PJSC LUKOIL

WWW.LUKOIL.COM
11, Sretensky Boulevard, Moscow, Russia, 101000

SOFT CORPORATE OFFER

To: End Buyers/Buyers Mandate Issue Date: Jan 2020

Att: Validity: June 2020
Ref:

We “PJSC LUKOIL” under penalty and Perjury hereby confirm the availability of the under listed Product. The
Supplier is guaranteed to meet the Specifications and pass through the stringent requirements of SGS or Equivalent.
Financial Statement from the Buyer's bank clarifying buyer's financial capability will be required to consider buyer's
negotiations. Only direct negotiations from End buyers or buyer mandates will be considered.

RUSSIAN DIESEL GAS OIL GOST 305-82/EN-590 10PPM (D2)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $380 USD/NET $370 USD
Price FOB: Gross $390 USD/NET $380 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN DIESEL FUEL GOST 305-82 (EN590)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $330 USD/NET $320 USD
Price FOB: Gross $310 USD/NET $300 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN JET FUEL OIL GOST 10277-86 (JP54/JPA1)

Minimum Quantity: Buyer request not less than 100,000 BBL
Maximum Quantity: 5,000,000 BBL Monthly
Price CIF: Gross $ 63USD/NET $60 USD
Price FOB: Gross $58 USD/NET $55 USD
COMMISSION: $1.5 SELLER SIDE CLOSED / $1.5 BUYER SIDE OPEN

RUSSIAN VIRGIN FUEL OIL (D6)

Minimum Quantity: Buyer request not less than 10,000,000 Gallons
Maximum Quantity: 200,000,000 Gallons Monthly
Price CIF: Gross $0.90 USD/NET $0.85 USD
Price FOB: Gross $0.85 USD/NET $0.80 USD
COMMISSION: $0.2 SELLER SIDE CLOSED / $0.2 BUYER SIDE OPEN
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WWW.LUKOIL.COM
RUSSIAN AUTOMOTIVE GAS OIL (AGO)
Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $300 USD/NET $290 USD
Price FOB: Gross $280 USD/NET $270 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN MAZUT FUEL OIL GOST 10585-75 (M100)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $220 USD/NET $210 USD
Price FOB: Gross $190 USD/NET $180 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN LIQUEFIED PETROLEUM GAS (LPG)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $300 USD/NET $290 USD
Price FOB: Gross $280 USD/NET $270 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN LIQUEFIED NATURAL GAS (LNG)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $300 USD/NET $290 USD
Price FOB: Gross $280 USD/NET $270 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN EXPORT BLEND CRUDE OIL (REBCO)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 5,000,000 BBL Monthly
Price CIF: Gross $40 USD/NET $37 USD
Price FOB: Gross $35 USD/NET $32 USD
COMMISSION: $1.5 SELLER SIDE CLOSED / $1.5 BUYER SIDE OPEN

RUSSIAN EASTERN SIBERIAN PIPELINE OCEAN OIL (ESPO)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $43 USD/NET $40 USD
Price FOB: Gross $37 USD/NET $34 USD
COMMISSION: $1.5 SELLER SIDE CLOSED / $1.5 BUYER SIDE OPEN
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WWW.LUKOIL.COM
RUSSIAN LIGHT CYCLE OIL (LCO)
Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $250 USD/NET $240 USD
Price FOB: Gross $240 USD/NET $230 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN LIGHT CRUDE OIL (LCO)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 200,000 MT Monthly
Price CIF: Gross $270 USD/NET $260 USD
Price FOB: Gross $260 USD/NET $250 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN BITUMEN GRADE 60/70

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 100,000 MT Monthly
Price CIF: Gross $210 USD/NET $200 USD
Price FOB: Gross $190 USD/NET $180 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

RUSSIAN PETROLEUM COKE (PET COKE)

Minimum Quantity: Buyer request not less than 10,000 MT
Maximum Quantity: 100,000 MT Monthly
Price CIF: Gross $110 USD/NET $100 USD
Price FOB: Gross $90 USD/NET $80 USD
COMMISSION: $5 SELLER SIDE CLOSED / $5 BUYER SIDE OPEN

PORTS OF LOADING
PRIGORODNOYE/SAKHALIN
VLADIVOSTOK/NAKHODKA/KOZMINO
NOVOROSSIYSK/UST-LUGA/ROTTERDAM/PRIMORSK

TERMS AND CONDITIONS CIF

1. Buyer issues an official ICPO with Company registration, Passport Copy and Letter of acceptance stating to adhere to
seller’s transaction terms and procedures.
2. Seller acknowledges buyer’s ICPO and issues FCO/draft contract to buyer open for amendment, Buyer reviews and signs
mutually accepted contract and returns to seller in Word format within 3 working days.
3. Seller reviews the signed contract and converts to PDF and sends copy to buyer with guarantee letter to supply.
4. Seller submits the signed contract for registration, legalization and notarization at seller’s expense.
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5. Seller sends to buyer the final agreement in PDF format with below soft performance guarantee POP
documents:
A. Statement of availability of the product;
B. Commitment to supply;
C. Certificate of Origin;
D. Product Passport.
6. Seller releases Client Information Summary (CIS) to Buyer to fill with passport data page to enable Russian
Ministry of Energy effect the process title transfer Affidavit ownership of the Allocation to Buyer’s name,
which shall be paid by the Seller, and release directly to the Buyer to sign & return.
7. Sellers appoint shipping company that will export the product and sign Charter Party Agreement (CPA)
including the Seller & Buyer’s endorsement.
8. Buyer contacts the shipping company to confirm the shipping and finalize the shipping schedule.
9. Within 3 working days after the receipt confirmation of buyer freight charges 50% payment from the shipping
company, Seller sends the listed documents to buyer;
A.Tank receipt.
B. Bill of Lading.
C. Vessel Details.
D. Vessel Q88.
E. Copy of proforma invoice
F. Cargo manifest.
G. Ullage Report.
10. Shipment commences immediately as per scheduled.
11. Upon the arrival of the cargo at destination port and upon inspection on the goods Buyer release payment via
wire transfer swift MT-103 to seller’s bank and within 3 banking days after a successful SGS quality survey &
on receipt of payment for the product.
12. Seller releases payment to all intermediaries involve as per the signed NCNDA/IMFPA and subsequently
monthly shipment continues and buyers bank swift DLC MT700 to seller’s bank and seller’s bank
swift2%PB/Full POP documents

TERMS AND CONDITIONS FOB ROTTERDAM

1. Buyer issues official LOI/ICPO company certificate of registration and buyer’s passport data page.
2. Seller issues commercial invoice CI, and warning letter to buyer.
3. Buyer signs and returns the commercial invoice within 3 working days alongside Tank Storage Agreement (TSA).
4. Seller provides the below soft performance POP documents to buyer
A. Statement of Product Availability,
B. Commitment to Supply,
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C. Product Origin Certificate
5. Seller Logistics team verify buyer’s provided tank farm and pays 2 days on buyer’s tank farm and after
confirmation of the funds by buyer’s tank farm, buyer pays the remaining 3 days to his tank farm company to obtain
5 days TSR. (This is a proof of readiness between both parties)
6. Upon receipt of the TSR , Seller issues the POP documents:
A. Fresh SGS Report,
B. 7 days Unconditional DTA,
C. Loading Port Injection Report,
D. Product Passport, Tank Storage Receipt/Reservoir Receipt,
E. Authorization to Sell and Collect (ATSC),
F. NCNDA/IMFPA Agreement.
7. Upon successful verification of the POP documents, Buyer orders SGS report to Conduct Dip Test of the product
in Sellers Tanks at buyer’s expense.
8. Following the completion of the Dip Test with results consistent to the specifications on the CI, Buyer provides
ATI and Seller injects fuel into Buyer's leased storage tanks. Seller submits the full Injection report to the Buyer.
9. Buyer makes 100% payment by MT 103 TT wire transfer for the total product and Seller pays commission to all
Intermediaries involved in the transaction within 24 hours after confirmation of the Buyer’s payment.
10. Buyer reviews and approves the SPA and issues SLBC/IRDLC Irrevocable, nontransferable, auto revolving for
11 monthly Shipment value And Documentary Letter of Credit or Standby Letter Of Credit for length of contract
and for each lift per schedule. Buyer pays after dip test by MT103 wire transfer on each monthly quantity.
12. Seller issues draft SPA to Buyer to review for Roll &Extension monthly deliveries.
13. The subsequent delivery shall commence according to the terms and conditions of the contract, and
intermediaries receive their commissions according to monthly deliveries.

APPROVED BY PJSC LUKOIL RUSSIA

Mr Denis Rogachev
Vice President Procurement

www.lukoil.com/Company/CorporateGovernance/ManagementCommittee/DenisRogachev