• 26.09.2023

ANNOUNCEMENT of holding a tender to determine the Buyer for the Share of the Republic of Kazakhstan in Sulfur

In accordance with the Production Sharing Agreement in respect of the North Caspian Sea dated November 18, 1997 and Government decree of Republic of Kazakhstan, PSA LLС is appointed as a recipient of the share of sulfur from Kashagan field on behalf of the Republic of Kazakhstan.  

Due to termination of the sale and purchase agreement for sulfur, PSA LLС is planning to hold a tender to determine the buyer for the Share of the Republic of Kazakhstan in sulfur.

The planned volume of sales for the duration of the contract is  –  about 55 thousand tons (granulated sulfur).

There is a probability of volume adjustments depending on the level of hydrocarbons
production and sulfur production on the field.

Contract term: 2 years, with the beginning of action in February 2024.

Supply term: EXW Karabatan (collection by a customer)  in accordance with Incoterms-2010 as amended by the International Chamber of Commerce.

For domestic destinations sulfur price is defined as the basic price offered by the tenderer.
For export destinations with further sale from the ports of the Baltic Sea (port of Ust-Luga) or the Black Sea (ports of Caucasus, Novorossiysk, Illichivsk), sulfur price is determined according to the price formula:

P = B – D - М + Х

Where:
P – price of the deal (sales) for sulfur;
B - is the arithmetic average of the CFR Mediterranean Sea/CFR North Africa/ CFR Brazil sulfur quotes for a contract for 1 (one) metric ton published in the Argus FMB Sulphur source of information for the last four weeks preceding the date of shipment applied in accordance with the terms of the contract,
D – differential which includes the following costs:
rent of railway cars (gondola cars);
the cost of rail transportation of cargo, shipping loaded and cargo receipt of empty cars
(gondola cars), delivery and cleaning of cars (gondola cars) to the points of loading and
unloading, services for storage of loaded cars (gondola cars) on access roads;
customs clearance;
railway forwarding;
tracking cars (gondola);
sealing and labeling;
shunting works at loading and (or) shipping station;
station works at loading and (or) shipping stations;
downtime of cars (gondola cars);
sulfur storage in ports;
port charges;
сargo insurance cost;
cargo inspection cost;
sulfur moistening;
recycling envelopes;
ship freight cost;
transshipment in ports;
loading at the roadstead (for the Black Sea ports),
M – buyer’s margin (value “0”),
X - premium to the price formula.

At the same time the selling price of sulfur cannot have a negative value (if the price calculated in accordance with the formula has a negative value, the loss is charged to the buyer).

The potential buyer should have financial solvency and experience in working with Kazakhstan's sulfur sellers.
In support of this, potential buyers must provide the following documents:
copy of Charter or Founders Agreement (if available);
copy of Company Registration Certificate;
copy of an audited Financial report for the previous financial year or reference to the official source (in the absence of an audited Financial report for the previous financial year for reasons stipulated by applicable law, a report for the financial year preceding the previous one may be submitted);
confirmation of the company's commercial experience, capabilities and performance results (the copies of sulfur purchase and sale agreements or a confirmation letter, or any other document proving the experience of work with the Kazakh sulfur sellers;
confirmation of the company's ability to sell sulfur to the domestic market for the purpose of its final processing on the territory of the Republic of Kazakhstan or the possibility of its final processing on the territory of the Republic of Kazakhstan (copies of sales contracts or extracts from them, or letter of intent with (from) companies carrying out the processing of sulfur to the final product on the territory of the Republic of Kazakhstan, or documents confirming the possibility of their own sulfur processing to the final product) (applicable for the domestic direction).

In case of your interest we kindly ask you to send us on marketing@psa.kz your confirmation of the cooperation until 9.00 a.m. (Astana time) by 23th of October 2023 for the access to the next stage – tendering process at buyer's option.
        
For further details about our company please visit our webpage www.psa.kz