SKY PETROLEUM, INC. (OTCMKTS:SKPI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement
a Agreement Contract for the Sale and Purchase of Libyan Crude
Oil FOB (the Agreement) by and between the Company and National
Oil Corporation (Benghazi-Libya)(the National Oil Corporation
(Libya)). The material terms of the Agreement are as follows:
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(a)
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National Oil Corporation (Libya), with full authority,
agreed to supply and deliver Libyan Light Crude Oil of the Grade specified in the Agreement (the Oil). |
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(b)
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The quantity of crude oil to be sold and delivered under
the Agreement is 5,000,000 bbls plus or minus five percent ( /- 5%) in the Companys option with partial shipment permitted. |
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(c)
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If the Company fails to initiate shipping process within
45 days from signing the agreement, the contract is considered cancelled and National Oil Corporation (Libya) has no financial obligation under the Agreement. |
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(d)
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National Oil Corporation (Libya) shall deliver the Oil on
board the Vessel nominated by the Company. |
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(e)
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The Company shall pay for each Barrel of Oil delivered
FOB one safe port/berth, Libya, the Official Selling Price, NOC declared price on Platts, Thomson Reuters for each exported oil blend (OSP) to Dated Brent (5 days around BL) minus a negotiated discount (the Price). |
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(f)
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The Company and National Oil Corporation (Libya) shall
comply with inspections for quality and quantity control. |
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(g)
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The Company shall pay the Price for the Oil multiplied by
the quantity delivered by means of an irrevocable confirmed assignment of proceeds from a documentary standby letter of credit issued by the End Users bank on terms acceptable to the Company to the National Oil Corporation (Libya)s bank. |
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(h)
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National Oil Corporation (Libya) agrees to work with the
Company and its agents to insure all below documents are compliant with buyer Assignment of Proceeds. The Assignment of Proceeds shall: (a) provide for National Oil Corporation (Libya) to present the original documents; and (b) cover 100% of the FOB value of the Cargo and will allow a tolerance of plus/minus 5% ( /- 5%) in both quantity and amount. All charges relating to the opening of the Assignment of Proceeds shall be for the Companys account. All other charges to be for National Oil Corporation (Libya)s account. |
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(i)
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The Company and National Oil Corporation (Libya) shall
follow certain procedures for the loading and delivery of the Oil. |
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(j)
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National Oil Corporation (Libya) shall indemnify the
Company for certain losses arising from breach of the National Oil Corporation (Libya)s delivery procedure obligations. |
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(k)
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The Agreement is governed by English Law to the exclusion
of any other law, which may be imputed in accordance with choice of law rules applicable in any jurisdiction. The United Nations Convention on Contracts for the International Sale of Goods of Vienna, 11 April 1980, shall not apply to the Agreement. |
on a firm commitment basis to purchase and load the crude oil
from the National Oil Corporation (Libya). The Agreement is
subject to final approval by governmental authorities in Libya.
About SKY PETROLEUM, INC. (OTCMKTS:SKPI)
Sky Petroleum, Inc. is engaged in the exploration and development of oil and natural gas properties of others under arrangements. The Company’s focus is on the acquisition, development and exploitation of oil and natural gas reserves and exploration for new oil and natural gas reserves. It is engaged in seeking business opportunities in other industries, including the oil and gas industry. Its primary business is to identify opportunities to either make direct property acquisitions or to fund exploration or development of oil and natural gas properties of others under arrangements in which the Company will finance the costs in exchange for interests in the oil or natural gas revenue generated by the properties. The Company has a minority stake in the development of an oilfield in the Komi Republic of the Russian Federation through an interest in Pechora Energy. Pechora Energy holds the production license for the Luzskoye field in the Komi Republic. SKY PETROLEUM, INC. (OTCMKTS:SKPI) Recent Trading Information
SKY PETROLEUM, INC. (OTCMKTS:SKPI) closed its last trading session 00.00000 at 0.00610 with 10,741 shares trading hands.