Document background
The Oil And Gas Purchase And Sale Agreement is a fundamental commercial document used in Saudi Arabia's energy sector for transacting oil and gas products between parties. It is essential for businesses operating in or with Saudi Arabia's hydrocarbon sector, ensuring compliance with local regulations, including the Basic Law of Governance and various commercial and environmental regulations. The agreement typically addresses critical aspects such as product specifications, pricing, delivery terms, quality standards, and risk allocation, while incorporating Sharia law principles. This document type is particularly important given Saudi Arabia's position as a major global oil and gas producer and the strategic nature of its energy sector. It requires careful consideration of local regulatory requirements, including Saudi Aramco's role as the state oil company and various governmental oversight mechanisms.
