Odin Petroleum, CI Vanoil Sign Diesel Supply Contract

Amiworld, an energy company engaged in the production and distribution of diversified fuel products and services, has announced that its subsidiary Odin Petroleum has entered into an agreement to supply diesel to Colombia-based CI Vanoil.

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.”