THE NOTICE OF AB „KLAIPEDOS NAFTA“ REGARDING AUCTION OF FUEL OIL SURPLUS

Klaipedos nafta, AB, (hereinafter – the Seller) hereby informs about the announcement of sales auction (hereinafter – the Auction) of fuel oil surplus, KN code 27101968 (hereinafter – the Product). The Auction shall be performed in accordance with the Rules of auctioning of the oil products in bulk of Klaipėdos nafta, AB, (hereinafter – the Rules), confirmed by the Seller and publicly announced on the Seller’s website www.kn.lt.
Main information about the Product and conditions of its sale:

1. The total Product quantity for sale – 1 936 mt. The Participant must bid for the whole quantity of the Product announced for sale (the quantity of Product is not sold in parts).
2. The quality of the Product is determined in the Terminal shore tank of the Seller (see ref. to the Quality Certificates enclosed).
3. The Product will be sold for the highest price offered in US dollars for 1 (one) metric gross ton in vacuum. Delivery conditions (according to Incoterms 2010) FOB port of Klaipeda, Seller’s terminal.
4. The price for such 1 (one) metric ton of the Product shall be equal to the average of the mean quotations for 3.5 pct Fuel Oil, published by Platt’s European Marketscan under the heading „FOB Rotterdam“, quotation code PUABC00, during the period from 1^st till 30^th of November, 2019 (both dates inclusive). In the submitted proposal the Participant shall indicate the acceptable deviation in US dollars per metric ton in vacuum as of the price.
5. The Buyer has the right to propose to the Seller alternative Product pricing structure and final selling price. In any case, after receiving proposals the Seller reserves the right to decide on the best Products final selling price.
6. The Winner of the Auction undertakes to transport entire accumulated Product from the Seller’s Terminal within 30 (thirty) calendar days after signing the sales-purchase agreement (hereinafter – the Agreement).
7. No later than the expiry of the proposals for Auction registration term the Participant shall pay to the Seller's account the Obligation Fee.

The Obligation Fee – 15 000,00 (fifteen thousand) USD.
The Seller’s bank details:
AB SEB Bankas,
Gedimino ave. 12, Vilnius
Bank code: 70440
BIC: CBVILT2X
IBAN: LT90 7044 0600 0076 4196
Intermediary Bank:
DEUTSCHE Bank Frankfurt am Main
SWIFT: DEUT DE FF

8. No later than the expiry of the proposals for Auction registration term the Participant shall provide the filled out Proposal for Auction, which template is attached to this Notice, copies of the company registration certificates or other establishing documents and representation documents (power of attorney) as required by the Rules. In addition, together with submitted documents, The Participant shall submit the document proving the payment of the Obligation Fee.
9. The provisional invoice shall be issued by the Seller not later than 5 (five) days prior to first day of the LAYCAN. The Provisional invoice shall be paid by the Buyer not later than 2 (two) working days prior to first day of the LAYCAN for nominated tanker. The Provisional price of one metric of the Product shall be equal to the average of the mean quotations for 3.5 pct Fuel Oil, published by Platt’s European Marketscan under the heading „FOB Rotterdam“, quotation code PUABC00, published a day (the last known publishing day) before Provisional invoice issuance, minus/added [___________]  US dollars per metric ton in vacuum.
10.  Within 5 (five) business days after loading the last metric ton of the Product into the transport (tanker or tank-truck) provided by the Buyer, the Seller shall issue an invoice and submit it to the Buyer by e-mail address [___________]. Within 3 (three) working days the Buyer is obliged to cover the delta amount of the Product values indicated in the provisional invoice and invoice. The Obligation fee, if such was paid while participating in the Auction, and sum paid by the provisional invoice shall be deducted from the payable amount indicated in the invoice. In such a case, that the amount paid by the Buyer according to the provisional invoice is higher than amount indicated in the invoice, the Seller is obliged to cover the delta amount within 3 (three) working days after the final Product price is calculated. Actual payment date shall be the date of funds crediting to the Seller's bank account.
11.  The process and schedule of the Auction

* The Auction Committee has the right to discuss and decide arranging the second round of negotiations following the procedure defined in the Rules.

12.  The proposals together with documents indicated in this Notice/Announcement shall be submitted in accordance with the procedure set forth by the Rules, to the Authorized person of the Seller – the senior manager of commercial operation, Sabina Digrienė, by e-mail [email protected] not later than on 8^th of November, 2019, at 4.30 PM Lithuanian time.
13.  The conditions and procedures for proposals submission, evaluation, announcement of the winner, contract conclusion and all other sales terms are regulated by the Rules and the main conditions of the Product sales-purchase agreement.

Enclosed:

1. The Rules of auctioning of the oil products in bulk of Klaipėdos Nafta, AB.
2. Main conditions of the sales and purchase agreement.
3. Quality Certificates of the Product.
4. Proposal template.