The total value of the contract is estimated to be in excess of $56 million, based upon the current market price of diesel. Under the terms of the agreement, Amiworld will sell 36,000 barrels of diesel to Vanoil on a monthly basis for a period of one year commencing immediately.
The terms of this agreement provide for the delivery of 450,000 gallons of diesel daily to Vanoil’s plant located in Cartagena, Colombia, at a price equal to the then current price of diesel established by Platt’s No-2 US Gulf Oil, minus $0.20 per gallon.
Vanoil is obligated to pay 50% of the monthly purchase price prior to delivery, with the remaining 50% due upon inspection and acceptance of the product by Vanoil.
Mamoru Saito, CEO of Amiworld, said: This agreement is extremely significant because this single sales contract will fulfill approximately 40% of our third quarter forecast revenues of $13 million and 62% of our fourth quarter forecast revenues of $24 million.
