

  	
   

  	
  57

  	
   

  	
  51

  	
   

  
	
  Total current
  assets

  	
   

  	
   

  	
   

  	
  126,704

  	
   

  	
  240,709

  	
   

  
	
  TOTAL ASSETS

  	
   

  	
   

  	
   

  	
  3,012,002

  	
   

  	
  1,936,007

  	
   

  

 

15

 

Balance Sheet

 

	
  Amounts in kSEK

  	
   

  	
  Note

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  EQUITY
  AND LIABILITIES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity

  	
   

  	
  17

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Restricted
  equity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Share
  capital (2 281 400/2 000 000 shares)

  	
   

  	
   

  	
   

  	
  228,140

  	
   

  	
  200,000

  	
   

  
	
  Share
  premium reserve

  	
   

  	
   

  	
   

  	
  343,764

  	
   

  	
  —

  	
   

  
	
  Statutory
  reserve

  	
   

  	
   

  	
   

  	
  14

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  571,918

  	
   

  	
  200,014

  	
   

  
	
  Accumulated
  deficit

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loss
  brought forward

  	
   

  	
   

  	
   

  	
  -128,190

  	
   

  	
  —

  	
   

  
	
  Net
  profit (loss) for the year

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -128,190

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  443,728

  	
   

  	
  200,014

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Untaxed reserves

  	
   

  	
  18

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accumulated
  accelerated depreciation

  	
   

  	
   

  	
   

  	
  495,588

  	
   

  	
  302,634

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long Term Liabilities

  	
   

  	
   

  	
   

  	
  495,588

  	
   

  	
  302,634

  	
   

  
	
  Other
  liabilities

  	
   

  	
  19

  	
   

  	
  416,000

  	
   

  	
  236,500

  	
   

  
	
  Liabilities
  to group companies

  	
   

  	
  20

  	
   

  	
  1,248,000

  	
   

  	
  863,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  1,664,000

  	
   

  	
  1,100,000

  	
   

  
	
  Current liabilities

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advance
  payment from customers

  	
   

  	
   

  	
   

  	
  43,088

  	
   

  	
  19,347

  	
   

  
	
  Accounts
  payable - trade

  	
   

  	
   

  	
   

  	
  86,172

  	
   

  	
  90,535

  	
   

  
	
  Liabilities
  to group companies

  	
   

  	
  21

  	
   

  	
  138,604

  	
   

  	
  72,883

  	
   

  
	
  Other
  liabilities

  	
   

  	
   

  	
   

  	
  9,311

  	
   

  	
  43,161

  	
   

  
	
  Accrued
  expenses and deferred income

  	
   

  	
  22

  	
   

  	
  131,511

  	
   

  	
  107,433

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  408,686

  	
   

  	
  333,359

  	
   

  
	
  TOTAL EQUITY AND LIABILITIES

  	
   

  	
   

  	
   

  	
  3,012,002

  	
   

  	
  1,936,007

  	
   

  

 

Pledged Assets and
Contingent Liabilities

 

	
  Amounts in kSEK

  	
   

  	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Pledged assets

  	
   

  	
   

  	
   

  	
  None

  	
   

  	
  None

  	
   

  
	
  Contingent
  liabilities

  	
   

  	
  23

  	
   

  	
  See note

  	
   

  	
  See note

  	
   

  

 

16

 

Statement of Cash Flows

 

	
  Amounts in kSEK

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating
  activities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Result after financial items

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Adjustments for items not requiring an
  outflow of cash

  	
   

  	
  254,848

  	
   

  	
  198,718

  	
   

  
	
   

  	
   

  	
  254,848

  	
   

  	
  198,718

  	
   

  
	
  Income taxes paid

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Cash flows from
  operating activities before changes in working capital

  	
   

  	
  254,848

  	
   

  	
  198,718

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash flow from
  changes in working capital

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Increase(-)/Decrease(+) in inventories

  	
   

  	
  -1,974

  	
   

  	
  -1,856

  	
   

  
	
  Increase(-)/Decrease(+) in current
  receivables

  	
   

  	
  175,184

  	
   

  	
  -19,664

  	
   

  
	
  Increase(+)/Decrease(-) in current
  liabilities

  	
   

  	
  -61,911

  	
   

  	
  10,268

  	
   

  
	
  Cash flow from
  operating activities

  	
   

  	
  366,147

  	
   

  	
  187,466

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Investing
  activities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acquisition of tangible assets

  	
   

  	
  -755,006

  	
   

  	
  -129,575

  	
   

  
	
  Disposal of tangible assets

  	
   

  	
  —

  	
   

  	
  122

  	
   

  
	
  Investments in financial fixed assets

  	
   

  	
  —

  	
   

  	
  -13,357

  	
   

  
	
  Disposal/reduction of financial fixed
  assets

  	
   

  	
  116

  	
   

  	
  —

  	
   

  
	
  Cash flow from
  investing activities

  	
   

  	
  -754,890

  	
   

  	
  -142,810

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financing
  activities

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Received shareholder’s contribution

  	
   

  	
  10,736

  	
   

  	
  —

  	
   

  
	
  Proceeds from borrowings

  	
   

  	
  378,013

  	
   

  	
  —

  	
   

  
	
  Repayment of borrowings

  	
   

  	
  —

  	
   

  	
  -44,620

  	
   

  
	
  Cash flow from
  financing activities

  	
   

  	
  388,749

  	
   

  	
  -44,620

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net increase in
  cash and cash equivalents

  	
   

  	
  6

  	
   

  	
  36

  	
   

  
	
  Cash and cash
  equivalents at beginning of period

  	
   

  	
  51

  	
   

  	
  15

  	
   

  
	
  Cash and cash
  equivalents at end of period

  	
   

  	
  57

  	
   

  	
  51

  	
   

  

 

17

 

Notes to the statement of cash
flows

 

	
  Amounts in kSEK

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest paid and
  dividend received

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest received

  	
   

  	
  821

  	
   

  	
  967

  	
   

  
	
  Interest paid

  	
   

  	
  -68,652

  	
   

  	
  -64,568

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments for
  items not requiring an outflow of cash

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and write-down of assets

  	
   

  	
  251,960

  	
   

  	
  198,570

  	
   

  
	
  Unrealised exchange rate difference

  	
   

  	
  -151

  	
   

  	
  129

  	
   

  
	
  Gains/losses from sale of fixed assets

  	
   

  	
  3,039

  	
   

  	
  19

  	
   

  
	
   

  	
   

  	
  254,848

  	
   

  	
  198,718

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Non-cash
  transactions

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Acquisition of operations through non-cash
  issue

  	
   

  	
  371,904

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Takeover by merger

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Takeover of assets
  and liabilities assumed:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tangible fixed assets

  	
   

  	
  754,741

  	
   

  	
  —

  	
   

  
	
  Current receivables

  	
   

  	
  35,198

  	
   

  	
  —

  	
   

  
	
  Total assets

  	
   

  	
  789,939

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loans

  	
   

  	
  175,000

  	
   

  	
  —

  	
   

  
	
  Operating liabilities

  	
   

  	
  189,008

  	
   

  	
  —

  	
   

  
	
  Total liabilities and provisions

  	
   

  	
  364,008

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liquid funds

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and cash
  equivalents comprise:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and bank

  	
   

  	
  57

  	
   

  	
  51

  	
   

  
	
   

  	
   

  	
  57

  	
   

  	
  51

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Change in net debt

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net debt at beginning of period

  	
   

  	
  1,094,718

  	
   

  	
  1,152,731

  	
   

  
	
  Proceeds from interest bearing borrowings

  	
   

  	
  378,013

  	
   

  	
  —

  	
   

  
	
  Repayment of interest bearing borrowings

  	
   

  	
  —

  	
   

  	
  -58,636

  	
   

  
	
  Other changes in interest bearing
  borrowings

  	
   

  	
  175,000

  	
   

  	
  —

  	
   

  
	
  Disposal/reduction of interest bearing
  assets

  	
   

  	
  116

  	
   

  	
  623

  	
   

  
	
  Changes in liquid funds

  	
   

  	
  -6

  	
   

  	
  —

  	
   

  
	
  Net debt at end of period

  	
   

  	
  1,647,841

  	
   

  	
  1,094,718

  	
   

  

 

18

 

Notes
to the financial statements

Amounts in
kSEK unless otherwise stated

 

The Annual Report has been
prepared in accordance with the Annual Accounts Act and the standards issued by
the Swedish Financial Accounting Standards Council (RR).

 

Valuation
principles

Assets, provisions and
liabilities are stated at historical cost unless otherwise stated.

 

Tangible
fixed assets

Depreciations according to plan
are based on acquisition values less any estimated residual value. Depreciation
is made over the estimated useful economic life of the asset. Further
write-down is made in case of a permanent impairment of value. The acquisition
value includes expenses for improvements of the related assets. Internal
capitalised costs include indirect as well as direct costs.

 

In the acquisition value for
plant and machinery expenditures are included for the right to utilise design
and construction for certain units and interest for large investments.

 

Expenditures for turnaround
include inspection of units in accordance with refinery and authority
requirements as well as expenditures for preventive maintenance in order to
maintain the technical standard of the refinery. The expenditures are
capitalised and distributed over a period up to the next turnaround.

 

Depreciations of platinum and
palladium, accounted for as plant and machinery, are not made as they are used
as catalysts in the Reformer and the Isomerisation units without deterioration.
The market value exceeds the booked value.

 

	
  The following depreciation
  periods are applied:

  	
   

  	
  Estimated
  useful economic life

  

 

	
  Buildings

  	
   

  	
  20 - 50 years

  	
   

  
	
  Plant and
  machinery

  	
   

  	
  approximately 20 years

  	
   

  
	
  Turnaround

  	
   

  	
  approximately 4 years

  	
   

  
	
  Equipment,
  tools, fixtures and fittings

  	
   

  	
  approximately 6 years

  	
   

  

 

Tax regulated depreciation
allowances for plant, machinery and equipment have been made

according to the residual value
method.

 

Loan expenses

Loan expenses are charged the
result in the period, to which they are related, except for the part, which is
included in the acquisition value of an asset. Activation of loan expenses is
made in accordance with the alternative principle in RR 21. Information about
activated interest for previous years is not structured in such a manner that
information can be given on accumulated amounts or by balance sheet item.

 

Write-downs

The accounted values for the
company assets are controlled at every balance sheet day to investigate if
there is an indication of write-down need. If such an indication exists, the
recovery value of the asset is calculated as the highest one of the beneficial
value and the net realisable value. Write-down is made if the recovery value is
lower than the accounted value.

 

 

Receivables

Receivables are reported at the
amount expected to be collected based on individual assessment of
collectibility.

 

Receivables
and liabilities denominated in foreign currency

Receivables and liabilities
denominated in foreign currency are stated in accordance with Standard No 8 of
the Swedish Financial Accounting Standards Council at the exchange rate ruling
at the balance sheet date. Exchange rate differences on current receivables and
liabilities are reported in operating income while differences on financial
receivables and liabilities are reported with financial items. Receivables and
liabilities hedged by forward exchange contracts are valued at the contracted
rate.

 

Inventories

The inventories mainly consists
of spare parts and additives. The spare parts inventories have been stated at
the average acquisition value while the inventories of additives have been
stated at acquisition values according to the first-in first-out method, both
with due consideration of obsolescence.

 

Taxes

The Company applies Swedish
Financial Accounting Standards Council’s Standard RR9 Income taxes. Income tax
expense comprises current and deferred tax. Income tax is recognized in the
Income Statement except to the extent that it relates to items recognised
directly to equity, whereby the pertained tax effect is recognised in equity.
In the annual report deferred income tax liability has not been judged as
essential amount and has therefore not been accounted for in the income
statement and balance sheet.

 

Provisions
(with the exception of deffered tax)

A provision is accounted for in
accordance with RR 16 Provisions, contingent liabilities and contingent assets
in the balance sheet when the company has a formal or informal commitment as a
consequence of an event that has taken place and it is likely that an outflow
of resources is required to regulate the commitment and a reliable judgement of
the amount can be made. Present value computation is made to take the time
effect for essential future payments into consideration.

 

Restoration reserve

A future close-down of the
refinery might imply a demand for decontamination and restoration work etc.,
but this is judged to be far away into the future and the future expenses
cannot be calculated in a reliable way.

 

Contingent
liabilities

Reference is made to a note
regarding the exploitation agreement between the community of Lysekil and
Scanraff.

 

Revenue
recognition

The refinery activities are
performed on a commission basis, see note 1.

 

Leasing -
lessee

Leases are reported in accordance
with RR 6:99. Under such rules, all leasing arrangements are reported as
operating leases.

 

Under operating leases, lease
payments are recognised as an expense based on the lessee’s benefit of the
lease arrangement which may differ from the timing of payments.

 

 

Merger

During the year, Skandinaviska
Kracker AB Scancracker was merged with Scanraff. The merger has been reported
in accordance with guideline BFNAR 1999:1 “Merger of wholly owned limited
liability companies”. The consolidated value method has been applied.

 

Shareholders’
contribution

The company has reported
shareholders’ contribution in accordance with the Emerging Issues Task Force
pronouncement.

 

Shareholders’ contributions
received are taken directly to equity capital while contributions paid are
capitalised with shares and participations unless a write-down is warranted.

 

Changes in
accounting principles

As from January 1, 2002,
the following standards issued by the Swedish Financial Accounting Standards
Council are applied: RR 15 Intangible fixed assets, RR 16 Provisions,
contingent liabilities and contingent assets, RR 17 Write-downs, RR 19 Business
in liquidation, RR 21 Loan expenses and RR 23 Information about related
parties. Application of these standards has not affected the income statement
and balance sheet but has been considered in increased information.

 

Group
affiliation, etc.

Scanraff is a subsidiary company
to Preem Petroleum AB, reg. No 556072-6977 with registered office in Stockholm.
Preem Petroleum AB is a member of a group of companies recognising Corral
Petroleum Holdings AB, reg. No 556477-1284 with registered office in Stockholm,
as its ultimate parent company preparing consolidated financial statements for
the entire group.

 

Sales and purchasing
transactions of Scanraff with affiliated companies represent approximately 76
(78) % and less than 1 (<1) %, respectively, of total sales and purchases.

 

Related parties

Related
parties with a controlling influence

The Company is subordinated to
controlling influence from sheikh Mohammed H. Al-Amoudi, who owns Corral
Petroleum Holdings AB. In addition to the Corral group, Mohammed Al-Amoudi owns
i.a. Midroc Scandinavia AB.

 

Related
parties’ transactions

Midroc Scandinavia AB has
provided maintenance and construction services through its subsidiaries. For
these services Scanraff has paid approximately 86 (42) million SEK. Many of
these services are provided on a demand basis. Accordingly, the amounts paid
for these services may vary from year to year depending on the service required
and provided. The transactions and agreements, which are the basis for these,
were entered into on terms no less favourable than those that could have been
obtained on market terms from an unrelated third party.

 

The following receivables and
liabilities refer to

 

	
  companies
  in the Midroc group:

  	
   

  	
  2002/12/31

  	
   

  	
  2001/12/31

  	
   

  
	
  Receivables

  	
   

  	
  3

  	
   

  	
  —

  	
   

  
	
  Liabilities

  	
   

  	
  10,743

  	
   

  	
  8,320

  	
   

  

 

Note 1           Commission agreement

The Company is from
January 1, 2001 acting as commission agent for Preem Petroleum AB and
Norsk Hydro Lagrings och Distributions AB. A gross accounting of the expenses
and income of the business including compensation from the principals is
applied in the annual report.

 

 

Note 2           Employees, personnel costs
and remunerations to auditors

The Scancracker process units
were previously operated by Scanraff in accordance with service agreement
between Scanraff and Scancracker. All personnel are employed by Scanraff and
work in Lysekil. Scanraff’s as well as Scancracker’s activities are included in
the following information about average number of employees, salaries, other
remunerations and social security costs.

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Average number of employees

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sweden

  	
   

  	
  643

  	
   

  	
  607

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Male
  (percentage)

  	
   

  	
  89

  	
  %

  	
  90

  	
  %

  

 

The average number of employees
was calculated by relating the number of paid presence hours during the years
to a normal annual working time amounting to 1 564 (1 573) hours in 2002.

 

Salaries,
other remunerations and social security costs

 

	
  Board of
  Directors and Managing Director

  	
   

  	
  1,147

  	
   

  	
  1,213

  	
   

  
	
  (of
  that bonuses, etc.)

  	
   

  	
  (—

  	
  )

  	
  (87

  	
  )

  
	
  Other
  employees

  	
   

  	
  216,094

  	
   

  	
  202,058

  	
   

  
	
  (of
  that profit sharing, etc.)

  	
   

  	
  (—

  	
  )

  	
  (6,160

  	
  )

  
	
  Total

  	
   

  	
  217,241

  	
   

  	
  203,271

  	
   

  
	
  Social
  security costs

  	
   

  	
  112,694

  	
   

  	
  97,577

  	
   

  
	
  (of
  that pension costs)

  	
   

  	
  (35,724

  	
  )

  	
  (27,577

  	
  )

  

 

1 210 (230) of the Company’s
pension costs refer to the group Board of Directors and Managing Director. The
pension costs for 2002 include retroactive premiums for last year by 140.

 

The Company is connected to KP
Pension & Försäkring (KPplan) to which company yearly premiums for pension
obligations are paid. The Managing Director and the former Managing Director
have, within the framework of the KPplan, chosen pension solutions in other
insurance companies.

 

Severance pay

An agreement  exists with the Managing Director stating
two years’ term of notice and severance pay corresponding to 24 monthly
salaries at notice from the company. The Managing Director is entitled to
pension at the age of 60.

 

Loans to
members of management

After a normal rating all
Scanraff employees, having a permanent employment, may have a personnel loan,
which is a part of the company’s personnel policy. At present there are loans
with three different monetary limits, where the highest loans are granted
against a mortgage in a permanent residential property.

 

The interest follows the
standards given by the National Tax Board. The loans will be amortised through
annual payments of maximum 15 years with a limit by a final payment at
estimated retirement.

 

 

Loans to employee
representatives of the Company’s and the parent companies’ Boards have been
granted with a general exemption of the Legal Institution at the Tax Authority
of Gothenburg and Bohus County. At the beginning of the year the total loan
amount was

SEK 93 287 and at the end of the
year SEK 80 361. There is a mortgage in residential property for loans amountig
to SEK 80 361, included in the amount at the end of the year.

 

A special list according to the
Companies Act has been established separately.

 

Audit fees and
expenses

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  KPMG

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Audit
  services

  	
   

  	
  318

  	
   

  	
  83

  	
   

  
	
  Other
  services

  	
   

  	
  178

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ernst & Young

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Audit
  services

  	
   

  	
  80

  	
   

  	
  67

  	
   

  

 

Note 3           Other operating income

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Exchange
  gains on operating receivables /liabilities

  	
   

  	
  384

  	
   

  	
  —

  	
   

  
	
  Harbour
  fees

  	
   

  	
  57,712

  	
   

  	
  60,142

  	
   

  
	
  Truck
  loading fees

  	
   

  	
  1,777

  	
   

  	
  1,496

  	
   

  
	
  KP
  company associated funds

  	
   

  	
  —

  	
   

  	
  120

  	
   

  
	
  Other

  	
   

  	
  4,391

  	
   

  	
  2,551

  	
   

  
	
   

  	
   

  	
  64,264

  	
   

  	
  64,309

  	
   

  

 

Of allocated company associated
funds from KP the outstanding amount of 6 341 has been used at payment of
premiums.

 

Note 4           Depreciation of  tangible assets

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Depreciation according to plan by asset

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Land and
  buildings

  	
   

  	
  -12,111

  	
   

  	
  -11,298

  	
   

  
	
  Plant and
  machinery

  	
   

  	
  -177,042

  	
   

  	
  -130,896

  	
   

  
	
  Turnaround

  	
   

  	
  -46,632

  	
   

  	
  -39,072

  	
   

  
	
  Equipment,
  tools, fixtures and fittings

  	
   

  	
  -16,175

  	
   

  	
  -17,304

  	
   

  
	
   

  	
   

  	
  -251,960

  	
   

  	
  -198,570

  	
   

  
	
  Depreciation by function

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Production
  expenses

  	
   

  	
  -251,257

  	
   

  	
  -197,870

  	
   

  
	
  Administrative
  expenses

  	
   

  	
  -703

  	
   

  	
  -700

  	
   

  
	
   

  	
   

  	
  -251,960

  	
   

  	
  -198,570

  	
   

  

 

This year’s depreciations
include Scancracker’s depreciations during the period April 1 -
October 16, 2002 by 30 018.

 

 

 

Note 5           Operating leases

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Assets held by way of operating leases Minimum lease payments

  	
   

  	
  2,703

  	
   

  	
  2,908

  	
   

  
	
  Total

  	
   

  	
  2,703

  	
   

  	
  2,908

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Future
  minimum lease payments under non-cancellable operating leases

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Within
  one year

  	
   

  	
  2,009

  	
   

  	
  3,075

  	
   

  
	
  Between
  one to five years

  	
   

  	
  839

  	
   

  	
  3,410

  	
   

  
	
  Later
  than five years

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  2,848

  	
   

  	
  6,485

  	
   

  

 

The Company is leasing switchboard and cars.
The acquisition value for leased equipment is estimated to 19 058 (18 454).

 

Note 6           Interest income

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Interest
  income, personnel loans

  	
   

  	
  331

  	
   

  	
  348

  	
   

  
	
  Interest
  income, group companies

  	
   

  	
  444

  	
   

  	
  162

  	
   

  
	
  Interest
  income, other

  	
   

  	
  46

  	
   

  	
  457

  	
   

  
	
   

  	
   

  	
  821

  	
   

  	
  967

  	
   

  

 

Note 7           Interest expenses

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Interest
  expense, group companies

  	
   

  	
  -51,868

  	
   

  	
  -50,674

  	
   

  
	
  Interest
  expense, other

  	
   

  	
  -16,784

  	
   

  	
  -13,894

  	
   

  
	
   

  	
   

  	
  -68,652

  	
   

  	
  -64,568

  	
   

  

 

Loan costs amounting to 4 892
(-) have been included in the acquisition value of the assets.

 

Note 8           Exchange differences
included in net results for the year

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Exchange
  differences included in operating income

  	
   

  	
  384

  	
   

  	
  -180

  	
   

  
	
  Exchange
  differences included in financial items

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
  384

  	
   

  	
  -180

  	
   

  

 

Note 9           Appropriations, other

 

	
   

  	
   

  	
  2002-01-01

  -2002-12-31

  	
   

  	
  2001-01-01

  - 2001-12-31

  	
   

  
	
  Accellerated
  depreciation -  Plant and machinery

  	
   

  	
  —

  	
   

  	
  130,812

  	
   

  
	
   

  	
   

  	
  —

  	
   

  	
  130,812

  	
   

  

 

 

Note 10    Land and buildings

 

	
   

  	
   

  	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accumulated acquisition value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At beginning
  of year

  	
   

  	
   

  	
   

  	
  386,575

  	
   

  	
  371,814

  	
   

  
	
  Taken
  over through merger

  	
   

  	
   

  	
   

  	
  7,759

  	
   

  	
  —

  	
   

  
	
  Acquisitions

  	
   

  	
  (1

  	
  )

  	
  17,027

  	
   

  	
  14,908

  	
   

  
	
  Reclassifications

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  —147

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  411,361

  	
   

  	
  386,575

  	
   

  
	
  Accumulated depreciation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
   

  	
   

  	
  -228,463

  	
   

  	
  -217,212

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  (1

  	
  )

  	
  -4,197

  	
   

  	
  —

  	
   

  
	
  Reclassifications

  	
   

  	
   

  	
   

  	
  —

  	
   

  	
  47

  	
   

  
	
  Depreciation
  for the year

  	
   

  	
   

  	
   

  	
  -11,035

  	
   

  	
  -11,298

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -243,695

  	
   

  	
  -228,463

  	
   

  
	
  Net book value at end of year

  	
   

  	
   

  	
   

  	
  167,666

  	
   

  	
  158,112

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax
  values, buildings

  	
   

  	
   

  	
   

  	
  161,126

  	
   

  	
  160,401

  	
   

  
	
  Tax
  values, land

  	
   

  	
   

  	
   

  	
  5,458

  	
   

  	
  5,232

  	
   

  

 

(1 ) Acquisition values and
accumulated depreciations taken over through merger refer to Scancracker’s
accounted values at Scanraff’s merger of the Company.

 

Note 11    Plant and machinery

 

	
   

  	
   

  	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accumulated acquisition value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
   

  	
   

  	
  3,573,205

  	
   

  	
  3,515,865

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  (1

  	
  )

  	
  1,057,990

  	
   

  	
  —

  	
   

  
	
  Acquisitions

  	
   

  	
  (2

  	
  )

  	
  706,613

  	
   

  	
  59,284

  	
   

  
	
  Disposals

  	
   

  	
   

  	
   

  	
  -44,228

  	
   

  	
  -1,944

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  5,293,580

  	
   

  	
  3,573,205

  	
   

  
	
  Accumulated depreciation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
   

  	
   

  	
  -2,215,315

  	
   

  	
  -2,086,349

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  (1

  	
  )

  	
  -766,862

  	
   

  	
  —

  	
   

  
	
  Disposals

  	
   

  	
   

  	
   

  	
  40,869

  	
   

  	
  1,930

  	
   

  
	
  Depreciation
  for the year

  	
   

  	
   

  	
   

  	
  -152,784

  	
   

  	
  -130,896

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -3,094,092

  	
   

  	
  -2,215,315

  	
   

  
	
  Net book value at end of the year

  	
   

  	
   

  	
   

  	
  2,199,488

  	
   

  	
  1,357,890

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tax
  values, production units

  	
   

  	
   

  	
   

  	
  1,619,000

  	
   

  	
  1,182,000

  	
   

  
	
  Tax
  values, land

  	
   

  	
   

  	
   

  	
  45,736

  	
   

  	
  44,182

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  
  

  

  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1) Acquisition values and
  accumulated depreciations taken over through merger refer to Scancracker’s
  accounted values at Scanraff’s merger of the Company.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  4,892

  	
   

  	
  —

  	
   

  
	
  (2) Cost
  includes capitalised interest at the amount of An interest rate of 4.5 % has
  been used at the calculation.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Platinum and palladium
  amounting to 68 351 (68 387) are included in the net book value at the end of
  the year.

  	
   

  

 

 

Note 12    Turnaround

 

	
   

  	
   

  	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accumulated acquisition value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
   

  	
   

  	
  151,489

  	
   

  	
  151,403

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  (1

  	
  )

  	
  44,380

  	
   

  	
  —

  	
   

  
	
  Acquisitions

  	
   

  	
   

  	
   

  	
  247,838

  	
   

  	
  86

  	
   

  
	
  Write-off
  last turnaround

  	
   

  	
   

  	
   

  	
  -194,969

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  248,738

  	
   

  	
  151,489

  	
   

  
	
  Accumulated depreciation

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
   

  	
   

  	
  -125,356

  	
   

  	
  -86,284

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  (1

  	
  )

  	
  -43,565

  	
   

  	
  —

  	
   

  
	
  Write-off
  last turnaround

  	
   

  	
   

  	
   

  	
  194,969

  	
   

  	
  —

  	
   

  
	
  Depreciation
  for the year

  	
   

  	
   

  	
   

  	
  -41,948

  	
   

  	
  -39,072

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  -15,900

  	
   

  	
  -125,356

  	
   

  
	
  Net book value at end of the year

  	
   

  	
   

  	
   

  	
  232,838

  	
   

  	
  26,133

  	
   

  

 

(1) Acquisition values and
accumulated depreciations taken over through merger refer to Scancracker’s
accounted values at Scanraff’s merger of the Company.

 

Note 13    Equipment, tools, fixtures
and fittings

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accumulated acquisition value

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
  104,224

  	
   

  	
  108,718

  	
   

  
	
  Acquisitions

  	
   

  	
  18,119

  	
   

  	
  10,296

  	
   

  
	
  Disposals

  	
   

  	
  -10,711

  	
   

  	
  -14,790

  	
   

  
	
   

  	
   

  	
  111,632

  	
   

  	
  104,224

  	
   

  
	
  Accumulated depreciation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At
  beginning of year

  	
   

  	
  -51,111

  	
   

  	
  -48,576

  	
   

  
	
  Disposals

  	
   

  	
  10,668

  	
   

  	
  14,769

  	
   

  
	
  Depreciation
  for the year

  	
   

  	
  -16,175

  	
   

  	
  -17,304

  	
   

  
	
   

  	
   

  	
  -56,618

  	
   

  	
  -51,111

  	
   

  
	
  Net book value at end of year

  	
   

  	
  55,014

  	
   

  	
  53,113

  	
   

  

 

Note 14    Construction in progress
and advance payments for tangible fixed assets

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  At
  beginning of year

  	
   

  	
  96,329

  	
   

  	
  51,334

  	
   

  
	
  Taken
  over through merger

  	
   

  	
  459,236

  	
   

  	
  —

  	
   

  
	
  Reclassifications

  	
   

  	
  -989,597

  	
   

  	
  -84,574

  	
   

  
	
  Investments
  during the year

  	
   

  	
  651,468

  	
   

  	
  125,049

  	
   

  
	
  Advance
  payments during the year

  	
   

  	
  9,175

  	
   

  	
  4,520

  	
   

  
	
   

  	
   

  	
  226,611

  	
   

  	
  96,329

  	
   

  

 

 

Note 15    Long-term receivables

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accumulated acquisition value

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  At beginning
  of year

  	
   

  	
  3,721

  	
   

  	
  12,500

  	
   

  
	
  Additional
  receivables

  	
   

  	
  2,416

  	
   

  	
  2,222

  	
   

  
	
  Settlement
  of receivables

  	
   

  	
  -2,456

  	
   

  	
  -11,001

  	
   

  
	
  Net book value at end of year

  	
   

  	
  3,681

  	
   

  	
  3,721

  	
   

  

 

The Company has granted a loan
to an employee representative of the Company’s Board amounting to 80 361 SEK.
Exemption for this loan has been obtained from the Legal Institution at the Tax
Authority of Gothenburg and Bohus County.

 

Note 16    Prepaid expenses

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Catalysts

  	
   

  	
  59,815

  	
   

  	
  36,866

  	
   

  
	
  Insurances

  	
   

  	
  1,800

  	
   

  	
  1,970

  	
   

  
	
  Other
  items

  	
   

  	
  2,990

  	
   

  	
  2,391

  	
   

  
	
   

  	
   

  	
  64,605

  	
   

  	
  41,227

  	
   

  

 

Catalysts are used in the
process for upgrading of products. Accrual accounting is done concurrently with
decreasing catalyst activity and is based on estimated lifetime.

 

Note 17    Equity

 

 

	
   

  	
   

  	
  Share

  capital

  	
   

  	
  Share premium

  reserve

  	
   

  
	
  Balance
  carried forward in the previous year’s balance sheet

  	
   

  	
  200,000

  	
   

  	
  —

  	
   

  
	
  New share
  issue at premium rate

  	
   

  	
  28,140

  	
   

  	
  343,764

  	
   

  
	
  Balance at end of year

  	
   

  	
  228,140

  	
   

  	
  343,764

  	
   

  

 

 

	
   

  	
   

  	
  Statutory

  reserve

  	
   

  	
  Accumulated

  deficit

  	
   

  
	
  Balance
  carried forward in the previous year’s balance sheet

  	
   

  	
  14

  	
   

  	
  —

  	
   

  
	
  Shareholder’s
  contribution, received

  	
   

  	
   

  	
   

  	
  10,736

  	
   

  
	
  Merger
  difference

  	
   

  	
   

  	
   

  	
  -138,926

  	
   

  
	
  Net
  profit [loss] for the year

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
  Balance at end of year

  	
   

  	
  14

  	
   

  	
  -128,190

  	
   

  

 

Note 18    Untaxed reserves

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Accelerated
  depreciation:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •  Plant and machinery,
  equipment, tools, etc.

  	
   

  	
  495,588

  	
   

  	
  302,634

  	
   

  
	
   

  	
   

  	
  495,588

  	
   

  	
  302,634

  	
   

  

 

The change for the year refer to
accelerated depreciations taken over through merger. Out of untaxed reserves
138 765 (84 737) refer to deferred tax. The deferred tax is not included in the
balance sheet of the company.

 

 

Note 19    Other liabilities,
long-term

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Due
  within 1-5 years

  	
   

  	
  337,500

  	
   

  	
  172,000

  	
   

  
	
  Due after
  5 years

  	
   

  	
  78,500

  	
   

  	
  64,500

  	
   

  
	
   

  	
   

  	
  416,000

  	
   

  	
  236,500

  	
   

  

 

Refer to loans from Norsk Hydro
ASA, Hydro Finans without guarantee provided.

 

Note 20    Liabilities to group
companies, long-term

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Due
  within 1-5 years

  	
   

  	
  1,012,500

  	
   

  	
  628,000

  	
   

  
	
  Due after
  5 years

  	
   

  	
  235,500

  	
   

  	
  235,500

  	
   

  
	
   

  	
   

  	
  1,248,000

  	
   

  	
  863,500

  	
   

  

 

Refer to loans from parent
company without guarantee provided.

 

Note 21    Liabilities to group
companies, short-term

 

Liabilities to group companies
include liability to parent company and cheque account, connected to the
consolidation account of the parent company, with a net accounted receivable
amounting to 10 607 (-380). The cheque account has a credit limit amounting to
15 million SEK.

 

Note 22    Accrued expenses and
deferred income

 

	
   

  	
   

  	
  2002-12-31

  	
   

  	
  2001/12/31

  	
   

  
	
  Salaries

  	
   

  	
  6,704

  	
   

  	
  11,737

  	
   

  
	
  Holiday
  pays

  	
   

  	
  32,480

  	
   

  	
  28,544

  	
   

  
	
  Social
  security costs

  	
   

  	
  21,215

  	
   

  	
  20,280

  	
   

  
	
  Other
  items

  	
   

  	
  71,112

  	
   

  	
  46,872

  	
   

  
	
   

  	
   

  	
  131,511

  	
   

  	
  107,433

  	
   

  

 

Note 23    Contingent liabilities

A future close-down of the
refinery might imply a demand for decontamination and restoration work etc.,
but this is judged to be far away into the future and the future expenses
cannot be calculated in a reliable way.

 

According to exploitation
agreement between the community of Lysekil and Scanraff, Scanraff is obliged to
redeem properties at request within protection area according to the valid town
plan. The remaining area to redeem amounts to 342 820 m2 per 2002-12-31. 319
909 m2 of the remaining area are owned by other subsidiaries to Preem Petroleum
AB.

 

Note 24    Merger

 

During the year, a merger was
effected with:

Skandinaviska
Kracker AB Scancracker, Corporate Reg. No 556019-9878

 

The income statement and the
balance sheet items of Scancracker per the merger date 2002-10-16 are reported
below. Scancracker was acquired per 2002-04-01. Therefore the

 

 

result worked up before the
acquisition is not reported in Scanraff. Net sales and operating income, which
thereby are not reported in Scanraff, amount to 50 555 respectively zero.

 

	
   

  	
   

  	
  2002/01/01

  -2002-10-16

  	
   

  
	
  Net sales

  	
   

  	
  83,291

  	
   

  
	
  Operating
  income (loss)

  	
   

  	
  —

  	
   

  

 

Of above net sales the amount of
32 736 is included in Scanraff’s operating income regarding the merger period
April 1 - October 16, 2002. The operating income for this period was
zero.

 

	
  Amounts
  as at

  	
   

  	
  2002/10/16

  	
   

  
	
  Fixed
  assets

  	
   

  	
  754,741

  	
   

  
	
  Current
  assets

  	
   

  	
  35,198

  	
   

  
	
  Untaxed
  reserves

  	
   

  	
  -192,954

  	
   

  
	
  Liabilities

  	
   

  	
  -364,008

  	
   

  
	
  Equity

  	
   

  	
  232,977

  	
   

  

 

During the merger period
April 1 - October 16, 2002 investments in construction in progress
have been made by 94 727 and depreciations by 30 018 have been made.

 

	
  Lysekil
  March 13, 2003

  	
  (Signed in Swedish
  original)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Robert Onsander

  	
  Pål Sunde

  
	
  Chairman of the Board

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Michael Löw

  	
  Suhail Nageeb

  
	
   

  	
   

  
	
   

  	
   

  
	
  Leif Nilsson

  	
  Per Olsson

  
	
   

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  Krister Söderman

  	
  Bill Wallberg

  
	
  Employee representative (SIF)

  	
  Employee representative (IF)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Our audit report was issued
  March 13, 2003

  	
   

  
	
  

  	
  

  
	
   

  	
   

  
	
  Roland Nilsson

  	
  Ola Wahlquist

  
	
  Authorised Public Accountant

  	
  Authorised Public Accountant

  

 

19

 

Schedule 1.1

Part 9

Hydro Group Key Employees

 

 

	
  Name

  	
   

  	
  Position with Norsk Hydro ASA

  
	
   

  	
   

  	
   

  
	
  Ola Sæter

  	
   

  	
  Vice President, Business Support Hydro Energy

  
	
   

  	
   

  	
   

  
	
  Pål Sunde

  	
   

  	
  Senior Vice President, Oil Trading and Refining

  
	
   

  	
   

  	
   

  
	
  Knut Solberg

  	
   

  	
  Head of Department, Refining Technology

  
	
   

  	
   

  	
   

  
	
  Dick Vibe-Rheymer

  	
   

  	
  Vice President, Refining and Products Supply

  

 

 

Schedule 1.1

Part 10

Purchaser’s Group

 

 

SEE ATTACHED

 

 

 

 

Schedule 4.3

 

Contingent
Consideration

 

The Purchaser and the Shares
Seller (or any company within the Hydro Group designated by the Shares Seller
as the recipient) have agreed that as from Closing Date and for twenty four
(24) consecutive months (the Contingent Consideration Period) the Shares Seller
shall be entitled to a contingent consideration (the Contingent Consideration)
for each twelve-month period, starting from Closing Date, that the calculated
aggregate synthetic margin as set out in the Synthetic Margin definition below
exceeds 3.75 USD/bbl. The Contingent Consideration shall be calculated as fifty
percent (50 %) of the excess of the calculated aggregate Synthetic Margin above
3.75 USD/bbl multiplied by twenty –five percent (25%) of the actual throughput
volume at Scanraff on said twelve- month period. The total Contingent
Consideration shall in no case exceed USD 20 Million.

 

The Purchaser shall pay the
Contingent Consideration to the Shares Seller in immediately available funds by
wire transfer to the account of the Shares Seller (or its recipient) at a bank
designated by the Shares Seller on the following days:

 

i)                                         380 days after the Closing Date for
the first twelve-month period.

ii)                                      745 days after the Closing Date for
the second twelve-month period.

 

At payment the Purchaser shall provide to the Shares Seller complete
records on how the Contingent Consideration has been calculated. The Shares
Seller has a right to verify the calculation of the Contingent Consideration
and for this purpose the Purchaser shall procure that Scanraff keeps complete
records on how the Contingent Consideration and its parts are measured and
calculated. Such records shall be open for inspection by the Shares Seller at
their request at any time within normal working hours until 12 months after the
Contingent Consideration Period. Any discrepancy agreed between the parties or
determined in accordance with Clause 16 (Arbitration and Submission to
Jurisdiction) of the Purchase and Sale Agreement shall immediately be paid to
the relevant party and shall include interest thereon from the payment date of
the deficient payment with interest in accordance with Clause 14.6 (interest)
of the Purchase and Sale Agreement.

 

For purposes of calculating the
Contingent Consideration, the Synthetic Margin will be calculated using the yields
and Platt’s reference data in the table below:

 

	
  Yields (vol%)

  	
   

  	
  Product

  	
   

  	
  Platt’s reference

  
	
  31%

  Conversion factor 8.33

  	
   

  	
  Motor gasoline, premium
  unleaded

  	
   

  	
  Premium unleaded, North West
  Europe cargo CIF, mean quotation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43%

  Conversion factor 7.45

  	
   

  	
  Diesel EN590

  	
   

  	
  EN590 North West Europe, cargo
  CIF, mean quotation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26%

  	
   

  	
  Low sulphur fuel oil 1%

  	
   

  	
  LSFO North West Europe,

  

 

 

	
  Yields (vol%)

  	
   

  	
  Product

  	
   

  	
  Platt’s reference

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conversion factor 6.4

  	
   

  	
   

  	
   

  	
  cargo FOB, mean quotation

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  -100%

  	
   

  	
  Brent dated

  	
   

  	
  Platt’s Brent dated, mean
  quotation

  

 

 

Schedule 7.3.3

Terminated Service Agreements and Other Arrangements

 

 

A.                                 The following insurance policies will be terminated as of the Closing
Date:

 

1.                                   Liability insurance provided by
Industriforsikring AS, policy number C/100274/03

 

2.                                   Fire insurance provided by Industriforsikring
AS, policy number P/100077/03

 

3.                                   Business interruption insurance by
Industriforsikring AS, policy number P/100007

 

4.                                   Property management insurance by
Industriforsikring AS, policy number P/100077

 

 

B.                                 There are no other service agreements and other
arrangements.

 

 

 

Schedule 7.4.1

Guarantees To Be Released

 

NONE

 

 

Schedule 7.4.2
Scanraff Debt Owed
To Hydro

 

Scanraff short and long term loans as of
June 30, 2003

 

	
   

  	
   

  	
   

  	
   

  	
  Currency

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
  Short term loans

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Prepayment
  of processing fee

  	
   

  	
  SEK

  	
   

  	
  13 562 000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Commissionary
  debt to Hydro

  	
   

  	
  SEK

  	
   

  	
  28 101 000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Long term loans

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Long
  term loans to Hydro

  	
   

  	
  SEK

  	
   

  	
  416 000 000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TOTAL

  	
   

  	
  SEK

  	
   

  	
  457 663 000

  	
   

  

 

The Parties shall update the Scanraff Debt principal and interest
amounts two Business Days prior to the Closing Date to reflect the Closing Date
payoff amounts to be paid at Closing.

 

 

SCHEDULE 8.1

PETROLEUM PRODUCTS
STOCK VALUATION STATEMENT, CURRENT ASSETS VALUATION STATEMENT, CAPITAL
EXPENDITURES VALUATION STATEMENT AND SCANRAFF DEBT VALUATION STATEMENT

 

(CLAUSE 8.1)

 

 

PART 1

 

STATEMENTS

 

1                                         Form
of Petroleum Products Stock Valuation Statement, Current Assets Valuation
Statement, Capital Expenditures Valuation Statement and Scanraff Debt Valuation
Statement

 

Each of the Petroleum Products Stock Valuation Statement, Current
Assets Valuation Statement, Capital Expenditures Valuation Statement and Scanraff
Debt Valuation Statement shall be drawn up in the form described below.

 

All capitalized terms used  but
not defined in this Schedule 8.1 shall have the respective meanings given
them in the Agreement to which this Schedule 8.1 is attached.

 

2                                         Accounting
Policies

 

2.1                               The
Current Assets Valuation Statement, Capital Expenditure Valuation Statement and
Scanraff Debt Valuation Statement shall be drawn up in accordance with:

 

2.1.1                     the
policies, procedures and practices set out in paragraphs 2.3 to 2.6 below; and

 

2.1.2                     to the
extent not inconsistent with paragraph 2.1.1, the Accounting Principles.

 

2.2                               The
Petroleum Products Stock Value shall be market value as at the Closing Date as
set out in Part 2 of this Schedule 8.1 and shall be drawn up in accordance
with policies, procedures and practices set out in paragraphs 2.3 and 2.4
below.

 

2.3                               The
Petroleum Products Stock Valuation Statement, Current Assets Valuation
Statement, Capital Expenditures Valuation Statement and Scanraff Debt Valuation
Statement shall be drawn up as of the close of business on the Closing Date. No
account shall be taken of events taking place after the close of business
(local time) on the Closing Date and regard shall only be made to information
available to the parties to the Agreement at that time.

 

2.4                               The
Petroleum Products Stock Valuation Statement, Current Assets Valuation
Statement, Capital Expenditures Valuation Statement and Scanraff Debt Valuation
Statement shall be expressed in EURO. Amounts in other currencies shall be translated
into EURO at the exchange rates as of the Closing Date and specified in the
Exchange Cross Rates Table as published in the Financial Times.

 

 

2.5                               The
Scanraff Debt for purposes of preparing the Scanraff Debt Valuation Statement
shall be determined in accordance with the Accounting Principles as applied by
Scanraff in the Financial Statements and shall not include any accruals related
to pensions or deferred taxes.

 

 

3                                         Preparation

 

3.1                               No
later than forty-five (45) days following the Closing Date, the Sellers shall
deliver to the Purchaser drafts of the Petroleum Products Stock Valuation
Statement, Current Assets Valuation Statement, Capital Expenditures Valuation
Statement and Scanraff Debt Valuation Statement (collectively, the “Draft Statements”). Prior to such delivery, the Sellers
shall, so far as is practicable, consult with the Purchaser with a view to
reduce the potential areas of disagreement.

 

3.2                               In
order to enable the Sellers to prepare and agree to the Draft Statements, the
Purchaser shall keep up-to-date and, subject to reasonable notice, make
available to the Sellers’ representatives and to the Sellers’ accountants all
books and records relating to Scanraff during normal office hours and
co-operate with them with regard to the preparation of the Draft Statements.
The Purchaser agrees, in so far as it is reasonable to do so, to make available
the services of the employees of Scanraff to assist the Sellers in the
performance of their duties under this Agreement.

 

3.3                               If
the Purchaser does not within fifteen (15) days of presentation to it of the
Draft Statements give notice to the Sellers that it disagrees with any of the
Draft Statements or any item thereof, such notice stating the reasons for the
disagreement in reasonable detail and specifying the adjustments which, in the
Purchaser’s opinion should be made to the Draft Statements (the “Purchaser’s Disagreement Notice”), the Draft Statements
shall be final and binding on the parties. If the Purchaser delivers a
Purchaser’s Disagreement Notice within such fifteen (15) days, the Purchaser
shall keep up to date and, subject to reasonable notice, make available to the
Sellers’ representatives and the Sellers’ accountants all books and records
relating to the items forming part of the Purchaser’s Disagreement Notice
during normal office hours during the period from the date of the Purchaser’s
Disagreement Notice until the date on which such disagreement is resolved. The
Sellers and the Purchaser shall attempt in good faith to reach agreement in respect
of the Draft Statements and, if they are unable to do so within fifteen (15)
days of such notification, the Sellers or the Purchaser may by notice to the
other require that the dispute on the Draft Statements be finally solved by
arbitration in accordance with Clause 16 of the Agreement.

 

PART 2

 

VALUATION OF
PETROLEUM PRODUCTS STOCK

 

The Petroleum
Products Stock shall be valued at the market value at the Closing Date
according to the following:

 

 

(a)                                  Physical
volume measurements shall be in accordance with standards and procedures
currently being applied by Scanraff;

 

(b)                                 products
listed in Schedule 1.1, Part 3 as the “Base Petroleum Products Stock
Value” shall be valued  using the
principles and quality/freight corrections figures set out in said
Schedule 1.1, Part 3, but valued according to price formulas as of the
Closing Date;

 

(c)                                  crude
oil and feedstocks not listed in Schedule 1.1, Part 3 as the “Base
Petroleum Products Stock Value” shall be valued according to the price formula
set out in the purchase contract of such crude oil or feedstocks as of the
Closing Date. If the relevant purchase contract is a FOB contract, relevant
freight cost to be included;

 

(d)                                 refined
products not listed in Schedule 1.1, Part 3 as the “Base Petroleum
Products Stock Value” shall be valued as listed in Platt’s for similar or
comparable products, adjusted for quality and freight, as of the Closing Date;

 

(e)                                  not
finished products (Components), not finally allocated to one or more refine
product(s) shall, if the parties do not agree otherwise, be allocated in
accordance with Scanraff’s estimated allocation and thereafter valued as listed
in Schedule 1.1, Part 3 as the “Base Petroleum Products Stock Value”;

 

(f)                                    vacuum
gas oil (VGO) shall, if the parties do not agree otherwise, be valued in
accordance with Hydro’s last price formula sale done for the same product prior
to the Closing Date;

 

(g)                                 petroleum
products not valued according to paragraphs (a) through (f) shall be valued at
market value at the Closing Date as agreed between the parties; and

 

 

(h)                                 the
non-recoverable bottoms shall be valued according to the principles established
in the January 7, 2003 agreement regarding unitisation of deadstock
volumes between the Parties as set out in the enclosed “Protokoll från møte
angående värdering av oljelager i bottnar”, Enclosure 1
and as applied in the valuation model in Schedule 1.1, Part 5 using price
formulas as of the Closing Date and the following fixed product categories and
quantities:

 

	
  Product Category

  	
   

  	
  Quantity
  (m3)

  	
   

  
	
  Naptha

  	
   

  	
  1,887

  	
   

  
	
  Mogas

  	
   

  	
  4,900

  	
   

  
	
  Gasoil

  	
   

  	
  4,634

  	
   

  
	
  VGO

  	
   

  	
  2,835

  	
   

  
	
  LSFO

  	
   

  	
  1,998

  	
   

  
	
  HSFO

  	
   

  	
  3,276

  	
   

  
	
  Sulphur

  	
   

  	
  147

  	
   

  
	
  Crude

  	
   

  	
  26,835

  	
   

  

 

Note:  Quantity numbers are in cubic meters and are fixed.

 

 

Revidering av
protokoll från möte 7 januari 2003.

 

Orsak till revidering:

 

Scanraff har vid nya mätningar av oljelager i Aspedalens bergrum funnit
att bottenvolymen ska uppräknas från 25.000 m3 till 29.200 m3.

 

Kalkylblad för beräkning av 
belopp för clearing har därför justerats för denna uppräkning i Aspedalen.
Detta innebär följande ny text under rubriken “belopp för clearing”

 

Rev 5. Belopp för
clearing

 

Beräkning av clearingbelopp framgår av bilaga. Redovisningen av
omfördelning mellan respektive ägares operativa lager och lager bundet i
bottnar innebär att Preem fått minskning av operativt lager med 718 KUSD mot en
ökning av lager bundet i bottnar med ett nuvärde på 103 KUSD. Hydro ska därmed
ersätta Preem med 615 KUSD.

 

Tidigare clearingbelopp var fastställt till 491 KUSD. Revideringen
innebär således att Hydro ska ersätta Preem med ytterligare 124 KUSD.

 

Scanraff:  2003-09-11

Anders Östberg

 

Protokoll från möte
angående värdering av oljelager i bottnar

 

	
  Tid:

  	
   

  	
  7 januari 2003

  	
   

  	
   

  
	
  Plats:

  	
   

  	
  Scanraff

  	
   

  	
   

  
	
  Deltagare:

  	
   

  	
  Robert Onsander

  	
   

  	
  Preem

  
	
   

  	
   

  	
  Knut Solberg

  	
   

  	
  Hydro

  
	
   

  	
   

  	
  Bengt Ahlén

  	
   

  	
  Scanraff

  
	
   

  	
   

  	
  Anders Östberg

  	
   

  	
  Scanraff

  

 

1. Bakgrund: 

 

Vid förändringen av ägandet till 75 % Preem och 25 % Hydro den 1.4.2002
ingick inte i clearingen mellan ägarna det oljelager som finns på Scanraff.

 

Det ändrade ägarförhållandet innebar inte någon ändring av respektive
ägares totala oljelager. Principen för fördelning av oljelager bundet i bottnar
bygger dock på att de fördelas efter ägandet på lagringsplatsen. Scanraff
omfördelade därför oljelager i bottnar. Eftersom det totala oljelagret för
Preem respektive Hydro inte ändrades medförde det en omfördelning mellan
operativa lager och lager i bottnar hos respektive ägare.

 

Eftersom lager i bottnar bedöms ha ett lägre värde än operativt lager
och är tillgängligt först långt fram i tiden har aktualiserats behovet av att
cleara även denna omfördelning av värden.

 

 

2. Beskrivning av
lager i bottnar:

 

Bengt Ahlén beskrev hur lager av bottnar ser ut i tankar och bergrum. Bottnar
är den del av oljelagren som inte är operativt åtkomliga utan bara kan uttas
genom särskilda driftåtgärder.  Nivån på
lager i bottnar ligger på ca 3,5 % (Aspedalen) till ca 8 % (Scanraffs
råoljebergrum) av total lagringskapacitet. Nivån på bottenlagret fastställs med
några års mellanrum utifrån drifterfarenheter. Bottenlagret kan i mer eller
mindre grad vara uppblandat med vatten, vax, sand, rost o dylikt och har därför
inte fullt värde. Bottenlager i tankar kan uttas i samband med tank I&T då
en del kan gå som produkt och en del behöver återprocessas. Bottenlager i bergrum
kan kräver mer omfattande åtgärder i form av spolning med varmt kondensat
o.dyl. och det är svårare att bedöma vilken mängd som kan uttas.

 

Oljelager i bottnar ligger bundet så länge som lagringsplatsen används
i drift och binder därmed kapital långt fram i tiden.

 

3. Principer för
värdering av oljelager i bottnar

 

Efter diskussion enades parterna att tillämpa följande principer för
värdering:

 

a) Volym som  kan uttas av
lager i bottnar bedöms utifrån vad som är praktiskt och ekonomiskt möjligt med tillgänglig
teknik.

 

b) Värde på uttagen volym bedöms utifrån andelen fullvärdig olja
och andel som behöver återprocessas eller har lägre värde.

 

c) Kostnader för uttag av lager i bottnar är åtgärder för
exempelvis spolning, cirkulation, uppvärmning o dyl.

 

d) Nettovärdet av lager i bottnar enligt a-c) ovan omräknas till nuvärde
utifrån en räntesats på 10 % och bindningstid på 15 år. Nuvärdet beräknas
därmed till ca 24 % av nettovärdet. I 
Scanraffs bergrum planeras investering som gör att nuvärdet räknas på 2
år.

 

 

4. Princip för
clearing mellan Preem och Hydro:

 

Parterna enades att belopp för clearing mellan Preem och Hydro ska
beräknas utifrån:

 

Värdet på minskat operativt lager - Nuvärdet på lager bundet i bottnar

med ovanstående principer och den bedömningsmatris som anges nedan:

 

 

	
  Typ av lager/olja

  	
   

  	
  Volym som
  kan

  uttas av bottenlager

  	
   

  	
  Värdering
  av

  uttagen volym

  	
   

  	
  Kostnader
  för uttag

  av volym

  
	
  Lätta produkter /komponenter i tank

  	
   

  	
  99

  	
  %

  	
  50% produktpris,  50%
  råoljepris

  	
   

  	
  Ingår i värderingen

  
	
  Tunga produkter /komponenter i tank

  	
   

  	
  90

  	
  %

  	
  50% produktpris 50% råoljepris

  	
   

  	
  Ingår i värderingen

  
	
  Lätta produkter / komponenter i bergrum

  	
   

  	
  90

  	
  %

  	
  50% produktpris 50% råoljepris

  	
   

  	
  Ingår i värderingen

  
	
  Tunga produkter /komponenter i bergrum

  	
   

  	
  80

  	
  %

  	
  50% produktpris 50% råoljepris

  	
   

  	
  Ingår i värderingen

  
	
  Råolja i tank

  	
   

  	
  90

  	
  %

  	
  50% råoljepris 50% HSFO pris

  	
   

  	
  Ingår i värderingen

  
	
  Råolja i Scanraffs bergrum

  	
   

  	
  40 

  	
  % *

  	
  50% råoljepris  50% HSFO pris

  	
   

  	
  Investering 7 MSEK för värme-och cirkulations system

  
	
  Råolja i Aspedalens bergrum

  	
   

  	
  80

  	
  %

  	
  50% råoljepris 50% HSFO pris

  	
   

  	
  Ingår i värderingen

  

 

* Beräknat utifrån bedömning att 50 % av volymen är råolja och denna
del kan uttas till 80 %.

 

5. Belopp för
clearing

 

Beräkning av clearingbelopp framgår av bilaga. Redovisningen av
omfördelning mellan respektive ägares operativa lager och lager bundet i
bottnar innebär att Preem fått minskning av 
operativa lager med 569 KUSD mot en ökning av lager bundet i bottnar med
ett nuvärde på 78 KUSD. Hydro ska därmed ersätta Preem med 491 KUSD.

 

Vid protokollet

 

 

Anders Östberg 

Scanraff

 

 

Justeras

 

 

	
  Robert Onsander

  	
   

  	
  Knut Solberg

  
	
  Preem Petroleum

  	
   

  	
  Norsk Hydro

  

 

 

Revision of the minutes of the
meeting of January 7, 2003.

 

Reason for the
revision:

 

Scanraff, in new measurements of oil stocks in the excavation in Aspedalen,
has found that the volume in the bottoms must be adjusted upwards from 25,000
cubic metres to 29,200 cubic metres.

 

The calculation sheet for the calculation of the amount for clearing
has therefore been adjusted to allow for this upward adjustment in
Aspedalen.  This means that the
following new text must appear under the heading “Amount for clearing”.

 

Rev 5.  Amount for clearing

 

The calculation of the clearing amount is shown in the enclosure.  The revision of the redistribution between
the operational stocks of the respective owners and stocks associated with the
bottoms means that Preem is given a reduction of the operational stocks by USD
718,000 against an increase of stocks associated with the bottoms with a new
value of USD 103,000.  Hydro will
therefore make a compensatory payment to Preem of USD 650,000.

 

The earlier clearing amount was set at USD 491,000.  The revision therefore means that Hydro must
make a compensatory payment to Preem of an additional USD 124,000.

 

Scanraff: 11.09.2003

Anders Östberg

 

Minutes of the meeting regarding
the valuation of oil stocks in the bottoms

 

	
  Date:

  	
   

  	
  January 7, 2003

  	
   

  	
   

  
	
  Place:

  	
   

  	
  Scanraff

  	
   

  	
   

  
	
  Attendees:

  	
   

  	
  Robert Onsander

  	
   

  	
  Preem

  
	
   

  	
   

  	
  Knut Solberg

  	
   

  	
  Hydro

  
	
   

  	
   

  	
  Bengt Ahlén

  	
   

  	
  Scanraff

  
	
   

  	
   

  	
  Anders Östberg

  	
   

  	
  Scanraff

  

 

1.  Background:

 

During the change of ownership to 75% Preem and 25% Hydro on 1.4.2002,
the oil stocks in Scanraff were not included in the clearing between the
owners.

 

The change in the ownership structure did not involve any change in the
total oil stocks of the respective owners. 
The principle of the distribution of the oil stocks in connection

 

 

with the bottoms, however, was based on the fact that they were
distributed in accordance with the ownership of the storage locations.  Accordingly, Scanraff reallocated the oil
stocks in the bottoms.  Since the total
oil stocks for Preem and Hydro, respectively, were not changed, this involved a
reallocation between operational stocks and stocks in the bottoms on the part of
the respective owners.

 

Since stocks in the bottoms are considered to have a lower value than
operational stocks and will not be available until the distant future, it has
also become necessary to settle this reallocation of the value.

 

2.  Description of the stocks in the bottoms:

 

Bengt Ahlén described what the stocks in the bottoms look like in the
tanks and excavation.  The bottoms are
the part of the oil stocks which are not operationally accessible and can only
be extracted through special operational measures.  The level of stocks in the bottoms is approximately 3.5%
(Aspedalen) to approximately 8% (the crude oil excavation in Scanraff) of the
total storage capacity.  The level of
the bottom stock is determined at intervals of several years on the basis of
operational experience.  The bottom
stock may be mixed to a greater or lesser extent with water, wax, sand, rust et
al. and may therefore not have its full value. 
Bottoms stocks in tanks can be extracted in connection with tank I&T
because some parts can be used as product while other parts require
reprocessing.  Bottom stocks in
excavations may require more extensive measures in the form of cleaning with
hot condensate et al. and it is more difficult to assess the amount that can be
extracted.

 

Oil stocks in bottoms are locked in for the entire time that the
storage location is used in operation and are therefore a capital commitment
far into the future.

 

3.  Principles for the valuation of oil stocks
in bottoms

 

After discussion, the parties agreed to apply the following valuation
principles:

 

a)              The volume which can be extracted from stocks
in the bottoms will be assessed on the basis of what is practical and
economically possible with the available technology.

 

b)             The value of the extracted volume will be
assessed on the basis of the full-value component of the oil and the component
which requires reprocessing or has a lower value.

 

c)              The costs for extraction of stocks in bottoms
include measures, for example, for cleaning, circulation, heating et al.

 

d)             The net value of the stocks in the bottoms
under a-c) above is converted to the new value on the basis of an interest rate
of 10% and a commitment period of 15 years. 
The new value is therefore estimated at approximately 24% of the net
value.  In the 

 

 

Scanraff excavation, an investment is planned which will mean that the
new value is expected in 2 years.

 

4.  Principle for clearing between Preem and
Hydro:

 

The parties agree that the amount for clearing between Preem and Hydro
should be calculated on the basis of:

 

The value of the reduced operational stock, the new value of the stocks
associated with the bottoms on the above principles and the assessment matrix
indicated below:

 

 

	
  Type of stock/oil

  	
   

  	
  Volume
  which can

  be extracted from

  bottom stocks

  	
   

  	
  Valuation
  of the

  volume extracted

  	
   

  	
  Costs of
  extraction

  of the volume

  
	
  Light products /components in the tank

  	
   

  	
  99

  	
  %

  	
  50% of the product price,  50%
  of the crude oil price

  	
   

  	
  Included in the valuation

  
	
  Heavy products /components in the tank

  	
   

  	
  90

  	
  %

  	
  50% of the product price 50% of the crude oil price

  	
   

  	
  Included in the valuation

  
	
  Light products / components in the excavation

  	
   

  	
  90

  	
  %

  	
  50% of the product price 50% of the crude oil price

  	
   

  	
  Included in the valuation

  
	
  Heavy products /components in the excavation

  	
   

  	
  80

  	
  %

  	
  50% of the product price 50% of the crude oil price

  	
   

  	
  Included in the valuation

  
	
  Crude oil in the tank

  	
   

  	
  90

  	
  %

  	
  50% of the crude oil price 50% HSFO price

  	
   

  	
  Included in the valuation

  
	
  Crude oil in the Scanraff excavation

  	
   

  	
  40 

  	
  % *

  	
  50% of the crude oil price 
  50% HSFO price

  	
   

  	
  Investment of SEK 7 million for heating and circulation systems

  
	
  Crude oil in the Aspedalen excavation

  	
   

  	
  80

  	
  %

  	
  50% of the crude oil price 50% HSFO price

  	
   

  	
  Included in the valuation

  

 

*Calculated on the basis of the assessment that 50% of the volume is
crude oil and this part can be extracted for 80%.

 

5.  Amount for clearing

 

 

The calculation of the clearing amount is indicated in the
enclosure.  The report on the
reallocation between the operational stocks of the respective owners and the
stocks associated with the bottoms means that Preem receives a reduction of
operational stocks of USD 569,000 and an increase in stocks associated with the
bottoms with a new value of USD 78,000. 
Accordingly, Hydro must make a compensatory payment to Preem of USD
491,000.

 

In the minutes.

 

Anders Östberg

Scanraff

 

To be adjusted

 

	
  Robert Onsander

  	
   

  	
  Knut Solberg

  
	
  Preem Petroleum

  	
   

  	
  Norsk Hydro

  

 

 

 

Valuation of the effect of the reallocation
of bottoms before/after the new ownership structure on 1.4.2002 Revised 2003-09-11 because
of the increase of the bottom stocks in Aspedalen by 4200 m3

 

 

	
   

  	
   

  	
  Revised
  stocks in the bottoms distributed by owner

  	
   

  	
   

  	
   

  	
  Before
  adjustments

  	
   

  
	
   

  	
   

  	
  

  

  31 March 2002 m3

  	
   

  	
  1 April 2002 m3

  	
   

  	
  Changes in m3

  	
   

  	
  Full value

  USD/m3

  	
   

  	
  Change of full

  value of the

  bottoms

  Preem USD

  	
   

  
	
  Oil/storage location

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
   

  	
   

  
	
  Naphta tank

  	
   

  	
  1581

  	
   

  	
  5966

  	
   

  	
  7547

  	
   

  	
  1887

  	
   

  	
  5660

  	
   

  	
  7547

  	
   

  	
  306

  	
   

  	
  -306

  	
   

  	
  0

  	
   

  	
  156.7

  	
   

  	
  -48

  	
   

  
	
   

  	
   

  	
  20.95

  	
  %

  	
  79.05

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mogas tank

  	
   

  	
  5790

  	
   

  	
  13208

  	
   

  	
  18998

  	
   

  	
  4750

  	
   

  	
  14248

  	
   

  	
  18998

  	
   

  	
  -1040

  	
   

  	
  1040

  	
   

  	
  0

  	
   

  	
  171.8

  	
   

  	
  179

  	
   

  
	
   

  	
   

  	
  30.48

  	
  %

  	
  69.52

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mogas butane excavation

  	
   

  	
  152

  	
   

  	
  448

  	
   

  	
  600

  	
   

  	
  150

  	
   

  	
  450

  	
   

  	
  600

  	
   

  	
  -2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  171.8

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
  25.40

  	
  %

  	
  74.60

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gasoil tank

  	
   

  	
  4362

  	
   

  	
  12676

  	
   

  	
  17038

  	
   

  	
  4259

  	
   

  	
  12779

  	
   

  	
  17038

  	
   

  	
  -103

  	
   

  	
  103

  	
   

  	
  0

  	
   

  	
  155.5

  	
   

  	
  16

  	
   

  
	
   

  	
   

  	
  25.60

  	
  %

  	
  74.40

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gasoil excavation

  	
   

  	
  311

  	
   

  	
  1189

  	
   

  	
  1500

  	
   

  	
  375

  	
   

  	
  1125

  	
   

  	
  1500

  	
   

  	
  64

  	
   

  	
  -64

  	
   

  	
  0

  	
   

  	
  155.5

  	
   

  	
  -10

  	
   

  
	
   

  	
   

  	
  20.73

  	
  %

  	
  79.30

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VGO tank

  	
   

  	
  4135

  	
   

  	
  7205

  	
   

  	
  11340

  	
   

  	
  2835

  	
   

  	
  8505

  	
   

  	
  11340

  	
   

  	
  -1300

  	
   

  	
  1300

  	
   

  	
  0

  	
   

  	
  155.5

  	
   

  	
  202

  	
   

  
	
   

  	
   

  	
  36.46

  	
  %

  	
  63.54

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LSFO tank

  	
   

  	
  1309

  	
   

  	
  5485

  	
   

  	
  6794

  	
   

  	
  1698

  	
   

  	
  5096

  	
   

  	
  6794

  	
   

  	
  389

  	
   

  	
  -389

  	
   

  	
  0

  	
   

  	
  118.8

  	
   

  	
  -46

  	
   

  
	
   

  	
   

  	
  19.27

  	
  %

  	
  80.73

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LSFO excavation

  	
   

  	
  249

  	
   

  	
  951

  	
   

  	
  1200

  	
   

  	
  300

  	
   

  	
  900

  	
   

  	
  1200

  	
   

  	
  51

  	
   

  	
  -51

  	
   

  	
  0

  	
   

  	
  118.8

  	
   

  	
  -6

  	
   

  
	
   

  	
   

  	
  20.75

  	
  %

  	
  79.25

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSFO tank

  	
   

  	
  2408

  	
   

  	
  9396

  	
   

  	
  11804

  	
   

  	
  2951

  	
   

  	
  8853

  	
   

  	
  11804

  	
   

  	
  543

  	
   

  	
  -543

  	
   

  	
  0

  	
   

  	
  113.4

  	
   

  	
  -62

  	
   

  
	
   

  	
   

  	
  20.40

  	
  %

  	
  79.60

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSFO excavation

  	
   

  	
  270

  	
   

  	
  1030

  	
   

  	
  1300

  	
   

  	
  325

  	
   

  	
  975

  	
   

  	
  1300

  	
   

  	
  55

  	
   

  	
  -55

  	
   

  	
  0

  	
   

  	
  113.4

  	
   

  	
  -6

  	
   

  
	
   

  	
   

  	
  20.76

  	
  %

  	
  79.23

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB-TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  219

  	
   

  

 

20

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Before
  adjustments

  	
   

  
	
   

  	
   

  	
  

  

  31 March 2002

  	
   

  	
  1 April 2002

  	
   

  	
  Changes in m3

  	
   

  	
  Full value

  USD/m3

  	
   

  	
  Change of full

  value of the

  bottoms

  Preem USD

  	
   

  
	
  Oil/storage location

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
   

  	
   

  
	
  Sulphur tank

  	
   

  	
  122

  	
   

  	
  467

  	
   

  	
  589

  	
   

  	
  147

  	
   

  	
  442

  	
   

  	
  589

  	
   

  	
  25

  	
   

  	
  -25

  	
   

  	
  0

  	
   

  	
  30

  	
   

  	
  -1

  	
   

  
	
   

  	
   

  	
  20.71

  	
  %

  	
  79.29

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude Scanraff excavation

  	
   

  	
  13713

  	
   

  	
  52687

  	
   

  	
  66400

  	
   

  	
  16600

  	
   

  	
  49800

  	
   

  	
  66400

  	
   

  	
  2887

  	
   

  	
  -2887

  	
   

  	
  0

  	
   

  	
  150.57

  	
   

  	
  -435

  	
   

  
	
   

  	
   

  	
  20.65

  	
  %

  	
  79.35

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude tanks

  	
   

  	
  3317

  	
   

  	
  10083

  	
   

  	
  13400

  	
   

  	
  3350

  	
   

  	
  10050

  	
   

  	
  13400

  	
   

  	
  33

  	
   

  	
  -33

  	
   

  	
  0

  	
   

  	
  150.57

  	
   

  	
  -5

  	
   

  
	
   

  	
   

  	
  24.75

  	
  %

  	
  75.25

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude facilities/pipes

  	
   

  	
  4

  	
   

  	
  2534

  	
   

  	
  2538

  	
   

  	
  635

  	
   

  	
  1903

  	
   

  	
  2538

  	
   

  	
  631

  	
   

  	
  -631

  	
   

  	
  0

  	
   

  	
  150.57

  	
   

  	
  -95

  	
   

  
	
   

  	
   

  	
  0.16

  	
  %

  	
  99.84

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude Aspedalen excavation

  	
   

  	
  14600

  	
   

  	
  14600

  	
   

  	
  29200

  	
   

  	
  7300

  	
   

  	
  21900

  	
   

  	
  29200

  	
   

  	
  -7300

  	
   

  	
  7300

  	
   

  	
  0

  	
   

  	
  141.82

  	
   

  	
  1035

  	
   

  
	
   

  	
   

  	
  50.00

  	
  %

  	
  50.00

  	
  %

  	
   

  	
   

  	
  25.00

  	
  %

  	
  75.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUB-TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  499

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  718

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Equivalent to value of the reduced
  operational stocks

  	
   

  

 

 

Change of value for Preem

 

	
  New value of increased stocks in the
  bottoms according to the calculation sheet for the valuation of the bottoms

  	
   

  	
  103

  	
   

  	
  KUSD

  	
   

  
	
  New value of
  reduced operational stocks

  	
   

  	
  -718

  	
   

  	
  KUSD

  	
   

  
	
  Net change for
  Preem in the reallocation

  	
   

  	
  -615

  	
   

  	
  KUSD

  	
   

  

 

21

 

Revised on 2003-09-11 because of
the increase of the bottom stocks in Aspedalen by 4200 m3.

 

NET VALUATION
OF THE BOTTOMS

 

	
   

  	
   

  	
  

  

  Change of the bottoms in m3

  	
   

  	
  Volume

  element for

  which

  extraction is

  deemed to

  be possible

  	
   

  	
  Preem

  Net

  volume

  change

  	
   

  	
  Value in

  USD/m3

  	
   

  	
  Net value
  for

  Preem in USD

  	
   

  
	
  Oil/storage location

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
   

  
	
  Naphtha tank

  	
   

  	
  306

  	
   

  	
  -306

  	
   

  	
  0

  	
   

  	
  99

  	
  %

  	
  -303

  	
   

  	
  153.6

  	
   

  	
  -46,551

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mogas tank

  	
   

  	
  -1040

  	
   

  	
  1040

  	
   

  	
  0

  	
   

  	
  99

  	
  %

  	
  1030

  	
   

  	
  161.2

  	
   

  	
  166,021

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mogas butane excavation

  	
   

  	
  -2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  2

  	
   

  	
  161.2

  	
   

  	
  322

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gas-oil tank

  	
   

  	
  -103

  	
   

  	
  103

  	
   

  	
  0

  	
   

  	
  99

  	
  %

  	
  102

  	
   

  	
  153.0

  	
   

  	
  15,610

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gas-oil excavation

  	
   

  	
  64

  	
   

  	
  -64

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  -58

  	
   

  	
  153.0

  	
   

  	
  -8,874

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VGO tank

  	
   

  	
  -1300

  	
   

  	
  1300

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  1170

  	
   

  	
  153.0

  	
   

  	
  179,051

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LSFO tank

  	
   

  	
  389

  	
   

  	
  -389

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  -350

  	
   

  	
  134.7

  	
   

  	
  -47,140

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LSFO excavation

  	
   

  	
  51

  	
   

  	
  -51

  	
   

  	
  0

  	
   

  	
  80

  	
  %

  	
  -40

  	
   

  	
  130.3

  	
   

  	
  -5,212

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSFO tank

  	
   

  	
  543

  	
   

  	
  -543

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  -489

  	
   

  	
  127.6

  	
   

  	
  -62,401

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HSFO excavation

  	
   

  	
  55

  	
   

  	
  -55

  	
   

  	
  0

  	
   

  	
  80

  	
  %

  	
  -44

  	
   

  	
  127.6

  	
   

  	
  -5,615

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  185,210

  	
   

  

 

1

 

	
   

  	
   

  	
  

  

  Changes in m3

  	
   

  	
  Volume

  element for

  which

  extraction is

  deemed to

  be possible

  	
   

  	
  Preem

  Net

  volume

  change

  	
   

  	
  Adjusted

  Value in

  USD/m3

  	
   

  	
  Net value
  for

  Preem in USD

  	
   

  	 

	
  Oil/storage location

  	
   

  	
  Hydro

  	
   

  	
  Preem

  	
   

  	
  Total

  	
   

  	
   

  	 

	
  Sulphur tank

  	
   

  	
  25

  	
   

  	
  -25

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  -23

  	
   

  	
  30.0

  	
   

  	
  -690

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude Scanraff excavation

  	
   

  	
  2887

  	
   

  	
  -2887

  	
   

  	
  0

  	
   

  	
  40*

  	
  %

  	
  -1154.8

  	
   

  	
  132.0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude tanks

  	
   

  	
  33

  	
   

  	
  -33

  	
   

  	
  0

  	
   

  	
  90

  	
  %

  	
  -30

  	
   

  	
  132.0

  	
   

  	
  -3,960

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude facilities/pipes

  	
   

  	
  631

  	
   

  	
  -631

  	
   

  	
  0

  	
   

  	
  100

  	
  %

  	
  -631

  	
   

  	
  150.57

  	
   

  	
  -95,010

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude Aspedalen excavation

  	
   

  	
  -7300

  	
   

  	
  7300

  	
   

  	
  0

  	
   

  	
  80

  	
  %

  	
  5840

  	
   

  	
  127.6

  	
   

  	
  745,242

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  645,583

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  830,793

  	
   

  
																																

 

 

The total final value of the increase for Preem in
the bottom stocks after corrections for volume and price is therefore 830.793
USD ( excluding crude oil in Scanraff as shown below )

 

The new value of this increase
over 15 years and 10 % interest is 830.793 * 23,94% 
=          198,892 USD
- 95.450 USD (crude oil as below) = 103.442 USD

 

* 
Calculation of the value of Scanraff crude oil excavation

 

Total volume in the bottoms 66000 m3

80 % can be recovered, of which 50 % water means 40
% oil, valuation 50 % crude oil, 50 % HSFO

The recovery can be completed within about 2 years
after investment of 7 mil. kr = 823.500 USD

The net value of the bottoms will therefore be 40 %
* 66000 ( 150,75 + 113,4)/2 - 823.500
  =        2.661.300 USD

 

2

 

i.e. 100,8 USD per m3 which can be extracted.

The value of 1154,8 m3 is therefore 116.403 USD The
new value in 2 years and 10 % = 82 % of 116.403 = 95.450 USD

 

3

 

SCHEDULE 8.1 – Petroleum Products Stock
Value (Deadstock Adjustment and Net Stock Value)

As of June 30, 2003

 

	
   

  	
   

  	
  June 30,
  2003 price reference

  	
   

  
	
  Storage/product

  	
   

  	
  Quotation/reference

  	
   

  	
  Net price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (US$/Mt)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Naptha, tank storage

  	
   

  	
  Platt’s
  NAFTA Physical CIF NWE

  	
   

  	
  250.50

  	
   

  
	
  Propylene

  	
   

  	
  Contract
  price formula estimate

  	
   

  	
  555.00

  	
   

  
	
  Motor gasoline, tank storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  
	
  Motor gasoline, underground storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  
	
  Gasoil, tank storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  
	
  Gasoil, underground storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  
	
  VGO, tank storage

  	
   

  	
  Platt’s
  HS VGO Cargoes FOB NWE High

  	
   

  	
  203.00

  	
   

  
	
  Sulphur tank

  	
   

  	
  BCT
  contract relevant for vessel lifting H1 2003

  	
   

  	
  40.00

  	
   

  
	
  LSFO, tank storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
   

  	
  178.00

  	
   

  
	
  LSFO, underground storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
   

  	
  178.00

  	
   

  
	
  HSFO, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  HSFO, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil Scanraff, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Scanraff, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Scanraff, pipes/process units

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Aspedalen, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL DEADSTOCKS

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Deadstock
  value adjustment

  	
   

  
	
  Storage/product

  	
   

  	
  Deadstock

  volume

  	
   

  	
  Crude

  price

  	
   

  	
  Product

  price

  	
   

  	
  Crude

  weight

  	
   

  	
  Product

  weight

  	
   

  	
  Extraction

  cost

  	
   

  	
  Quantity

  recoverable

  	
   

  	
  Discount

  factor *)

  	
   

  	
  Deadstock

  full value

  	
   

  	
  Deadstock

  adjusted

  value

  	
   

  	
  Deadstock
  value adjustment

  	
   

  
	
   

  	
   

  	
  (m3)

  	
   

  	
  (US$/bbl)

  	
   

  	
  (US$/Mt)

  	
   

  	
  percent

  	
   

  	
  percent

  	
   

  	
  ksek

  	
   

  	
  percent

  	
   

  	
  factor

  	
   

  	
  (US$1,000)

  	
   

  	
  (US$1,000)

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr 1,000)

  	
   

  	
  (Eur 1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Naptha, tank storage

  	
   

  	
  1,887

  	
   

  	
  26.49

  	
   

  	
  250.50

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  345

  	
   

  	
  78

  	
   

  	
  (267

  	
  )

  	
  (2,137

  	
  )

  	
  (234

  	
  )

  
	
  Propylene

  	
   

  	
  113

  	
   

  	
  26.49

  	
   

  	
  555.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (211

  	
  )

  	
  (23

  	
  )

  
	
  Motor gasoline, tank storage

  	
   

  	
  4,750

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  1,025

  	
   

  	
  215

  	
   

  	
  (809

  	
  )

  	
  (6,477

  	
  )

  	
  (708

  	
  )

  
	
  Motor gasoline, underground storage

  	
   

  	
  150

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (209

  	
  )

  	
  (23

  	
  )

  
	
  Gasoil, tank storage

  	
   

  	
  4,259

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  843

  	
   

  	
  184

  	
   

  	
  (659

  	
  )

  	
  (5,275

  	
  )

  	
  (577

  	
  )

  
	
  Gasoil, underground storage

  	
   

  	
  375

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  74

  	
   

  	
  15

  	
   

  	
  (60

  	
  )

  	
  (476

  	
  )

  	
  (52

  	
  )

  
	
  VGO, tank storage

  	
   

  	
  2,835

  	
   

  	
  26.49

  	
   

  	
  203.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  524

  	
   

  	
  107

  	
   

  	
  (416

  	
  )

  	
  (3,332

  	
  )

  	
  (364

  	
  )

  
	
  Sulphur tank

  	
   

  	
  147

  	
   

  	
  26.49

  	
   

  	
  40.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  11

  	
   

  	
  4

  	
   

  	
  (7

  	
  )

  	
  (54

  	
  )

  	
  (6

  	
  )

  
	
  LSFO, tank storage

  	
   

  	
  1,698

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  293

  	
   

  	
  62

  	
   

  	
  (231

  	
  )

  	
  (1,849

  	
  )

  	
  (202

  	
  )

  
	
  LSFO, underground storage

  	
   

  	
  300

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  52

  	
   

  	
  10

  	
   

  	
  (42

  	
  )

  	
  (337

  	
  )

  	
  (37

  	
  )

  
	
  HSFO, tank storage

  	
   

  	
  2,951

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  434

  	
   

  	
  100

  	
   

  	
  (334

  	
  )

  	
  (2,675

  	
  )

  	
  (293

  	
  )

  
	
  HSFO, underground storage

  	
   

  	
  325

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  48

  	
   

  	
  10

  	
   

  	
  (38

  	
  )

  	
  (304

  	
  )

  	
  (33

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
  19,790

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,713

  	
   

  	
  797

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil Scanraff, underground storage

  	
   

  	
  16,600

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  7,000

  	
   

  	
  40

  	
  %

  	
  0.2394

  	
   

  	
  2,731

  	
   

  	
  248

  	
   

  	
  (2,483

  	
  )

  	
  (19,872

  	
  )

  	
  (2,173

  	
  )

  
	
  Crude oil Scanraff, tank storage

  	
   

  	
  3,350

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  551

  	
   

  	
  112

  	
   

  	
  (439

  	
  )

  	
  (3,510

  	
  )

  	
  (384

  	
  )

  
	
  Crude oil Scanraff, pipes/process units

  	
   

  	
  635

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  100

  	
  %

  	
  0.2394

  	
   

  	
  104

  	
   

  	
  24

  	
   

  	
  (81

  	
  )

  	
  (646

  	
  )

  	
  (71

  	
  )

  
	
  Crude oil Aspedalen, underground storage

  	
   

  	
  7,303

  	
   

  	
  27.75

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.8264

  	
   

  	
  1,275

  	
   

  	
  777

  	
   

  	
  (499

  	
  )

  	
  (3,991

  	
  )

  	
  (436

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
  27,888

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,662

  	
   

  	
  1,160

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL DEADSTOCKS

  	
   

  	
  47,678

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,375

  	
   

  	
  1,957

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  

 

*) 10% discount rate, 15 years for Scanraff
storage.10% discount rate, 2 years for Aspedalen storage.

 

Base Petroleum Stock Value Net of
Deadstock Adjustment:

 

	
   

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Market value of refined products,
  components and feedstock storage

  	
   

  	
  27,915

  	
   

  	
  223,386

  	
   

  	
  24,429

  	
   

  
	
  Market value of crude oil storage

  	
   

  	
  47,977

  	
   

  	
  383,936

  	
   

  	
  41,986

  	
   

  
	
  Total market value

  	
   

  	
  75,891

  	
   

  	
  607,322

  	
   

  	
  66,414

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deadstock value adjustment refined
  products, components and feedstock storage

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
  Deadstock value adjustment crude oil

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
  Total deadstock value adjustment

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net market value of crude oil and product
  storage

  	
   

  	
  69,474

  	
   

  	
  555,964

  	
   

  	
  60,798

  	
   

  

 

	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/US$mid rate (source: Svenska
  Riksbanken):

  	
   

  	
  8.0025

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 Eur/US$mid rate (source:
  European Central Bank):

  	
   

  	
  1.1427

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

SCHEDULE 8.1 Petroleum
Products Stock Valuation Statement

As of June 30, 2003

 

 

	
   

  	
   

  	
  June 30,
  2003 price quotations

  	
   

  
	
  Product

  	
   

  	
  Quotation

  	
   

  	
   

  	
   

  	
  Price
  quotation

  	
   

  	
  Quality/freight

  correction

  	
   

  	
  Net price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (US$)

  	
   

  	
  (US$)

  	
   

  	
  (US$)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCTS *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Propane

  	
   

  	
  Platt’s
  Propane NWE FOB Sea Avg

  	
   

  	
  US$/Mt

  	
   

  	
  261.00

  	
   

  	
  (32.00

  	
  )

  	
  229.00

  	
   

  
	
  Propylene

  	
   

  	
  Contract
  price formula estimate

  	
   

  	
  US$/Mt

  	
   

  	
  555.00

  	
   

  	
  —

  	
   

  	
  555.00

  	
   

  
	
  Butane

  	
   

  	
  Platt’s
  Butane NWE FOB Sea Avg

  	
   

  	
  US$/Mt

  	
   

  	
  201.00

  	
   

  	
  (35.00

  	
  )

  	
  166.00

  	
   

  
	
  CCS

  	
   

  	
  Platt’s
  Unleaded NWE CIF ARA Avg

  	
   

  	
  US$/Mt

  	
   

  	
  288.50

  	
   

  	
  (25.00

  	
  )

  	
  263.50

  	
   

  
	
  UMS 95 S

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (4.00

  	
  )

  	
  290.00

  	
   

  
	
  UMS 95 DK

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (6.00

  	
  )

  	
  288.00

  	
   

  
	
  UMS 98 S

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  15.75

  	
   

  	
  309.75

  	
   

  
	
  Hexate

  	
   

  	
  Platt’s
  Premium Unleaded NWE FOB Barges Avg

  	
   

  	
  US$/Mt

  	
   

  	
  289.75

  	
   

  	
  (35.00

  	
  )

  	
  254.75

  	
   

  
	
  Reformate

  	
   

  	
  Platt’s
  Premium Unleaded NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  294.00

  	
   

  	
  (2.50

  	
  )

  	
  291.50

  	
   

  
	
  GOO 0.09%

  	
   

  	
  Platt’s
  GO 0.2 NWE CIF ARA Avg

  	
   

  	
  US$/Mt

  	
   

  	
  239.75

  	
   

  	
  (3.50

  	
  )

  	
  236.25

  	
   

  
	
  GOO 0.2%

  	
   

  	
  Platt’s
  GO 0.2 NWE FOB ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  229.25

  	
   

  	
  1.00

  	
   

  	
  230.25

  	
   

  
	
  G +2 0.05%

  	
   

  	
  Platt’s
  GO EN 590 NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  251.50

  	
   

  	
  (12.40

  	
  )

  	
  239.10

  	
   

  
	
  GOM MK1

  	
   

  	
  Platt’s
  GO EN 590 NWE CIF ARA High

  	
   

  	
  US$/Mt

  	
   

  	
  251.50

  	
   

  	
  35.00

  	
   

  	
  286.50

  	
   

  
	
  HLS 1.0-400

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
   

  	
  US$/Mt

  	
   

  	
  178.00

  	
   

  	
  —

  	
   

  	
  178.00

  	
   

  
	
  RNS

  	
   

  	
  Platt’s
  HSFO 3.5 NWE CIF ARA Avg

  	
   

  	
  US$/Mt

  	
   

  	
  151.50

  	
   

  	
  9.00

  	
   

  	
  160.50

  	
   

  
	
  SCTNS

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargo High

  	
   

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  4.50

  	
   

  	
  147.00

  	
   

  
	
  SC303

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargi High

  	
   

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  —

  	
   

  	
  142.50

  	
   

  
	
  SC401

  	
   

  	
  Platt’s
  HSFO 3.5 NWE FOB Cargo High

  	
   

  	
  US$/Mt

  	
   

  	
  142.50

  	
   

  	
  8.50

  	
   

  	
  151.00

  	
   

  
	
  Sulphur

  	
   

  	
  BCT
  contract relevant for vessel lifting during first half 2003

  	
   

  	
  US$/Mt

  	
   

  	
  40.00

  	
   

  	
  —

  	
   

  	
  40.00

  	
   

  
	
  MTBE

  	
   

  	
  Platt’s
  Barges FOB Rdm high

  	
   

  	
  US$/Mt

  	
   

  	
  338.00

  	
   

  	
  12.00

  	
   

  	
  350.00

  	
   

  
	
  DSVGO

  	
   

  	
  Platt’s
  LS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  203.00

  	
   

  	
  —

  	
   

  	
  203.00

  	
   

  
	
  VGO

  	
   

  	
  Platt’s
  HS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  183.00

  	
   

  	
  —

  	
   

  	
  183.00

  	
   

  
	
  ULTRA

  	
   

  	
  Platt’s
  LS VGO Cargoes FOB NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  203.00

  	
   

  	
  20.00

  	
   

  	
  223.00

  	
   

  
	
  Naptha

  	
   

  	
  Platt’s
  NAFTA Physical CIF NWE High

  	
   

  	
  US$/Mt

  	
   

  	
  257.50

  	
   

  	
  (7.00

  	
  )

  	
  250.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil LS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gullfaks A

  	
   

  	
   

  	
   

  	
  US$/Bbl

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Gullfaks C

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  1.160

  	
   

  	
  29.490

  	
   

  
	
  DUC

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  0.750

  	
   

  	
  29.080

  	
   

  
	
  Subtotal crude oil LS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil HS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Iran LT

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  (2.150

  	
  )

  	
  25.720

  	
   

  
	
  Iran Heavy

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  (2.550

  	
  )

  	
  25.320

  	
   

  
	
  REB (Ural)

  	
   

  	
  Platts
  brt dtd+ uraldiff

  	
   

  	
  US$/Bbl

  	
   

  	
  26.655

  	
   

  	
  0.070

  	
   

  	
  26.725

  	
   

  
	
  Flotta (pipeline)

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  —

  	
   

  	
  28.330

  	
   

  
	
  Subtotal crude oil HS

  	
   

  	
  159,915

  	
   

  	
  30,185

  	
   

  	
  241,552

  	
   

  	
  26,415

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aspedalen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude mix

  	
   

  	
  Platts
  brt dtd

  	
   

  	
  US$/Bbl

  	
   

  	
  28.330

  	
   

  	
  —

  	
   

  	
  28.330

  	
   

  
	
  Iran LT

  	
   

  	
  BWAVE

  	
   

  	
  US$/Bbl

  	
   

  	
  27.870

  	
   

  	
  —

  	
   

  	
  27.870

  	
   

  
	
  Subtotal Aspedalen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  26.488

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
  Mark-to-market
  value

  	
   

  
	
  Product

  	
   

  	
  Carrying
  quantity

  	
   

  	
  Mark-to-market
  value

  	
   

  
	
   

  	
   

  	
  (Mt)

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCTS *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Propane

  	
   

  	
  94

  	
   

  	
  22

  	
   

  	
  172

  	
   

  	
  19

  	
   

  
	
  Propylene

  	
   

  	
  1,594

  	
   

  	
  885

  	
   

  	
  7,080

  	
   

  	
  774

  	
   

  
	
  Butane

  	
   

  	
  352

  	
   

  	
  58

  	
   

  	
  468

  	
   

  	
  51

  	
   

  
	
  CCS

  	
   

  	
  2,352

  	
   

  	
  620

  	
   

  	
  4,960

  	
   

  	
  542

  	
   

  
	
  UMS 95 S

  	
   

  	
  23,850

  	
   

  	
  6,917

  	
   

  	
  55,349

  	
   

  	
  6,053

  	
   

  
	
  UMS 95 DK

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  UMS 98 S

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Hexate

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reformate

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  GOO 0.09%

  	
   

  	
  4,767

  	
   

  	
  1,126

  	
   

  	
  9,012

  	
   

  	
  986

  	
   

  
	
  GOO 0.2%

  	
   

  	
  23,161

  	
   

  	
  5,333

  	
   

  	
  42,676

  	
   

  	
  4,667

  	
   

  
	
  G +2 0.05%

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  GOM MK1

  	
   

  	
  1,621

  	
   

  	
  464

  	
   

  	
  3,716

  	
   

  	
  406

  	
   

  
	
  HLS 1.0-400

  	
   

  	
  7,393

  	
   

  	
  1,316

  	
   

  	
  10,531

  	
   

  	
  1,152

  	
   

  
	
  RNS

  	
   

  	
  412

  	
   

  	
  66

  	
   

  	
  529

  	
   

  	
  58

  	
   

  
	
  SCTNS

  	
   

  	
  12,524

  	
   

  	
  1,841

  	
   

  	
  14,733

  	
   

  	
  1,611

  	
   

  
	
  SC303

  	
   

  	
  3,880

  	
   

  	
  553

  	
   

  	
  4,425

  	
   

  	
  484

  	
   

  
	
  SC401

  	
   

  	
  3,354

  	
   

  	
  506

  	
   

  	
  4,053

  	
   

  	
  443

  	
   

  
	
  Sulphur

  	
   

  	
  1,844

  	
   

  	
  74

  	
   

  	
  590

  	
   

  	
  65

  	
   

  
	
  MTBE

  	
   

  	
  1,418

  	
   

  	
  496

  	
   

  	
  3,972

  	
   

  	
  434

  	
   

  
	
  DSVGO

  	
   

  	
  30,810

  	
   

  	
  6,254

  	
   

  	
  50,051

  	
   

  	
  5,473

  	
   

  
	
  VGO

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  ULTRA

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Naptha

  	
   

  	
  5,522

  	
   

  	
  1,383

  	
   

  	
  11,070

  	
   

  	
  1,211

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
  124,948

  	
   

  	
  27,915

  	
   

  	
  223,386

  	
   

  	
  24,429

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL *):

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil LS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gullfaks A

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
   

  	
   

  
	
  Gullfaks C

  	
   

  	
  10,666

  	
   

  	
  2,333

  	
   

  	
  18,668

  	
   

  	
  2,042

  	
   

  
	
  DUC

  	
   

  	
  21,467

  	
   

  	
  4,652

  	
   

  	
  37,226

  	
   

  	
  4,071

  	
   

  
	
  Subtotal crude oil LS

  	
   

  	
  32,133

  	
   

  	
  6,985

  	
   

  	
  55,895

  	
   

  	
  6,112

  	
   

  
	
  Crude oil HS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Iran LT

  	
   

  	
  119,486

  	
   

  	
  22,593

  	
   

  	
  180,800

  	
   

  	
  19,772

  	
   

  
	
  Iran Heavy

  	
   

  	
  23,949

  	
   

  	
  4,384

  	
   

  	
  35,080

  	
   

  	
  3,836

  	
   

  
	
  REB (Ural)

  	
   

  	
  16,477

  	
   

  	
  3,207

  	
   

  	
  25,666

  	
   

  	
  2,807

  	
   

  
	
  Flotta (pipeline)

  	
   

  	
  3

  	
   

  	
  1

  	
   

  	
  5

  	
   

  	
  1

  	
   

  
	
  Subtotal crude oil HS

  	
   

  	
  159,915

  	
   

  	
  30,185

  	
   

  	
  241,552

  	
   

  	
  26,415

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Aspedalen

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude mix

  	
   

  	
  6,250

  	
   

  	
  1,311

  	
   

  	
  10,490

  	
   

  	
  1,147

  	
   

  
	
  Iran LT

  	
   

  	
  46,351

  	
   

  	
  9,497

  	
   

  	
  75,999

  	
   

  	
  8,311

  	
   

  
	
  Subtotal Aspedalen

  	
   

  	
  52,601

  	
   

  	
  10,808

  	
   

  	
  86,489

  	
   

  	
  9,458

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
  244,649

  	
   

  	
  47,977

  	
   

  	
  383,936

  	
   

  	
  41,986

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL

  	
   

  	
  369,597

  	
   

  	
  75,891

  	
   

  	
  607,322

  	
   

  	
  66,414

  	
   

  

 

*) Include volumes reported on stock at Scanraff
plus crude oil cargos in shipment to Scanraff. Account payables on crude oil
cargos in shipment to be settled by Norsk Hydro

 

	
  Exchange
  rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003
  SKr/US$mid rate (source: Svenska Riksbanken):

  	
   

  	
  8.0025

  	
   

  	
   

  	
   

  
	
  June 30, 2003
  Eur/US$mid rate (source: European Central Bank):

  	
   

  	
  1.1427

  	
   

  	
   

  	
   

  

 

 

SCHEDULE 8.1 –
Petroleum Products Stock Value (Deadstock Adjustment and Net Stock Value)

As of June 30, 2003

 

	
   

  	
   

  	
  June 30,
  2003 price reference

  	
   

  
	
  Storage/product

  	
   

  	
  Quotation/reference

  	
   

  	
  Net price

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (US$/Mt)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRODUCTS:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Naptha, tank storage

  	
   

  	
  Platt’s
  NAFTA Physical CIF NWE

  	
   

  	
  250.50

  	
   

  
	
  Propylene

  	
   

  	
  Contract
  price formula estimate

  	
   

  	
  555.00

  	
   

  
	
  Motor gasoline, tank storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  
	
  Motor gasoline, underground storage

  	
   

  	
  Weighted
  average of gasoline quotes

  	
   

  	
  287.62

  	
   

  
	
  Gasoil, tank storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  
	
  Gasoil, underground storage

  	
   

  	
  Weighted
  average of gasoil quotes

  	
   

  	
  234.30

  	
   

  
	
  VGO, tank storage

  	
   

  	
  Platt’s
  HS VGO Cargoes FOB NWE High

  	
   

  	
  203.00

  	
   

  
	
  Sulphur tank

  	
   

  	
  BCT
  contract relevant for vessel lifting H1 2003

  	
   

  	
  40.00

  	
   

  
	
  LSFO, tank storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
  %

  	
  178.00

  	
   

  
	
  LSFO, underground storage

  	
   

  	
  Platt’s
  LSFO 1 NWE FOB Cargo High

  	
  %

  	
  178.00

  	
   

  
	
  HSFO, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  HSFO, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL PRODUCTS

  	
   

  	
   

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CRUDE OIL:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crude oil Scanraff, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Scanraff, tank storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Scanraff, pipes/process units

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
  Crude oil Aspedalen, underground storage

  	
   

  	
  Weighted
  average of HSFO quotes

  	
   

  	
  147.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBTOTAL CRUDE OIL

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GRAND TOTAL DEADSTOCKS

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  

 

	
  Deadstock value adjustmen

  
	
  Deadstock 

  volume

  	
   

  	
  Crude 

  price

  	
   

  	
  Product

  price

  	
   

  	
  Crude

  weight

  	
   

  	
  Product

  weight

  	
   

  	
  Extraction

  cost

  	
   

  	
  Quantity

  recoverable

  	
   

  	
  Discount

  factor *)

  	
   

  	
  Deadstock

  full value

  	
   

  	
  Deadstock

  adjusted value

  	
   

  	
  Deadstock value adjustment

  	
   

  
	
  (m3)

  	
   

  	
  (US$/bbl

  	
  )

  	
  (US$/Mt

  	
  )

  	
  percent

  	
   

  	
  percent

  	
   

  	
  ksek

  	
   

  	
  percent

  	
   

  	
  factor

  	
   

  	
  (US$1,000)

  	
   

  	
  (US$1,000)

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr 1,000)

  	
   

  	
  (Eur 1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1,887

  	
   

  	
  26.49

  	
   

  	
  250.50

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  345

  	
   

  	
  78

  	
   

  	
  (267

  	
  )

  	
  (2,137

  	
  )

  	
  (234

  	
  )

  
	
  113

  	
   

  	
  26.49

  	
   

  	
  555.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (211

  	
  )

  	
  (23

  	
  )

  
	
  4,750

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  1,025

  	
   

  	
  215

  	
   

  	
  (809

  	
  )

  	
  (6,477

  	
  )

  	
  (708

  	
  )

  
	
  150

  	
   

  	
  26.49

  	
   

  	
  287.62

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  32

  	
   

  	
  6

  	
   

  	
  (26

  	
  )

  	
  (209

  	
  )

  	
  (23

  	
  )

  
	
  4,259

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  99

  	
  %

  	
  0.2394

  	
   

  	
  843

  	
   

  	
  184

  	
   

  	
  (659

  	
  )

  	
  (5,275

  	
  )

  	
  (577

  	
  )

  
	
  375

  	
   

  	
  26.49

  	
   

  	
  234.30

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  74

  	
   

  	
  15

  	
   

  	
  (60

  	
  )

  	
  (476

  	
  )

  	
  (52

  	
  )

  
	
  2,835

  	
   

  	
  26.49

  	
   

  	
  203.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  524

  	
   

  	
  107

  	
   

  	
  (416

  	
  )

  	
  (3,332

  	
  )

  	
  (364

  	
  )

  
	
  147

  	
   

  	
  26.49

  	
   

  	
  40.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  11

  	
   

  	
  4

  	
   

  	
  (7

  	
  )

  	
  (54

  	
  )

  	
  (6

  	
  )

  
	
  1,698

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  293

  	
   

  	
  62

  	
   

  	
  (231

  	
  )

  	
  (1,849

  	
  )

  	
  (202

  	
  )

  
	
  300

  	
   

  	
  26.49

  	
   

  	
  178.00

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  52

  	
   

  	
  10

  	
   

  	
  (42

  	
  )

  	
  (337

  	
  )

  	
  (37

  	
  )

  
	
  2,951

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  434

  	
   

  	
  100

  	
   

  	
  (334

  	
  )

  	
  (2,675

  	
  )

  	
  (293

  	
  )

  
	
  325

  	
   

  	
  26.49

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.2394

  	
   

  	
  48

  	
   

  	
  10

  	
   

  	
  (38

  	
  )

  	
  (304

  	
  )

  	
  (33

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19,790

  	
   

  	
  —

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,713

  	
   

  	
  797

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16,600

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  7,000

  	
   

  	
  40

  	
  %

  	
  0.2394

  	
   

  	
  2,731

  	
   

  	
  248

  	
   

  	
  (2,483

  	
  )

  	
  (19,872

  	
  )

  	
  (2,173

  	
  )

  
	
  3,350

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  90

  	
  %

  	
  0.2394

  	
   

  	
  551

  	
   

  	
  112

  	
   

  	
  (439

  	
  )

  	
  (3,510

  	
  )

  	
  (384

  	
  )

  
	
  635

  	
   

  	
  26.14

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  100

  	
  %

  	
  0.2394

  	
   

  	
  104

  	
   

  	
  24

  	
   

  	
  (81

  	
  )

  	
  (646

  	
  )

  	
  (71

  	
  )

  
	
  7,303

  	
   

  	
  27.75

  	
   

  	
  147.08

  	
   

  	
  50

  	
  %

  	
  50

  	
  %

  	
  —

  	
   

  	
  80

  	
  %

  	
  0.8264

  	
   

  	
  1,275

  	
   

  	
  777

  	
   

  	
  (499

  	
  )

  	
  (3,991

  	
  )

  	
  (436

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27,888

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4,662

  	
   

  	
  1,160

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47,678

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8,375

  	
   

  	
  1,957

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  

 

*)
10% discount rate, 15 years for Scanraff storage.10% discount rate, 2 years for
Aspedalen storage.

 

Base Petroleum Stock Value Net of
Deadstock Adjustment:

 

	
   

  	
   

  	
  (US$1,000)

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Market value of refined products,
  components and feedstock storage

  	
   

  	
  27,915

  	
   

  	
  223,386

  	
   

  	
  24,429

  	
   

  
	
  Market value of crude oil storage

  	
   

  	
  47,977

  	
   

  	
  383,936

  	
   

  	
  41,986

  	
   

  
	
  Total market value

  	
   

  	
  75,891

  	
   

  	
  607,322

  	
   

  	
  66,414

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deadstock value adjustment refined
  products, components and feedstock storage

  	
   

  	
  (2,916

  	
  )

  	
  (23,338

  	
  )

  	
  (2,552

  	
  )

  
	
  Deadstock value adjustment crude oil

  	
   

  	
  (3,501

  	
  )

  	
  (28,020

  	
  )

  	
  (3,064

  	
  )

  
	
  Total deadstock value adjustment

  	
   

  	
  (6,418

  	
  )

  	
  (51,358

  	
  )

  	
  (5,616

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net market value of crude oil and product
  storage

  	
   

  	
  69,474

  	
   

  	
  555,964

  	
   

  	
  60,798

  	
   

  

 

	
  Exchange rates:

  	
   

  	
   

  	
   

  
	
  June 30,
  2003 SKr/US$mid rate (source: Svenska Riksbanken):

  	
   

  	
  8.0025

  	
   

  
	
  June 30, 2003 Eur/US$mid rate (source:
  European Central Bank):

  	
   

  	
  1.1427

  	
   

  

 

 

Current Assets Valuation Statements

As
of June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT ASSETS:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash & cash equivalents

  	
   

  	
  55

  	
   

  	
  6

  	
   

  
	
  Trade accounts receivables

  	
   

  	
  3,649

  	
   

  	
  398

  	
   

  
	
  Inventories

  	
   

  	
  55,992

  	
   

  	
  6,111

  	
   

  
	
  Prepaid expenses and other current assets

  	
   

  	
  94,525

  	
   

  	
  10,316

  	
   

  
	
  TOTAL CURRENT ASSETS

  	
   

  	
  154,221

  	
   

  	
  16,831

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source: Svenska
  Riksbanken):

  	
   

  	
  9.1630

  	
   

  	
   

  	
   

  

 

 

Scanraff Debt Valuation Statement

June 30, 2003

 

	
   

  	
   

  	
  (Skr
  1,000)

  	
   

  	
  (Eur
  1,000)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CURRENT
  LIABILITIES:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Trade accounts payables

  	
   

  	
  49,712

  	
   

  	
  5,425

  	
   

  
	
  Prepayment of processing fee from Norsk
  Hydro

  	
   

  	
  13,562

  	
   

  	
  1,480

  	
   

  
	
  Commissionary debt to Norsk Hydro

  	
   

  	
  28,101

  	
   

  	
  3,067

  	
   

  
	
  Provisions and other current liabilities

  	
   

  	
  271,454

  	
   

  	
  29,625

  	
   

  
	
   

  	
   

  	
  362,829

  	
   

  	
  39,597

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LONG-TERM DEBT:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt to Preem

  	
   

  	
  1,248,000

  	
   

  	
  136,200

  	
   

  
	
  Long-term debt to Norsk Hydro

  	
   

  	
  416,000

  	
   

  	
  45,400

  	
   

  
	
   

  	
   

  	
  1,664,000

  	
   

  	
  181,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL DEBT

  	
   

  	
  2,026,829

  	
   

  	
  221,197

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange rates:

  	
   

  	
   

  	
   

  	
  9.1630

  	
   

  
	
  June 30, 2003 SKr/Eur mid rate (source:
  Svenska Riksbanken):

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule 9.1.2

Scanraff Shares and Petroleum Products Stock Encumbrances

 

 

Change of
control provision or pre-emption provision, as applicable, in the following
documents:

 

1.                                   Shareholders’ Agreement among Hydro
R&M Holding, Preem Petroleum AB and Skandinaviska Raffinaderi AB Scanraff,
dated as of 17 April 2002

 

2.                                   Skandinaviska Raffinaderi AB
Scanraff Processing Agreement, dated as of 17 April 2002

 

3.                                   Scanraff’s Articles of Association.

 

 

Schedule 9.1.3

Assigned Contracts Encumbrances and other Exceptions

 

 

NONE

 

 

 

Schedule 9.1.7

Financial Statements Exceptions

 

 

NONE

 

 

Schedule 9.1.10

Litigation

 

 

Scanraff has
withheld part of the original contract payment to Temago Oy, a Finnish supplier
to the propylene project.  Temago Oy has
been declared bankrupt.  The bankruptcy
receiver has filed a claim against Scanraff for the outstanding payment of
86,999 EURO plus interest and legal costs. Scanraff is opposing the claim based
on incorrect and late deliveries from Temago.

 

Scanraff has
initiated claim processes against Skanska for defects on the contracted
propylene cavern and against ISG/Technip for design defects leading to the
February propylene fire.

 

 

Schedule 9.1.11

Sellers Consents, Approvals and Clearance Decisions

 

 

CLEARANCE
DECISIONS

 

 

 

Schedule 9.1.12

Part 1

Environmental

 

 

Scanraff has
received permission from the Environmental Court to start building the Gas Oil
Project. This Environmental Court decision has, however, been appealed against
and a hearing before the Supreme Environmental Court is scheduled for
September 2003. The normal process to obtain the final Environmental
Permit, including all emission limits for the Gas Oil Project, is
continuing.  The Environmental Court
hearing is scheduled for September 2003.

 

Scanraff has exceeded the permitted emission
of nitrogen in water during 2003. A dispensation has been granted for 2003 from
the Environmental Court.

 

1

 

Schedule 9.1.12

Part 2

Environmental

 

	
  1

  	
  Environment

  
	
  1.1

  	
  Annual environmental reports (within the last three years)

  
	
  1.1.1

  	
   

  	
   

  	
  Annual
  environmental report 2001 Scanraff

  	
   

  	
  2002-03-27

  	
   

  	
  28

  	
   

  	
  Swedish

  
	
  1.1.2

  	
   

  	
   

  	
  Annual
  environmental report 2000 Scanraff

  	
   

  	
  2001-03-30

  	
   

  	
  28

  	
   

  	
  Swedish

  
	
  1.1.3

  	
   

  	
   

  	
  Annual
  environmental report 1999 Scanraff

  	
   

  	
  2000-03-31

  	
   

  	
  42

  	
   

  	
  Swedish

  
	
  1.1.4

  	
   

  	
   

  	
  Environmental
  statistics 1976-2001 Scanraff

  	
   

  	
   

  	
   

  	
  14

  	
   

  	
  Swedish

  
	
  1.2

  	
  List of properties owned, leased or operated by the Group or for
  which the Group has retained or assumed liabilities, with a description of
  the type of operations conducted at such properties

  
	
   

  	
   

  	
   

  	
  See 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3

  	
  Description of the operations carried out by the Group and the
  possible environmental impact caused by the operations and the Group’s
  products, including operations by divested, liquidated or otherwise
  terminated businesses (unless provided for in 13.1 above)

  
	
   

  	
   

  	
   

  	
  See 1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.4

  	
  Environmental licenses, consents, permits and registrations from or
  with statutory or regulatory bodies relevant for the Group and any
  applications therefore (unless provided for 13.1 above

  
	
  1.4.1

  	
   

  	
   

  	
  Environmental
  conditions/permits

  	
   

  	
  2001-04-26

  	
   

  	
  11

  	
   

  	
  Swedish

  
	
  1.4.2

  	
   

  	
   

  	
  Environmental
  systems

  	
   

  	
  2001-01-21

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
  1.4.3

  	
   

  	
   

  	
  Environmental
  application from Scanraff to Vänersborgs tingsrätt, Miljödomstolen, including
  statement from Lysekils kommun

  	
   

  	
  2001-10-30

  	
   

  	
  88

  	
   

  	
  Swedish

  
	
  1.4.4

  	
   

  	
   

  	
  Judicial
  decision from Koncessionsnämnden för miljöskydd

  	
   

  	
  1991-12-16

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
  1.4.5

  	
   

  	
   

  	
  Judgement
  from Vänersborgs tingsrätt, Miljödomstolen

  	
   

  	
  2000-05-30

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  1.5

  	
  Licenses, consents, permits and registrations concerning safety from
  or with statutory or regulatory bodies relevant for the Group and any
  applications therefore (unless provided for in 13.1 above)

  
	
   

  	
   

  	
   

  	
  See 12.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.6

  	
  Information about pending or ongoing activities to ensure compliance
  with all applicable environmental legislation and description of investment
  needs (unless provided for 13.1 above)

  
													

 

 

	
   

  	
   

  	
   

  	
  See 1.1 and
  15.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.7

  	
  Details of environmental control programs (within the last three
  years)

  
	
  1.7.1

  	
   

  	
   

  	
  Environmental
  control program Scanraff including amendments

  	
   

  	
  1988-11-08

  	
   

  	
  37

  	
   

  	
  Swedish

  
	
  1.7.2

  	
   

  	
   

  	
  Decision
  from Länsstyrelsen regarding program for finding leakages, Scanraff

  	
   

  	
  1997-01-27

  	
   

  	
  4

  	
   

  	
  Swedish

  
	
  1.8

  	
  Details on reporting system for safety, health and environment and
  statistics for fires, gas releases, oil spills, emissions to water and air,
  deposits of hazardous material and lost workday injury frequency for 1999 and
  onwards

  
	
  1.8.1

  	
   

  	
   

  	
  Safety,
  health and environmental statistics 2002, Scanraff

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.8.2

  	
   

  	
   

  	
  Safety,
  health and environmental statistics 2001, Scanraff

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.8.3

  	
   

  	
   

  	
  Safety,
  health and environmental statistics 2000, Scanraff

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.8.4

  	
   

  	
   

  	
  Safety,
  health and environmental statistics 1999, Scanraff

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  English

  
	
  1.9

  	
  Internal or external reports related to environmental and safety
  assessments, audits, investigations or “clean-ups” at the facilities owned,
  leased or operated by the Group

  
	
  1.9.1

  	
   

  	
   

  	
  See 7.5.3:
  Survey report, engineering and risk management practice, Scanraff

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.10

  	
  HESS manual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  See 12.1.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.11

  	
  Details of remarks, investigations or any actual or proposed
  enforcement action under any planning and building, environmental or other
  legislation relating to environmental matters (for example health care) and
  safety and other correspondence with authorities in these matters

  
	
   

  	
   

  	
   

  	
  Not
  applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.12

  	
  Details and copies of documents relating to threatened, pending or
  resolved civil or criminal disputes or administrative actions under
  environmental laws or concerning environmental issues where a Group Company
  is or has been a party or is or has otherwise been involved

  
	
  1.12.1

  	
   

  	
   

  	
  See 7.6

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.12.2

  	
   

  	
   

  	
  Description

  	
   

  	
  —

  	
   

  	
  1

  	
   

  	
  English

  
	
  1.12.3

  	
   

  	
   

  	
  Police
  Report

  	
   

  	
  2000-09-27

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
  1.13

  	
  Agreements pursuant to which the Group has remained liable for
  environmental claims relating to divested property, assets or businesses

  
	
   

  	
   

  	
   

  	
  Not
  applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																

 

 

	
  1.14

  	
  Agreements pursuant to which a third party has remained liable for
  environmental claims relating to acquired property, assets or businesses

  
	
   

  	
   

  	
   

  	
  Not
  applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.15

  	
  Details of hazardous substances used or applied in the Group’s
  business (within the last three years)

  
	
  1.15.1

  	
   

  	
   

  	
  List of
  chemicals 2001, Scanraff

  	
   

  	
  4

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  1.15.2

  	
   

  	
   

  	
  List of
  industrial disposal 2001, Scanraff

  	
   

  	
  1

  	
   

  	
  Swedish

  	
   

  	
   

  
	
  1.16

  	
  Details of recycling practices, waste treatments, storage or disposal
  sites used or owned by the Group and details of any spill, leakage, deposit,
  emission, discharge or release of any pollutants, contaminates, hazardous,
  flammable or toxic substances, materials or waste at the site (within the
  last three years)

  
	
   

  	
   

  	
   

  	
  Not
  applicable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
													

 

Supplementary
Index

 

	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
  Authorizations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the national licensing board for environment protection (not in data
  room)

  	
   

  	
  1971-08-03

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the national licensing board for environment protection (not in data
  room)

  	
   

  	
  1974-12-13

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the national licensing board for environment protection (not in data
  room)

  	
   

  	
  1975-11-04

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1978-05-17

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1979-11-02

  	
   

  	
  6

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1980-04-30

  	
   

  	
  12

  	
   

  	
  Swedish

  
	
   

  	
  Decision from
  the national licensing board for environment protection

  	
   

  	
  1981-01-09

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1981-04-03

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1981-11-06

  	
   

  	
  17

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1983-07-01

  	
   

  	
  25

  	
   

  	
  Swedish

  

 

 

	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1990-03-23

  	
   

  	
  16

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1991-04-24

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1991-12-16

  	
   

  	
  10

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1992-10-20

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1992-11-11

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1993-06-15

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1995-09-06

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1996-06-17

  	
   

  	
  1

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the national licensing board for environment protection

  	
   

  	
  1998-12-03

  	
   

  	
  7

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government (not in data room)

  	
   

  	
  1971-09-24

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1979-09-13

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1981-09-24

  	
   

  	
  3

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1992-12-17

  	
   

  	
  9

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1996-10-10

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  1997-01-30

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Swedish Government

  Incorrect index. The decision is not from
  the Swedish

  Government. See decision from the national

  licensing board for environment protection 1998-12-03.

  	
   

  	
  1998-12-03

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the Swedish Government

  	
   

  	
  2002-06-13

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  1999-08-17

  	
   

  	
  23

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  2000-05-30

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  2000-05-30

  	
   

  	
  49

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Environmental Court

  	
   

  	
  2000-06-22

  	
   

  	
  2

  	
   

  	
  Swedish

  
	
   

  	
  Decision
  from the Supreme Environmental Court

  Incorrect index. The decision is not from
  the Supreme

  	
   

  	
  1999-08-17

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  Document

  	
   

  	
  Date of

  document

  	
   

  	
  Pages

  	
   

  	
  Language

  
	
   

  	
  Environmental Court. See decision from the

  Environmental Court 1999-08-17.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Decision
  from the Supreme Environmental Court

  	
   

  	
  2001-02-16

  	
   

  	
  5

  	
   

  	
  Swedish

  
	
   

  	
  Partial
  verdict from the Environmental Court (new document)

  	
   

  	
  2002-10-18

  	
   

  	
  13

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report August 2003 (new document 2003-09-11)

  	
   

  	
  August

  2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report July 2003 (new document 2003-09-11)

  	
   

  	
  July 2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report June 2003 (new document 2003-08-27)

  	
   

  	
  June 2003

  	
   

  	
  19

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report May 2003 (new document 2003-08-27)

  	
   

  	
  May 2003

  	
   

  	
  36

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report April 2003 (new document 2003-08-27)

  	
   

  	
  April 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report March 2003 (new document 2003-08-27)

  	
   

  	
  March 2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report February 2003 (new document 2003-08-27)

  	
   

  	
  February

  2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report January 2003 (new document 2003-08-27)

  	
   

  	
  January

  2003

  	
   

  	
  21

  	
   

  	
  Swedish

  
	
   

  	
  Environmental
  Report 2002 (new document 2003-06-19)

  	
   

  	
  2002

  	
   

  	
  82

  	
   

  	
  Swedish

  

 

 

Schedule 9.5.4

Purchaser’s Consents, Approvals and Clearance Decisions

 

 

CLEARANCE DECISIONS

 

 

TERMINATION AGREEMENT

 

(Shareholders’
Agreement)

 

This
termination agreement (the “Termination
Agreement”) is entered into as of [Insert Closing Date] among: 

 

(1)                       Preem Petroleum AB, company reg no 556072-6977 (“Preem”);
and 

 

(2)                       Hydro R&M Holding AB, company reg no 556061-7390 (“Hydro”);
and

 

(3)                       Skandinaviska Raffinaderi AB
Scanraff, company reg no 556041-9433 (“Scanraff”)

 

Preem, Hydro
and Scanraff are hereinafter collectively referred to as “parties” or individually as “party”:

 

1                               Background

 

1.1                            Preem and Hydro have as of 17 April 2002 entered into a
shareholders’ agreement (the “Shareholders’
Agreement”) regarding their ownership in Scanraff. Scanraff has
joined the Shareholders’ Agreement.

 

1.2                            Preem, Hydro and Norsk Hydro Lagrings & Distributions AB have as
of 17 September 2003 entered into a Purchase and Sales Agreement (the “PSA”) regarding inter alia the sale of all
of Hydro’s shares in Scanraff to Preem (the “Transaction”).
The closing of the Transaction (the “Closing”),
which is governed by the PSA, has taken place according to the terms and
conditions of the PSA on the date of this Termination Agreement (the “Closing Date”). The parties have agreed to
terminate the Shareholders’ Agreement in accordance with the terms set out
herein.

 

2                               Termination
of the Shareholders’ Agreement

 

The Shareholders’ Agreement hereby terminates
without further notice on Closing as of the Closing Date. 

 

3                               Law
and arbitration

 

3.1                            Any dispute arising out this Termination Agreement shall be finally
settled by arbitration in accordance with the Rules for Expedited Arbitrations
of the Arbitration Institute of the Stockholm Chamber of Commerce. 

 

3.2                            The place of arbitration shall be Stockholm and the language to be
used in the arbitral proceedings shall be English.

 

This
Termination Agreement has been executed in three (3) originals, of which the
parties have taken one each.

 

	
  PREEM
  PETROLEUM AB

  	
  HYDRO
  R&M HOLDING AB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

2

 

	
  SKANDINAVISKA
  RAFFINADERI AB SCANRAFF

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

3

 

 

TERMINATION AGREEMENT

 

(“Commission Agreement” Scanraff)

 

This termination agreement  (the “Termination
Agreement”) is entered into as of [Insert Closing Date] among:

 

(1)                       Skandinaviska Raffinaderi AB
Scanraff, company reg no 556041-9433 (“Scanraff”); and

 

(2)                       Preem Petroleum AB, company reg no 556072-6977 (“Preem”);
and 

 

(3)                       Hydro R&M Holding AB, company reg no 556061-7390 (“Hydro”).

 

Preem, Hydro and Scanraff are hereinafter
jointly referred to as “parties”
or individually as “party”:

 

1                               Background

 

1.1                            The parties have as of 29 December 2000 entered into a
“commission agreement” (the “Agreement”).

 

1.2                            Preem, Hydro and Norsk Hydro Lagrings & Distributions AB have as
of 17 September 2003 entered into a purchase and sale agreement (the “PSA”) regarding inter alia the sale of all
of Hydro’s shares in Scanraff to Preem (the “Transaction”).
Closing of the Transaction (the “Closing”),
which is governed by the PSA, has taken place according to the terms and
conditions of the PSA on the date of this Termination Agreement (“Closing Date”). The parties have agreed to
terminate the Agreement in accordance with the terms set out herein.

 

2                               Termination
of the Agreement

 

The Agreement will terminate without further
notice on Closing as of the Closing Date. 

 

3                               Law
and arbitration

 

3.1                            Any dispute arising out this Termination Agreement shall be finally
settled by arbitration in accordance with the Rules for Expedited Arbitrations
of the Arbitration Institute of the Stockholm Chamber of Commerce. 

 

3.2                            The place of arbitration shall be Stockholm and the language to be
used in the arbitral proceedings shall be English.

 

This Termination Agreement has been executed
in three (3) originals, of which the parties have taken one each.

 

	
  PREEM PETROLEUM AB

  	
  HYDRO R&M HOLDING AB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

4

 

	
  SKANDINAVISKA RAFFINADERI AB SCANRAFF

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5

 

TERMINATION AGREEMENT

 

(“Commission
Agreement” Scancracker)

 

 

This
termination agreement (the “Termination
Agreement” ) is entered into as of [Insert Closing Date] among: 

 

(1)                       Skandinaviska Kracker AB
Scancracker, company reg no 556019-9878 (“Scancracker”); and

 

(2)                       Preem Petroleum AB, company reg no 556072-6977 (“Preem”);
and 

 

(3)                       Hydro R&M Holding AB, company reg no 556061-7390 (“Hydro”).

 

Preem, Hydro
and Scancracker are hereinafter jointly referred to as “parties” or individually as “party”:

 

1                               Background

 

1.1                            The parties have as of 29 December 2000 entered into a
“commission agreement” (the “Agreement”).

 

1.2                            Preem, Hydro and Norsk Hydro Lagrings  & Distributions AB have as of 17 September 2003 entered
into a purchase and sale agreement (the “PSA”)
regarding inter alia the sale of all of Hydro’s shares in Scanraff to Preem
(the “Transaction”). Closing of the
Transaction (the “Closing”), which
is governed by the PSA, has taken place according to the terms and conditions
of the PSA on the date of this Termination Agreement (“Closing Date”). The parties have agreed to
terminate the Agreement in accordance with the terms set out herein.

 

2                               Termination
of the Agreement

 

The Agreement will terminate without further
notice on Closing as of the Closing Date.

 

3                               Law
and arbitration

 

3.1                            Any dispute arising out this Termination Agreement shall be finally
settled by arbitration in accordance with the Rules for Expedited Arbitrations
of the Arbitration Institute of the Stockholm Chamber of Commerce. 

 

3.2                            The place of arbitration shall be Stockholm and the language to be
used in the arbitral proceedings shall be English.

 

This
Termination Agreement has been executed in three (3) originals, of which the
parties have taken one each.

 

	
  PREEM
  PETROLEUM AB

  	
  HYDRO
  R&M HOLDING AB

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

6

 

	
  SKANDINAVISKA
  KRACKER AB SCANCRACKER

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

7

 

MOTOR
GASOLINE

SUPPLY CONTRACT (this
“Contract”) 2004 – 2008

 

Made as of 17th day of September 2003

 

 

BETWEEN:

 

(1.)   NORSK HYDRO OLJE AB

 

Tegeluddsvägen 76

S-102 54 Stockholm

 

Herein called the
“Buyer”

 

(2.)   PREEM
PETROLEUM AB

 

Sandhamnsgatan 51

115 90 Stockholm

 

Herein called the
“Seller”

 

 

The Seller has
agreed to sell and the Buyer has agreed to purchase and take from the Seller
motor gasoline solely on the terms and conditions contained in this Contract.

 

1.  
CONTRACT PERIOD

 

This Contract shall become
effective on the later of (a) January 1st 2004 and (b) the day defined as
Closing Date under the Purchase and Sale Agreement, among Hydro R&M Holding
AB, Norsk Hydro Lagrings & Distribution AB and the Buyer dated as of
September 17, 2003, and shall remain in force up to and including
December 31, 2008, unless earlier terminated in accordance with the
provisions herein.

 

 

Buyer and Seller are to discuss
the possibilities for further continuation of this Contract prior to 15th of
November of the final year of the Contract period (the first time being
prior to 15th of November 2008).

 

The parties will before 15th of
November of each Contract year review and, if required, renegotiate price
differentials, qualities, quantities and demurrage rates applicable for the
next calendar year.

 

2.   PRODUCT

 

The Seller shall provide to the Buyer motor
gasoline in the qualities set out in Appendix 1 (current Scanraff
specification) hereto.

 

3.   QUANTITY

 

Seller shall be Buyer’s exclusive supplier of
motor gasoline as specified in clause 2, and shall deliver those quantities
required by Buyer to secure steady and reliable supply to it’s depots in
Sweden, in accordance with Buyer’s nominations. The Buyer will indicate its
yearly requirement by 15 November of the year prior to the year of
delivery. The following quantity is indicated for the calendar year 2004:

 

UMS 95 MK1             About 450,000 to   500,000 m3/year

UMS 98 MK1             About  
45,000 to     50,000 m3/year

 

4.   SAMPLE AND ANALYSIS: CHANGE IN
SPECIFICATIONS

 

2 samples of 1 litre each to follow the
vessel for each shipment/quality.

 

Property analysis of the products is to be
carried out by methods stated in the corresponding specifications/Appendix 1 or
by corresponding methods normally used by Buyer for deliveries into Sweden.

 

If during the course of this Contract the
relevant and agreed specifications should change by reason of change in Swedish
law or applicable regulation, notice of any changes will be communicated in
writing by Buyer to Seller not later than two weeks after official announcement
or at least two months before delivery of such product hereunder. The
specifications enclosed in Appendix 1 hereto shall be amended in accordance with
Seller’s notice, provided that Buyer and Seller agree on the terms and
consequences of such changes, i.e. either party shall have the right to request
a re-negotiation of price following such change. If agreement on price cannot
be reached latest two weeks before delivery, the Contract will terminate with
immediate effect.

 

5.   DELIVERY

 

Deliveries shall be made CIF (according to
Incoterms 2000) one safe discharge port/ berth as nominated by Buyer. Vessel
size shall be in Seller’s option, however the same always to be within the
restrictions of the relevant discharge port/berth.

 

 

Buyer has the option to lift up to 20 pct. of
the contractual volumes on a FOB basis (according to Incoterms 2000). In such
case, Seller has the option to deliver from Scanraff or Preemraff but always in
accordance with Buyer’s nomination.

 

Buyer may request two-port discharge at a
surcharge of US dollar 1.00/Metric ton for Buyer’s entire cargo volume on board
the vessel. For such two port discharge, the price for the more distant
destination will apply to Buyer’s entire cargo volume (i.e. highest CIF price
formula).

 

A shipping tolerance of +/- 10% variation in
quantity shall apply in Seller’s option.

 

 

6.              PRICE

 

6.1       General

Prior to 15th of
November each year, the parties shall agree the applicable prices for the
next succeeding Contract year. It is agreed and understood between the parties
that the Buyer shall be treated as a most favoured customer of the Seller, so
that the prices, terms and conditions offered to the Buyer shall be competitive
and not unfavourable when compared to equivalent prices, terms and conditions
offered by the Seller to it’s other purchasers. The Buyer and the Seller shall
appoint their auditors who jointly shall review the contract portfolio of and
offers given by Seller in order to ascertain that the terms and prices offered
by the Seller to Buyer are, in accordance with Clause 6.1. If the parties’
auditors cannot agree on the terms and prices, the parties shall jointly
appoint an independent auditor who shall review the contract porfolio of and
offers given by Seller in order to ascertain that the terms and prices offered
to the Seller by the Buyer are in accordance with clause 6.1 or, alternatively
advise of which prices, terms and conditions should apply. The auditor’s
findings shall be binding on the parties. If the parties cannot agree on the
independent auditor such auditor shall be appointed by the Chairman of the
Swedish Chartered Auditors Organization.

 

The prices defined herein are based on Platt’s quotations. If any
structural changes to the applicable Platt’s quotations occur or the Platt’s
quotations ceases to be published during the term of this Contract, Buyer and
Seller shall confer and use best efforts to agree within 3 weeks upon the
adoption of another internationally recognised pricing formula which is of a
similar nature to and is consistent with the intent and operation of Platt’s
quotations. Until agreement is reached, then the last available Platt’s
quotations shall be used in calculating the price. Argus quotations may be
applied by mutual agreement.

 

The prices applicable to deliveries in 2004
are set out in clause 6.2.

 

6.2       Gasoline

 

The price for gasoline is based on the average of quotations under
“Platts European Marketscan cargoes CIF high NWE, basis ARA”, for Premium
Unleaded, in the B/L month, with the following premiums or deductions:

 

 

	
  Delivery site

  	
   

  	
   

  	
   

  	
  PCCH

  	
   

  	
  Shipment size

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FOB Scanraff

  	
   

  	
  -

  	
   

  	
  Usd 4.00/Mt

  	
   

  	
  Case by case basis

  	
   

  	
   

  
	
  CIF Gothenburg

  	
   

  	
  -

  	
   

  	
  Usd 0.25/Mt

  	
   

  	
  4,000 mt

  	
   

  	
   

  
	
  CIF Malmø

  	
   

  	
  +

  	
   

  	
  Usd 1.00/Mt

  	
   

  	
  10,000 mt

  	
   

  	
   

  
	
  CIF Karlshamn

  	
   

  	
  +

  	
   

  	
  Usd 2.50/Mt

  	
   

  	
  10,000 mt

  	
   

  	
   

  
	
  CIF Karlstad

  	
   

  	
  +

  	
   

  	
  Usd 4.00/Mt

  	
   

  	
  3,000 mt

  	
   

  	
   

  
	
  CIF Norrkjøping

  	
   

  	
  +

  	
   

  	
  Usd 5.00/Mt

  	
   

  	
  10,000 mt

  	
   

  	
  (Includes E5 Bas)

  
	
  CIF Gævle

  	
   

  	
  +

  	
   

  	
  Usd 3.50/Mt

  	
   

  	
  10,000 mt

  	
   

  	
   

  
	
  CIF Stockholm

  	
   

  	
  +

  	
   

  	
  Usd 5.00/Mt

  	
   

  	
  10,000 mt

  	
   

  	
  (Includes E5 Bas)

  
	
  CIF Piteå

  	
   

  	
  +

  	
   

  	
  Usd 9.00/Mt

  	
   

  	
  10,000 mt

  	
   

  	
   

  
	
  CIF Holmsund

  	
   

  	
  +

  	
   

  	
  Usd 7.50/Mt

  	
   

  	
  10.000 mt

  	
   

  	
   

  

 

Due to storage on water bed, Seller shall deliver Motor gasoline (UMS
95) for shipment to and storage at Stockholm and Holmsund free from MTBE.

 

Following quality premiums shall apply:

 

	
  UL98 MK 1 :

  	
   

  	
  Usd 21.00/Mt over UMS 95 Mk1 reference price

  
	
  E5 Bas

  	
   

  	
  + Usd 2.50/Mt (if applicable to any other contractual destination
  than Norrköping and Stockholm)

  

 

The price is based on a standard
density of 0.7550 kg/l. If the density of the cargo in question from Seller
differs from the above, the price shall be adjusted according to the following
formula:

 

P1  = T1 /
(P x T)

 

where:

	
  P1

  	
   

  	
  =  invoiced price

  
	
  P

  	
   

  	
  =  formula price, as defined
  in Clause 6.2

  
	
  T

  	
   

  	
  =  standard density of 0.7550
  kg/l at 15°C

  
	
  T1

  	
   

  	
  =  actual density at 15°C, in accordance with the

  
	
   

  	
   

  	
  Quality Certificate - corrected to air.

  

 

7.  
INVOICING

 

A preliminary
invoice is to be issued based on the elements of the price formula available on
B/L-date.

 

In case B/L-date is on Saturday, non-Monday
bank holiday or any other day with no published quotation, then the preceding
published quotation to apply. In case the B/L-date is on a Sunday or Monday
bank holiday then the immediately following published quotation to apply.

 

Final Invoice or credit note to be issued and
sent to Buyer within three (3) working days after all necessary quotations, and
payment to be effected in accordance with clause 8.

 

8.   PAYMENT

 

Buyer to effect preliminary payment latest 5
calendar days after receipt of invoice.

 

 

Final settlement shall take place latest 15
days after B/L month in local currency, using the National’s Bank official mean
exchange rate for local currency/USD for the B/L month for currency exchange
from USD. Payment shall be made in net cash against (i) Invoice / telex / fax /
e-mail Invoice and documents or (ii) Seller’s Letter / telex Letter of
Indemnity.

 

In case the due date for payment falls on a
Saturday or non-Monday New York bank holiday then the invoice is due on the
preceding New York banking day. In case the due date falls on a Sunday or
Monday New York bank holiday then the invoice is due on the following New York
banking day.

 

9.
DEFAULT INTEREST

 

In case Buyer fails to execute payment for
the product as stated in clause 8 above, default interest at the rate of STIBOR
plus 2.5 percent (2.5%) per year shall incur from the due date until payment is
made.

 

10.
INSURANCE

 

Seller shall take out and pay for insurance
against maritime risks to 110 % of the invoice value of the product delivered
hereunder. The insurance shall be on “all risks” conditions against civil
risks, with deductible of one half (0,5) percent, in accordance with the
standard policy of “ Norwegian conditions relating to insurance for the
carriage of goods. Cefor form no.252” or institute Cargo Clauses (A) of 1.1.82.
The benefit of the insurance

shall accrue to the Buyer upon property and
risk passing to the Buyer pursuant to clause 11.

 

 

11.
TITLE AND RISK

 

Title to and risk of the said goods (Buyer’s
volumes) pass to Buyer at loadport when cargo passes the flange connection
between the vessel’s first permanent cargo manifold and Seller’s loading hose.

 

12.   DECLARATIONS / NOMINATIONS

 

12.1
Scheduling

 

No later than the 15th day of each
calendar month, or the immediately following working day if the 15th
day is a non-working day, Buyer shall provide Seller with a firm delivery
program for the following calendar month with a 5 calendar day delivery range
for each delivery.

 

Seller shall accept such program or propose
possible changes within 5 working days from Buyer’s nomination and the parties
shall agree thereon by the 25th day of the same month.

 

12.2.  Nomination and Acceptance of Vessel

 

Seller shall as soon as possible, and not
later than five (5) days prior to the first day of the agreed delivery window
notify Buyer by telephone/fax/telex/e-mail the name of the

 

 

vessel nominated to load the cargo. The
vessel shall be SIS approved and in all respects acceptable to Buyer. Buyer’s
acceptance of the vessel shall not be unreasonably withheld.

 

This clause to apply mutatis mutandis to FOB
deliveries.

 

13.  VESSEL DETAILS AND NOTICES

 

Not later than 2 working days prior to
Vessel’s arrival at the port of loading Seller will send a notice to Buyer
specifying:

 

	
  I

  	
   

  	
  Name of Vessel

  
	
  II

  	
   

  	
  Estimated quantity of cargo to be loaded

  
	
  III

  	
   

  	
  Preliminary ETA (estimated time of arrival) load/discharge port

  
	
  IV

  	
   

  	
  Agents at discharge port

  

 

Seller will arrange for each vessel to notify Buyer or its
representative at discharge port of the following:

 

	
  I

  	
   

  	
  Time of completion of loading

  
	
  II

  	
   

  	
  Bill of Lading (B/L) figures

  
	
  III

  	
   

  	
  48 (if applicable) and 24 hours (if applicable) notice of ETA
  discharge port, and thereafter any variations of more than 12 hours.

  
	
  IV

  	
   

  	
  Cargo analysis

  

 

14.  DOCUMENT INSTRUCTION

 

The following documents shall be issued and
presented to the Buyer:

 

	
  B/L

  	
   

  	
  1 original

  	
   

  	
  and

  	
   

  	
  4 copies

  
	
  Certificate of Quantity

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Certificate of Quality

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Tank Inspection Report

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Ullage Report

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Time Sheet

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  

 

	
  Master’s receipt for

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  shipsbag and samples

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  AAD-document

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  2”

  

 

Seller shall ensure that Certificate of
Quantity and Quality is issued in accordance with good standard practice at the
port of loading. Save for fraud or manifest error, the said Certificates shall
be conclusive and binding for both parties.

 

Buyer shall send to Seller a revised list of
all fax numbers of the Buyer’s terminals on the East Coast of Sweden. As soon
as issued, Seller to fax the Certificate of Quality in question to the relevant
terminal(s) at nominated discharge port(s).

 

 

15.   LAYTIME / DEMURRAGE

 

For the purpose of calculating demurrage, the
provisions of SHELLVOY 5 shall apply. The Buyer will incur demurrage based on
the below allowances and demurrage rates.

 

	
  Cargo size in

  metric tons

  	
   

  	
  Time for

  discharge

  	
   

  	
  Demurrage

  (USD/24 hours)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5,001 – 8,500

  	
   

  	
  12

  	
   

  	
  10,000

  
	
  9,001 – 11,000

  	
   

  	
  18

  	
   

  	
  14,000

  
	
  11,001 – 15,000

  	
   

  	
  24

  	
   

  	
  14,500

  

 

Demurrage for periods less than 24 hours
shall be calculated using the above rates on a pro rata basis.

 

With respect to FOB deliveries, the above
demurrage rates and laytime allowances shall apply corresponding to the Seller.

 

16.   DETERMINATION OF QUANTITY AND QUALITY

 

As ascertained at the load port and, if
requested, confirmed by an Independent Inspector whose findings shall be
binding on both parties. Costs for the independent inspection are to be shared
fifty/fifty between Buyer and Seller.

 

17.
COMPULSORY STORAGE

 

Seller shall throughout the term of this Contract keep and maintain a
stock of 65,000 m3 of motor gasoline, as part of Buyer’s compulsory stock
obligations. For such services Buyer shall within the 10th day of the following
month pay a monthly fee (“F”), which is calculated according to the following
formula:

 

F= Volume x Density x Gasoline Price x Interest Rate/12

 

Where

 

Volume                                                                             =
65,000 m3

Density                                                                           =
0.7550 MT/m3

Gasoline Price                                          =
Price in USD/MT for said month for deliveries CIF Gothenburg of motor gasoline
UMS 95  determined in accordance with
clause 6 in this Contract

Interest rate                                                     =
the rate per annum quoted at or about 11:00 noon London time on the first
business day during said calendar month for one month deposits in USD offered
by first rate commercial banks operating in the London Inter bank market
(LIBOR) as published on Reuters page LIBOR01 plus 1.0 percent p.a. (1.0% p.a.),
or if such rate is not available, a substitute rate being the arithmetic mean
of the rates offered for deposits in USD by Citibank (London) and Barclays Bank  plc
(London).

 

 

The stock
coverage is dependent on approval from the relevant authority
“Energimyndigheten” to whom an application shall be submitted jointly.

 

18.
DEPOT COLLABORATION 

 

Seller shall offer Buyer a through put
agreement at Seller’s depots, owned or leased, in Malmø, Kalmar and Sundsvall
at a price of SEK 25.00/m3 for motor gasoline (inclusive Vapour Recovery Cost),
or equivalent price in EUR in the case Sweden joins the European Monetary Union.
Terms and conditions other than price shall be negotiated separately.

 

The parties shall seek to utilise any
benefits available in co-operation on the use of each other’s existing depots.
Any economic benefits gained in such co-operation shall be shared equally
between the parties.

 

19.   HARDSHIP

 

If there should occur extraordinary
circumstances independent of the will of the parties hereto, unforeseeable at
the time this Contract was concluded and which profoundly alter the relative
rights and obligations of this Contract to the detriment of one of the parties,
by increasing that party’s contractual obligations in an excessive way, the
parties shall seek to modify this Contract in an equitable fashion in order to
re-establish the balance of their reciprocal duties, while protecting their
respective interests.

 

20.  FORCE MAJEURE

 

Force majeure which includes, but is not
limited to, acts of God, fire, flood, earthquake, explosions, riots, civil
commotions, war and acts of authorities, strikes, lockouts, accident to
machinery, delays en route or any cause of any kind of character reasonably
beyond the control of the party, affecting the parties ability to perform under
this Contract shall for the duration of such contingencies and to the extent
resulting therefrom, release the parties hereto from their respective
obligations pursuant to this Contract, except the obligation to make payment.

 

As soon as there are signs that any of the
foregoing contingencies will occur, the party affected shall be obligated to
notify the other immediately and shall discuss with the other party the effects
of such contingencies on the provisions of this Contract and what measures
shall be taken.

 

The parties shall make every reasonable
effort to prevent or limit the detrimental effects of such contingencies.

 

They shall be obligated to resume fulfilling
their obligations under this Contract as soon as reasonably possible.

 

 

21.  
GOVERNING LAW AND JURISDICTION

 

This Contract shall be governed by and
construed in accordance with the Laws of Sweden.

 

The Parties hereto submit to arbitration in
accordance with the Rules of the Arbitration Institute of the Stockholm Chamber
of Commerce.

 

22.   WARRANTY

 

Seller warrants that the products will
conform to the specifications, unless otherwise agreed between Buyer and Seller
prior to shipment. All other warranties, expressed or implied, by operation of
law or otherwise, included without limitation, implied warranties of
merchantability or fitness for a particular purpose or use, are expressly
excluded.

 

23.   CLAIMS, LIABILITY

 

Failure of Buyer to notify Seller of any
claim as to quality or quantity within forty- five (45) days after receipt of
shipment shall constitute waiver by Buyer of any claim.

 

Neither party shall be liable for any
indirect or consequential loss or damage the other party may sustain.

 

24.   CONFIDENTIALITY

 

The parties
hereto agree not to divulge the terms and conditions of this Contract or the
dealings hereunder to any third-parties without the prior written consent of
the other party, save that the parties may divulge to banks, professional
advisers and affiliates, in addition to responses to formal demands by
government or other duly authorised persons and any requirements from any stock
exchange. Furthermore, Buyer shall be at liberty after informing the Seller to
disclose the content of this Contract to potential purchasers of (i) all issued
and outstanding shares in the Buyer, or (ii) the majority of its assets and
operations related to purchase, distribution and marketing of motor gasoline

 

25.   TAXES AND GOVERNMENT LEVY

 

Swedish VAT regulations to apply.

 

26.  ASSIGNMENT

 

Neither of the parties may assign its rights
and obligations under this Contract without the other party’s prior written
consent, such consent not to be unreasonably withheld. It is further agreed
that such consent can only be reasonably withheld if the proposed assignee’s
ability to perform the assigned obligations under this Contract can be
reasonably doubted.

 

 

27.   TERMINATION

 

27.1 Termination by default

 

Either party shall have the right to
terminate this Contract without notice upon the occurrence of any or all the
following events:

 

A)          The other party is declared bankrupt or is
otherwise considered unable to fulfil its economical obligations as they fall
due; or

B)            The other party commits a material breach
of this Contract

 

27.2 Failure to agree on prices

 

If the parties fail to agree on prices or
other parameters as outlined in clause 6.1 by November 15th,
then the Contract will automatically be terminated as from January 1st
the next following contract year.

 

27.3 Divestment of shares / assets

 

The Buyer may terminate this Contract by
giving written notice thereof if (i) all issued and outstanding shares in the
Buyer, or (ii) the majority of its assets and operations related to purchase,
distribution and marketing of motor gasoline are assigned, sold or transferred
to a person or company other than Norsk Hydro ASA and/or its affiliates. Any
termination according to this clause 27.3 shall become effective at the expiry
of the calendar year in which the notice is given.

 

28.   NOTICES

 

To be sent to Buyer’s and Seller’s respective
operations department, as follows:

 

	
  Norsk Hydro Olje AB

  	
   

  	
  Preem Petroleum AB

  
	
  Tegeluddsvägen 76

  	
   

  	
  Sandhamnsgatan 51

  
	
  S-102 54 Stockholm

  	
   

  	
  S- 115 90 Stockholm

  

 

29.   INVALIDITY

 

If any provision in this Contract shall be
held to be illegal, invalid or unenforceable, in whole or in part, such
provision or part shall to that extent be deemed not to form part of this
Contract but the legality, validity or enforceability of the remainder of this
Contract shall not be affected.

 

If any illegal, invalid or unenforceable
provision would be legal, valid and enforceable if some part of it were deleted
or modified, the provision shall apply with whatever deletion or modification
is necessary to give effect to the commercial intention of the parties.

 

30.   COUNTERPARTS

 

This Contract is issued in two originals, one
for each party.

 

 

	
   

  	
  SELLER

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
  Preem Petroleum AB

  	
  Norsk Hydro Olje AB

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  9.17.2003

  	
  Stockholm

  	
   

  	
  9.17.2003
  

  	
  Stockholm

  	
   

  
	
   

  	
  Date

  	
  Place

  	
  Date 

  	
  Place

  
									

 

 

DIESEL

 

SUPPLY
CONTRACT (this “Contract”)  2004 – 2008

 

Made as of 17th day of September 2003

 

 

BETWEEN:

 

(1.) 
NORSK HYDRO OLJE AB

 

Tegeluddsvägen 76

S — 10254 Stockholm

 

Herein called  the “Buyer”

 

 

(2.)  PREEM PETROLEUM AB

 

Sandhamnsgatan 51

S- 115 90 Stockholm

 

Herein called the
“Seller”

 

The Seller has
agreed to sell and the Buyer has agreed to purchase and take from the Seller diesel
solely on the terms and conditions contained in this Contract.

 

1.  CONTRACT PERIOD

 

This Contract  shall become
effective on the later of (a) January 1st 2004 and (b) the day
defined as Closing Date under the Purchase and Sale Agreement, among Hydro
R&M Holding AB, Norska Hydro Lagrings & Distributions AB and the Buyer
dated as of September 17, 2003, and shall remain in force up to and
including December 31, 2008, unless earlier terminated in accordance with
the provisions herein.

 

Buyer and Seller are to discuss the possibilities for further
continuation of this Contract prior to 15th of November of the
final year of the Contract period (the first time being prior to 15th
of November 2008).

 

 

The parties will before 15th of November of each Contract
year review and eventually renegotiate price differentials, qualities,
quantities and demurrage rates applicable for the next calendar year.

 

2.   PRODUCT

 

The Seller shall provide to the Buyer diesel MK1 in the quality set out
in Appendix 1 (current Scanraff specification) hereto.

 

3.   QUANTITY

 

Seller shall be Buyer’s exclusive supplier of diesel MK1 as specified
in clause 2, and shall deliver those quantities required by Buyer to secure
steady and reliable supply to it’s depots in Sweden, in accordance with Buyer’s
nominations. The Buyer will indicate its yearly requirement by 15
November of the year prior to the year of delivery. The following quantity
is indicated for the calendar year 2004:

 

	
  Diesel

  	
   

  	
  MK1

  	
   

  	
  About 480,000 to 520,000 m3

  

 

4.   SAMPLE AND ANALYSIS: CHANGE IN
SPECIFICATIONS

 

2 samples of 1 litre each to follow the vessel for each
shipment/quality.

 

Property analysis of the products is to be carried out by methods
stated in the corresponding specifications/Appendix 1 or by corresponding methods
normally used by Buyer for deliveries into Sweden.

 

If during the course of this Contract the relevant and agreed
specifications should change by reason of change in Swedish law or applicable
regulation, notice of any changes will be communicated in writing by Buyer to
Seller not later than two weeks after official announcement or at least two
months before delivery of such product hereunder. The specifications enclosed
in Appendix 1 hereto shall be amended in accordance with Seller’s notice,
provided that Buyer and Seller agree on the terms and consequences of such
changes, i.e. either Party shall have the right to request a re-negotiation of
price following such change. If agreement on price cannot be reached latest two
weeks before delivery, the Contract will terminate with immediate effect.

 

5.  DELIVERY 

 

Deliveries shall be made CIF (according to
Incoterms 2000) one safe discharge port/ berth as nominated by Buyer. Vessel
size shall be in Seller’s option, however the same always to be within the restrictions
of the relevant discharge port/berth.

 

Buyer has the option to lift up to 20 pct. of
the contractual volumes on a FOB basis (according to Incoterms 2000). In such
case, Seller has the option to deliver from Scanraff or Preemraff but always in
accordance with Buyer’s nomination.

 

 

Buyer may request two-port discharge at a
surcharge of US dollar 1.00/Metric ton for Buyer’s entire cargo volume on
board  the vessel. For such two port
discharge, the price for the more distant destination will apply to Buyer’s
entire cargo volume (i.e. highest CIF price formula).

 

A shipping tolerance of +/- 10% variation in
quantity shall apply in Seller’s option.

 

6.   PRICE

 

6.1   General

 

Prior to 15th of November each year, the parties shall
agree the applicable prices for the next succeeding Contract year. It is agreed
and understood between the parties that the Buyer shall be treated as a most
favoured customer of the Seller, so that the prices, terms and conditions
offered to the Buyer shall be competitive and not unfavourable when compared to
equivalent prices, terms and conditions offered by the Seller to it’s other
purchasers. The Buyer and the Seller shall appoint their auditors who jointly
shall review the contract portfolio of and offers given by Seller in order to
ascertain that the terms and prices offered by the Seller to Buyer are in
accordance with clause 6.1. If the parties’ auditors cannot agree they shall
jointly appoint an independent auditor, who shall review or alternatively
advise of which prices, terms and conditions should apply. The auditor’s
findings shall be binding on the parties. If the parties cannot agree on the
independent auditor such auditor shall be appointed by the Chairman of the
Swedish Chartered Auditors Organization.

 

The prices defined herein are based on Platt’s quotations. Argus
quotations can be used  if mutually
agreed. If any structural changes to the applicable Platt’s quotations occur or
the Platt’s quotations ceases to be published during the term of this Contract,
Buyer and Seller shall confer and use best efforts to agree within 3 weeks upon
the adoption of another internationally recognised pricing formula which is of
a similar nature to and is consistent with the intent and operation of Platt’s
quotations. Until agreement is reached, then the last available Platt’s
quotations shall be used in calculating the price. Argus quotations may be
applied by mutual agreement.

 

The prices applicable to deliveries in 2004 are set out in clause 6.2.

 

6.2   Diesel MK1

 

The prices below are agreed for deliveries in 2004 and are based on the
average of quotations under “Platts European Marketscan cargoes CIF NWE basis
ARA”, for EN590 High quotations in B/L month, plus a premium of:

 

 

	
  Delivery
  site

  	
   

  	
  PCCH

  	
   

  	
  Shipment
  size

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FOB Scanraff

  	
   

  	
  + USD 39.00/mt

  	
   

  	
  Case by case basis

  
	
  FOT Scanraff

  	
   

  	
  + USD 41.00/mt

  	
   

  	
  N/A

  
	
  CIF Gothenburg

  	
   

  	
  + USD 41.00/mt

  	
   

  	
  7,000 mt

  
	
  CIF Malmø

  	
   

  	
  + USD 44.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Karlshamn

  	
   

  	
  + USD 44.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Karlstad

  	
   

  	
  + USD 47.00/mt

  	
   

  	
  3,000 mt

  
	
  CIF Norkjøping

  	
   

  	
  + USD 44.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Gævle

  	
   

  	
  + USD 44.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Stockholm

  	
   

  	
  + USD 44.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Holmsund

  	
   

  	
  + USD 48.00/mt

  	
   

  	
  10,000 mt

  
	
  CIF Hudviksvall

  	
   

  	
   

  	
  + USD 48.00/

  	
   

  	
   

  	
  10,000 mt

  
	
  mt

  	
   

  	
   

  	
   

  	
   

  
	
  CIF Piteå

  	
   

  	
  + USD 48.00/mt

  	
   

  	
  10,000 mt

  
							

 

The prices are based on the B/L-quantity in vacuum.

No density escalation.

 

 

In case the Tax Incentive for MK1 Diesel should change or cease to
exist during the Contract Period, then Buyer and Seller shall discuss the
necessary steps to be taken regarding pricing. If agreement on pricing cannot
be reached latest two weeks before delivery, the Contract will terminate with
immediate effect.

 

7.   INVOICING 

 

A preliminary invoice is to be issued based
on the elements of the price formula available on B/L-date.

 

In case B/L-date is on Saturday, non-Monday
bank holiday or any other day with no published quotation, then the preceding
published quotation to apply. In case the B/L-date is on a Sunday or Monday
bank holiday then the immediately following published quotation to apply.

 

Final Invoice or credit note to be issued and
sent to Buyer within three (3) working days after all necessary quotations, and
payment to be effected in accordance with clause 8.

 

8.   PAYMENT 

 

Buyer to effect preliminary payment latest 5
calendar days after receipt of invoice.

 

Final settlement shall take place latest 15 days after B/L month in
local currency, using the National’s Bank official mean exchange rate for local
currency/USD for the B/L month for currency exchange from USD. Payment shall be
made in net cash against (i) Invoice / telex / fax / e-mail Invoice and
documents or (ii) Seller’s Letter / telex Letter of Indemnity.

 

In case the due date for payment falls on a Saturday or non-Monday New
York bank holiday then the invoice is due on the preceding New York banking
day. In case the due date falls on a Sunday or Monday New York bank holiday
then the invoice is due on the following New York banking day.

 

 

9. DEFAULT INTEREST

 

In case Buyer fails to execute payment for the product as stated in
clause 8 above, default interest at the rate of STIBOR plus  2.5 percent (2.5 %) per year shall incur
from the due date until payment is made.

 

10. INSURANCE

 

Seller shall take out and pay for insurance against maritime risks to
110 % of the invoice value of the product delivered hereunder. The insurance
shall be on “all risks” conditions against civil risks, with deductible of one
half (0,5) percent, in accordance with the standard policy of “ Norwegian
conditions relating to insurance for the carriage of goods. Cefor form no.252”
or institute Cargo Clauses (A) of 1.1.82. The benefit of the insurance

 

shall accrue to the Buyer upon property and risk passing to the Buyer
pursuant to clause 11.

 

11. TITLE AND RISK

 

Title to and risk of the said goods (Buyer’s volumes) pass to Buyer at
load port when cargo passes the flange connection between the vessel’s first
permanent cargo manifold and Seller’s loading hose.

 

12.   DECLARATIONS / NOMINATIONS

 

12.1 Scheduling

 

No later than the 15th 
day of each calendar month or the immediately following working day, if
the 15th day is a non-working day, Buyer shall provide Seller with a
firm delivery program for the following calendar month with a 5 calendar day
delivery range for each delivery.

 

Seller shall accept such program or propose possible changes within 5
working days from Buyer’s nomination and the parties shall agree thereon by the
25th day of the same month.

 

12.2.  Nomination and Acceptance of Vessel

 

Seller shall as soon as possible, and not later than five (5) days
prior to the first day of the agreed delivery window notify Buyer by
telephone/fax/telex/e-mail the name of the vessel nominated to load the cargo.
The vessel shall be SIS approved and in all respects acceptable to Buyer.
Buyer’s acceptance of the vessel shall not be unreasonably withheld.

 

This clause to apply mutatis mutandis to FOB deliveries.

 

13.  VESSEL DETAILS AND NOTICES

 

Not later than 2 working days prior to Vessel’s arrival at  the port of loading Seller will send a
notice to Buyer specifying:

 

 

I                                            Name
of Vessel

 

II                                        Estimated
quantity of cargo to be loaded

 

III                                    Preliminary
ETA (estimated time of arrival) load/discharge port

 

IV                                    Agents at discharge port

 

Seller will arrange for each vessel to notify Buyer or its
representative at discharge port of the following:

 

I                                            Time
of completion of loading

 

II                                        Bill
of Lading (B/L) figures

 

III                                    48 (if applicable)
and 24 hours (if applicable) notice of ETA discharge port, and thereafter any
variations of more than 12 hours.

 

IV                                    Cargo
analysis

 

14.  DOCUMENT INSTRUCTION

 

The following documents shall be issued and presented to the Buyer:

 

	
  B/L

  	
   

  	
  1 original

  	
   

  	
  and

  	
   

  	
  4 copies

  
	
  Certificate of Quantity

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Certificate of Quality

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Tank Inspection Report

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Ullage Report

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Time Sheet

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  Master’s receipt for

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  shipsbag and samples

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  4 “

  
	
  AAD-document

  	
   

  	
  1 “

  	
   

  	
  “

  	
   

  	
  2”

  

 

Seller shall ensure that Certificate of Quantity and Quality is issued
in accordance with good standard practice at the port of loading. Save for
fraud or manifest error, the said Certificates shall be conclusive and binding
for both parties.

 

Buyer shall send to Seller a revised list of all fax numbers of the
Buyer’s terminals on the East Coast of Sweden. As soon as issued, Seller to fax
the Certificate of Quality in question to the relevant terminal(s) at nominated
discharge port(s).

 

15.   LAYTIME / DEMURRAGE

 

For the purpose of calculating demurrage, the provisions of SHELLVOY 5
shall apply. The Buyer will incur demurrage based on the below allowances and
demurrage rates.

 

	
  Cargo size
  in

  metric tons

  	
   

  	
  Time for

  discharge

  	
   

  	
  Demurrage

  (USD/24 hours)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5,001 — 7,500

  	
   

  	
  12

  	
   

  	
  10,000

  
	
  9,001 — 11,000

  	
   

  	
  18

  	
   

  	
  14,000

  
	
  11,001 - 15,000

  	
   

  	
  24

  	
   

  	
  14,500

  

 

 

Demurrage for periods less than 24 hours shall be calculated using the
above rates on a pro rata basis.

 

With respect to FOB deliveries, the above demurrage rates and laytime
allowances shall apply corresponding to the Seller.

 

16.   DETERMINATION OF QUANTITY AND QUALITY

 

As ascertained at the load port and, if requested, confirmed by an
Independent Inspector whose findings shall be binding on both parties. Costs
for the independent inspection are to be shared fifty/fifty between Buyer and
Seller.

 

17.  COMPULSORY STORAGE 

 

Seller shall throughout the term of this Contract keep and maintain a
stock of  125,000 m3 of gasoil and, or
diesel, as part of Buyer’s compulsory stock obligations. For such services
Buyer shall within the 10th day of the following month pay a monthly fee (“F”),
which is calculated according to the following formula:

 

	
  F = Volume x Density x Gasoil 
  Price x Interest Rate/12

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Where:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Volume

  	
   

  	
  = 125,000 m3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Density

  	
   

  	
  = 0,860 Mt/m3

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Gasoil Price

  	
   

  	
  = Monthly average of Platt’s CIF Rotterdam mean quotation for

  	
   

  
	
   

  	
   

  	
  Gasoil 0,2 S.

  	
   

  
	
  Interest rate

  	
   

  	
  = the rate per annum quoted at or about 11:00 noon London time on the
  first business day during said calendar month for one month deposits in USD
  offered by first rate commercial banks operating in the London Inter bank
  market (LIBOR) as published on Reuters page LIBOR01 plus 1.0 percent p.a. (1,0% p.a.), or if such rate is not
  available, a substitute rate being the arithmetic mean of the rates offered
  for deposits in USD by Citibank (London) and Barclays Bank plc (London).

  	
   

  

 

18.  
DEPOT COLLABORATION 

 

Seller shall offer Buyer a through put agreement at Seller’s depots,
owned or leased, in Malmø, Kalmar and Sundsvall at a price of SEK 15.00/m3 for
gasoil qualities, or equivalent price in EUR in the case Sweden should join the
European Monetary Union. Terms and conditions other than price shall be
negotiated separately.

 

The parties shall seek to utilise any benefits available in
co-operation on the use of each other’s existing depots. Any economic benefits
gained in such cooperation shall be shared equally between the parties.

 

19.  
HARDSHIP

 

If there should occur extraordinary circumstances independent of the
will of the parties hereto, unforeseeable at the time this Contract was
concluded and which profoundly alter

 

 

the relative rights and obligations of this Contract to the detriment
of one of the parties, by increasing that party’s contractual obligations in an
excessive way, the parties shall seek to modify this contract in an equitable
fashion in order to re-establish the balance of their reciprocal duties, while
protecting their respective interests.

 

20.  FORCE MAJEURE

 

Force majeure which includes, but is not limited to, acts of God, fire,
flood, earthquake, explosions, riots, civil commotions, war and acts of authorities,
strikes, lockouts, accident to machinery, delays en route or any cause of any
kind of character reasonably beyond the control of the party, affecting the
parties ability to perform under this Contract shall for the duration of such
contingencies and to the extent resulting therefrom, release the parties hereto
from their respective obligations pursuant to this Contract, except the
obligation to make payment.

 

As soon as there are signs that any of the foregoing contingencies will
occur, the party affected shall be obligated to notify the other immediately
and shall discuss with the other party the effects of such contingencies on the
provisions of this Contract and what measures shall be taken.

 

The parties shall make every reasonable effort to prevent or limit the
detrimental effects of such contingencies.

 

They shall be obligated to resume fulfilling their obligations under
this Contract as soon as reasonably possible.

 

21.  GOVERNING LAW AND JURISDICTION

 

This contract shall be governed by and construed in accordance with the
Laws of Sweden.

 

The Parties hereto submit to arbitration in accordance with the Rules
of the Arbitration Institute of the Stockholm Chamber of Commerce.

 

22.   WARRANTY

 

Seller warrants that the products will conform to the specifications,
unless otherwise agreed between Buyer and Seller prior to shipment. All other
warranties, expressed or implied, by operation of law or otherwise, included
without limitation, implied warranties of merchantability or fitness for a
particular purpose or use, are expressly excluded.

 

23.   CLAIMS, LIABILITY

 

Failure of Buyer to notify Seller of any claim as to quality or
quantity within forty-five (45) days after receipt of shipment shall constitute
waiver by Buyer of any claim.

 

 

Neither party shall be liable for any indirect or consequential loss or
damage the other party may sustain.

 

 

24.   CONFIDENTIALITY

 

The parties hereto agree not to divulge the terms and conditions of
this Contract or the dealings hereunder to any third-parties without the prior
written consent of the other party, save that the parties may divulge to banks,
professional advisers and affiliates, in addition to responses to formal
demands by government or other duly authorised persons and any requirements
from any stock exchange. Furthermore, Buyer shall be at liberty after informing
the Seller to disclose the content of this Contract to potential purchasers of
(i) all issued and outstanding shares in the Buyer, or (ii) the majority of its
assets and operations related to purchase, distribution and marketing of motor
gasoline.

 

25.   TAXES AND GOVERNMENT LEVY

 

Swedish VAT regulations to apply.

 

26. ASSIGNMENT

 

Neither of the parties may assign its rights and obligations under this
Contract without the other party’s prior written consent, such consent not to
be unreasonably withheld. It is further agreed that such consent can only be
reasonably withheld if the proposed assignee’s ability to perform the assigned
obligations under this Contract can be reasonably doubted.

 

27. TERMINATION

 

27.1 Termination by default

 

Either party shall have the right to terminate this Contract without
notice upon the occurrence of any or all the following events:

 

A)                                  The
other party is declared bankrupt or is otherwise considered unable to fulfil
its economical obligations as they fall due; or

 

B)                                    The
other party commits a material breach of this Contract.

 

27.2 Failure to agree on prices

 

If the parties fail to agree on prices or other parameters as outlined
in clause 6.1 by November 15th, then the Contract will
automatically be terminated as from January 1st the next
following contract year.

 

27.3 Divestment of shares / assets

 

The Buyer may terminate this Contract by giving written notice thereof
if (i) all issued and outstanding shares in the Buyer, or (ii) the majority of
its assets and operations related to purchase, distribution and marketing of
diesel are assigned, sold or transferred to a person or company other than
Norsk Hydro ASA and/or its affiliates. Any termination according to this clause
27.3 shall become effective at the expiry of the calendar year in which the
notice is given.

 

 

28.  NOTICES

 

To be sent to Buyer’s and Seller’s respective operations department as
follows:

 

	
  Norsk
  Hydro Olje AB

  	
   

  	
  Preem
  Petroleum AB

  
	
  Tegeluddsvägen 76

  	
   

  	
  Sandhamnsgatan 51

  
	
  S-102 54 Stockholm

  	
   

  	
  S- 115 90 Stockholm

  

 

29. INVALIDITY

 

If any provision in this Contract shall be held to be illegal, invalid
or unenforceable, in whole or in part, such provision or part shall to that
extent be deemed not to form part of this Contract but the legality, validity
or enforceability of the remainder of this Contract shall not be affected.

 

If any illegal, invalid or unenforceable provision would be legal,
valid and enforceable if some part of it were deleted or modified, the
provision shall apply with whatever deletion or modification is necessary to
give effect to the commercial intention of the parties.

 

30.  
COUNTERPARTS

 

This Contract is issued in two originals, one for each party.

 

	
  SELLER

  	
   

  	
  BUYER

  
	
   

  	
   

  	
   

  
	
  Preem Petroleum AB

  	
   

  	
  Norsk Hydro Olje AB

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.17.03      Stockholm

  	
   

  	
  9.17.03

  	
  Stockholm

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  Place

  	
   

  	
  Date

  	
     PlaceExhibit
4.8

 

BRIDGE FACILITY
AGREEMENT

 

 

DATED 11th December,
2003

 

€170,000,000

CREDIT FACILITY

FOR

PREEM FINANS AB

AND

PREEM PETROLEUM AB

GUARANTEED BY PREEM HOLDINGS AB

PROVIDED BY

NORDEA BANK SWEDEN AB (publ)

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

SVENSKA HANDELSBANKEN AB (publ)

 

 

 

London

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Interpretation

  	
   

  
	
  2.

  	
  Facility

  	
   

  
	
  3.

  	
  Purpose

  	
   

  
	
  4.

  	
  Conditions Precedent

  	
   

  
	
  5.

  	
  Utilisation - Loans

  	
   

  
	
  6.

  	
  Repayment

  	
   

  
	
  7.

  	
  Prepayment and Cancellation

  	
   

  
	
  8.

  	
  Interest

  	
   

  
	
  9.

  	
  Terms

  	
   

  
	
  10.

  	
  Market Disruption

  	
   

  
	
  11.

  	
  Taxes

  	
   

  
	
  12.

  	
  Increased Costs

  	
   

  
	
  13.

  	
  Mitigation

  	
   

  
	
  14.

  	
  Payments

  	
   

  
	
  15.

  	
  Guarantee and Indemnity

  	
   

  
	
  16.

  	
  Representations

  	
   

  
	
  17.

  	
  Information Covenants

  	
   

  
	
  18.

  	
  General Covenants

  	
   

  
	
  19.

  	
  Default

  	
   

  
	
  20.

  	
  Security

  	
   

  
	
  21.

  	
  The Facility Agent

  	
   

  
	
  22.

  	
  Evidence and Calculations

  	
   

  
	
  23.

  	
  Fees

  	
   

  
	
  24.

  	
  Indemnities and Break Costs

  	
   

  
	
  25.

  	
  Expenses

  	
   

  
	
  26.

  	
  Amendments and Waivers

  	
   

  
	
  27.

  	
  Changes to the Parties

  	
   

  
	
  28.

  	
  Disclosure Of Information

  	
   

  
	
  29.

  	
  Set-off

  	
   

  
	
  30.

  	
  Pro Rata Sharing

  	
   

  
	
  31.

  	
  Severability

  	
   

  
	
  32.

  	
  Counterparts

  	
   

  
	
  33.

  	
  Notices

  	
   

  
	
  34.

  	
  Language

  	
   

  
	
  35.

  	
  Governing Law

  	
   

  
	
  36.

  	
  Enforcement

  	
   

  

 

 

Schedule

 

	
  1.

  	
  Original Parties

  	
   

  
	
  2.

  	
  Conditions precedent documents

  	
   

  
	
  3.

  	
  Form of Request

  	
   

  
	
  4.

  	
  Calculation of the Mandatory Cost

  	
   

  
	
  5.

  	
  Form of Transfer Certificate

  	
   

  
	
  6.

  	
  Existing Security

  	
   

  
	
  7.

  	
  Form of legal opinion of Allen & Overy

  	
   

  
	
   

  	
   

  	
   

  
	
  Signatories

  	
   

  

 

 

THIS
AGREEMENT is dated 11th December, 2003

 

BETWEEN:

 

(1)                                  PREEM
FINANS AB (Finans);

 

(2)                                  PREEM
PETROLEUM AB (the Company);

 

(3)                                  PREEM
HOLDINGS AB as guarantor (the Parent);

 

(4)                                  NORDEA BANK
SWEDEN AB (publ), SKANDINAVISKA ENSKILDA BANKEN AB (publ) and SVENSKA
HANDELSBANKEN AB (publ) as lenders (in this
capacity the Original Lenders);

 

(5)                                  SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ) as facility
agent (in this capacity the Facility Agent).

 

IT
IS AGREED as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this Agreement:

 

Acquisition means
the acquisition by the Company on the terms of the Purchase and Sale  Agreement of 25 per cent. of the issued
shares and certain assets relating to the business of Scanraff not already
owned by the Company as at the date of this Agreement.

 

Affiliate
means a Subsidiary or a Holding Company of a person or any other Subsidiary of
that Holding Company.

 

Availability Period
means the period from and including the date of this Agreement to and including
the day falling five days prior to the Final Maturity Date or, if extended in
accordance with Clause 6.2 (Extension option), the Extended Maturity Date.

 

Borrower means
Finans or the Company.

 

Borrowing Limit means

 

(a)                                  in
respect of Finans, e112,000,000;
and

 

(b)                                 in
respect of the Company, e58,000,000.

 

Break Costs
means the amount (if any) which a Lender is entitled to receive under
Clause 24.3 (Break Costs) as compensation if any part of a Loan or overdue
amount is repaid or prepaid.

 

Business Day
means a day (other than a Saturday or a Sunday) on which banks are open for
general business in London and Stockholm and (in relation to any date for the
payment or purchase of euro) which is also a TARGET Day.

 

Charges has
the meaning given to it in Clause 18.15 (Group Contribution).

 

1

 

Closing Date has
the meaning given to it in the Purchase and Sale Agreement

 

Commitment
means:

 

(a)                                  for
an Original Lender, the amount set opposite its name in Schedule 1
(Original Parties) under the heading “Commitments” and the amount of any other
Commitment it acquires; and

 

(b)                                 for
any other Lender, the amount of any Commitment it acquires,

 

to the extent not cancelled, transferred or reduced under this
Agreement.

 

Company Group
means the Company and its Subsidiaries.

 

Default means:

 

(a)                                  an
Event of Default; or

 

(b)                                 an
event which would be (with the expiry of a grace period, the giving of notice
or the making of any determination that the event would be reasonably likely to
have a Material Adverse Effect, in each case under the Finance Documents, or
any combination of them) an Event of Default.

 

EURIBOR
means for a Term of any Loan or overdue amount in euro:

 

(a)                                  the
applicable Screen Rate; or

 

(b)                                 if
no Screen Rate is available for that Term of that Loan or overdue amount, the
arithmetic mean (rounded upward to four decimal places) of the rates as
supplied to the Facility Agent at its request quoted by the Reference Banks to
leading banks in the European interbank market,

 

as of 11.00 a.m. (Brussels time) on the Rate Fixing Day for the
offering of deposits in euro for a period comparable to that Term.

 

euro
means the single currency of the Participating Member States.

 

Event of Default
means an event specified as such in Clause 19 (Default).

 

Extended Maturity Date means
the earlier of:

 

(a)                                  the
day falling five days after the date of first draw down under the Take-Out
Facility; and

 

(b)                                 the
date falling six months after the date of this Agreement.

 

Facility
means the credit facility made available under this Agreement.

 

Facility Office
means the office(s) notified by a Lender to the Facility Agent:

 

(a)                                  on
or before the date it becomes a Lender; or

 

(b)                                 by
not less than five Business Days’ notice,

 

as the office(s) through which it will perform its obligations under
this Agreement.

 

2

 

Fee Letter
means any letter entered into by reference to this Agreement between one or
more Finance Parties and the Company setting out the amount of certain fees
referred to in this Agreement.

 

Final Maturity Date
means the earlier of:

 

(a)                                  the
day falling five days after the date of first draw down under the Take-Out
Facility; and

 

(b)                                 31st
March, 2004.

 

Finance Document
means:

 

(a)                                  this
Agreement;

 

(b)                                 the
Security Document;

 

(c)                                  a
Fee Letter;

 

(d)                                 a
Transfer Certificate; or

 

(e)                                  any
other document designated as such by the Facility Agent and the Company.

 

Finance Party
means a Lender or the Facility Agent.

 

Financial Indebtedness
means any indebtedness for or in respect of:

 

(a)                                  moneys
borrowed;

 

(b)                                 any
acceptance credit;

 

(c)                                  any
bond, note, debenture, loan stock or other similar instrument;

 

(d)                                 any
redeemable preference share;

 

(e)                                  any
agreement treated as a finance or capital lease in accordance with generally
accepted accounting principles in the jurisdiction of incorporation of the
Company;

 

(f)                                    receivables
sold or discounted (otherwise than on a non-recourse basis);

 

(g)                                 the
acquisition cost of any asset to the extent payable after its acquisition or
possession by the party liable where the deferred payment is arranged primarily
as a method of raising finance or financing the acquisition of that asset;

 

(h)                                 any
derivative transaction protecting against or benefiting from fluctuations in
any rate or price (and, except for non-payment of an amount, the then mark to
market value of the derivative transaction will be used to calculate its
amount);

 

(i)                                     any other
transaction (including any forward sale or purchase agreement) which has the
commercial effect of a borrowing;

 

(j)                                     any
counter-indemnity obligation in respect of any guarantee, indemnity, bond,
letter of credit or any other instrument issued by a bank or financial
institution; or

 

3

 

(k)                                  any
guarantee, indemnity or similar assurance against financial loss of any person
in respect of any item referred to in the above paragraphs.

 

In calculating the amount of Financial Indebtedness at any time, no
item listed above shall be counted more than once.

 

Group
means the Parent Group or the Company Group, as the context may require.

 

Guarantor means
the Parent or the Company.

 

Group Contribution means
the tax contribution (Sw. Koncernbidrag) paid by the Company to the
Parent as a dividend each year.

 

Holding Company of
any other person, means a company in respect of which that other person is a
Subsidiary.

 

Increased Cost
means:

 

(a)                                  an
additional or increased cost;

 

(b)                                 a
reduction in the rate of return from a Facility or on its overall capital; or

 

(c)                                  a
reduction of an amount due and payable under any Finance Document,

 

which is incurred or suffered by a Finance Party or any of its
Affiliates but only to the extent attributable to that Finance Party having
entered into any Finance Document or funding or performing its obligations
under any Finance Document.

 

Lender
means:

 

(a)                                  an
Original Lender; or

 

(b)                                 any
person which becomes a Lender after the date of this Agreement.

 

Loan means,
unless otherwise stated in this Agreement, the principal amount of each
borrowing under this Agreement or the principal amount outstanding of that
borrowing.

 

Mandatory Cost
means the cost of complying with certain regulatory requirements, expressed as
a percentage rate per annum and calculated by the Facility Agent under
Schedule 4 (Calculation of the Mandatory Cost).

 

Margin means:

 

(a)                                  from
the date of this Agreement up to and including the date falling three months
after the date of this Agreement, 2.25 per cent per annum; and

 

(b)                                 thereafter,
2.75 per cent per annum.

 

Material Adverse Effect
means a material adverse effect on:

 

(a)                                  the
business, assets or financial condition of any Obligor or the Parent Group as a
whole; or

 

(b)                                 the
ability of any Obligor to perform its obligations under any Finance Document;
or

 

4

 

(c)                                  the
validity or enforceability of the Finance Documents,

 

provided, however, that the decision of the Swedish Environmental Court of Appeal
of October 18,  2003 in
relation to the  construction permit for the
Isocracker construction at the Scanraff refinery or any further decision of that or any higher or
lower court to refuse to permit the continued construction or development shall
not by itself be construed as having a Material Adverse Effect.

 

Obligor means
a Borrower or a Guarantor.

 

Original Financial
Statements means the audited consolidated financial
statements of, in the case of the Parent, the Parent Group, and, in the case of
the Company, the Company Group, in each case for the year ended 31st December,
2002.

 

Parent Group means
the Parent and its Subsidiaries.

 

Participating Member State
means a member state of the European Communities that adopts or has adopted the
euro as its lawful currency under the legislation of the European Community for
Economic Monetary Union.

 

Party means
a party to this Agreement.

 

Pro Rata Share
means:

 

(a)                                  for
the purpose of determining a Lender’s share in a utilisation of the Facility,
the proportion which its Commitment bears to the Total Commitments; and

 

(b)                                 for
any other purpose on a particular date:

 

(i)                                     the
proportion which a Lender’s share of the Loans (if any) bears to all the Loans;

 

(ii)                                  if
there is no Loan outstanding on that date, the proportion which its Commitment
bears to the Total Commitments on that date; or

 

(iii)                               if
the Total Commitments have been cancelled, the proportion which its Commitment
bore to the Total Commitments immediately before being cancelled.

 

Purchase and Sale Agreement means
the purchase and sale agreement dated 
as of 17th September, 2003 among Hydro R&M Holding AB, Norsk Hydro
Lagrings & Distributions AB and the Company setting out the terms and
conditions under which the Company will undertake the Acquisition.

 

Rate Fixing Day
means the second TARGET Day before the first day of a Term or such other day as
the Facility Agent determines is generally treated as the rate fixing day by
market practice in the relevant interbank market.

 

Reference Banks
means the  Facility Agent, Svenska
Handelsbanken AB (publ) and Nordea Bank Sweden AB (publ) and any other bank or
financial institution appointed as such by the Facility Agent under this
Agreement.

 

Repeating Representations
means the representations which are deemed to be repeated under
Clause 16.20 (Times for making representations).

 

5

 

Request
means a request for a Loan, 
substantially in the form of Schedule 3 (Form of Request).

 

Scanraff means
Skandinaviska Raffinaderi AB Scanraff.

 

Screen Rate
means the percentage rate per annum determined by the Banking Federation of the
European Union, for the relevant currency and Term displayed on the appropriate
page of the Telerate screen selected by the Facility Agent.  If the relevant page is replaced or the
service ceases to be available, the Facility Agent (after consultation with the
Company and the Lenders) may specify another page or service displaying the
appropriate rate.

 

Secured Obligations has
the meaning given to it in the Security Agreement.

 

Security Agreement
means the Swedish-law governed (Sw.”Foretagshypotek”) security agreement
dated on or about the date of this Agreement on the terms of which Finans
grants a floating charge over its assets as applicable under current Swedish
law in effect on the date of this Agreement, in the amount of SEK1,000,000,000
in favour of the Facility Agent (on behalf of the Finance Parties) as security
for its obligations under the Finance Documents.

 

Security Document
means:

 

(a)                                  the
Security Agreement; and

 

(b)                                 any
other document evidencing or creating security over any asset of an Obligor to
secure any obligation of any Obligor to a Finance Party under the Finance
Documents.

 

Security Interest
means any mortgage, pledge, lien, charge, assignment, hypothecation or security
interest or any other agreement or arrangement having a similar effect.

 

SEK means
the lawful currency of the Kingdom of Sweden.

 

Senior Secured Notes means
the 10 5/8% senior secured notes due 2011 of the Parent issued under an
indenture dated  as of 10th April, 2001.

 

Shareholder Loan means
a loan made available by the Parent to the Company on the terms of a
Shareholder Loan Agreement, which loan has not been converted into equity in
accordance with Clause 18.13 (Documents).

 

Shareholder Loan Agreement means
an agreement on the terms of which the Parent has lent money to the Company.

 

Subsidiary
means an entity of which a person has direct or indirect control or owns
directly or indirectly more than 50% of the voting capital or similar right of
ownership and control for this purpose means the power to direct the
management and the policies of the entity whether through the ownership of
voting capital, by contract or otherwise.

 

Take-Out Facility means
a €325,000,000 to €380,000,000 revolving credit and term loan facility to be
entered into by the Company and certain financial institutions to, amongst
other things, refinance the Facility.

 

TARGET Day
means a day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer payment system is open for the settlement of payments in euro.

 

6

 

Tax
means any tax, levy, impost, duty or other charge or withholding of a similar
nature (including any related penalty or interest).

 

Tax Deduction
means a deduction or withholding for or on account of Tax from a payment under
a Finance Document.

 

Tax Payment
means a payment made by an Obligor to a Finance Party in any way relating to a
Tax Deduction or under any indemnity given by that Obligor in respect of Tax
under any Finance Document.

 

Term
means each period determined under this Agreement by reference to which
interest on a Loan or an overdue amount is calculated.

 

Total Commitments
means the aggregate of the Commitments of all the Lenders.

 

Transfer Certificate
means a certificate, substantially in the form of Schedule 5 (Form of
Transfer Certificate), with such amendments as the Facility Agent may approve
or reasonably require or any other form agreed between the Facility Agent and
the Company.

 

U.K.
means the United Kingdom.

 

Utilisation Date
means each date on which the Facility is utilised (being the first day of a
Term).

 

Waivers means
the waivers in force as at the date of this Agreement from each of Den Norske
Bank, European Investment Bank and Nordic Investment Bank and Bayerische
Landesbank (in respect of the facility dated 3rd February, 1998 made available
to Syrhala Handelsbolag and Finans) on the terms of which each of those lenders
consents to the granting by Finans of Security Interests pursuant to the
Security Agreement, which waivers currently expire on 31st March, 2004, as
those waivers may be amended or replaced from time to time.

 

1.2                               Construction

 

(a)                                  In
this Agreement, unless the contrary intention appears, a reference to:

 

(i)                                     an amendment
includes a supplement, novation, restatement or re-enactment and amended
will be construed accordingly;

 

(ii)                                  assets
includes present and future properties, revenues and rights of every description;

 

(iii)                               an authorisation
includes an authorisation, consent, approval, resolution, licence, exemption,
filing, registration or notarisation;

 

(iv)                              disposal
means a sale, transfer, grant, lease or other disposal, whether voluntary or
involuntary, and dispose will be construed accordingly;

 

(v)                                 indebtedness
includes any obligation (whether incurred as principal or as surety) for the
payment or repayment of money;

 

(vi)                              a person
includes any individual, company, corporation, unincorporated association or body
(including a partnership, trust, joint venture or consortium), government, 

 

7

 

state, agency, organisation or other entity whether or not having
separate legal personality;

 

(vii)                           a regulation
includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law but, if not having the force of law,
being of a type with which any person to which it applies is accustomed to
comply) of any governmental, inter-governmental or supranational body, agency,
department or regulatory, self-regulatory or other authority or organisation;

 

(viii)                        a
currency is a reference to the lawful currency for the time being of the
relevant country;

 

(ix)                                a
Default being outstanding means that it has not been remedied or waived;

 

(x)                                   a
provision of law is a reference to that provision as extended, applied, amended
or re-enacted and includes any subordinate legislation;

 

(xi)                                a
Clause, a Subclause or a Schedule is a reference to a clause or subclause
of, or a schedule to, this Agreement;

 

(xii)                             a
Party or any other person includes its successors in title, permitted assigns
and permitted transferees;

 

(xiii)                          a
Finance Document or another document is a reference to that Finance Document or
other document as amended; and

 

(xiv)                         a
time of day is a reference to London time.

 

(b)                                 Unless
the contrary intention appears, a reference to a month or months is a reference to a
period starting on one day in a calendar month and ending on the numerically corresponding
day in the next calendar month or the calendar month in which it is to end,
except that:

 

(i)                                     if
the numerically corresponding day is not a Business Day, the period will end on
the next Business Day in that month (if there is one) or the preceding Business
Day (if there is not);

 

(ii)                                  if
there is no numerically corresponding day in that month, that period will end
on the last Business Day in that month; and

 

(iii)                               notwithstanding
sub-paragraph (i) above, a period which commences on the last Business Day of a
month will end on the last Business Day in the next month or the calendar month
in which it is to end, as appropriate.

 

(c)                                  Unless
expressly provided to the contrary in a Finance Document, a person who is not a
party to a Finance Document may not enforce any of its terms under the
Contracts (Rights of Third Parties) Act 1999 and, notwithstanding any term of
any Finance Document, no consent of any third party is required for any
variation (including any release or compromise of any liability) or termination
of that Finance Document.

 

(d)                                 Unless
the contrary intention appears:

 

(i)                                     a
reference to a Party will not include that Party if it has ceased to be a Party
under this Agreement;

 

8

 

(ii)                                  an amount
in euro is payable only in the euro unit;

 

(iii)                               a
word or expression used in any other Finance Document or in any notice given in
connection with any Finance Document has the same meaning in that Finance
Document or notice as in this Agreement; and

 

(iv)                              any
obligation of an Obligor under the Finance Documents which is not a payment
obligation remains in force for so long as any payment obligation of an Obligor
is or may be outstanding under the Finance Documents.

 

(e)                                  The
headings in this Agreement do not affect its interpretation.

 

2.                                      FACILITY

 

2.1                               Facility

 

Subject to the terms of this
Agreement, the Lenders make available to the Borrowers a euro denominated term
loan facility in an aggregate amount equal to the Total Commitments.

 

2.2                               Nature
of a Finance Party’s rights and obligations

 

Unless otherwise agreed by
all the Finance Parties:

 

(a)                                  the
obligations of a Finance Party under the Finance Documents are several;

 

(b)                                 failure
by a Finance Party to perform its obligations does not affect the obligations
of any other Party under the Finance Documents;

 

(c)                                  no
Finance Party is responsible for the obligations of any other Finance Party
under the Finance Documents;

 

(d)                                 the
rights of a Finance Party under the Finance Documents are separate and independent
rights;

 

(e)                                  a
Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce those rights; and

 

(f)                                    a
debt arising under the Finance Documents to a Finance Party is a separate and
independent debt.

 

3.                                      PURPOSE

 

3.1                               Loans

 

(a)                                  Finans
shall apply the proceeds of each Loan made to it to repay indebtedness owing by
it to the Company as at the date of this Agreement.

 

(b)                                 The
Company shall apply the proceeds of each Loan made to it, together with the
proceeds of the repayment of indebtedness received from Finans (as mentioned
above):

 

(i)                                     to
finance the Acquisition; and

 

(ii)                                  to
finance or refinance fees, commissions, costs and/or expenses incurred by the
Company in connection with the Acquisition.

 

9

 

3.2                               No
obligation to monitor

 

No Finance Party is bound to
monitor or verify the utilisation of the Facility.

 

4.                                      CONDITIONS PRECEDENT

 

4.1                               Conditions
precedent documents

 

A Request may not be given
until the Facility Agent has received all of the documents and evidence set out
in Schedule 2 (Conditions precedent documents) in form and substance
satisfactory to the Facility Agent.  The
Facility Agent must give  notification
that it has received all of the documents and evidence as set out in
Schedule 2 (Conditions Precedent Documents) to the Company and the Lenders
promptly upon being so satisfied.

 

4.2                               Further
conditions precedent

 

The obligations of each
Lender to participate in any Loan are subject to the further conditions
precedent that on both the date of the Request and the Utilisation Date for
that Loan:

 

(a)                                  the
Repeating Representations are correct in all material respects; and

 

(b)                                 no
Default is outstanding or would result from the Loan.

 

4.3                               Maximum
number

 

Unless the Facility Agent
agrees, a Request may not be given if, as a result, there would be more than
two Loans outstanding.

 

5.                                      UTILISATION - LOANS

 

5.1                               Giving
of Requests

 

(a)                                  A
Borrower may borrow a Loan by giving to the Facility Agent a duly completed
Request.

 

(b)                                 Unless
the Facility Agent otherwise agrees, the latest time for receipt by the
Facility Agent of a duly completed Request is 11.00 a.m. one Business Day
before the Rate Fixing Day for the proposed borrowing.

 

(c)                                  Each
Request is irrevocable.

 

5.2                               Completion
of Requests

 

A Request for a Loan will
not be regarded as having been duly completed unless:

 

(a)                                  the
Utilisation Date is a Business Day falling within the Availability Period;

 

(b)                                 the
amount of the Loan requested:

 

(i)                                     is a
minimum of €10,000,000 and an integral multiple of €1,000,000;

 

(ii)                                  is
not more than the maximum undrawn amount available under the Facility on the
proposed Utilisation Date;

 

10

 

(iii)                               does
not cause the aggregate principal amount of Loans borrowed by a Borrower (and
outstanding) to exceed the Borrowing Limit applicable to that Borrower; or

 

(iv)                              is
such other amount as the Facility Agent may agree; and

 

(c)                                  the
proposed Term complies with this Agreement.

 

(d)                                 Only
one Loan may be requested in a Request.

 

5.3                               Advance
of Loan

 

(a)                                  The
Facility Agent must promptly notify each Lender of the details of the requested
Loan and the amount of its share in that Loan.

 

(b)                                 The
amount of each Lender’s share of the Loan will be its Pro Rata Share on the
proposed Utilisation Date.

 

(c)                                  No
Lender is obliged to participate in a Loan if, as a result, the Loans would
exceed the Total Commitments.

 

(d)                                 If
the conditions set out in this Agreement have been met, each Lender must make
its share in the Loan available to the Facility Agent for the relevant Borrower
through its Facility Office on the Utilisation Date.

 

6.                                      REPAYMENT

 

6.1                               Repayment

 

Each Borrower must repay
each Loan made to it in full on the Final Maturity Date or, if the Final
Maturity Date is extended in accordance with Clause 6.2 (Extension option), the
Extended Maturity Date.

 

6.2                               Extension
option

 

(a)                                  If
each Waiver is extended on terms acceptable to all the Lenders (acting
reasonably) by 1st March, 2004 (or such later date as may be agreed by all the
Lenders) in accordance with paragraph (b) below, the Final Maturity Date will
be automatically extended to the Extended Maturity Date.

 

(b)                                 A
Waiver will be regarded as having been accepted by a Lender if:

 

(i)                                     the
Company provides the Facility Agent with a copy of each Waiver for approval by
the Lenders; and

 

(ii)                                  each
Lender (acting reasonably) confirms its acceptance of the terms of the Waiver
to the Facility Agent within five Business Days of receipt by the Facility
Agent from the Company of such Waiver PROVIDED that if a Lender does not
respond to the Facility Agent within such five Business Day period, that Lender
will be deemed to have accepted the terms of such Waiver.

 

(c)                                  The
Facility Agent shall promptly notify the Lenders of the extension of the Final
Maturity Date under paragraph (a) above.

 

11

 

7.                                      PREPAYMENT
AND CANCELLATION

 

7.1                               Mandatory
prepayment - illegality

 

(a)                                  A
Lender must notify the Company promptly if it becomes aware that it is unlawful
under any applicable law in any relevant jurisdiction for that Lender to
perform any of its obligations under a Finance Document or to fund or maintain
its share in any Loan.

 

(b)                                 After
notification under paragraph (a) above:

 

(i)                                     each
Borrower must repay or prepay the share of that Lender in each Loan made to it
on the date specified in paragraph (c) below; and

 

(ii)                                  the
Commitment of that Lender will be immediately cancelled.

 

(c)                                  The
date for repayment or prepayment of a Lender’s share in a Loan will be:

 

(i)                                     the
last day of the current Term of that Loan; or

 

(ii)                                  if
earlier, the date specified by the Lender in the notification under paragraph
(a) above and which must not be earlier than the last day of any applicable
grace period allowed by law.

 

7.2                               Mandatory
prepayment - change of control

 

(a)                                  For
the purposes of this Clause a change of control occurs if Mr Mohammed
Al-Amoudi ceases to be the legal and beneficial owner, directly or indirectly,
of more than 90 per cent. of the issued share capital of the Company;

 

(b)                                 The
Company must promptly notify the Facility Agent if it becomes aware of any
change of control.

 

(c)                                  After
a change of control, the Company and the Lenders shall (if any of them so
requires) in good faith enter into negotiations for a period of up to 60 days
concerning the continuance of the Facility.

 

(d)                                 If
by the end of such period mutual agreement between the Company and the Lenders
concerning the continuance of the Facility has not been reached, the Facility
Agent must:

 

(i)                                     cancel
the Total Commitments; and

 

(ii)                                  declare
all outstanding Loans, together with accrued interest and all other amounts
accrued under the Finance Documents, to be immediately due and payable.

 

(e)                                  Any
such notice will take effect in accordance with its terms.

 

7.3                               Mandatory
Prepayment - sale of assets/debt transactions

 

(a)                                  On
receipt after the date of this Agreement by any member of the Company Group of
Net Disposal Proceeds from the disposal of assets (other than proceeds in
respect of Permitted Disposals), the Company shall procure, if the amount
received is more than SEK50,000,000 in aggregate in respect of any financial
year of the Parent Group, that an amount equal to the amount by which that
aggregate amount exceeds SEK50,000,000 is promptly used to prepay any Loans
then outstanding.

 

12

 

(b)                                 On
receipt by any member of the Company Group of Net Capital Proceeds, the Company
shall procure, if the amount received is more than SEK50,000,000 in aggregate
in respect of any financial year of the Parent Group, that an amount equal to
the Net Capital Proceeds is promptly used to prepay any Loans then
outstanding.  Notwithstanding the
foregoing, the Net Capital Proceeds received by the Company by way of drawings
under the Take Out Facility must be used in their entirety to prepay any Loans
then outstanding.

 

(c)                                  In
the event that any Net Disposal Proceeds or Net Capital Proceeds which would
otherwise be required to be applied in prepayment of Loans under this
Clause 7.3, are received prior to the date on which the Facility is first
utilised, the Facility shall be cancelled upon that receipt by that
amount.  Such cancellation shall reduce
the Commitment of the Lenders rateably.

 

(d)                                 For
the purposes of this Clause 7.2(e):

 

(i)                                     Debt
Raising means the raising of debt by:

 

(A)                              any
issue, sale or public offering of any public or private bond, convertible bond,
note, debenture or other capital market issue; or

 

(B)                                the
borrowing of money under any bank facility, whether syndicated or bilateral,
and including (without limitation) under the Take-Out Facility (but excluding
under the renewal or refinancing of any bank facilities existing as at the date
of the Agreement provided that the principal amounts of such facilities are not
increased);

 

(ii)                                  Permitted
Disposals means any disposal by a member of the Company
Group made in the ordinary course of trade;

 

(iii)                               Net Capital
Proceeds means any cash received by a member of the Company
Group under any Debt Raising less:

 

(A)                              all  reasonable out of pocket expenses and other
fees, costs and expenses reasonably incurred by any members of the Company
Group in connection with  such Debt
Raising;

 

(B)                                the
VAT or similar tax paid or payable by any member of the Company Group in
connection with such Debt Raising; and

 

(C)                                any
income, capital gains or other taxes incurred and required to be paid by any
member of the Company Group in connection with such Debt Raising as reasonably
determined in good faith by such member of the Company Group on the basis of
the tax rates applicable to the gain (if any) and after taking into account all
applicable credits, deductions and allowances.

 

(iv)                              Net
Disposal Proceeds means the gross total
proceeds received by members of the Company Group in cash from all disposals,
leases or transfers of fixed assets (including, for the avoidance of doubt,
Swedish gas and oil assets) or shares of the Company Group (other than
Permitted Disposals) less:

 

(A)                              all
reasonable out of pocket expenses and other fees, costs and expenses reasonably
incurred by members of the Company Group in connection with such disposal,
lease or transfer;

 

13

 

(B)                                the
VAT or similar tax paid or payable by any member of the Company Group in
connection with such disposal, lease or transfer;

 

(C)                                any
income, capital gains or other taxes incurred and required to be paid by any
member of the Company Group in connection with such disposal, lease or transfer
as reasonably determined in good faith by such member of the Company Group on
the basis of the tax rates applicable to the gain (if any) and after taking
into account all applicable credits, deductions and allowances; and

 

(D)                               provisions
for liabilities arising in connection with the disposal.

 

7.4                               Voluntary
prepayment

 

(a)                                  A
Borrower may, by giving not less than 5 Business Days’ prior notice to the
Facility Agent, prepay any Loan made to it at any time in whole or in part.

 

(b)                                 A
prepayment of part of a Loan must be in a minimum amount of €10,000,000.

 

7.5                               Automatic
cancellation

 

The Commitment of each
Lender will be automatically cancelled at the close of business on the last day
of the Availability Period.

 

7.6                               Voluntary
cancellation

 

(a)                                  The
Company may, by giving not less than 5 Business Days’ prior notice to the
Facility Agent, cancel the unutilised amount of the Total Commitments in whole
or in part.  However no prior notice is
required if such cancellation is made in connection with the funding of the
Take Out Facility.

 

(b)                                 Partial
cancellation of the Total Commitments must be in a minimum amount of
€10,000,000.

 

(c)                                  Any
cancellation in part will be applied against the Commitment of each Lender pro
rata.

 

7.7                               Involuntary  prepayment and cancellation

 

(a)                                  If a
Borrower is, or will be, required to pay to a Lender a Tax Payment or an
Increased Cost, the Company may, while the requirement continues, give notice
to the Facility Agent requesting prepayment and cancellation in respect of that
Lender.

 

(b)                                 After
notification under paragraph (a) above:

 

(i)                                     each
Borrower must repay or prepay that Lender’s share in each Loan made to it on
the date specified in paragraph (c) below; and

 

(ii)                                  the
Commitment of that Lender will be immediately cancelled.

 

(c)                                  The
date for repayment or prepayment of a Lender’s share in a Loan will be the last
day of the current Term for that Loan or, if earlier, the date specified by the
Company in its notification.

 

7.8                               Partial
prepayment of  Loans

 

No amount of a Loan
prepaid  under this Agreement may
subsequently be re-borrowed.

 

14

 

7.9                               Miscellaneous
provisions

 

(a)                                  Any
notice of prepayment and/or cancellation under this Agreement is irrevocable
and must specify the relevant date(s) and the affected Loans and
Commitments.  The Facility Agent must
notify the Lenders promptly of receipt of any such notice.

 

(b)                                 All
prepayments under this Agreement must be made with accrued interest on the
amount prepaid.  No premium or penalty
is payable in respect of any prepayment except for Break Costs.

 

(c)                                  The
Lenders may agree a shorter notice period for a voluntary prepayment or a
voluntary cancellation.

 

(d)                                 No
prepayment or cancellation is allowed except in accordance with the express
terms of this Agreement.

 

(e)                                  No
amount of the Total Commitments cancelled under this Agreement may subsequently
be reinstated.

 

8.                                      INTEREST

 

8.1                               Calculation
of interest

 

The rate of interest on each
Loan for each Term is the percentage rate per annum equal to the aggregate of
the applicable:

 

(a)                                  Margin;

 

(b)                                 EURIBOR
and

 

(c)                                  Mandatory
Cost.

 

8.2                               Payment
of interest

 

Except where it is provided
to the contrary in this Agreement, each Borrower must pay accrued interest on
each Loan made to it on the last day of each Term and also, if the Term is
longer than one month, on the dates falling at monthly intervals after the
first day of that Term.

 

8.3                               Interest
on overdue amounts

 

(a)                                  If
an Obligor fails to pay any amount payable by it under the Finance Documents,
it must immediately on demand by the Facility Agent pay interest on the overdue
amount from its due date up to the date of actual payment, both before, on and
after judgment.

 

(b)                                 Interest
on an overdue amount is payable at a rate determined by the Facility Agent to
be one per cent. per annum above the rate which would have been payable if the
overdue amount had, during the period of non-payment, constituted a Loan in the
currency of the overdue amount.  For
this purpose, the Facility Agent may (acting reasonably):

 

(i)                                     select
successive Terms of any duration of up to three months; and

 

(ii)                                  determine
the appropriate Rate Fixing Day for that Term.

 

15

 

(c)                                  Notwithstanding
paragraph (b) above, if the overdue amount is a principal amount of a Loan and
becomes due and payable prior to the last day of its current Term, then:

 

(i)                                     the
first Term for that overdue amount will be the unexpired portion of that Term;
and

 

(ii)                                  the
rate of interest on the overdue amount for that first Term will be one per
cent. per annum above the rate then payable on that Loan.

 

After the expiry of the
first Term for that overdue amount, the rate on the overdue amount will be
calculated in accordance with paragraph (b) above.

 

(d)                                 Interest
(if unpaid) on an overdue amount will be compounded with that overdue amount at
the end of each of its Terms but will remain immediately due and payable.

 

8.4                               Notification
of rates of interest

 

The Facility Agent must
promptly notify each relevant Party of the determination of a rate of interest
under this Agreement.

 

9.                                      TERMS

 

9.1                               Selection

 

(a)                                  Each
Loan has successive Terms.

 

(b)                                 A
Borrower must select the first Term for a Loan in the relevant Request and each
subsequent Term in an irrevocable notice received by the Facility Agent not
later than 11.00 a.m. one Business Day before the Rate Fixing Day for that
Term.  Each Term for a Loan will start
on its Utilisation Date or on the expiry of its preceding Term.

 

(c)                                  If a
Borrower fails to select a Term for an outstanding Loan under paragraph (b)
above, that Term will, subject to the other provisions of this Clause, be one
month.

 

(d)                                 Subject
to the following provisions of this Clause, each Term for a Loan will be one
month or any other period agreed by the Company and the Lenders.

 

9.2                               No
overrunning the Final Maturity Date

 

If a Term would otherwise
overrun the Final Maturity Date or, if extended in accordance with Clause 6.1
(Extension option), the Extended Maturity Date, it will be shortened so that it
ends on the Final Maturity Date or the Extended Maturity Date (as the case may
be) .

 

9.3                               Other
adjustments

 

The Facility Agent and the
relevant Borrower may enter into such other arrangements as they may agree for
the adjustment of Terms and the consolidation and/or splitting of Loans.

 

9.4                               Notification

 

The Facility Agent must
notify the Company and the Lenders of the duration of each Term promptly after
ascertaining its duration.

 

16

 

10.                               MARKET DISRUPTION

 

10.1                        Failure
of a Reference Bank to supply a rate

 

If EURIBOR is to be
calculated by reference to the Reference Banks but a Reference Bank does not
supply a rate by 12.00 noon (local time) on a Rate Fixing Day, the applicable
EURIBOR will, subject as provided below, be calculated on the basis of the
rates of the remaining Reference Banks.

 

10.2                        Market
disruption

 

(a)                                  In
this Clause, each of the following events is a market disruption event:

 

(i)                                     EURIBOR
is to be calculated by reference to the Reference Banks but no, or only one,
Reference Bank supplies a rate by 12.00 noon (local time) on the Rate Fixing
Day; or

 

(ii)                                  the
Facility Agent receives by close of business on the Rate Fixing Day
notification from Lenders whose shares in the relevant Loan exceed 30 per cent.
of that Loan that the cost to them of obtaining matching deposits in the
relevant interbank market is in excess of EURIBOR for the relevant Term.

 

(b)                                 The
Facility Agent must promptly notify the Company and the Lenders of a market
disruption event.

 

(c)                                  After
notification under paragraph (b) above, the rate of interest on each Lender’s
share in the affected Loan for the relevant Term will be the aggregate of the
applicable:

 

(i)                                     Margin;

 

(ii)                                  rate
notified to the Facility Agent by that Lender as soon as practicable, and in
any event before interest is due to be paid in respect of that Term, to be that
which expresses as a percentage rate per annum the cost to that Lender of
funding its share in that Loan from whatever source it may reasonably select;
and

 

(iii)                               Mandatory
Cost.

 

10.3                        Alternative
basis of interest or funding

 

(a)                                  If a
market disruption event occurs and the Facility Agent or the Company so
requires, the Company and the Facility Agent must enter into negotiations for a
period of not more than 30 days with a view to agreeing an alternative basis
for determining the rate of interest and/or funding for the affected Loan and
any future Loan.

 

(b)                                 Any
alternative basis agreed will be, with the prior consent of all the Lenders,
binding on all the Parties.

 

11.                               TAXES

 

11.1                        General

 

In this Clause

 

17

 

Tax Credit
means a credit against any Tax or any relief or remission for Tax (or its
repayment).

 

Qualifying Lender
means a Lender which is:

 

(a)                                  a
Swedish Lender; or

 

(b)                                 a
Treaty Lender

 

Swedish Lender
means a Lender which is able under the domestic law of Sweden to receive source
interest of Sweden free of any deduction or withholding for or on account of
tax (if any) imposed by Sweden.

 

Treaty Lender
means a Lender which is:

 

(a)                                  resident
(as defined in the appropriate double taxation agreement) in a country with
which Sweden has a double taxation agreement giving residents of that country
exemption from Swedish taxation on interest; and

 

(b)                                 does
not carry on a business in Sweden through a permanent establishment with which
the payment is effectively connected.

 

11.2                        Tax
gross-up

 

(a)                                  Each
Obligor must make all payments to be made by it under the Finance Documents
without any Tax Deduction, unless a Tax Deduction is required by law.

 

(b)                                 If
an Obligor or a Lender is aware that an Obligor must make a Tax Deduction (or
that there is a change in the rate or the basis of a Tax Deduction), it must
promptly notify the Facility Agent.  The
Facility Agent must then promptly notify the affected Parties.

 

(c)                                  Except
as provided below, if a Tax Deduction is required by law to be made by an
Obligor or the Facility Agent, the amount of the payment due from the Obligor
will be increased to an amount which (after making the Tax Deduction) leaves an
amount equal to the payment which would have been due if no Tax Deduction had
been required.

 

(d)                                 Except
as provided below, an Obligor is not required to make an increased payment
under paragraph (c) above for a Tax Deduction in respect of tax imposed by
Sweden on a Lender that is not, or has ceased to be, a Qualifying Lender in
excess of the amount that the Obligor would have had to pay had the Lender
been, or not ceased to be, a Qualifying Lender.

 

(e)                                  Paragraph
(d) above will not apply if the Lender has ceased to be a Qualifying Lender by
reason of any change after the date it became a Lender under this Agreement in
(or in the interpretation, administration, or application of) any law or double
taxation agreement or any published practice or concession of any relevant
taxing authority.

 

(f)                                    An
Obligor is not required to make an increased payment to a Lender under
paragraph (c) above for a Tax Deduction in respect of tax imposed by Sweden if
the Obligor making the payment is able to demonstrate that the Tax Deduction
would not have been required if the Lender had complied with its obligations
under paragraph (i) below.

 

(g)                                 If
an Obligor is required to make a Tax Deduction, that Obligor must make the
minimum Tax Deduction allowed by law and must make any payment required in
connection with that Tax Deduction within the time allowed by law.

 

18

 

(h)                                 Within
30 days of making either a Tax Deduction or a payment required in connection
with a Tax Deduction, the Obligor making that Tax Deduction must deliver to the
Facility Agent for the relevant Finance Party evidence satisfactory to that
Finance Party (acting reasonably) that the Tax Deduction has been made or (as
applicable) the appropriate payment has been paid to the relevant taxing
authority.

 

(i)                                     A
Lender must co-operate with each Obligor by using its reasonable endeavours to
complete any procedural formalities necessary for that Obligor to obtain
authorisation to make that payment without a Tax Deduction.

 

11.3                        Tax
indemnity

 

(a)                                  Except
as provided below, the Company must indemnify a Finance Party against any loss
or liability which that Finance Party (in its absolute discretion but acting in
good faith) determines will be or has been suffered (directly or indirectly) by
that Finance Party for or on account of Tax in relation to a payment received
or receivable (or any payment deemed to be received or receivable) under a
Finance Document.

 

(b)                                 Paragraph
(a) above does not apply to any Tax assessed on a Finance Party under the laws
of the jurisdiction in which:

 

(i)                                     that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party has a Facility Office and is treated
as resident for tax purposes; or

 

(ii)                                  that
Finance Party’s Facility Office is located in respect of amounts received or
receivable in that jurisdiction,

 

if that Tax is imposed on or
calculated by reference to the net income received or receivable by that
Finance Party.  However, any payment
deemed to be received or receivable, including any amount treated as income but
not actually received by the Finance Party, such as a Tax Deduction, will not
be treated as net income received or receivable for this purpose.

 

(c)                                  Paragraph
(a) above shall not apply to the extent a loss, liability or cost:

 

(i)                                     is
compensated for by an increased payment under Clause11.2 (Tax gross-up); or

 

(ii)                                  would
have been compensated for by an increased payment under Clause 11.2 (Tax
gross-up) but was not so compensated solely because one of the exclusions in
paragraph (d) of Clause 11.2 (Tax gross-up) applied.

 

(d)                                 A
Finance Party making, or intending to make, a claim under paragraph (a) above
must promptly notify the Company of the event which will give, or has given,
rise to the claim.

 

11.4                        Tax
Credit

 

If an Obligor makes a Tax
Payment and the relevant Finance Party (in its absolute discretion but acting
in good faith) determines that:

 

(a)                                  a
Tax Credit is attributable to that Tax Payment; and

 

(b)                                 it
has used and retained that Tax Credit,

 

19

 

the Finance Party must pay
an amount to the Obligor which that Finance Party determines (in its absolute
discretion but acting in good faith) will leave it (after that payment) in the
same after-tax position as it would have been if the Tax Payment had not been
required to be made by the Obligor.

 

11.5                        Stamp
taxes

 

The Company must pay and
indemnify each Finance Party against any stamp duty, registration or other
similar Tax payable in connection with the entry into, performance or enforcement
of any Finance Document, except for any such Tax payable in connection with the
entry into a Transfer Certificate.

 

11.6                        Value
added taxes

 

(a)                                  Any
amount (including costs and expenses) payable under a Finance Document by an
Obligor is exclusive of any value added tax or any other Tax of a similar
nature which might be chargeable in connection with that amount.  If any such Tax is chargeable, the Obligor
must pay to the Finance Party (in addition to and at the same time as paying
that amount) an amount equal to the amount of that Tax.

 

(b)                                 The
obligation of any Obligor under paragraph (a) above will be reduced to the
extent that the Finance Party determines (acting reasonably) that it is
entitled to repayment or a credit in respect of the relevant Tax.

 

12.                               INCREASED COSTS

 

12.1                        Increased
Costs

 

Except as provided below in
this Clause, the Company must pay to a Finance Party the amount of any
Increased Cost incurred by that Finance Party or any of its Affiliates as a
result of:

 

(a)                                  the
introduction of, or any change in, or any change in the interpretation,
administration or application of, any law or regulation; or

 

(b)                                 compliance
with any law or regulation,

 

made after the date of this
Agreement.

 

12.2                        Exceptions

 

The Company need not make
any payment for an Increased Cost to the extent that the Increased Cost is:

 

(a)                                  compensated
for under another Clause or would have been but for an exception to that
Clause;

 

(b)                                 a
tax on the overall net income of a Finance Party or any of its Affiliates; or

 

(c)                                  attributable
to a Finance Party or its Affiliate negligently or wilfully failing to comply
with any law or regulation.

 

20

 

12.3                        Claims

 

A Finance Party intending to
make a claim for an Increased Cost must notify the Company promptly of the
circumstances giving rise to, and the amount of, the claim.

 

13.                               MITIGATION

 

13.1                        Mitigation

 

(a)                                  Each
Finance Party must, in consultation in good faith with the Company, take all
reasonable steps to mitigate any circumstances which arise and which result or
would result in:

 

(i)                                     any
Tax Payment or Increased Cost being payable to that Finance Party;

 

(ii)                                  that
Finance Party being able to exercise any right of prepayment and/or
cancellation under this Agreement by reason of any illegality; or

 

(iii)                               that
Finance Party incurring any cost of complying with the minimum reserve
requirements of the European Central Bank,

 

including transferring its
rights and obligations under the Finance Documents to an Affiliate or changing
its Facility Office.

 

(b)                                 Paragraph
(a) above does not in any way limit the obligations of any Obligor under the
Finance Documents.

 

(c)                                  The
Company must indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of any step taken by it under this
Subclause.

 

(d)                                 A
Finance Party is not obliged to take any step under this Subclause if, in the
opinion of that Finance Party (acting reasonably), to do so might be
prejudicial to it.

 

(e)                                  Each
Lender agrees that it will not take any steps to mitigate any circumstances
referred to in this Clause if, following consultation with the Company, the
Company objects to that Lender taking such steps.

 

13.2                        Conduct
of business by a Finance Party

 

No term of this Agreement
will:

 

(a)                                  interfere
with the right of any Finance Party to arrange its affairs (Tax or otherwise)
in whatever manner it thinks fit;

 

(b)                                 oblige
any Finance Party to investigate or claim any credit, relief, remission or
repayment available to it in respect of Tax or the extent, order and manner of
any claim; or

 

(c)                                  oblige
any Finance Party to disclose any information relating to its affairs (Tax or
otherwise) or any computation in respect of Tax.

 

21

 

14.                               PAYMENTS

 

14.1                        Place

 

Unless a Finance Document
specifies that payments under it are to be made in another manner, all payments
by a Party (other than the Facility Agent) under the Finance Documents must be
made to the Facility Agent to its account at such office or bank in the
principal financial centre of a Participating Member State or London or
Stockholm, as it may notify to that Party for this purpose by not less than
five Business Days’ prior notice.

 

14.2                        Funds

 

Payments under the Finance
Documents to the Facility Agent must be made for value on the due date at such
times and in such funds as the Facility Agent may specify to the Party
concerned as being customary at the time for the settlement of transactions in
that currency in the place for payment.

 

14.3                        Distribution

 

(a)                                  Each
payment received by the Facility Agent under the Finance Documents for another
Party must, except as provided below, be made available by the Facility Agent
to that Party by payment (as soon as practicable after receipt) to its account
with such office or bank in the principal financial centre of a Participating
Member State or London or Stockholm, as it may notify to the Facility Agent for
this purpose by not less than five Business Days’ prior notice.

 

(b)                                 The
Facility Agent may apply any amount received by it for an Obligor in or towards
payment (as soon as practicable after receipt) of any amount due from that
Obligor under the Finance Documents or in or towards the purchase of any amount
of any currency to be so applied.

 

(c)                                  Where
a sum is paid to the Facility Agent under this Agreement for another Party, the
Facility Agent is not obliged to pay that sum to that Party until it has
established that it has actually received it. 
However, the Facility Agent may assume that the sum has been paid to it,
and, in reliance on that assumption, make available to that Party a
corresponding amount.  If it transpires
that the sum has not been received by the Facility Agent, that Party must
immediately on demand by the Facility Agent refund any corresponding amount
made available to it together with interest on that amount from the date of
payment to the date of receipt by the Facility Agent at a rate calculated by
the Facility Agent to reflect its cost of funds.

 

14.4                        Currency

 

(a)                                  Unless
a Finance Document specifies that payments under it are to be made in a
different manner, the currency of each amount payable under the Finance
Documents is determined under this Clause.

 

(b)                                 Amounts
payable in respect of costs and expenses are payable in the currency in which
they are incurred.

 

(c)                                  Each
other amount payable under the Finance Documents is payable in euros.

 

22

 

14.5                        No
set-off or counterclaim

 

All payments made by an
Obligor under the Finance Documents must be made without set-off or
counterclaim.

 

14.6                        Business
Days

 

(a)                                  If a
payment under the Finance Documents is due on a day which is not a Business
Day, the due date for that payment will instead be the next Business Day in the
same calendar month (if there is one) or the preceding Business Day (if there
is not) or, if different, whatever day may be market practice.

 

(b)                                 During
any extension of the due date for payment of any principal under this Agreement
interest is payable on that principal at the rate payable on the original due
date.

 

14.7                        Partial
payments

 

(a)                                  If
any Finance Party receives a payment insufficient to discharge all the amounts
then due and payable by the Obligors under the Finance Documents, the Finance
Party must apply that payment towards the obligations of the Obligors under the
Finance Documents in the following order:

 

(i)                                     first, in
or towards payment pro rata of any unpaid fees, costs and expenses of the
Finance Parties under the Finance Documents;

 

(ii)                                  secondly, in
or towards payment pro rata of any accrued interest or fee due but unpaid under
this Agreement;

 

(iii)                               thirdly, in
or towards payment pro rata of any principal amount due but unpaid under this
Agreement; and

 

(iv)                              fourthly, in
or towards payment pro rata of any other sum due but unpaid under the Finance
Documents.

 

(b)                                 The
Facility Agent must, if so directed by all the Lenders, vary the order set out
in sub-paragraphs (a)(ii) to (iv) above.

 

(c)                                  This
Subclause will override any appropriation made by an Obligor.

 

14.8                        Timing
of payments

 

If a Finance Document does
not provide for when a particular payment is due, that payment will be due
within three Business Days of demand by the relevant Finance Party.

 

15.                               GUARANTEE AND INDEMNITY

 

15.1                        Guarantee
and indemnity

 

(a)                                  The
Parent irrevocably and unconditionally (except as provided in this Clause):

 

(i)                                     guarantees
to each Finance Party punctual performance by each Borrower of all its payment
obligations under the Finance Documents;

 

23

 

(ii)                                  undertakes
with each Finance Party that, whenever a Borrower does not pay any amount when
due under any Finance Document, the Parent must immediately on demand by the
Facility Agent pay that amount as if it were the principal obligor; and

 

(iii)                               indemnifies
each Finance Party immediately on demand against any loss or liability suffered
by that Finance Party if any payment obligation guaranteed by it is or becomes
unenforceable, invalid or illegal; the amount of the loss or liability under
this indemnity will be equal to the amount the Finance Party would otherwise
have been entitled to recover.

 

(b)                                 The
Company irrevocably and unconditionally (except as provided in this Clause):

 

(i)                                     guarantees
to each Finance Party punctual performance by Finans of all its payment
obligations under the Finance Documents;

 

(ii)                                  undertakes
with each Finance Party that, whenever Finans does not pay any amount when due
under any Finance Document, the Company must immediately on demand by the
Facility Agent pay that amount as if it were the principal obligor; and

 

(iii)                               indemnifies
each Finance Party immediately on demand against any loss or liability suffered
by that Finance Party if any payment obligation guaranteed by it is or becomes
unenforceable, invalid or illegal; the amount of the loss or liability under
this indemnity will be equal to the amount the Finance Party would otherwise
have been entitled to recover.

 

15.2                        Continuing
guarantee

 

These guarantees are
continuing guarantees and will extend to the ultimate balance of all sums
payable by  the Borrowers (in the case
of the guarantee given by the Parent) and Finans (in the case of the guarantee
given by the Company), in each case under the Finance Documents, regardless of
any intermediate payment or discharge in whole or in part.

 

15.3                        Reinstatement

 

(a)                                  If
any discharge (whether in respect of the obligations of an Obligor or any
security for those obligations or otherwise) or arrangement is made in whole or
in part on the faith of any payment, security or other disposition which is
avoided or must be restored on insolvency, liquidation or otherwise without
limitation, the liability of each Guarantor under this Clause  will
continue as if the discharge or arrangement had not occurred.

 

(b)                                 Each
Finance Party may concede or compromise any claim that any payment, security or
other disposition is liable to avoidance or restoration.

 

15.4                        Waiver
of defences

 

The obligations of each
Guarantor under this Clause will not be affected by any act, omission or
thing which, but for this provision, would reduce, release or prejudice any of
its obligations under this Clause (whether or not known to it or any
Finance Party).  This includes:

 

(a)                                  any
time or waiver granted to, or composition with, any person;

 

(b)                                 any
release of any person under the terms of any composition or arrangement;

 

24

 

(c)                                  the
taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or security over
assets of, any person;

 

(d)                                 any
non-presentation or non-observance of any formality or other requirement in
respect of any instrument or any failure to realise the full value of any
security;

 

(e)                                  any
incapacity or lack of power, authority or legal personality of or dissolution
or change in the members or status of any person;

 

(f)                                    any
amendment (however fundamental) of a Finance Document or any other document or
security; or

 

(g)                                 any
unenforceability, illegality, invalidity or non-provability of any obligation
of any person under any Finance Document or any other document or security.

 

15.5                        Immediate
recourse

 

(a)                                  Subject
to paragraph (b) below, each Guarantor waives any right it may have of first
requiring any Finance Party (or any trustee or agent on its behalf) to proceed
against or enforce any other right or security or claim payment from any person
before claiming from that Guarantor under this Clause.

 

(b)                                 No
demand shall be made on a Guarantor under this Clause unless and until a
Finance Party has first notified the relevant Borrower that the payment owing
by the that Borrower, with respect to which the demand is to be made on that
Guarantor, is due and payable. The demand on the Guarantor may be made
immediately following the giving of such notification.

 

15.6                        Appropriations

 

Until all amounts which may
be or become payable by the Obligors under the Finance Documents have been
irrevocably paid in full, each Finance Party (or any trustee or agent on its
behalf) may without affecting the liability of the Parent under this Clause:

 

(a)                                  refrain
from applying or enforcing any other moneys, security or rights held or
received by that Finance Party (or any trustee or agent on its behalf) in
respect of those amounts; or

 

(b)                                 apply
and enforce them in such manner and order as it sees fit (whether against those
amounts or otherwise); and

 

(c)                                  hold
in an interest-bearing suspense account any moneys received from a Guarantor or
on account of that Guarantor’s liability under this Clause.

 

15.7                        Non-competition

 

Unless:

 

(a)                                  all
amounts which may be or become payable by the Obligors under the Finance
Documents have been irrevocably paid in full; or

 

(b)                                 the
Facility Agent otherwise directs,

 

25

 

no Guarantor will, after a
claim has been made or by virtue of any payment or performance by it under this
Clause:

 

(i)                                     be
subrogated to any rights, security or moneys held, received or receivable by
any Finance Party (or any trustee or agent on its behalf);

 

(ii)                                  be
entitled to any right of contribution or indemnity in respect of any payment
made or moneys received on account of that Guarantor’s liability under this
Clause;

 

(iii)                               claim,
rank, prove or vote as a creditor of a Borrower or its estate in competition
with any Finance Party (or any trustee or agent on its behalf); or

 

(iv)                              receive,
claim or have the benefit of any payment, distribution or security from or on
account of a Borrower, or exercise any right of set-off as against a Borrower.

 

Each Guarantor must hold in
trust for and immediately pay or transfer to the Facility Agent for the Finance
Parties any payment or distribution or benefit of security received by it
contrary to this Clause or in accordance with any directions given by the
Facility Agent under this Clause.

 

15.8                        Additional
security

 

This guarantee is in
addition to and is not in any way prejudiced by any other security now or
subsequently held by any Finance Party.

 

15.9                        Limitations

 

This guarantee does not
apply to any liability to the extent it would result in this guarantee
constituting unlawful financial assistance within the meaning of
Section 151 of the Companies Act 1985.

 

16.                               REPRESENTATIONS

 

16.1                        Representations

 

The representations set out
in this Clause are made by each Obligor or (if it so states) the relevant
Obligor in each case, with respect to itself, its Subsidiaries and, where
stated, in the case of the Parent, the Parent Group and, in the case of the
Company, the Company Group to each Finance Party.

 

16.2                        Status

 

(a)                                  It
is a limited liability company, duly incorporated and validly existing under
the laws of the Kingdom of Sweden.

 

(b)                                 It
and each of its Subsidiaries has the power to own its assets and carry on its
business as it is being conducted.

 

16.3                        Powers
and authority

 

It has the power to enter
into and perform, and has taken (or will take prior to the delivery of the
first Request by either Borrower) all necessary action to authorise the entry
into and performance of, the Finance Documents to which it is or will be a
party and the transactions contemplated by those Finance Documents.

 

26

 

16.4                        Legal
validity

 

Subject to any general
principles of law limiting its obligations and referred to in any legal opinion
required under this Agreement, each Finance Document to which it is a party is
its legally binding, valid and enforceable obligation.

 

16.5                        Non-conflict

 

The entry into and
performance by it of, and the transactions contemplated by, the Finance
Documents do not conflict with:

 

(a)                                  any
law or regulation applicable to it;

 

(b)                                 its
or any of its Subsidiaries’ constitutional documents; or

 

(c)                                  any
document which is binding upon it or any of its Subsidiaries or any of its or
its Subsidiaries’ assets,

 

except, in all cases above,
where such conflict would not reasonably be expected to have a Material Adverse
Effect and provided that, in the case of paragraph (a) above, would not result
in any liability for a Finance Party.

 

16.6                        Security

 

The Security Agreement
creates the security interests it purports to create and is not (to the best of
its knowledge) liable to be avoided or otherwise set aside on the liquidation
of the Company or for any other reason.

 

16.7                        No
default

 

(a)                                  No
Event of Default is outstanding or will result from the execution of, or the
performance of any transaction contemplated by, any Finance Document; and

 

(b)                                 no
other event is outstanding which constitutes a default under any document which
is binding on it or any of its Subsidiaries or any of its or its Subsidiaries’
assets to an extent or in a manner which is reasonably likely to have a
Material Adverse Effect.

 

16.8                        Authorisations

 

All authorisations required
by it in connection with the entry into, performance, validity and enforceability
of, and the transactions contemplated by, the Finance Documents have been (or
will have been by the date of the delivery of the first Request by either
Borrower) obtained or effected (as appropriate) and are in full force and
effect.

 

16.9                        Financial
statements

 

Its financial statements
most recently delivered to the Facility Agent (which at the date of this
Agreement, are the Original Financial Statements):

 

(a)                                  have
been prepared in accordance with accounting principles and practices generally
accepted in the Kingdom of Sweden, consistently applied; and

 

27

 

(b)                                 give
a true and fair view of its financial condition (consolidated, if applicable)
as at the date to which they were drawn up, subject to the limitations inherent
in the preparation of unaudited accounts,

 

except, in each case, as
disclosed to the contrary in those financial statements.

 

16.10                 No
material adverse change

 

There has been no material
adverse change in the consolidated financial condition of (in the case of the
Parent) the Parent Group or (in the case of the Company) the Company Group
since the date to which the Original Financial Statements were drawn up.

 

16.11                 Litigation

 

No litigation, arbitration
or administrative proceedings are current or, to its knowledge, pending or
threatened, which, if adversely determined, are reasonably likely to have a
Material Adverse Effect.

 

16.12                 Pari
passu ranking

 

Its payment obligations
under the Finance Documents rank at least pari passu with all its other present
and future unsecured payment obligations, except for obligations mandatorily
preferred by law applying to companies generally.

 

16.13                 Taxes
on payments

 

All amounts payable by it
under the Finance Documents may be made without any Tax Deduction in the
Kingdom of Sweden.

 

16.14                 Stamp
duties

 

No stamp or registration
duty or similar Tax or charge is payable in the Kingdom of Sweden in respect of
any Finance Document except for stamp duty of one per cent. on the amount
covered by the floating charge certificates issued in connection with and
pledged under the Security Agreement payable upon issuance of such floating
charge certificates.

 

16.15                 Immunity

 

(a)                                  The
execution by it of each Finance Document constitutes, and the exercise by it of
its rights and performance of its obligations under each Finance Document will
constitute, private and commercial acts performed for private and commercial
purposes; and

 

(b)                                 it
will not be entitled to claim immunity from suit, execution, attachment or
other legal process in any proceedings taken in its jurisdiction of
incorporation in relation to any Finance Document.

 

16.16                 No
adverse consequences

 

(a)                                  It
is not necessary under the laws of its jurisdiction of incorporation:

 

(i)                                     in
order to enable any Finance Party to enforce its rights under any Finance
Document; or

 

28

 

(ii)                                  by
reason of the execution of any Finance Document or the performance by it of its
obligations under any Finance Document,

 

that any Finance Party
should be licensed, qualified or otherwise entitled to carry on business in its
jurisdiction of incorporation; and

 

(b)                                 no
Finance Party is or will be deemed to be resident, domiciled or carrying on
business in its jurisdiction of incorporation by reason only of the execution,
performance and/or enforcement of any Finance Document.

 

16.17                 Jurisdiction/governing
law

 

(a)                                  Its:

 

(i)                                     irrevocable
submission under this Agreement to the jurisdiction of the courts of England;

 

(ii)                                  agreement
that this Agreement is governed by English law; and

 

(iii)                               agreement
not to claim any immunity to which it or its assets may be entitled,

 

are legal, valid and binding
under the laws of its jurisdiction of incorporation; and

 

(b)                                 any
judgment obtained in England will be recognised and be enforceable by the
courts of its jurisdiction of incorporation.

 

16.18                 Intercompany
indebtedness

 

As at the date of this
Agreement, and as at the first Utilisation Date for borrowings by Finans,
intercompany indebtedness is outstanding owing by Finans to the Company in an
amount in excess of the Borrowing Limit applicable to Finans.

 

16.19                 Ownership
of Finans / Petroleum

 

(a)                                  Finans
is a wholly-owned Subsidiary of the Company; and

 

(b)                                 the
Company is a wholly-owned Subsidiary of the Parent.

 

16.20                 Times
for making representations

 

(a)                                  The
representations set out in this Clause are made by each Obligor on the date of
this Agreement.

 

(b)                                 Unless
a representation is expressed to be given at a specific date, each
representation (other than those representations set out in Clauses 16.11
(Litigation), 16.13 (Taxes on payment) and 16.14 (Stamp duties)) is deemed to
be repeated by each Obligor on the date of each Request, onthe first day of
each Term and on the date on which the Final Maturity Date is extended to the
Extended Maturity Date in accordance with Clause 6.2 (Extension option).

 

(c)                                  When
a representation is repeated, it is applied to the circumstances existing at
the time of repetition.

 

29

 

17.                               INFORMATION COVENANTS

 

17.1                        Financial
statements

 

(a)                                  Each
Obligor must supply to the Facility Agent in sufficient copies for all the
Lenders:

 

(i)                                     its
audited consolidated financial statements for each of its financial years; and

 

(ii)                                  its
interim consolidated financial statements for the first half-year of each of
its financial years.

 

(b)                                 All
financial statements must be supplied as soon as they are available and:

 

(i)                                     in
the case of audited consolidated financial statements, within 150 days; and

 

(ii)                                  in
the case of interim financial statements, within 90 days,

 

of the end of the relevant
financial period.

 

17.2                        Form
of financial statements

 

(a)                                  Each
Obligor must ensure that each set of financial statements supplied under this
Agreement gives (if audited) a true and fair view of, or (if unaudited) fairly
represents, the financial condition (consolidated or otherwise) of the relevant
person as at the date to which those financial statements were drawn up.

 

(b)                                 Each
Obligor must notify the Facility Agent of any change to the manner in which its
audited consolidated financial statements are prepared.

 

(c)                                  If
requested by the Facility Agent, the relevant Obligor must supply to the
Facility Agent a full description of any change notified under paragraph (b)
above.

 

17.3                        Information
- miscellaneous

 

(a)                                  The
Company must supply to the Facility Agent with each set of its Financial
Statements delivered in accordance with Clause 17.1(a)(i) (Financial
statements) financial projections for the following five years.

 

(b)                                 Each
Obligor must supply to the Facility Agent, in sufficient copies for all the
Lenders if the Facility Agent so requests:

 

(i)                                     copies
of all documents despatched by it to its creditors generally or any class of
them at the same time as they are despatched;

 

(ii)                                  promptly
upon becoming aware of them, details of any litigation, arbitration or
administrative proceedings which are current, threatened by a public or
governmental body or entity or by way of a formal notice (by letter before
action, a lawyer’s letter or otherwise) or pending and which might, if
adversely determined, have a Material Adverse Effect;

 

(iii)                               promptly
on request, a list of the then current subsidiaries; and

 

30

 

(iv)                              promptly
on request, such further information regarding the financial condition and
operations of it and its Subsidiaries as any Finance Party through the Facility
Agent may reasonably request.

 

17.4                        Notification
of Default

 

(a)                                  Unless
the Facility Agent has already been so notified by another Obligor, each
Obligor must notify the Facility Agent of any Default (and the steps, if any,
being taken to remedy it) promptly upon becoming aware of its occurrence.

 

(b)                                 Promptly
on request by the Facility Agent, each Obligor must supply to the Facility
Agent a certificate, signed by two of its authorised signatories on its behalf,
certifying that no Default is outstanding or, if a Default is outstanding,
specifying the Default and the steps, if any, being taken to remedy it.

 

17.5                        Year
end

 

No Obligor may change its
financial year end.

 

17.6                        Use
of websites

 

(a)                                  Except
as provided below, each Obligor may deliver any information under this
Agreement to a Lender by posting it on to an electronic website if:

 

(i)                                     the
Facility Agent and the Lender agree;

 

(ii)                                  the
relevant Obligor and the Facility Agent designate an electronic website for
this purpose;

 

(iii)                               the
relevant Obligor notifies the Facility Agent of the address of and password for
the website; and

 

(iv)                              the
information posted is in a format agreed between the relevant Obligor and the
Facility Agent.

 

The Facility Agent must
supply each relevant Lender with the address of and password for the website.

 

(b)                                 Notwithstanding
the above, each Obligor must supply to the Facility Agent in paper form a copy
of any information posted on the website together with sufficient copies for:

 

(i)                                     any
Lender not agreeing to receive information via the website; and

 

(ii)                                  within
ten Business Days of request any other Lender, if that Lender so requests.

 

(c)                                  Each
Obligor must promptly upon becoming aware of its occurrence, notify the
Facility Agent if:

 

(i)                                     its
website cannot be accessed;

 

(ii)                                  the
website or any information on the website is infected by any electronic virus
or similar software;

 

(iii)                               the
password for the website is changed; or

 

31

 

(iv)                              any
information to be supplied under this Agreement is posted on the website or
amended after being posted.

 

If the circumstances in
paragraphs (i) or (ii) above occur, the relevant Obligor must supply any
information required under this Agreement in paper form.

 

18.                               GENERAL COVENANTS

 

18.1                        General

 

Each Obligor agrees to be
bound by the covenants set out in this Clause relating to it and, where the covenant
is expressed to apply to each member of the Parent Group, each Obligor must
ensure that each of its Subsidiaries performs that covenant.

 

18.2                        Authorisations

 

Each Obligor must promptly
obtain, maintain and comply with the terms of any authorisation required under
any law or regulation to enable it to perform its obligations under, or for the
validity or enforceability of, any Finance Document.

 

18.3                        Compliance
with laws

 

Each member of the Parent
Group must comply in all respects with all laws to which it is subject where
failure to do so would reasonably be likely to have a Material Adverse Effect.

 

18.4                        Pari
passu ranking

 

Each Obligor must ensure
that its payment obligations under the Finance Documents rank at least pari
passu with all its other present and future unsecured payment obligations,
except for obligations mandatorily preferred by law applying to companies
generally.

 

18.5                        Negative
pledge

 

(a)                                  Except
as provided below, no member of the Parent Group may create or allow to exist
any Security Interest on any of its assets.

 

(b)                                 Paragraph (a)
does not apply to:

 

(i)                                     any
Security Interest created or permitted to exist with the prior consent of the
Facility Agent;

 

(ii)                                  any
Security Interest constituted by the Security Documents or the indenture
entered into by the Parent in connection with the Senior Secured Notes;

 

(iii)                               any
Security Interest listed in Schedule 6 (Existing Security) except to the
extent the principal amount secured by that Security Interest exceeds the
amount stated in that Schedule;

 

(iv)                              any
Security Interest comprising a netting or set-off arrangement entered into by a
member of the Parent Group in the ordinary course of its banking arrangements
for the purpose of netting debit and credit balances;

 

(v)                                 any
Security Interest arising by operation of law and in the ordinary course of
business and securing amounts not more than 90 days overdue;

 

32

 

(vi)                              any
Security Interest on an asset, or an asset of any person, acquired by a member
of the Parent Group after the date of this Agreement but only for the period of
six months from the date of acquisition and to the extent that the principal
amount secured by that Security Interest has not been incurred or increased in
contemplation of, or since, the acquisition;

 

(vii)                           any
Security Interest over assets acquired after the date of this Agreement as
security for or in respect of Financial Indebtedness incurred solely to finance
all or part of the purchase price of those assets, provided that the Security
Interest is created at the time of the acquisition and the maximum amount of
the Financial Indebtedness secured by that Security Interest does not exceed
the purchase price and that such Security Interests are discharged within six months
from the date of acquisition;

 

(viii)                        any
Security Interest over amounts which a member of the Parent Group is required
under the rules of any relevant financial exchange to place as collateral with
a financial exchange in relation to derivative instruments entered into in the
ordinary course of trade;

 

(ix)                                any
Security Interest (the new Security Interest) created in
substitution for any of the Security Interests referred to in paragraphs (i) to
(viii) above, provided that the new Security Interest subsists over the same
asset(s) as had been secured by the Security Interest which it replaced and the
principal, capital or nominal amount secured by the new Security Interest does
not exceed the amount permitted to be secured by the Security Interest which it
replaced; and

 

(x)                                   any
Security Interest securing indebtedness the amount of which (when aggregated
with the amount of any other indebtedness which has the benefit of a Security
Interest not allowed under the preceding sub-paragraphs) does not exceed
€15,000,000 or its equivalent at any time (when aggregated with the value of
transactions permitted in accordance with paragraph (c) below).

 

(c)                                  No
member of the Parent Group may:

 

(i)                                     sell,
transfer or otherwise dispose of any of its assets on terms where it is or may
be leased to or re-acquired or acquired by a member of the Parent Group or any
of its related entities; or

 

(ii)                                  sell,
transfer or otherwise dispose of any of its receivables on recourse terms,

 

in circumstances where the
transaction is entered into primarily as a method of raising Financial
Indebtedness or of financing the acquisition of an asset, except where the
value of such sale, transfer or disposal does not exceed €15,000,000 or its
equivalent at any time (when aggregated with the amount of any indebtedness
subject to a Security Interest referred to in paragraph (b)(x) above).

 

18.6                        Disposals

 

(a)                                  Except
as provided below, no member of the Parent Group may, either in a single
transaction or in a series of transactions and whether related or not, dispose
of all or any part of its assets.

 

(b)                                 Paragraph (a)
does not apply to any disposal:

 

(i)                                     made
in the ordinary course of business of the disposing entity;

 

33

 

(ii)                                  of
assets in exchange for other assets comparable or superior as to type, value
and quality;

 

(iii)                               by
one member of the Company Group to another member of the Company Group on arm’s
length terms for fair value;

 

(iv)                              by
the Parent to the Company;

 

(v)                                 of
any asset from the Company Group to the Parent, the disposal of which asset to
the Parent the Parent must procure is not restricted by the terms of the Senior
Secured Notes;

 

(vi)                              constituted
by the Company’s Group Contribution;

 

(vii)                           in
the event that the Company makes no Group Contribution, or makes a Group
Contribution of an amount less than the Charges, a disposal by the Company by
way of a payment to the Parent out of the Company’s distributable profits in
any year to enable the Parent to pay the Charges;

 

(viii)                        where
the higher of the market value or consideration receivable (when aggregated with
the higher of the market value or consideration for any other disposal not
allowed under the preceding sub-paragraphs) does not exceed €10,000,000 or its
equivalent in any financial year of the Company.

 

18.7                        Financial
Indebtedness

 

(a)                                  Except
as provided below, no member of the Company Group may incur any Financial
Indebtedness.

 

(b)                                 Paragraph (a)
does not apply to:

 

(i)                                     any
Financial Indebtedness incurred under the Finance Documents;

 

(ii)                                  any
Financial Indebtedness existing as at the date of this Agreement, provided that
the amount of such Financial Indebtedness shall not be increased or the
maturity extended without the prior consent of the Lenders;

 

(iii)                               any
Financial Indebtedness owed by a member of the Company Group to another member
of the Company Group;

 

(iv)                              any
Financial Indebtedness owing by the Company to the Parent, so long as the
rights of the Parent with respect to that Financial Indebtedness are
subordinated to the rights of the Lenders with respect to the Facility on terms
satisfactory to the Lenders;

 

(v)                                 any
Financial Indebtedness of any person acquired by a member of the Parent Group
which is incurred under arrangements in existence at the date of acquisition,
but only for a period of six months from the date of acquisition;

 

(vi)                              any
derivative transaction protecting against or benefiting from fluctuations in
any rate or price entered into in the ordinary course of business; or

 

(vii)                           any
documentary credit in respect of the purchase of oil in the ordinary course of
business of the Company where the seller requires such documentary credit to be

 

34

 

provided in respect of the payments due for the oil as a condition
precedent to delivery; or

 

(viii)                        (Financial
Indebtedness which in aggregate does not exceed €5,000,000 or its equivalent at
any time.

 

18.8                        Change
of business

 

The Company must ensure that
no substantial change is made to the general nature of the business of the
Company or the Company Group from that carried on at the date of this
Agreement.

 

18.9                        Mergers

 

No Obligor may, and each
Obligor will procure that none of its Subsidiaries shall, enter into any
amalgamation, demerger, merger or reconstruction otherwise than:

 

(a)                                  in
respect of a member of the Parent Group other than an Obligor, under an intra-Group
re-organisation on a solvent basis;

 

(b)                                 in
respect of a member of the Parent Group other than an Obligor, where the
existing member of the Parent Group is the surviving entity;

 

(c)                                  in
respect of any member of the Parent Group other than an Obligor, where such
amalgamation, demerger, merger or reconciliation would not reasonably be
expected to have a Material Adverse Effect;

 

(d)                                 as
agreed in advance by the Lenders (acting reasonably).

 

18.10                 Acquisitions

 

(a)                                  Except
as provided below, no member of the Parent Group may make any acquisition or
investment.

 

(b)                                 Paragraph (a)
does not apply to:

 

(i)                                     the
Acquisition;

 

(ii)                                  acquisitions
or investments made in the ordinary course of trade;

 

(iii)                               any
acquisition of a business which is complementary to the core business of the
Company and its Subsidiaries; or

 

(iv)                              any
acquisition by one member of the Company Group from another member of the
Company Group on arm’s length terms for fair value.

 

18.11                 Environmental
matters

 

(a)                                  In
this Subclause (and as used in Clause 24.2 (Other indemnities)):

 

Environmental Approval
means any authorisation required by an Environmental Law.

 

Environmental Claim
means any claim by any person in connection with:

 

(i)                                     a
breach, or alleged breach, of an Environmental Law;

 

35

 

(ii)                                  any
accident, fire, explosion or other event of any type involving an emission or
substance which is capable of causing harm to any living organism or the
environment; or

 

(iii)                               any
other environmental contamination.

 

Environmental Law
means any law or regulation concerning:

 

(i)                                     the
protection of health and safety;

 

(ii)                                  the
environment; or

 

(iii)                               any
emission or substance which is capable of causing harm to any living organism
or the environment.

 

(b)                                 Each
member of the Parent Group must ensure that it is, and has been, in compliance
with all Environmental Law and Environmental Approvals applicable to it, where
failure to do so would be reasonably likely to have a Material Adverse Effect
or results in any liability for a Finance Party.

 

(c)                                  Each
Obligor must promptly upon becoming aware, notify the Facility Agent of any
Environmental Claim current, or to its knowledge, pending which, if
substantiated, would be reasonably likely to either have a Material Adverse
Effect or result in any material liability for a Finance Party.

 

18.12                 Insurance

 

Each member of the Parent
Group must insure its business and assets with insurance companies to such an
extent and against such risks as companies engaged in a similar business
normally insure.

 

18.13                 Documents

 

(a)                                  Without
the prior consent of the Lenders (not to be unreasonably withheld or delayed),
no Obligor may make any material amendment to:

 

(i)                                     its
constitutional documents (except as required to facilitate the Acquisition);

 

(ii)                                  the
Purchase and Sale Agreement; or

 

(iii)                               the
terms or conditions of any Shareholder Loan.

 

(b)                                 Notwithstanding
paragraph (a) above, the Company may, with the consent of the Parent, convert a
Shareholder Loan into issued ordinary share capital of the Company provided
that the Parent shall at all times remain the registered holder of all shares
resulting from any such conversion.

 

18.14                 Capital
Expenditure

 

No member of the Parent
Group shall incur any capital expenditure which, when aggregated with the
capital expenditure incurred by any other member of the Parent Group, exceeds
€50,000,000 in any financial year.

 

36

 

18.15                 Group
Contribution

 

(a)                                  The
Parent shall ensure that an amount equal to the Company’s Group Contribution in
any year, less any Charges, shall promptly be made available to the Company by
way of subscription for additional shares or subordinated loans (such
subordination to be substantially on the terms of the Shareholder Loan
designated as ‘Shareholder Loan Agreement No. 1A’).

 

(b)                                 For
the purposes of this Clause, Charges shall mean the aggregate in any
financial year of:

 

(i)                                     any
amounts required by the Parent to make interest payments as they fall due under
the Senior Secured Notes;

 

(ii)                                  any
hedging costs incurred in respect of hedging the Parent’s currency exposure;
and

 

(iii)                               any
other costs incurred by the Parent up to a maximum amount of €3,000,000 per
annum.

 

18.16                 Shareholder
Loans

 

No Shareholder Loan may be
prepaid or repaid without the prior consent of the Lenders.  This will not prevent the conversion of a
Shareholder Loan into share capital of the Company as referred to in Clause
18.13(b) (Documents).

 

18.17                 Guarantees

 

No Obligor shall, and shall
procure that no other member of the Parent Group will, grant or permit to
subsist any guarantee other than the guarantee granted by the Guarantors on the
terms of this Agreement and on the terms of the Take Out Facility.

 

18.18                 Intellectual
Property

 

Each Obligor shall, and
shall procure that each other member of the Parent Group shall:

 

(a)                                  make
and maintain such applications and registrations and pay such fees and other
amounts and to do all things necessary to maintain and protect any intellectual
property rights used by such member of the Parent Group except where failure to
do so would not reasonably be expected to have a Material Adverse Effect; and

 

(b)                                 take
such reasonable steps as are necessary to prevent third parties infringing
those intellectual property rights referred to in paragraph (i) above if such
infringement might reasonably be likely to have a Material Adverse Effect.

 

18.19                 Floating
charge

 

Finans shall ensure that the
assets secured by the Security Agreement shall at all times be of a value of
not less than SEK1,000,000,000.

 

18.20                 Know
your client checks

 

Each Obligor shall promptly upon
the request of the Facility Agent or any Lender (and in any event within 90
days of such request) and each Lender shall promptly upon the request of the
Facility Agent supply, or procure the supply of, such documentation and other
evidence as is reasonably requested by the Facility Agent (for itself or on
behalf of any Lender) or any

 

37

 

Lender (for itself or on behalf
of any prospective new Lender) in order for the Facility Agent, such Lender or
any prospective new Lender to carry out and be satisfied with the results of
all necessary “know your client” or other checks in relation to the identity of
any person that it is required to carry out in relation to the transactions
contemplated in the Finance Documents.

 

19.                               DEFAULT

 

19.1                        Events
of Default

 

Each of the events set out
in this Clause is an Event of Default.

 

19.2                        Non-payment

 

An Obligor does not pay on
the due date any amount payable by it under the Finance Documents in the manner
required under the Finance Documents, unless the non-payment:

 

(a)                                  is
caused by technical or administrative error in the automated cash transmission
system; and

 

(b)                                 is
remedied within three Business Days of the date on which that Obligor is
notified of non-receipt of payment by the Facility Agent.

 

19.3                        Breach
of other obligations

 

(a)                                  Subject
to paragraph (b) below, an Obligor does not comply with any term of
Clause 18 (General covenants).

 

(b)                                 No
Event of Default will occur under paragraph (a) above in relation to Clauses
18.2 (Authorisations), 18.11 (Environmental matters), 18.12 (Insurance), 18.13
(Documents) and 18.18 (Intellectual Property) if the failure to comply:

 

(i)                                     is
capable of remedy; and

 

(ii)                                  is
remedied within 20 days of the earlier of the Facility Agent giving notice and
that Obligor becoming aware of the non-compliance.

 

(c)                                  an
Obligor does not comply with any other term of the Finance Documents not
already referred to in this Clause, unless the non-compliance:

 

(i)                                     is
capable of remedy; and

 

(ii)                                  is
remedied within 30 days of the earlier of the Facility Agent giving notice and
the Obligor becoming aware of the non-compliance.

 

19.4                        Misrepresentation

 

A representation made or
repeated by an Obligor in any Finance Document or in any document delivered by
or on behalf of any Obligor under any Finance Document is incorrect in any
material respect when made or deemed to be repeated and the circumstances
giving rise to such misrepresentation are not remedied within 20 days of the
earlier of the Facility Agent giving notice to the Company or the Obligor
becoming aware of the misrepresentations.

 

38

 

19.5                        Cross-default

 

(a)                                  Any
of the following occurs in respect of a member of the Parent Group:

 

(i)                                     any
of its Financial Indebtedness is not paid when due (after the expiry of any
originally applicable grace period);

 

(ii)                                  any
of its Financial Indebtedness:

 

(A)                              becomes
prematurely due and payable;

 

(B)                                is
placed on demand; or

 

(C)                                is
capable of being declared by a creditor to be prematurely due and payable or
being placed on demand,

 

in each case, as a result of
an event of default having occurred (howsoever described); or

 

(iii)                               any
commitment for its Financial Indebtedness is cancelled or suspended as a result
of an event of default (howsoever described),

 

unless the aggregate amount
of Financial Indebtedness falling within all or any of
paragraphs (i)-(iii) above is less than €10,000,000 or its equivalent.

 

(b)                                 Any
amount due under the Senior Secured Notes is not paid when due after applicable
grace periods.

 

19.6                        Insolvency

 

Any of the following occurs
in respect of a member of the Parent Group:

 

(a)                                  it
is, or is deemed for the purposes of any law to be, unable to pay its debts as
they fall due or insolvent;

 

(b)                                 it
admits its inability to pay its debts as they fall due;

 

(c)                                  it
suspends making payments on any of its debts or announces an intention to do
so;

 

(d)                                 by
reason of actual or foreseen financial difficulties, it begins negotiations
with any creditor for the rescheduling in any material respect of any of its
indebtedness; or

 

(e)                                  a
moratorium is declared in respect of any of its indebtedness.

 

19.7                        Insolvency
proceedings

 

(a)                                  Except
as provided below, any of the following occurs in respect of a member of the
Parent Group:

 

(i)                                     any
corporate action is taken with a view to a moratorium or a composition,
assignment or similar arrangement with any of its creditors;

 

(ii)                                  a
meeting of its shareholder, directors or other officers is convened for the
purpose of considering any resolution for, to petition for or to file documents
with a court or any 

 

39

 

registrar for, its winding-up, administration or dissolution or any
such resolution is passed;

 

(iii)                               any
person presents a petition, or files documents with a court or any registrar,
for its winding-up, administration or dissolution;

 

(iv)                              an
order for its winding-up, administration or dissolution is made;

 

(v)                                 any
liquidator, trustee in bankruptcy, judicial custodian, compulsory manager,
receiver, administrative receiver, administrator or similar officer is
appointed in respect of it or any of its assets;

 

(vi)                              its
shareholders, directors or other officers request the appointment of, or give
notice of their intention to appoint, a liquidator, trustee in bankruptcy,
judicial custodian, compulsory manager, receiver, administrative receiver,
administrator or similar officer; or

 

(vii)                           any
other analogous step or procedure is taken in any jurisdiction.

 

(b)                                 Paragraph
(a) does not apply to a petition for winding-up presented by a creditor which
is being contested in good faith and with due diligence and is discharged or
struck out within 30 days.

 

19.8                        Creditors’
process

 

Any attachment,
sequestration, distress, execution or analogous event affects any asset(s) of a
member of the Parent Group, having an aggregate value of at least €5,000,000,
and is not discharged within fourteen days.

 

19.9                        Cessation
of business

 

A member of the Parent Group
ceases, or threatens to cease, to carry on business except as a result of any
disposal allowed under this Agreement.

 

19.10                 Effectiveness
of Finance Documents

 

(a)                                  It
is or becomes unlawful for any Obligor to perform any of its obligations under
the Finance Documents.

 

(b)                                 Any
Finance Document is not effective or is alleged by an Obligor to be ineffective
for any reason.

 

(c)                                  An
Obligor repudiates a Finance Document or formally or in writing evidences an
intention to repudiate a Finance Document.

 

19.11                 Ownership
of the Company

 

(a)                                  The
Company is not or ceases to be a directly wholly-owned Subsidiary of the
Parent.

 

(b)                                 Finans
is not or ceases to be a directly wholly-owned Subsidiary of the Company.

 

40

 

19.12                 Litigation

 

Any litigation, arbitration
or administrative proceeding is commenced against any member of the Parent
Group which, if adversely determined, would be reasonably likely to have a
Material Adverse Effect

 

19.13                 Extension
of Waivers

 

(a)                                  The
date for expiry of any of the Waivers is not extended on terms acceptable to
the Lenders (acting reasonably) by 15th March, 2004 to a date falling not
earlier than the date on which all Secured Obligations have been irrevocably
discharged in full.

 

(b)                                 Any
Waiver is not or ceases to be effective.

 

(c)                                  Any
condition to the effectiveness of a Waiver is not satisfied by the date falling
30 days prior to the date by which it is required to be satisfied on the terms
of the Waiver.

 

19.14                 Material
adverse change

 

Any event or series of
events occurs which would be reasonably likely to have a Material Adverse
Effect.

 

19.15                 Acceleration

 

If an Event of Default is
outstanding, the Facility Agent may, and must if so instructed by the Lenders,
by notice to the Company:

 

(a)                                  cancel
all or any part of the Total Commitments; and/or

 

(b)                                 declare
that all or part of any amounts outstanding under the Finance Documents are:

 

(i)                                     immediately
due and payable; and/or

 

(ii)                                  payable
on demand by the Facility Agent acting on the instructions of the Lenders.

 

Any notice given under this
Subclause will take effect in accordance with its terms.

 

20.                               SECURITY

 

20.1                        Responsibility

 

The Facility Agent is not
liable or responsible to any other Finance Party for:

 

(a)                                  any
failure in perfecting or protecting the security created by any Security
Document;

 

(b)                                 any
other action taken or not taken by it in connection with any Security Document,

 

unless directly caused by
its gross negligence or wilful misconduct.

 

20.2                        Title

 

The Facility Agent may
accept, without enquiry, the title (if any) an Obligor may have to any asset
over which security is intended to be created by any Security Document.

 

41

 

20.3                        Possession
of documents

 

The Facility Agent is not
obliged to hold in its own possession any Security Document, title deed or
other document in connection with any asset over which security is intended to
be created by a Security Document.

 

20.4                        Investments

 

Except as otherwise provided
in any Security Document, all moneys received by the Facility Agent under a
Security Document may be invested in the name of, or under the control of, the
Facility Agent in any investments selected by the Facility Agent.  Additionally, those moneys may be placed on
deposit in the name of, or under the control of, the Facility Agent at any bank
or institution (including itself) and upon such terms as it may think fit.

 

20.5                        Approval

 

Each Finance Party confirms
its approval of each Security Document.

 

20.6                        Release
of security

 

(a)                                  If a
disposal of any asset subject to security created by a Security Document is
made to a person (which is and will remain) outside the Parent Group in the
following circumstances:

 

(i)                                     the
Lenders agree to the disposal;

 

(ii)                                  the
disposal is allowed by the terms of the Finance Documents and will not result
or could not reasonably be expected to result in any breach of any term of any
Finance Document;

 

(iii)                               the
disposal is being made at the request of the Facility Agent in circumstances
where any security created by the Security Documents has become enforceable; or

 

(iv)                              the
disposal is being effected by enforcement of a Security Document,

 

the asset being disposed of
will be released from any security over it created by a Security Document.
However, the proceeds of any disposal (or an amount corresponding to them) must
be applied in accordance with the requirements of the Finance Documents (if
any).

 

(b)                                 If
the Facility Agent is satisfied that a release is allowed under this Subclause,
the Facility Agent must execute (at the request and expense of the relevant
Obligor) any document which is reasonably required to achieve that release.
Each other Finance Party irrevocably authorises the Facility Agent to execute
any such document.

 

21.                               THE FACILITY AGENT

 

21.1                        Appointment
and duties of the Facility Agent

 

(a)                                  Each
Finance Party (other than the Facility Agent) irrevocably appoints the Facility
Agent to act as its agent under the Finance Documents.

 

(b)                                 Each
Finance Party irrevocably authorises the Facility Agent to:

 

42

 

(i)                                     perform
the duties and to exercise the rights, powers and discretions that are
specifically given to it under the Finance Documents, together with any other
incidental rights, powers and discretions; and

 

(ii)                                  execute
each Finance Document expressed to be executed by the Facility Agent.

 

(c)                                  The
Facility Agent has only those duties which are expressly specified in the
Finance Documents.  Those duties are
solely of a mechanical and administrative nature.

 

21.2                        No
fiduciary duties

 

Except as specifically
provided in a Finance Document, nothing in the Finance Documents makes the
Facility Agent a trustee or fiduciary for any other Party or any other
person.  No Finance Party need hold in
trust any moneys paid to it for a Party or be liable to account for interest on
those moneys.

 

21.3                        Individual
position of the Facility Agent

 

(a)                                  If
it is also a Lender, the Facility Agent has the same rights and powers under
the Finance Documents as any other Lender and may exercise those rights and
powers as though it were not the Facility Agent.

 

(b)                                 The
Facility Agent may:

 

(i)                                     carry
on any business with any Obligor or its related entities (including acting as
an agent or a trustee for any other financing); and

 

(ii)                                  retain
any profits or remuneration it receives under the Finance Documents or in
relation to any other business it carries on with any Obligor or its related
entities.

 

21.4                        Reliance

 

The Facility Agent may:

 

(a)                                  rely
on any notice or document believed by it to be genuine and correct and to have
been signed by, or with the authority of, the proper person;

 

(b)                                 rely
on any statement made by any person regarding any matters which may reasonably
be assumed to be within his knowledge or within his power to verify;

 

(c)                                  engage,
pay for and rely on professional advisers selected by it (including those
representing a Party other than the Facility Agent); and

 

(d)                                 act
under the Finance Documents through its personnel and agents.

 

21.5                        Lenders’
instructions

 

(a)                                  The
Facility Agent is fully protected if it acts on the instructions of the Lenders
in the exercise of any right, power or discretion or any matter not expressly
provided for in the Finance Documents. 
Any such instructions given by the Lenders will be binding on all the
Lenders.  In the absence of
instructions, the Facility Agent may act as it considers to be in the best
interests of all the Lenders.

 

43

 

(b)                                 The
Facility Agent may assume that unless it has received notice to the contrary,
any right, power, authority or discretion vested in any Party or the Lenders
has not been exercised.

 

(c)                                  The
Facility Agent is not authorised to act on behalf of a Lender (without first
obtaining that Lender’s consent) in any legal or arbitration proceedings in
connection with any Finance Document.

 

(d)                                 The
Facility Agent may require the receipt of security satisfactory to it, whether
by way of payment in advance or otherwise, against any liability or loss which
it may incur in complying with the instructions of the Lenders.

 

21.6                        Responsibility

 

(a)                                  The
Facility Agent is not responsible to any other Finance Party for the adequacy,
accuracy or completeness of:

 

(i)                                     any
Finance Document or any other document; or

 

(ii)                                  any
statement or information (whether written or oral) made in or supplied in
connection with any Finance Document.

 

(b)                                 Without
affecting the responsibility of any Obligor for information supplied by it or
on its behalf in connection with any Finance Document, each Lender confirms
that it:

 

(i)                                     has
made, and will continue to make, its own independent appraisal of all risks
arising under or in connection with the Finance Documents (including the
financial condition and affairs of each Obligor and its related entities and
the nature and extent of any recourse against any Party or its assets); and

 

(ii)                                  has
not relied exclusively on any information provided to it by the Facility Agent
in connection with any Finance Document.

 

21.7                        Exclusion
of liability

 

(a)                                  The
Facility Agent is not liable or responsible to any other Finance Party for any
action taken or not taken by it in connection with any Finance Document, unless
directly caused by its gross negligence or wilful misconduct.

 

(b)                                 No
Party (other than the Facility Agent) may take any proceedings against any
officer, employee or agent of the Facility Agent in respect of any claim it
might have against the Facility Agent or in respect of any act or omission of
any kind by that officer, employee or agent in connection with any Finance
Document.  Any officer, employee or
agent of the Facility Agent may rely on this Subclause and enforce its terms
under the Contracts (Rights of Third Parties) Act 1999.

 

21.8                        Default

 

(a)                                  The
Facility Agent is not obliged to monitor or enquire whether a Default has
occurred.  The Facility Agent is not
deemed to have knowledge of the occurrence of a Default.

 

(b)                                 If
the Facility Agent:

 

(i)                                     receives
notice from a Party referring to this Agreement, describing a Default and
stating that the event is a Default; or

 

44

 

(ii)                                  is
aware of the non-payment of any principal or interest or any fee payable to a
Lender under this Agreement,

 

it must promptly notify the
Lenders.

 

21.9                        Information

 

(a)                                  The
Facility Agent must promptly forward to the person concerned the original or a
copy of any document which is delivered to the Facility Agent by a Party for
that person.

 

(b)                                 Except
where a Finance Document specifically provides otherwise, the Facility Agent is
not obliged to review or check the adequacy, accuracy or completeness of any
document it forwards to another Party.

 

(c)                                  Except
as provided above, the Facility Agent has no duty:

 

(i)                                     either
initially or on a continuing basis to provide any Lender with any credit or
other information concerning the risks arising under or in connection with the
Finance Documents (including any information relating to the financial
condition or affairs of any Obligor or its related entities or the nature or
extent of recourse against any Party or its assets) whether coming into its
possession before, on or after the date of this Agreement; or

 

(ii)                                  unless
specifically requested to do so by a Lender in accordance with a Finance
Document, to request any certificate or other document from any Obligor.

 

(d)                                 The
Facility Agent is not obliged to disclose to any person any confidential
information supplied to it by or on behalf of a member of the Parent Group
solely for the purpose of evaluating whether any waiver or amendment is
required in respect of any term of the Finance Documents.

 

(e)                                  Each
Obligor irrevocably authorises the Facility Agent to disclose to the other
Finance Parties any information which, in its opinion, is received by it in its
capacity as the Facility Agent.

 

21.10                 Indemnities

 

(a)                                  Without
limiting the liability of any Obligor under the Finance Documents, each Lender
must indemnify the Facility Agent for that Lender’s Pro Rata Share of any loss
or liability incurred by the Facility Agent in acting as the Facility Agent,
except to the extent that the loss or liability is caused by the Facility
Agent’s gross negligence or wilful misconduct.

 

(b)                                 The
Facility Agent may deduct from any amount received by it for a Lender any
amount due to the Facility Agent from that Lender under a Finance Document but
unpaid.

 

21.11                 Compliance

 

The Facility Agent may
refrain from doing anything (including disclosing any information) which might,
in its opinion, constitute a breach of any law or regulation or be otherwise
actionable at the suit of any person, and may do anything which, in its
opinion, is necessary or desirable to comply with any law or regulation.

 

45

 

21.12                 Resignation
of the Facility Agent

 

(a)                                  The
Facility Agent may resign and appoint any of its Affiliates as successor
Facility Agent by giving notice to the Lenders and the Company.

 

(b)                                 Alternatively,
the Facility Agent may resign by giving notice to the Lenders and the Company,
in which case the Lenders may appoint a successor Facility Agent.

 

(c)                                  If
no successor Facility Agent has been appointed under paragraph (b) above
within 30 days after notice of resignation was given, the Facility Agent
may appoint a successor Facility Agent.

 

(d)                                 The
person(s) appointing a successor Facility Agent must consult with the Company
and obtain its consent (such consent not to be unreasonably withheld) prior to
the appointment unless the successor Facility Agent is a Lender, is capable of
performing the facility agency function and no other Lender has been appointed
as successor Facility Agent.  Any
successor Facility Agent must have an office in the U.K.

 

(e)                                  The
resignation of the Facility Agent and the appointment of any successor Facility
Agent will both become effective only when the successor Facility Agent
notifies all the Parties that it accepts its appointment.  On giving the notification, the successor
Facility Agent will succeed to the position of the Facility Agent and the term Facility
Agent will mean the successor Facility Agent.

 

(f)                                    The
retiring Facility Agent must, at its own cost, make available to the successor
Facility Agent such documents and records and provide such assistance as the
successor Facility Agent may reasonably request for the purposes of performing
its functions as the Facility Agent under the Finance Documents.

 

(g)                                 Upon
its resignation becoming effective, this Clause will continue to benefit
the retiring Facility Agent in respect of any action taken or not taken by it
in connection with the Finance Documents while it was the Facility Agent, and,
subject to paragraph (f) above, it will have no further obligations under
any Finance Document.

 

(h)                                 The
Lenders may, by notice to the Facility Agent, require it to resign under paragraph (b)
above.

 

21.13                 Relationship
with Lenders

 

(a)                                  The
Facility Agent may treat each Lender as a Lender, entitled to payments under
this Agreement and as acting through its Facility Office(s) until it has
received not less than five Business Days’ prior notice from that Lender to the
contrary.

 

(b)                                 The
Facility Agent may at any time, and must if requested to do so by the Lenders,
convene a meeting of the Lenders.

 

(c)                                  The
Facility Agent must keep a register of all the Parties and supply any other
Party with a copy of the register on request. 
The register will include each Lender’s Facility Office(s) and contact
details for the purposes of this Agreement.

 

21.14                 Facility
Agent’s management time

 

If the Facility Agent
requires, any amount payable to the Facility Agent by any Party  in connection with the occurrence of a
default or the enforcement or preservation of any rights 

 

46

 

by the Facility Agent under
the Finance Documents after the date of this Agreement may include the cost of
using its management time or other resources and will be calculated on the
basis of such reasonable daily or hourly rates as the Facility Agent may notify
to the relevant Party.  This is in
addition to any amount in respect of fees or expenses paid or payable to the
Facility Agent under any other term of the Finance Documents.

 

21.15                 Notice
period

 

Where this Agreement
specifies a minimum period of notice to be given to the Facility Agent, the
Facility Agent may, at its discretion, accept a shorter notice period.

 

21.16                 Facility
Agent

 

In acting as Facility Agent,
the agency division of Skandinaviska Enskilda Banken AB (publ) is treated as a
separate entity from its other divisions and departments.  Any information acquired by Skandinaviska
Enskilda Banken AB (publ) which, in its opinion, is acquired by it otherwise
than its capacity as Facility Agent, may be treated as confidential by
Skandinaviska Enskilda Banken AB (publ) and will not be treated as information
possessed by the Facility Agent in its capacity as such.

 

22.                               EVIDENCE AND CALCULATIONS

 

22.1                        Accounts

 

Accounts maintained by a
Finance Party in connection with this Agreement are prima facie evidence of the
matters to which they relate for the purpose of any litigation or arbitration
proceedings.

 

22.2                        Certificates
and determinations

 

Any certification or
determination by a Finance Party of a rate or amount under the Finance
Documents will be, in the absence of manifest error, conclusive evidence of the
matters to which it relates.

 

22.3                        Calculations

 

Any interest or fee accruing
under this Agreement accrues from day to day and is calculated on the basis of
the actual number of days elapsed and a year of 360 or 365 days or otherwise,
depending on what the Facility Agent determines is market practice.

 

23.                               FEES

 

23.1                        Facility
Agent’s fee

 

The Company must pay to the
Facility Agent for its own account an agency fee in the manner agreed in the
Fee Letter between the Facility Agent and the Company.

 

23.2                        Arrangement
and underwriting fee

 

The Company must pay to the
Lenders for their own account an arrangement and underwriting fee in the manner
agreed in the Fee Letter between them and the Company.

 

47

 

23.3                        Commitment
fee

 

(a)                                  The
Company must pay a commitment fee computed at the rate of 0.50 per cent. per
annum on the undrawn, uncancelled amount of each Lender’s Commitment.

 

(b)                                 Accrued
commitment fee is payable within three Business Days of the end of the
Availability Period.  Accrued commitment
fee is also payable to the Facility Agent for a Lender on the date its
Commitment is cancelled in full.

 

24.                               INDEMNITIES
AND BREAK COSTS

 

24.1                        Currency
indemnity

 

(a)                                  The
Company must, as an independent obligation, indemnify each Finance Party
against any loss or liability which that Finance Party incurs as a consequence
of:

 

(i)                                     that
Finance Party receiving an amount in respect of an Obligor’s liability under
the Finance Documents; or

 

(ii)                                  that
liability being converted into a claim, proof, judgment or order,

 

in a currency other than the
currency in which the amount is expressed to be payable under the relevant
Finance Document.

 

(b)                                 Unless
otherwise required by law, each Obligor waives any right it may have in any
jurisdiction to pay any amount under the Finance Documents in a currency other
than that in which it is expressed to be payable.

 

24.2                        Other
indemnities

 

(a)                                  The
Company must indemnify each Finance Party against any loss or liability which
that Finance Party incurs as a consequence of:

 

(i)                                     the
occurrence of any Event of Default;

 

(ii)                                  any
failure by an Obligor to pay any amount due under a Finance Document on its due
date, including any resulting from any distribution or redistribution of any
amount among the Lenders under this Agreement;

 

(iii)                               (other
than by reason of negligence or default by that Finance Party) a Loan not being
made after a Request has been delivered for that Loan;

 

(iv)                              a
Loan (or part of a Loan) not being prepaid in accordance with a notice of
prepayment;

 

(v)                                 any
stamp duty payable in respect of the Security Agreement referred to in Clause
16.14 (Stamp duties); or

 

(vi)                              any
actual or alleged breach by any member of the Group of any Environmental Law or
Environmental Approval, where such loss or liability is incurred by that
Finance Party as a direct consequence of it being a party to a Finance Document
and would not have been so incurred by such Finance Party if it had not been
such a party.

 

48

 

The Company’s liability in
each case includes any loss or expense on account of funds borrowed, contracted
for or utilised to fund any amount payable under any Finance Document, any
amount repaid or prepaid or any Loan.

 

(b)                                 The
Company must indemnify the Facility Agent against any loss or liability
incurred by the Facility Agent as a result of:

 

(i)                                     investigating
any event which the Facility Agent reasonably believes to be a Default; or

 

(ii)                                  acting
or relying on any notice which the Facility Agent reasonably believes to be
genuine, correct and appropriately authorised.

 

(c)                                  The
Company’s obligation to indemnify the Facility Agent against any loss or
liability under paragraph (b) above shall not include matters caused by any
Finance Party’s gross negligence or wilful misconduct.

 

24.3                        Break
Costs

 

(a)                                  The
Company must pay to each Lender its Break Costs.

 

(b)                                 Break
Costs are the amount (if any) determined by the relevant Lender by which:

 

(i)                                     the
interest which that Lender would have received for the period from the date of
receipt of any part of its share in a Loan or an overdue amount to the last day
of the applicable Term for that Loan or overdue amount if the principal or
overdue amount received had been paid on the last day of that Term;

 

exceeds

 

(ii)                                  the
amount which that Lender would be able to obtain by placing an amount equal to
the amount received by it on deposit with a leading bank in the appropriate
interbank market for a period starting on the Business Day following receipt
and ending on the last day of the applicable Term.

 

(c)                                  Each
Lender must supply to the Facility Agent for the Company details of the amount
of any Break Costs claimed by it under this Subclause.

 

25.                               EXPENSES

 

25.1                        Initial
costs

 

The Company must pay to the
Facility Agent the amount of all costs and expenses (including legal fees),
supported by an invoice or other evidence of incurrence, reasonably incurred by
it in connection with the negotiation, preparation, printing, execution and
syndication of the Finance Documents.

 

25.2                        Subsequent
costs

 

The Company must pay to the
Facility Agent the amount of all costs and expenses (including legal fees),
supported by an invoice or other evidence of incurrence, reasonably incurred by
it in connection with:

 

49

 

(a)                                  the
negotiation, preparation, printing and execution of any Finance Document (other
than a Transfer Certificate) executed after the date of this Agreement; and

 

(b)                                 any
amendment, waiver or consent requested by or on behalf of an Obligor or
specifically allowed by this Agreement.

 

25.3                        Enforcement
costs

 

The Company must pay to each
Finance Party the amount of all costs and expenses (including legal fees)
reasonably incurred by it in the circumstances then existing in connection with
the enforcement of, or the preservation of any rights under, any Finance
Document and supported by an invoice or other evidence of incurrence.

 

25.4                        Debit
of costs

 

No debit shall be made from
the Company’s account in respect of any costs referred to in Clauses 25.1
(Initial costs) or 25.2 (Subsequent costs) until ten Business Days from receipt
by the Company of an invoice or other evidence of incurrence as evidence that
the reimbursement of such costs or expenses is due and payable.

 

26.                               AMENDMENTS AND WAIVERS

 

26.1                        Procedure

 

(a)                                  Any
term of the Finance Documents may be amended or waived with the agreement of
the Company and each Lender.  The
Facility Agent may effect, on behalf of any Finance Party, an amendment or
waiver allowed under this Clause.

 

(b)                                 The
Facility Agent must promptly notify the other Parties of any amendment or
waiver effected by it under paragraph (a) above.  Any such amendment or waiver is binding on all the Parties.

 

26.2                        Change
of currency

 

If a change in any currency
of a country occurs (including where there is more than one currency or
currency unit recognised at the same time as the lawful currency of a country),
the Finance Documents will be amended to the extent the Facility Agent (acting
reasonably and after consultation with the Company) determines is necessary to
reflect the change.

 

26.3                        Waivers
and remedies cumulative

 

The rights of each Finance
Party under the Finance Documents:

 

(a)                                  may
be exercised as often as necessary;

 

(b)                                 are
cumulative and not exclusive of its rights under the general law; and

 

(c)                                  may
be waived only in writing and specifically.

 

Delay in exercising or
non-exercise of any right is not a waiver of that right.

 

50

 

27.                               CHANGES TO THE PARTIES

 

27.1                        Assignments
and transfers by Obligors

 

Neither Obligor may assign
or transfer any of its rights and obligations under the Finance Documents
without the prior consent of all the Lenders.

 

27.2                        Assignments
and transfers by Lenders

 

(a)                                  A
Lender (the Existing Lender) may, subject to the following provisions of
this Subclause, at any time assign or transfer (including by way of novation)
any of its rights and obligations under this Agreement to any other person/any
other bank or financial institution or to a trust fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or
investing in loans, securities or other financial assets (the New Lender).

 

(b)                                 Unless
the Company and the Facility Agent otherwise agree, a transfer of part of a
Commitment or the rights and obligations under this Agreement by the Existing
Lender must be in a minimum amount of €10,000,000.

 

(c)                                  The
consent of the Company is required for an assignment or transfer by a Lender
unless:

 

(i)                                     the
assignment of transfer is to another Lender or an Affiliate of a Lender; or

 

(ii)                                  an
Event of Default is outstanding.

 

(d)                                 The
consent of the Company to an assignment or transfer must not be unreasonably
withheld or delayed.  The Company will
be deemed to have given its consent five Business Days after the Lender has
requested it unless consent is expressly refused by the Company within that
time.

 

(e)                                  The
Company may not withhold its consent solely because the assignment or transfer
might increase the Mandatory Cost unless the Mandatory Cost is itself a
material amount and such increase is material.

 

(f)                                    A
transfer of obligations will be effective only if either:

 

(i)                                     the
obligations are novated in accordance with the following provisions of this
Clause; or

 

(ii)                                  the
New Lender confirms to the Facility Agent and the Company in form and substance
satisfactory to the Facility Agent and the Company that it is bound by the
terms of this Agreement as a Lender.  On
the transfer becoming effective in this manner the Existing Lender will be
released from its obligations under this Agreement to the extent that they are
transferred to the New Lender.

 

(g)                                 Unless
the Facility Agent otherwise agrees, the New Lender must pay to the Facility
Agent for its own account, on or before the date any assignment or transfer
occurs, a fee of €2,000.

 

(h)                                 Any
reference in this Agreement to a Lender includes a New Lender but excludes a
Lender if no amount is or may be owed to or by it under this Agreement.

 

27.3                        Procedure
for transfer by way of novations

 

(a)                                  In
this Subclause:

 

51

 

Transfer Date
means, for a Transfer Certificate, the later of:

 

(i)                                     the
proposed Transfer Date specified in that Transfer Certificate; and

 

(ii)                                  the
date on which the Facility Agent executes that Transfer Certificate.

 

(b)                                 A
novation is effected if:

 

(i)                                     the
Existing Lender and the New Lender deliver to the Facility Agent a duly
completed Transfer Certificate; and

 

(ii)                                  the
Facility Agent executes it.

 

The Facility Agent must execute as soon as
reasonably practicable a Transfer Certificate delivered to it and which appears
on its face to be in order. The Facility Agent shall only be obliged to execute
a Transfer Certificate upon its satisfaction with the results of all “know your
client” or other checks relating to the identity of any person that it is
required to carry out in relation to the transfer to such New Lender.

 

(c)                                  Each
Party (other than the Existing Lender and the New Lender) irrevocably
authorises the Facility Agent to execute any duly completed Transfer
Certificate on its behalf.

 

(d)                                 On
the Transfer Date:

 

(i)                                     the
New Lender will assume the rights and obligations of the Existing Lender
expressed to be the subject of the novation in the Transfer Certificate in
substitution for the Existing Lender; and

 

(ii)                                  the
Existing Lender will be released from those obligations and cease to have those
rights.

 

27.4                        Limitation
of responsibility of Existing Lender

 

(a)                                  Unless
expressly agreed to the contrary, an Existing Lender is not responsible to a
New Lender for the legality, validity, adequacy, accuracy, completeness or
performance of:

 

(i)                                     any
Finance Document or any other document; or

 

(ii)                                  any
statement or information (whether written or oral) made in or supplied in
connection with any Finance Document,

 

and any representations or
warranties implied by law are excluded.

 

(b)                                 Each
New Lender confirms to the Existing Lender and the other Finance Parties that
it:

 

(i)                                     has
made, and will continue to make, its own independent appraisal of all risks
arising under or in connection with the Finance Documents (including the
financial condition and affairs of each Obligor and its related entities and
the nature and extent of any recourse against any Party or its assets) in
connection with its participation in this Agreement; and

 

(ii)                                  has
not relied exclusively on any information supplied to it by the Existing Lender
in connection with any Finance Document.

 

(c)                                  Nothing
in any Finance Document requires an Existing Lender to:

 

52

 

(i)                                     accept
a re-transfer from a New Lender of any of the rights and obligations assigned
or transferred under this Clause; or

 

(ii)                                  support
any losses incurred by the New Lender by reason of the non-performance by either
Obligor of its obligations under any Finance Document or otherwise.

 

27.5                        Costs
resulting from change of Lender or Facility Office

 

If:

 

(a)                                  a
Lender assigns or transfers any of its rights and obligations under the Finance
Documents or changes its Facility Office; and

 

(b)                                 as a
result of circumstances existing at the date the assignment, transfer or change
occurs, an Obligor would be obliged to pay a Tax Payment or an Increased Cost,

 

then, unless the assignment,
transfer or change is made by a Lender to mitigate any circumstances giving
rise to the Tax Payment, Increased Cost or a right to be prepaid and/or
cancelled by reason of illegality, the relevant Obligor need only pay that Tax
Payment or Increased Cost to the same extent that it would have been obliged to
if no assignment, transfer or change had occurred.

 

27.6                        Changes
to the Reference Banks

 

If a Reference Bank (or, if
a Reference Bank is not a Lender, the Lender of which it is an Affiliate)
ceases to be a Lender, the Facility Agent must appoint (with the consent of the
Company, such consent not to be unreasonably withheld or delayed) another
Lender or an Affiliate of a Lender to replace that Reference Bank.

 

28.                               DISCLOSURE OF INFORMATION

 

(a)                                  Each
Finance Party must keep confidential any information supplied to it by or on
behalf of any Obligor in connection with the Finance Documents.  However, a Finance Party is entitled to
disclose information:

 

(i)                                     which
is publicly available, other than as a result of a breach by that Finance Party
of this Clause;

 

(ii)                                  in
connection with any legal or arbitration proceedings;

 

(iii)                               if
required to do so under any law or regulation;

 

(iv)                              if
required to do so, to a governmental, banking, taxation or other regulatory
authority;

 

(v)                                 to
its professional advisers;

 

(vi)                              to
the extent allowed under paragraph (b) below;

 

(vii)                           to
another Obligor; or

 

(viii)                        with
the agreement of the relevant Obligor.

 

53

 

(b)                                 A
Finance Party may disclose to an Affiliate or any person with whom it may
enter, or has entered into, any kind of transfer, participation or other
agreement in relation to this Agreement (a participant):

 

(i)                                     a
copy of any Finance Document; and

 

(ii)                                  any
information which that Finance Party has acquired under or in connection with
any Finance Document.

 

However, before a
participant may receive any confidential information, it must agree with the
relevant Finance Party to keep that information confidential on the terms of
paragraph (a) above.

 

(c)                                  This
Clause supersedes any previous confidentiality undertaking given by a Finance
Party in connection with this Agreement prior to it becoming a Party.

 

29.                               SET-OFF

 

A Finance Party may set off
any matured obligation owed to it by an Obligor under the Finance Documents (to
the extent beneficially owned by that Finance Party) against any obligation
(whether or not matured) owed by that Finance Party to that Obligor, regardless
of the place of payment, booking branch or currency of either obligation.  If the obligations are in different
currencies, the Finance Party may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.

 

30.                               PRO RATA SHARING

 

30.1                        Redistribution

 

If any amount owing by an
Obligor under this Agreement to a Lender (the recovering Lender) is
discharged by payment, set-off or any other manner other than through the
Facility Agent under this Agreement (a recovery), then:

 

(a)                                  the
recovering Lender must, within three Business Days, supply details of the
recovery to the Facility Agent;

 

(b)                                 the
Facility Agent must calculate whether the recovery is in excess of the amount
which the recovering Lender would have received if the recovery had been
received by the Facility Agent under this Agreement; and

 

(c)                                  the
recovering Lender must pay to the Facility Agent an amount equal to the excess
(the redistribution).

 

30.2                        Effect
of redistribution

 

(a)                                  The
Facility Agent must treat a redistribution as if it were a payment by the
relevant Obligor under this Agreement and distribute it among the Lenders,
other than the recovering Lender, accordingly.

 

(b)                                 When
the Facility Agent makes a distribution under paragraph (a) above, the
recovering Lender will be subrogated to the rights of the Finance Parties which
have shared in that redistribution.

 

54

 

(c)                                  If
and to the extent that the recovering Lender is not able to rely on any rights
of subrogation under paragraph (b) above, the relevant Obligor will owe the
recovering Lender a debt which is equal to the redistribution, immediately
payable and of the type originally discharged.

 

(d)                                 If:

 

(i)                                     a
recovering Lender must subsequently return a recovery, or an amount measured by
reference to a recovery, to an Obligor; and

 

(ii)                                  the
recovering Lender has paid a redistribution in relation to that recovery,

 

each Finance Party must
reimburse the recovering Lender all or the appropriate portion of the
redistribution paid to that Finance Party, together with interest for the period
while it held the re-distribution.  In
this event, the subrogation in paragraph (b) above will operate in reverse to
the extent of the reimbursement.

 

30.3                        Exceptions

 

Notwithstanding any other
term of this Clause, a recovering Lender need not pay a redistribution to the
extent that:

 

(a)                                  it
would not, after the payment, have a valid claim against the relevant Obligor
in the amount of the redistribution; or

 

(b)                                 it
would be sharing with another Finance Party any amount which the recovering
Lender has received or recovered as a result of legal or arbitration
proceedings, where:

 

(i)                                     the
recovering Lender notified the Facility Agent of those proceedings; and

 

(ii)                                  the
other Finance Party had an opportunity to participate in those proceedings but
did not do so or did not take separate legal or arbitration proceedings as soon
as reasonably practicable after receiving notice of them.

 

31.                               SEVERABILITY

 

If a term of a Finance
Document is or becomes illegal, invalid or unenforceable in any jurisdiction,
that will not affect:

 

(a)                                  the
legality, validity or enforceability in that jurisdiction of any other term of
the Finance Documents; or

 

(b)                                 the
legality, validity or enforceability in other jurisdictions of that or any
other term of the Finance Documents.

 

32.                               COUNTERPARTS

 

Each Finance Document may be
executed in any number of counterparts. 
This has the same effect as if the signatures on the counterparts were
on a single copy of the Finance Document.

 

55

 

33.                               NOTICES

 

33.1                        In
writing

 

(a)                                  Any
communication in connection with a Finance Document must be in writing and,
unless otherwise stated, may be given in person, by post or fax; or

 

(b)                                 Unless
it is agreed to the contrary, any consent or agreement required under a Finance
Document must be given in writing.

 

33.2                        Contact
details

 

(a)                                  Except
as provided below, the contact details of each Party for all communications in
connection with the Finance Documents are those notified by that Party for this
purpose to the Facility Agent on or before the date it becomes a Party.

 

(b)                                 The
contact details of the Company for this purpose are:

 

Address:                                               Sandhamnsgatan
51, Box 27800, SE-115 93, Stockholm, Sweden

Fax number:                                +46 8 663 4929

Attention:                                         Per
Hojgard

 

(c)                                  The
contact details of the Parent for this purpose are:

 

Address:                                               Sandhamnsgatan
51, Box 27800, SE-115 93, Stockholm, Sweden

Fax number:                                +46 8 663 4929

Attention:                                         Per
Hojgard

 

(d)                                 The
contact details of Finans for this purpose are:

 

Address:                                               Sandhamnsgatan
51, Box 27800, SE-115 93, Stockholm, Sweden

Fax number:                                +46 8 663 4929

Attention:                                         Per
Hojgard

 

(e)                                  The
contact details of the Facility Agent for this purpose are:

 

Address:                                               Skandinaviska
Enskilda Banken AB (publ), Karlavägen 108, 106 40 Stockholm, Sweden

Fax number:                                +46 8 611 0384

Attention:                                         Foreign
Credit Administration.

 

with a copy to:

 

Address:                                               SEB
Merchant Banking, 2 Cannon Street, London EC4M 6XX, United Kingdom

Fax number:                                +44 20 7329 2304

Attention:                                         Loans
Agency.

 

(f)                                    Any
Party may change its contact details by giving five Business Days’ notice to
the Facility Agent or (in the case of the Facility Agent) to the other Parties.

 

(g)                                 Where
a Party nominates a particular department or officer to receive a
communication, a communication will not be effective if it fails to specify
that department or officer.

 

56

 

33.3                        Effectiveness

 

(a)                                  Except
as provided below, any communication in connection with a Finance Document will
be deemed to be given as follows:

 

(i)                                     if
delivered in person, at the time of delivery;

 

(ii)                                  if
posted, five days after being deposited in the post, postage prepaid, in a
correctly addressed envelope;

 

(iii)                               if
by fax, when received in legible form; and

 

(iv)                              if
by e-mail or any other electronic communication, when received in legible form.

 

(b)                                 A
communication given under paragraph (a) above but received on a non-working day
or after business hours in the place of receipt will only be deemed to be given
on the next working day in that place.

 

(c)                                  A
communication to the Facility Agent will only be effective on actual receipt by
it.

 

33.4                        Obligors

 

(a)                                  All
communications under the Finance Documents to or from an Obligor must be sent
through the Facility Agent.

 

(b)                                 All
communications under the Finance Documents to or from the Parent must be sent
through the Company.

 

(c)                                  The
Parent irrevocably appoints the Company to act as its agent:

 

(i)                                     to
give and receive all communications under the Finance Documents;

 

(ii)                                  to
supply all information concerning itself to any Finance Party; and

 

(iii)                               to
sign all documents under or in connection with the Finance Documents.

 

(d)                                 Any
communication given to the Company in connection with a Finance Document will
be deemed to have been given also to the Parent.

 

(e)                                  The
Facility Agent may assume that any communication made by the Company is made
with the consent of the Parent.

 

34.                               LANGUAGE

 

(a)                                  Any
notice given in connection with a Finance Document must be in English.

 

(b)                                 Any
other document provided in connection with a Finance Document must be:

 

(i)                                     in
English; or

 

(ii)                                  (unless
the Facility Agent otherwise agrees) accompanied by a certified English
translation.  In this case, the English
translation prevails unless the document is a statutory or other official
document.

 

57

 

35.                               GOVERNING LAW

 

This Agreement is governed
by English law.

 

36.                               ENFORCEMENT

 

36.1                        Jurisdiction

 

(a)                                  The
English courts have exclusive jurisdiction to settle any dispute in connection
with any Finance Document.

 

(b)                                 The
English courts are the most appropriate and convenient courts to settle any
such dispute and each Obligor waives objection to those courts on the grounds
of inconvenient forum or otherwise in relation to proceedings in connection
with any Finance Document.

 

(c)                                  This
Clause is for the benefit of the Finance Parties only.  To the extent allowed by law, a Finance
Party may take:

 

(i)                                     proceedings
in any other court; and

 

(ii)                                  concurrent
proceedings in any number of jurisdictions.

 

36.2                        Service
of process

 

(a)                                  Each
Obligor not incorporated in England and Wales irrevocably appoints LeBoeuf,
Lamb Corporate Services Limited, No. 1 Minster Court, London EC3R 7YL as its
agent under the Finance Documents for service of process in any proceedings
before the English courts.

 

(b)                                 If
any person appointed as process agent is unable for any reason to act as agent
for service of process, the Company (on behalf of the Obligors) must
immediately appoint another agent on terms acceptable to the Facility Agent.  Failing this, the Facility Agent may appoint
another agent for this purpose.

 

(c)                                  Each
Obligor agrees that failure by a process agent to notify it of any process will
not invalidate the relevant proceedings.

 

(d)                                 This
Clause does not affect any other method of service allowed by law.

 

36.3                        Waiver
of immunity

 

Each Obligor irrevocably and
unconditionally:

 

(a)                                  agrees
not to claim any immunity from proceedings brought by a Finance Party against
it in relation to a Finance Document and to ensure that no such claim is made
on its behalf;

 

(b)                                 consents
generally to the giving of any relief or the issue of any process in connection
with those proceedings; and

 

(c)                                  waives
all rights of immunity in respect of it or its assets.

 

THIS
AGREEMENT has been entered into on the date stated at
the beginning of this Agreement.

 

58

 

SCHEDULE 1

 

ORIGINAL PARTIES

 

 

	
  Name of
  Original Lender

  	
   

  	
  Commitments

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Nordea Bank Sweden AB (publ)

  	
   

  	
  56,666,666.66

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Skandinaviska Enskilda Banken AB (publ)

  	
   

  	
  56,666,666.66

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Svenska Handelsbanken AB (publ)

  	
   

  	
  56,666,666.66

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total Commitments

  	
   

  	
  €

  	
  170,000,000

  	
   

  
					

 

59

 

SCHEDULE 2

 

CONDITIONS PRECEDENT DOCUMENTS

 

Obligors

 

1.                                       A
copy of the constitutional documents of each Obligor.

 

2.                                       A
copy of a resolution of the board of directors of each Obligor approving the
terms of, and the transactions contemplated by, this Agreement.

 

3.                                       A
specimen of the signature of each person authorised on behalf of each Obligor
to execute any Finance Document or to sign or send any document or notice in
connection with any Finance Document.

 

4.                                       A
certificate of an authorised signatory of the Company certifying that each copy
document specified in this Schedule is correct, complete and in full force
and effect as at a date no earlier than the date of this Agreement.

 

5.                                       Evidence
that the agent of each Obligor under the Finance Documents for service of
process in England and Wales has accepted its appointment.

 

6.                                       A
copy of the most recent audited consolidated financial statements for each
Obligor.

 

Security Document

 

The Security Agreement duly executed by the parties
to it.

 

Legal opinion

 

1.                                       A
legal opinion of Allen & Overy, legal advisers in England to the Finance
Parties substantially in the form of Schedule 7 (Form of legal opinion of
Allen & Overy), addressed to the Finance Parties.

 

2.                                       A
legal opinion of Mannheimer Swartling, legal advisers in Sweden to the Parent
and each Borrower, addressed to the Finance Parties.

 

Other documents and evidence

 

1.                                       Evidence
that all fees and expenses due and payable on or before the first Utilisation
Date from the Company under this Agreement have been or will be paid by the
first Utilisation Date.

 

2.                                       A
certified copy of the Purchase and Sale Agreement and copies of any other
material document required to complete the Acquisition.

 

3.                                       Evidence
that all consents required in connection with the Acquisition have been
acquired and the Acquisition has been approved by the relevant competition
authority.

 

4.                                       Evidence
that each Shareholder Loan has been subordinated on terms substantially on the terms
of Shareholder Loan Agreement No. 1A.

 

60

 

5.                                       A
copy of Shareholder Loan Agreement No.1A and Shareholder Loan Agreement No. 1 B
together with an unconditional agreement from the Parent and Corral Petroleum
Holdings AB confirming that (other than as set out in Clause 18.13 (Documents))
no amendment may be made to Shareholder Loan Agreement No.1A nor any amounts
outstanding thereunder be repaid without the consent of the Lenders.

 

6.                                       A
certified copy of a group structure chart for the Parent Group as at the
Utilisation Date.

 

7.                                       A
letter from the Company addressed to Skandinaviska Enskilda Banken AB (publ)
and Svenska Handelsbanken AB (publ) confirming that they are to be appointed as
joint mandated lead arrangers in respect of the Take-Out Facility.

 

8.                                       Evidence
that lenders to the Company Group under other banking facilities have consented
to the terms of the Facility, including the Security Interests created by the
Security Agreement.

 

9.                                       Copies
of financial and other information as requested by the Lenders prior to the
date of the Agreement including, but not limited to, revised five year
financial projections.

 

10.                                 A
copy of any other authorisation, consent or other document, opinion or
assurance which the Facility Agent has notified the Company prior to the date
of this Agreement is necessary or desirable in connection with the entry into
and performance of, and the transactions contemplated by, any Finance Document
or for the validity and enforceability of any Finance Document.

 

61

 

SCHEDULE 3

 

FORM OF REQUEST

 

To:                              [SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] as Facility Agent

 

From:                  [Preem Petroleum AB/Preem
Finans AB]

 

Date:                    [                               ]

 

PREEM
PETROLEUM AB / PREEM FINANS AB – €170,000,000 Bridge Facility Agreement

dated [        ] , 2003 (the Agreement)

 

1.                                       We
refer to the Agreement.  This is a
Request.

 

2.                                       We
wish to borrow a Loan on the following terms:

 

(a)                                  Utilisation
Date:
[                           ]

 

(b)                                 Amount:
€[                                     ]

 

(c)                                  Term:
[                                      ].

 

3.                                       Our
payment instructions are:
[                               ].

 

4.                                       We
confirm that each condition precedent under the Agreement which must be
satisfied on the date of this Request is so satisfied.

 

5.                                       This
Request is irrevocable.

 

 

By:

 

[PREEM PETROLEUM AB/PREEM FINANS AB]

 

62

 

SCHEDULE 4

 

CALCULATION OF THE MANDATORY
COST

 

1.                                      General

 

The Mandatory Cost is the
weighted average of the rates for each Lender calculated below by the Facility
Agent on the first day of a Term.  The
Facility Agent must distribute each amount of Mandatory Cost among the Lenders on
the basis of the rate for each Lender.

 

2.                                      For
a Lender lending from a Facility Office in the U.K.

 

(a)                                  The
relevant rate for a Lender lending from a Facility Office in the U.K. is
calculated in accordance with the following formula:

 

 

where on the day of
application of the formula, E is calculated by the Facility Agent as being the
average of the rates of charge supplied by the Reference Banks to the Facility
Agent under paragraph (d) below and expressed in pounds per £1 million.

 

(b)                                 For
the purposes of this paragraph 2:

 

(i)                                     fees rules
means the then current rules on periodic fees in the Supervision Manual of the
FSA Handbook; and

 

(ii)                                  tariff base has
the meaning given to it in the fees rules.

 

(c)                                  Each
rate calculated in accordance with the formula is, if necessary, rounded upward
to four decimal places.

 

(d)                                 (i)                                     Each
Lender must supply to the Facility Agent the information required by it to make
a calculation of the rate for that Lender. 
The Facility Agent may assume that this information is correct in all
respects.

 

(ii)                                  If a
Lender fails to do so, the Facility Agent may assume that the Lender’s
obligations in respect of the fees rules are the same as those of a typical
bank from its jurisdiction of incorporation with a Facility Office in the U.K.

 

(iii)                               The
Facility Agent has no liability to any Party if its calculation over or under
compensates any Lender.

 

3.                                      For
a Lender lending from a Facility Office in a Participating Member State

 

(a)                                  The
relevant rate for a Lender lending from a Facility Office in a Participating
Member State is the percentage rate per annum notified by that Lender to the
Facility Agent as its cost of complying with the minimum reserve requirements
of the European Central Bank.

 

(b)                                 If a
Lender fails to specify a rate under paragraph (a) above, the Facility Agent
will assume that the Lender has not incurred any such cost.

 

63

 

4.                                      Changes

 

The Facility Agent may,
after consultation with the Company and the Lenders, notify all the Parties of
any amendment to this Schedule which is required to reflect:

 

(a)                                  any
change in law or regulation; or

 

(b)                                 any
requirement imposed by the Bank of England, the Financial Services Authority or
the European Central Bank (or, in any case, any successor authority).

 

Any notification will be, in
the absence of manifest error, conclusive and binding on all the Parties.

 

64

 

SCHEDULE 5

 

FORM OF TRANSFER CERTIFICATE

 

To:                              [SEB
MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN AB (publ)] as Facility Agent

 

From:                  [THE EXISTING
LENDER] (the Existing Lender) and [THE NEW LENDER] (the New Lender)

 

Date:                    [                     ]

 

PREEM
PETROLEUM AB / PREEM FINANS AB – €170,000,000 Bridge Facility Agreement

dated [        ] , 2003 (the Agreement)

 

We refer to the Agreement.  This is a Transfer Certificate.

 

1.                                       The
Existing Lender transfers by novation to the New Lender the Existing Lender’s
rights and obligations referred to in the Schedule below in accordance
with the terms of the Agreement.

 

2.                                       The
proposed Transfer Date is [     ].

 

3.                                       The
administrative details of the New Lender for the purposes of the Agreement are
set out in the Schedule.

 

65

 

THE
SCHEDULE

 

Rights
and obligations to be transferred by novation

[insert relevant details, including applicable
Commitment (or part)]

 

Administrative
details of the New Lender

[insert details of Facility Office, address for
notices and payment details etc.]

 

 

	
  [EXISTING LENDER]

  	
   

  	
  [NEW LENDER]

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  By:

  

 

The Transfer Date is confirmed by the Facility Agent
as
[              ].

 

[SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN
AB (publ)]

 

By:

 

66

 

SCHEDULE 6

 

EXISTING SECURITY

 

 

	
  Member of
  the Group

  creating security

  	
   

  	
  Details
  of security

  	
   

  	
  Maximum
  principal

  amount secured

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preem Petroleum AB

  	
   

  	
  Property mortgage in favour of Lantbrukskredit

  	
   

  	
  SEK39,620,000

  

 

67

 

 

SCHEDULE 7

 

FORM OF LEGAL OPINION OF ALLEN
& OVERY

 

To:                              The Finance Parties named as original parties

to the Agreement (as defined below).

 

[DATE]

 

Dear Sirs,

 

PREEM PETROLEUM AB /
PREEM FINANS AB – €170,000,000 Bridge Facility Agreement

dated [       ] , 2003 (the Agreement)

 

We have received instructions from SEB Merchant
Banking in connection with the Agreement.

 

Words defined in the Agreement have the same meaning
when used in this opinion.

 

Subject to the qualifications set out below and to
any matters not disclosed to us, we are of the opinion that, so far as the
present laws of England are concerned, the Agreement constitutes a legally
binding, valid and enforceable obligation of each Obligor.

 

The qualifications to which this opinion is subject
are as follows:

 

(a)                                  We
assume that the Agreement has been duly authorised and entered into by each
party to it.

 

(b)                                 This
opinion is subject to all insolvency and other laws affecting the rights of
creditors generally.

 

(c)                                  We
assume that no foreign law affects the conclusions stated above.  We assume, in particular, that, so far as
the laws of Sweden are concerned, the Agreement constitutes a legally binding,
valid and enforceable obligation of each Obligor.

 

(d)                                 The
term enforceable
means that a document is of a type and form enforced by the English
courts.  It does not mean that each
obligation will be enforced in accordance with its terms.  Certain rights and obligations of an Obligor
may be qualified by the non-conclusivity of certificates, doctrines of good
faith and fair conduct, the availability of equitable remedies and other
matters, but in our view these qualifications would not defeat your legitimate
expectations in any material respect.

 

This opinion is given for your sole benefit and may
not be relied upon by or disclosed to any other person.

 

Yours faithfully,

 

68

 

SIGNATORIES

 

Borrowers

 

PREEM FINANS AB

 

	
  By:

  	
  MICHAEL LOW

  	
  PER HOJGARD

  	
  JAN FOLIN

  

 

 

PREEM PETROLEUM AB

 

	
  By:

  	
  MICHAEL LOW

  	
  PER HOJGARD

  	
  JAN FOLIN

  

 

 

Company

 

PREEM PETROLEUM AB

 

	
  By:

  	
  MICHAEL LOW

  	
  PER HOJGARD

  	
  JAN FOLIN

  

 

 

Parent

 

PREEM HOLDINGS AB

 

	
  By:

  	
  RICHARD
  OHMAN

  	
  JOHN
  OSWALD

  	
   

  

 

 

Original
Lenders

 

NORDEA BANK SWEDEN AB (publ)

 

	
  By:

  	
  OLLE THYNI

  	
  JEANETTE WITASP

  	
   

  

 

 

SKANDINAVISKA ENSKILDA BANKEN AB (publ)

 

	
  By:

  	
  CHRISTIAN DAHLBERG

  	
  CECILIA WIDEBÄCK WEST

  

 

 

SVENSKA HANDELSBANKEN AB (publ)

 

	
  By:

  	
  MIKAEL WAXIN

  	
   

  

 

69

 

 

Facility
Agent

 

SEB MERCHANT BANKING, SKANDINAVISKA ENSKILDA BANKEN
AB (publ)

 

	
  By:

  	
  MICHAEL DICKS

  	
  JOHAN SONANDER

  

 

70

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