Fuel Supply Contract Template for Pakistan

The Fuel Supply Contract serves as a fundamental document for establishing and managing fuel supply relationships in Pakistan's energy sector. It is particularly essential for businesses requiring regular fuel supply for their operations, whether for industrial processes, transportation fleets, or power generation. The document is structured to comply with Pakistani regulatory requirements, including the Petroleum Act 1934 and OGRA Ordinance 2002, while addressing commercial aspects such as pricing, delivery terms, and quality specifications. This contract type is crucial for ensuring security of fuel supply, managing price volatility, and maintaining compliance with local regulations. It typically includes detailed specifications for fuel quality, delivery schedules, pricing mechanisms, and risk allocation between parties, making it suitable for both long-term supply arrangements and shorter-term specific supply commitments.

1. Parties: Identification of the supplier and purchaser with complete legal details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Detailed definitions of technical and legal terms used throughout the contract

4. Scope of Supply: Details of the fuel products to be supplied and basic supply obligations

5. Quality Specifications: Detailed quality requirements and standards for the fuel products

6. Quantity and Delivery Terms: Agreed volumes, delivery schedule, and delivery point specifications

7. Price and Payment Terms: Pricing mechanism, payment schedule, invoicing, and payment methods

8. Title and Risk: Transfer of ownership and risk in the fuel products

9. Performance Security: Requirements for bank guarantees or other security deposits

10. Testing and Inspection: Procedures for quality testing and inspection of fuel deliveries

11. Health, Safety and Environment: HSE requirements and compliance obligations

12. Representations and Warranties: Standard and specific warranties regarding fuel quality and supply capabilities

13. Force Majeure: Events constituting force majeure and consequent rights and obligations

14. Term and Termination: Duration of the contract and grounds for termination

15. Dispute Resolution: Procedures for resolving disputes including jurisdiction and governing law

16. General Provisions: Standard boilerplate clauses including notices, amendments, and assignments