SAUDI ARABIA - Saudi Sales Terms.Apart from Saudi Aramco's price formulae (see OMT (Object Modeling Technique) An object-oriented analysis and design method developed by James Rumbaugh. See Rational Rose. OMT - Object Modelling Technique ), the main terms in crude oil sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. in the kingdom are the following: (A) Saudi Aramco Saudi Aramco, the state-owned national oil company of Saudi Arabia, is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production. only allows well established companies to buy its crudes and requires a commitment to lift a minimum volume for a year, or longer. During the term of the contract, liftings by the client are to be made each month and not intermittently in·ter·mit·tent adj. 1. Stopping and starting at intervals. See Synonyms at periodic. 2. Alternately containing and empty of water: an intermittent lake. . (B) There are no price discounts, with payments due within thirty days of the bill of lading A document signed by a carrier (a transporter of goods) or the carrier's representative and issued to a consignor (the shipper of goods) that evidences the receipt of goods for shipment to a specified designation and person. date. (C) The crude should be processed by the buyer company in its own refinery. Refineries must be in operation and capable of receiving Saudi crudes. Saudi Aramco will not sell for third-party processing. (D) Buyers must undertake that the crude will not be resold. Saudi Aramco's marketing executives are strict in applying their sales rules. Foreign observers have sought to identify "special deals" as accounting for discrepancy between what the Saudis earn from export sales and what actually goes to the finance ministry as state oil income. |
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