Volume 1 - Iraq Watch

ISG Translation of an Oil Sale Contract signed June 1992First Party: Al-Bashair Trading Company LimitedAddress / Baghdad / Al-’Adl District /Area 645 /Lane 8 /House 39Telephone #: 8852379Second Party: Al-Walid Importing & Exporting Company LimitedAddress / Baghdad / Jamilah District /Al-Talibiyyah /Safi-al-Din StreetP. O. Box 5223In accordance with the second party offer and approved by the first party, it was agreed that the second party wouldbuy the Iraqi gas oil products in order to export it out of Iraq by land through Turkey, according to the followingconditions:1. Name of the Product: Iraqi gas oil2. Quantity:Regime Financeand ProcurementA) Approximately 132,000 US gallons per day plus or minus 10 percent. This quantity increased accordingto the availability of the product to 198,000 US gallons per day.B) The total agreed quantity was over 14.5 million US gallons plus or minus 10 percent.3. Quality: The guaranteed specifications of the product are in accordance with the local marketing specificationsin Iraq.4. Contract time period & implementation date: The contract is valid for 90 days starting on 15 June 1992,which is considered the starting date for carrying out the contract. On the condition of legalizing thecontract one week from the contract’s signing date, the contract can be renewed to an extra time periodaccording to the approval of the two parties.5. Freighting:A) Freighting will be by the foreign tank trucks that enter Iraq from the northern zone and are specified bythe purchaser who has to inform the seller about them as soon as they enter Iraq.B) Freighting site is Hamam Al-’Alil store in Ninawa governorate or any other suitable site agreed by bothparties.C) Freighting should be for the full capacity of the tank truck (tanker).Also safety & security conditions are in store for the capacity of the other tankers in case of emergency,except for the main fuel tanker truck.6. Final destination:Turkey, through Iraqi borders.7. Price:A) 4 American Cents per liter freighted on the tank truck in the freighting store.B) The aforementioned price is fixed for freighting all the mentioned quantity in clause 2 of the contract,in accordance with the mentioned freighting procedures in above-mentioned clause 5.8. Payment:A) Purchaser has to pay for the freighted product every ten days in cash in US dollars to the bank accountof the company (first party) in the Central Bank of Iraq or any other bank account the first party chooses,in accordance with the commercial list issued by the first party.223