Diesel D2 Letter of Intent to Purchase Diesel

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					                              DIESEL D2 SOFT OFFER
                                  Serious buyers/mandates only


To: Buyer
                                                                  Date: June 6th, 2008

Dear Sirs,

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

Origin: Venezuela

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.
BUYING PROCEDURES

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
       buyer/purchasing company.

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
by Seller.
       Appendix A
                                                  SPECS             HAND
                                           METHOD             SHORE
ANALYSIS                        UNITS             MIN /             BLEND
                                           ASTM               TANKS
                                                  MAX               TANKS
TOTAL ACID NUMBER               MGKOH/GR D-974      .04 MAX 0,16      -
API GRAVITY AT 60°              API        D-287    30 / 39   30,4    -
                                                    0.01
ASH CONTENT                     WT.PCT.    D-482              0,001   -
                                                    MAX
                                                    0.35
CARBON CONRADSON 10 PCT BOTT    WT.PCT.    D-189              0,03    -
                                                    MAX
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    -
                                                    2.12 /
KINEMATIC VISCOSITY AT 100 °F   CST        D-445              3,067   -
                                                    4.25
                                                    0.05
WATER AND SEDIMENT              VOL PCT.   D-2709             0,020   -
                                                    MAX

				
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