Common use of Acquisition Process Steps Clause in Contracts

Acquisition Process Steps. The process for selecting and then acquiring a Cargo of Oil to supply the Refinery shall comprise the following steps: (i) Buyer and Seller shall mutually agree on the “Buyer’s Tentative Requirements Schedule” for any Month of Delivery of Oil to the Refinery, which shall consist of a list of Requirements with each Requirement being a volume of a Type to be delivered during a specified period in such Month, in a format following that in Appendix 8. (ii) The Parties shall discuss the different Grade options for each Requirement. (iii) The Parties shall agree on the volume, term, price and other key elements for term contract commitments, and Buyer shall give a written mandate to Seller to enter into such term contract(s), and Seller shall enter into such term contract(s). Thereafter, the Parties shall follow the term contract procedures set forth in Clause 5(c) below, which will result in Seller purchasing term Cargoes to cover certain Requirements in the Buyer’s Tentative Requirements Schedule. (iv) The Parties shall identify target Grades and a number of target Cargoes that shall be acceptable for each Requirement that is not to be covered by term contract volumes. (v) Buyer, in discussion with Seller, shall issue, and continue to update, a grade pecking order (a “Grade Pecking Order” or “GPO”), outlining the Grades that could cover each Requirement and the corresponding differences in price at which such Grades would have equal economics for the Buyer. (vi) As to each target Cargo, Seller shall provide Buyer with the appropriate contractual terms in accordance with Clause 5(e)(ii). (vii) Thereafter, Buyer shall give an oral or written mandate to Seller in accordance with Clause 5(e)(iii). (viii) Seller shall purchase the Cargo covered by such mandate or, with respect to a Cargo acquired from Seller or Seller’s Affiliates, make appropriate internal allocations to reflect that such Cargo will cover a Requirement hereunder. (ix) Seller shall send formal notification to Buyer of the purchase of the Cargo, or if the Cargo is acquired from Seller or Seller’s Affiliates portfolio, the internal allocation of such Cargo to cover a Requirement, covered by the mandate. Details of that notification shall be as described in Clause 5(f)(iii) below. (x) In connection with seeking potential optimizations, following the purchase of each term or spot Cargo to cover a Requirement, the Buyer, in discussion with Seller, shall issue, and continue to update a replacement grade pecking order (“Replacement Grade Pecking Order” or “RGPO”) for such covered Requirement outlining the Grades that could replace the purchased Cargo and the corresponding differences in price at which such replacement Grades would have equal economics for the Buyer, which RGPO shall use the Cargo Bank Differential of the purchased Cargo as the basis for such price differences.

Acquisition Process Steps. The process for selecting and then acquiring a Cargo of Oil or Feedstock to supply the Refinery shall comprise the following steps: (i) Buyer and Seller shall mutually agree on the “Buyer’s Tentative Requirements Schedule” for any Month of Delivery of Oil and Feedstock to the Refinery, which shall consist of a list of Requirements with each Requirement being a volume of a Type to be delivered during a specified period in such Month, in a format following that in Appendix 8. (ii) The Parties shall discuss the different Grade options for each Requirement. (iii) The Parties shall agree on the volume, term, price and other key elements for term contract commitments, and Buyer shall give a written mandate to Seller to enter into such term contract(s), and Seller shall enter into such term contract(s). Thereafter, the Parties shall follow the term contract procedures set forth in Clause 5(c) below, which will result in Seller purchasing term Cargoes to cover certain Requirements in the Buyer’s Tentative Requirements Schedule. (iv) The Parties shall identify target Grades and a number of target Cargoes that shall be acceptable for each Requirement that is not to be covered by term contract volumes. (v) Buyer, in discussion with Seller, shall issue, and continue to update, a grade pecking order (a “Grade Pecking Order” or “GPO”), outlining the Grades that could cover each Requirement and the corresponding differences in price at which such Grades would have equal economics for the Buyer. (vi) As to each target Cargo, Seller shall provide Buyer with the appropriate contractual terms in accordance with Clause 5(e)(ii). (vii) Thereafter, Buyer shall give an oral or written mandate to Seller in accordance with Clause 5(e)(iii). (viii) Seller shall purchase the Cargo covered by such mandate or, with respect to a Cargo acquired from Seller or Seller’s Affiliates, make appropriate internal allocations to reflect that such Cargo will cover a Requirement hereunder. (ix) Seller shall send formal notification to Buyer of the purchase of the Cargo, or if the Cargo is acquired from Seller or Seller’s Affiliates portfolio, the internal allocation of such Cargo to cover a Requirement, covered by the mandate. Details of that notification shall be as described in Clause 5(f)(iii) below. (x) In connection with seeking potential optimizations, following the purchase of each term or spot Cargo to cover a Requirement, the Buyer, in discussion with Seller, shall issue, and continue to update a replacement grade pecking order (“Replacement Grade Pecking Order” or “RGPO”) for such covered Requirement outlining the Grades that could replace the purchased Cargo and the corresponding differences in price at which such replacement Grades would have equal economics for the Buyer, which RGPO shall use the Cargo Bank Differential of the purchased Cargo as the basis for such price differences.

Acquisition Process Steps. The process for selecting and then acquiring a Cargo of Oil to supply the Refinery shall comprise the following steps: (i) Buyer and Seller shall mutually agree on the “Buyer’s Tentative Requirements Schedule” for any Month of Delivery of Oil to the Refinery, which shall consist of a list of Requirements with each Requirement being a volume of a Type to be delivered during a specified period in such Month, in a format following that in Appendix 8. (ii) The Parties shall discuss the different Grade options for each Requirement. (iii) The Parties shall agree on the volume, term, price and other key elements for term contract commitments, and Buyer shall give a written mandate to Seller to enter into such term contract(s), and Seller shall enter into such term contract(s). Thereafter, the Parties shall follow the term contract procedures set forth in Clause 5(c) below, which will result in Seller purchasing term Cargoes to cover certain Requirements in the Buyer’s Tentative Requirements Schedule. (iv) The Parties shall identify target Grades and a number of target Cargoes that shall be acceptable for each Requirement that is not to be covered by term contract volumes.[REDACTED] (v) Buyer, in discussion with Seller, shall issue, and continue to update, a grade pecking order (a “Grade Pecking Order” or “GPO”), outlining the Grades that could cover each Requirement and the corresponding differences in price at which such Grades would have equal economics for the Buyer.[REDACTED] (vi) As to each target Cargo, Seller shall provide Buyer with the appropriate contractual terms in accordance with Clause 5(e)(ii). (vii) Thereafter, Buyer shall give an oral or written mandate to Seller in accordance with Clause 5(e)(iii). (viii) Seller shall purchase the Cargo covered by such mandate or, with respect to a Cargo acquired from Seller or Seller’s Affiliates, make appropriate internal allocations to reflect that such Cargo will cover a Requirement hereunder. (ix) Seller shall send formal notification to Buyer of the purchase of the Cargo, or if the Cargo is acquired from Seller or Seller’s Affiliates portfolio, the internal allocation of such Cargo to cover a Requirement, covered by the mandate. Details of that notification shall be as described in Clause 5(f)(iii) below. (x) In connection with seeking potential optimizations, following the purchase of each term or spot Cargo to cover a Requirement, the Buyer, in discussion with Seller, shall issue, and continue to update a replacement grade pecking order (“Replacement Grade Pecking Order” or “RGPO”) for such covered Requirement outlining the Grades that could replace the purchased Cargo and the corresponding differences in price at which such replacement Grades would have equal economics for the Buyer, which RGPO shall use the Cargo Bank Differential of the purchased Cargo as the basis for such price differences.[REDACTED]

Acquisition Process Steps. The process for selecting and then acquiring a Cargo of Oil or Feedstock to supply the Refinery shall comprise the following steps: (i) Buyer and Seller shall mutually agree on the “Buyer’s Tentative Requirements Schedule” for any Month of Delivery of Oil and Feedstock to the Refinery, which shall consist of a list of Requirements with each Requirement being a volume of a Type to be delivered during a specified period in such Month, in a format following that in Appendix 8. (ii) The Parties shall discuss the different Grade options for each Requirement. (iii) The Parties shall agree on the volume, term, price and other key elements for term contract commitments, and Buyer shall give a written mandate to Seller to enter into such term contract(s), and Seller shall enter into such term contract(s). Thereafter, the Parties shall follow the term contract procedures set forth in Clause 5(c) below, which will result in Seller purchasing term Cargoes to cover certain Requirements in the Buyer’s Tentative Requirements Schedule. (iv) The Parties shall identify target Grades and a number of target Cargoes that shall be acceptable for each Requirement that is not to be covered by term contract volumes.[REDACTED] (v) Buyer, in discussion with Seller, shall issue, and continue to update, a grade pecking order (a “Grade Pecking Order” or “GPO”), outlining the Grades that could cover each Requirement and the corresponding differences in price at which such Grades would have equal economics for the Buyer.[REDACTED] (vi) As to each target Cargo, Seller shall provide Buyer with the appropriate contractual terms in accordance with Clause 5(e)(ii). (vii) Thereafter, Buyer shall give an oral or written mandate to Seller in accordance with Clause 5(e)(iii). (viii) Seller shall purchase the Cargo covered by such mandate or, with respect to a Cargo acquired from Seller or Seller’s Affiliates, make appropriate internal allocations to reflect that such Cargo will cover a Requirement hereunder. (ix) Seller shall send formal notification to Buyer of the purchase of the Cargo, or if the Cargo is acquired from Seller or Seller’s Affiliates portfolio, the internal allocation of such Cargo to cover a Requirement, covered by the mandate. Details of that notification shall be as described in Clause 5(f)(iii) below. (x) In connection with seeking potential optimizations, following the purchase of each term or spot Cargo to cover a Requirement, the Buyer, in discussion with Seller, shall issue, and continue to update a replacement grade pecking order (“Replacement Grade Pecking Order” or “RGPO”) for such covered Requirement outlining the Grades that could replace the purchased Cargo and the corresponding differences in price at which such replacement Grades would have equal economics for the Buyer, which RGPO shall use the Cargo Bank Differential of the purchased Cargo as the basis for such price differences.[REDACTED]