The Petroleum Product Supply Agreement is a crucial document used in Malaysia's highly regulated petroleum industry to establish legally binding supply arrangements between licensed suppliers and purchasers. This agreement type is essential when parties seek to establish a formal supply relationship for petroleum products under Malaysian law, particularly where PETRONAS oversight is required. The document encompasses comprehensive terms for product specifications, delivery arrangements, pricing mechanisms, and compliance requirements, while incorporating necessary provisions under the Petroleum Development Act 1974 and related regulations. It is particularly relevant for bulk supply arrangements, industrial users, and commercial distribution networks, requiring careful attention to technical standards, safety requirements, and environmental regulations specific to Malaysia's petroleum sector.
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1. Parties: Identification of the supplier and purchaser, including registration details and PETRONAS licensing information
2. Background: Context of the agreement, including any relevant historical relationship and regulatory framework
3. Definitions: Detailed definitions of terms used throughout the agreement, including technical petroleum product specifications
4. Supply Obligations: Core supply commitments, including product types, quantities, and delivery terms
5. Product Specifications: Detailed specifications of petroleum products as per Malaysian standards and PETRONAS requirements
6. Pricing and Payment: Pricing mechanism, payment terms, and any adjustment formulae
7. Delivery Terms: Delivery locations, methods, scheduling, and transfer of risk and title
8. Quality and Testing: Quality assurance procedures, testing methods, and acceptance criteria
9. Health, Safety and Environment: Compliance with HSE regulations and standards
10. Term and Termination: Duration of agreement and termination provisions
11. Force Majeure: Events constituting force majeure and consequential procedures
12. Compliance with Laws: Obligations to comply with Malaysian laws and PETRONAS regulations
13. Confidentiality: Protection of confidential information and trade secrets
14. Dispute Resolution: Process for resolving disputes under Malaysian law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Minimum Purchase Commitment: Used when buyer commits to minimum purchase volumes over specified periods
2. Storage Facilities: Include when agreement covers storage arrangements or facilities
3. Transportation: Detailed transportation terms when supplier handles logistics
4. Credit Terms: When special credit arrangements or facilities are provided
5. Performance Bond: When security for performance is required
6. Marketing and Branding: For agreements involving branded products or retail operations
7. Training and Technical Support: When supplier provides technical assistance or training
8. Emergency Response: Detailed emergency procedures for high-risk products or locations
9. Import/Export Provisions: For international supply arrangements
10. Anti-corruption Compliance: Enhanced compliance provisions for government-linked contracts
1. Product Specifications Schedule: Detailed technical specifications for each product
2. Pricing Schedule: Detailed pricing mechanisms, formulas, and adjustment procedures
3. Delivery Locations Schedule: List of approved delivery points and facility specifications
4. Testing Procedures: Detailed quality testing protocols and standards
5. Safety Procedures: Specific safety protocols and emergency procedures
6. Key Performance Indicators: Performance metrics and measurement criteria
7. Bank Guarantee Format: Template for required bank guarantees or performance bonds
8. Compliance Certificates: Required regulatory and quality compliance certificates
9. Insurance Requirements: Detailed insurance coverage requirements and limits
10. Operating Procedures: Standard operating procedures for delivery and handling
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