AGREEMENT

FOR FABRICATION OF NEW OIL STORAGE TANKS

This agreement is made between M/S Royal Engineering Services (Pvt.) Ltd Plot # 08, Qasim
Block, Rizwan Garden, Phase-1, Near Jallo Park Lahore Pakistan, hereinafter called as the
CONTRACTOR and
M/S My Petroleum (Pvt.) Ltd hereinafter called as the BUYER for the fabrication of oil Storage
Tanks; Qty 06.

AGREEMENT NO: RES/MPPL/ST/07-2017/001

PRODUCT: Oil Storage Tank
QUANTITY: 06 No.

1. Contractors Scope of Work

M/S Royal Engineering Services (Pvt.) Ltd scope of supply will consist of the following:

1.1. Fabrication and supply of Oil Storage Tanks as per drawings provided.
1.2. Unloading of the material at fabrication site.
1.3. Cutting, rolling, beveling and welding of shell plates, heads, and nozzles.
1.4. Hydro testing, DPT of Oil Storage Tanks.
1.5. Surface treatment, cleaning and Painting of the Oil Storage Tanks.
1.6. Installation of safety fittings for Oil LPG Storage Tanks.
1.7. All consumables including DPT sets for complete activity.
1.8. All fabrication tools and equipment including welding plants required for the
project.
1.9. Supply of leads and extensions to function the equipments.
1.10. Skilled and unskilled labor for the execution of project.
1.11. All safety PPEs at site.
1.12. Rolling machine for shell preparation.
1.13. Arrangements for labor food, residence, electricity bill and rents of residence etc.

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 2. M/S My Petroleum (Pvt.) Ltds Responsibility

The following shall be M/S My Petroleum (Pvt.) Ltd responsibility in regard to this
agreement and are considered out of scope of contractor.

2.1. Supply of the detailed design drawings and relative documents as per design
approved.
2.2. Direct Material for Oil Storage Tanks including all fitting devices.
2.3. Shipment and transportation of the all the material in RESP Fabrication Facility.
2.4. Mill test certificates of the material to be used.
2.5. Civil foundation/civil works for the Oil Storage Tanks including anchor bolts,
embedded plates and shim plates.
2.6. All the external piping beyond the Oil Storage Tanks.
2.7. Supply of electricity and other utilities.
2.8. Radiographic testing of Oil storage tanks.
2.9. Transportation, loading and unloading of Oil storage tanks and all crane
arrangements at clients site.
2.10. Timely payment to RESP as per payment terms agreed.

3. Price
The price for the supply of equipment as per the project scope defined above shall be as
follows:

Sr. No. Description Qty Rate

Option I
1 6 Nos. RS 33/- without rolling
Fabrication of Oil storage Tanks
Option II
2 6 Nos. RS 35/- with rolling
Fabrication of Oil storage Tanks

Note: Number of rolling machines to be used: 2 Nos.

4. Terms & Conditions

As following terms and conditions will apply:-

On the basis of monthly progress as approved by third party.

Payment of bill shall be done at the rate of per KG weight as approved by third party.
No tax deduction.

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5. Confidentiality

The parties agree to maintain utmost confidentiality of the terms and conditions of this
Agreement and agree not to reveal them to any other party. This confidentiality shall
remain valid, despite the expiry or sooner termination of this Agreement.

6. Entire Agreement

This agreement shall be construed as the entire agreement between Parties and shall
supersede all oral or written agreements agreed earlier. Any additions, alterations, or
modifications to this Agreement shall be made in writing and shall be duly signed by the
authorized signatories of both the parties.

7. Arbitration

Any dispute arising out of this Agreement or any of its renewals, shall be settled by
reference to arbitration of two arbitrators, one to be appointed by each party, and in case
of disagreement between them, to the arbitration umpire who shall be appointed by the
said two arbitrators before entering on the reference. The venue of arbitration shall be at
Islamabad and shall be held in all respects in accordance with Arbitration Act 1940 and
any statutory modification or re-enactment thereof.

8. Guarantees/ Warranties

The Oil Storage Tanks shall bear RESP guarantee against any defects due to faulty
workmanship or material under normal operating conditions for a period of twelve (12)
months from the date of delivery of the Oil Storage tanks.

9. Delivery

Delivery will be ex works RESP, within 70 Days from the date of award of contract.
This agreement is read over and accepted by the both parties and is signed on this day of
25-08-2017

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M/S Royal Engineering Services (Pvt.) Ltd. M/S My Petroleum Pvt. Ltd.

Mr. Mr.

Designation: Designation:

_____________2017 _____________2017

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