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A Letter Of Intent For Fuel Purchase is commonly used in the Nigerian petroleum industry as a preliminary step before entering into a formal fuel purchase agreement. This document is particularly relevant when parties need to establish initial understanding and commence detailed negotiations while maintaining flexibility. It typically includes proposed commercial terms, timeline for negotiations, and framework for due diligence, while acknowledging Nigerian regulatory requirements. The LOI helps parties align their expectations and commence preliminary arrangements while working toward a definitive agreement. It's especially useful in complex fuel purchase transactions where detailed due diligence and regulatory approvals are required, or when parties need to secure internal approvals before proceeding with final agreements. The document must comply with Nigerian petroleum industry regulations and general contract law principles.

1. Date and Parties: Identification of the parties entering into the LOI, including full legal names, addresses, and registration details

2. Background/Introduction: Brief context of the proposed transaction and relationship between parties

3. Definitions: Key terms used in the LOI, particularly industry-specific terminology

4. Purpose and Scope: Clear statement of the intended transaction, including type of fuel, general quantity range, and broad commercial objectives

5. Commercial Terms: Basic outline of key commercial terms including proposed pricing mechanism, estimated volumes, and delivery terms

6. Due Diligence: Framework for information exchange and due diligence process

7. Timeline: Proposed schedule for negotiation, due diligence, and execution of definitive agreements

8. Exclusivity: Terms of exclusive negotiation period, if applicable

9. Confidentiality: Provisions regarding the confidential treatment of shared information

10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

11. Costs: Each party's responsibility for their own costs during the negotiation process

12. Governing Law: Specification of Nigerian law as the governing law

13. Signatures: Execution block for authorized representatives of both parties