DIESEL D2 SOFT OFFER
Serious buyers/mandates only
Date: June 6th, 2008
As a Direct Agent to Petróleos de Venezuela, S.A. (PDVSA), we confirm that PDVSA is ready
willing and able to supply the following commodity as per terms and conditions below:
Product: Diesel D2
Specification: Based on Standard Specification of Certificate of Quality see Appendix “A”
Quantity: Up to 500,000 MT (Five Hundred Thousand) Metric Tons (MT). Multiple contracts are
possible after first successful delivery and payment are completed.
Contract Duration: Twelve (12) months with rollovers and extensions as agreed upon by both
parties. Extension up to sixty (60) months is possible.
Inspection: By SGS or equivalent Survey company
Confirmation: The order is confirmed after the Seller receives and accepts the IRREVOCABLE
CONFIRMED PURCHASE ORDER (ICPO) or LETTER OF INTENT (LOI) & RWA BANK
COMFORT LETTER (BCL) from the Buyers bank. BCL must be signed by a Bank Officer on
Bank Letterhead, and sent to the Seller. ICPO or LOI with full banking info and soft probe
authorization (SPA) may be acceptable.
Buyers Documentation: Permit to Import, Signed End User Allocation and Import License from
the authorities to enter the Terminal. Other to be determined during negotiation.
Price (Fixed): US$656 / MT CIF
Terms of Delivery: On contracts after initial allocation, additional allocation would ramp up
through separate contracts of up to five million MT
Performance Bond: The Seller will issue a 2% (two percent) Performance Bond of one Monthly
Lot delivery in favor of the Buyer as per the terms of the contract. The Performance Bond will be
issued based on INCOTERM ICC 500.
1. Buyer confirms Soft Offer and returns a completed PDVSA registration form with an
ICPO, or LOI with BCL/RWA with Petróleos de Venezuela, S.A. (PDVSA) right to Soft
Funds Probe Authorization equal to first month’s shipment dollar amount or Bank Letter
Guarantee (BLG) from the Buyer’s Bank to the Seller. Account must match
2. The Soft Probe takes (1) week after PDVSA receives your documents.
3. "PDVSA" sends Price Sheet, Soft Corporate Offer and Proof of Product (POP) with
Specifications. Buyer signs and returns.
4. Introduction to a Direct PDVSA contact in Venezuela.
5. Registration with Petróleos de Venezuela, S.A. (PDVSA)
6. PDVSA sends Draft Contract, Buyer signs, returns Contract and initiates an unconditional
MT-760 blocking of funds at Buyer’s bank in PDVSA PETROLEO S.A,'s Name as
Beneficiary, confirmed by PDVSA PETROLEO S.A,'s bank. Blocked funds shall remain
effective for a period not to exceed 60 days or until first month delivery is completed,
which ever is less.
7. Petróleos de Venezuela, S.A. (PDVSA) submits to Buyer’s Bank an operable
Performance Bond equal to 2% of the first month shipment amount.
8. Shipments begin per contract.
Procedures are subject to change until a Formal Contract Offer (FCO) or CONTRACT is issued
ANALYSIS UNITS MIN / BLEND
TOTAL ACID NUMBER MGKOH/GR D-974 .04 MAX 0,16 -
API GRAVITY AT 60° API D-287 30 / 39 30,4 -
ASH CONTENT WT.PCT. D-482 0,001 -
CARBON CONRADSON 10 PCT BOTT WT.PCT. D-189 0,03 -
CETANE INDEX-2V ADIMENS D-975 40 MIN 45,0 -
CLOUD POINT °C D-2500 -10 MAX -15 -
COLOR ASTM ASTM D-1500 2 MAX 1,5 -
COPPER CORR.STRIP (3h/122 °F) ADIMENS D-130 1 MAX 1A -
DISTILLATION 90 PCT RECOVERED °C D-86 282 / 338 331,5 -
FLASH POINT, PM °C D-93 66 MIN. 74 -
POUR POINT °C D-97 -18 MAX - -18
SULPHUR CONTENT WT.PCT. D-2622 0,2 MAX. 0,200 -
VISCOSITY SSU @ 100 °F(37.8C) SSU D-2161 33 / 40 36,1 -
KINEMATIC VISCOSITY AT 100 °F CST D-445 3,067 -
WATER AND SEDIMENT VOL PCT. D-2709 0,020 -