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    GPC

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    Alexander
    The document outlines procedures and terms for three potential crude oil sales. Seller 1 offers a tank farm in Qingdao, China for $6 net per barrel, requiring buyers to follow a multi-step process including inspections. Seller 2 offers a standard FOB procedure involving signed contracts, vessel documents, loading, inspection, and payment. Seller 3 offers a CIF sale requiring buyer and seller to exchange payment instruments before a vessel is loaded and sent to the buyer's storage tanks in Hong Kong, where quality inspection and payment would conclude the sale.

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    GPC

    Uploaded by

    Alexander
    383 views4 pages
    The document outlines procedures and terms for three potential crude oil sales. Seller 1 offers a tank farm in Qingdao, China for $6 net per barrel, requiring buyers to follow a multi-step process including inspections. Seller 2 offers a standard FOB procedure involving signed contracts, vessel documents, loading, inspection, and payment. Seller 3 offers a CIF sale requiring buyer and seller to exchange payment instruments before a vessel is loaded and sent to the buyer's storage tanks in Hong Kong, where quality inspection and payment would conclude the sale.

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    The document outlines procedures and terms for three potential crude oil sales. Seller 1 offers a tank farm in Qingdao, China for $6 net per barrel, requiring buyers to follow a multi-step process including inspections. Seller 2 offers a standard FOB procedure involving signed contracts, vessel documents, loading, inspection, and payment. Seller 3 offers a CIF sale requiring buyer and seller to exchange payment instruments before a vessel is loaded and sent to the buyer's storage tanks in Hong Kong, where quality inspection and payment would conclude the sale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    383 views4 pages

    GPC

    Uploaded by

    Alexander
    The document outlines procedures and terms for three potential crude oil sales. Seller 1 offers a tank farm in Qingdao, China for $6 net per barrel, requiring buyers to follow a multi-step process including inspections. Seller 2 offers a standard FOB procedure involving signed contracts, vessel documents, loading, inspection, and payment. Seller 3 offers a CIF sale requiring buyer and seller to exchange payment instruments before a vessel is loaded and sent to the buyer's storage tanks in Hong Kong, where quality inspection and payment would conclude the sale.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The documents describe different procedures for buying crude oil from Nigeria including tank farm sales, freight on board (FOB) vessel loadings, and tank-to-tank (TTT) transfers. Payment terms, cargo documentation, and responsibilities of buyers and sellers are outlined.

    Procedures described include tank farm sales from onshore storage tanks in Qingdao, China, vessel loadings on a freight on board (FOB) basis from Nigerian terminals, and tank-to-tank (TTT) transfers of cargoes in West African waters.

    A Letter of Intent (LOI) would typically include details like the buyer's corporate profile, passport information, and acceptance of the stated terms and conditions for the transaction.

    SELLER 1 -BLCO Onshore Tank Farm

    Price:
    - Gross: -$8
    - Net to the Buyer: -$6
    Commission: -$1 each to buyer's agents and seller's agents

    Location: Qingdao - China

    Upon instrument confirmation, DTA/Customs clearance/Tank Access


    Code for DIP TEST exercise in the Onshore Tank Farm in Qingdao China.

    BLCO TANK FARM PROCEDURE - CHINA


    NON-NEGOTIABLE TERMS AND CONDITIONS

    1. Buyer issues LOI, Corporate profile, Passport page, with this procedure as acceptance of terms
    and conditions
    2. Seller and buyer sign MOU OR SPA OR PROFORMA INVOICE and deposit same in their
    respective Bank and the electronic copies are legally binding
    3. Seller issues preliminarily Tank Farm POP (STORAGE CERTIFICATE in English/Chinese,
    STORAGE INFORMATION, DISCHARGE CERTIFICATE, TSR- TANK STORAGE RECEIPT in
    Chinese, ATS for buyers and attention TANK FARM MANAGERS details.
    4. Buyer upon receipt of the preliminary cargo POP and verification of same via Phone and Email
    communication with the Tank Farm Manager shall place acceptable banking instrument from Prime
    Bank (MT103/23 or SBLC/MT760 or Documentary Letter of Credit) to enable seller issue complete
    cargo reassignment documents in favor of buyer including DTA/Customs clearance/Tank Access
    Code for DIP TEST exercise in the Onshore Tank Farm in Qingdao China.
    5. Seller confirms the banking instrument and instructs the Tank Farm Manager via NNPC to take
    buyer inspectors into the Tank Farm s for DIP TEST exercise
    6. Buyers inspector go into the Tank Farm for Dip Test exercise
    7. Upon DIP Test results, buyer makes final payment per out turn barrels to the Seller and all
    intermediaries in separate IMFPA.

    **👆in case you can source for a buyer that won't negotiate the procedure, seller won't bend at all. 2m
    barrels available and time-bound

    If procedure is accepted by buyer request for LOI template.


    PLEASE TREAT AS URGENT IF YOU HAVE AN INTERESTED BUYER!!

    LOI to :

    The Superintendent Bonny Terminal (NNPC/SHELL)


    Attn:
    Engineer Sanni

    SELLER 2 –

    ➢ STANDARD PROCEDURE FOR F.O.B/T.L. BUYER AND SELLER SIGNS SPA, CONTRACT IS
    LEGALLY BINDING AND ENFORCEABLE BY I.C.C.
    2 BUYER GIVES VESSEL DOCUMENTS a. CHARTER PARTY AGREEMENT (CPA) b. CHARTER INVOICE
    c.Q88 d. AUTHORITY TO LOAD (ATL)
    3.SELLER/TERMINAL ISSUES A LAYCAN TO BUYER AND CALLS BUYERS VESSEL INTO THE TERMINAL
    FOR LOADING AND CLEARS THE VESSEL INTO THE TERMINAL WITH HIS OWN MONEY, COST OF
    CLEARANCE AND PROGRAMMING TO BE ANNOUNCED (TBA) N.B: LAYCAN CAN BE CONFIRMED ON
    SCREEN/NNPC SYSTEM.
    4. BUYER CONFIRMS LAYCAN AND PUT HIS INSPECTION TEAM/SUPERCARGO ON BOARD THE VESSEL
    AND SAILS TO TERMINAL FOR LOADING
    5. VESSEL COMES INTO TERMINAL AND LOADING COMMENCE .
    6.AS SOON AS LOADING IS COMPLETED, BUYER CONFIRMS LOADING SUCCESS FROM HIS CREW ON
    BOARD AND PAYS THE MONEY FOR CLEARANCE OF THE VESSEL INTO AND OUT OF THE TERMINAL
    7. BUYER INSPECTORS CONDUCT Q&Q AND SELLER EXCHANGE CARGO DOCUMENTS FOR
    INSTRUMENT TO CRYSTALIZE TO CASH AND PAY FULL CARGO MONEY AND COMMISSIONS AS IN THE
    SPA. DOCUMENTS TO BE ISSUED: BILL OF LOADING, PAYMENT RECEIPT, CERTIFICATE OF QUALITY
    AND QUANTITY AND EVERY NECESSARY DOCUMENT.
    8. SELLER ESCORT BUYER'S VESSEL TO FREE WATERS

    ➢ TTO PROCEDURE FOR 1M BARREL, COTONOU/ TOGO/ GHANA WATERS:


    AFTER RETURNING SIGNED SPA, BUYER,
    BUYER BLOCK $500,000 OR ITS EQUIVALENT IN HIS OWN ACCT IN FAVOUR OF SELLER,
    ONLY TO CRYSTALLISE INTO CASH AFTER SUCCESSFUL Q & Q REPORT. N.B TRANSACTION IS
    A DOLLAR DEAL, BUT BLOCK FUNDS IN NAIRA IS EQUALLY ACCEPTABLE. SELLER LOADS
    CARGO, SENDS NOR AND BRINGS CARGO TO 10 TO 12 NAUTICAL MILES AND MAKE
    ANNOUNCEMENT IN THE NAME OF BUYER, HABOUR MASTER AND AGENT. SELLER CAPTAIN
    ISSUES MATB, BUYER INSPECTORS/SUPERCARGO CLIMB ON BOARD LOADED VESSEL, TAKE
    SAMPLES FOR Q & Q, UPON SUCCESSFUL Q & Q, WITHIN 72 HOURS BUYER PAYS FOR
    ENTIRE CARGO, ALL CARGO DOCUMENTS ARE ISSUED TO BUYER AND SELLER INTRODUCES
    BUYER TO VESSEL HANDLERS FOR RECHARTER, VESSEL SAILS TO BUYER'S DESTINATION
    WITH ROLL OVER AND EXTENSION FOR ANOTHER TRANSACTION.

    Discount : $11-4

    SELLER 3 : CIF PROCEDURE.

    Discount:

    a. The Seller issues the SPA with all banking details and the Buyer also inserts their banking details and
    parties sign the SPA and deposit copy with their banks for record and information.

    b. Within 3 banking days after the execution of the contract,Buyer's bank issues by swift full payment
    instrument - SBLC via MT760 to Seller’s fiduciary bank and Seller's fiduciary bank immediately responds
    with their 2% Performance Bond - SBLC via MT760 by swift (Buyer’s bank may choose to adopt
    PREADVISE approach where both banks will communicate with each other to confirm readiness to issue
    and exchange the financial instruments).

    c. Within 48 hours after the exchange of the financial instruments by the banks,

    buyer now forward details of their POD, NOR/ETA/MATB format and details of his receiving shore Tank
    Farm in Hongkong to the seller and their Port Representative/Agent.

    d. Between 10 to 12 days after the exchange of the financials by the

    banks and the receipt of the Buyer’s Tank Farm details and his NOR/ETA/MATB
    formats, the seller in conjunction with NNPC nominate a 2 mbbls capacity vessel, programme and load the
    vessel in the buyer's name and forward to the buyer, the soft copies of the cargo documents issued to the
    name of the Buyer as "CONSIGNEE".

    e. The seller procures Insurance cover for the cargo and the Captain issues NOR/ETA to the buyer and the
    Harbour Master and set sail.

    The Captain shall confirm his ETA 7 days to arrival, 3 days,48hrs and 12 hrs before arrival to the buyer,
    seller and Harbour Master.

    f. On arrival, the Captain shall stay afloat on Hongkong international waters for 24 hours waiting for the
    buyer to effect clearance; buyer’s Port/Agent shall immediately effect clearance with the Port's Authority
    and all necessary Governmental Agencies and arrange tug support facilities for easy berthing and
    positioning of the vessel for Q&Q certification and discharge operations in a timely manner to avoid
    demurrage.

    Any further delay from the buyer later than 24 hours after arrival, shall attract demurrage at the appropriate
    rate and charged to the account of the buyer.

    g. Captain announces arrival for the buyer to the Harbour Master and buyer’s Port/Shipping Agent, berth
    properly and issues MATB for the buyer’s Inspectors to board and conduct Dip Test at the cost of the buyer
    and collect sample from the

    Captain for final Q&Q analysis and disembark.

    The finalreport of the Q&Q is given to both the Seller and the Buyer.

    h. Cargo is discharged into the buyer's Tank Farm.

    All original cargo documents are delivered to the buyer/buyer's bank for payment.

    Cargo Documents to be issued shall include:

    Clean Ocean Bill of Lading,

    One (1)Original and Three (3) Copies

    Seller’s Commercial Invoice,One (1) Original and Three (3) Copies

    Certificate of Origin issued by NNPC,

    One (1) Original and Three (3) Copies

    Certificate of Authenticity issued by NNPC, One (1) Original and Three (3) Copies

    Cargo Manifest, One (1)Original and Three (3) Copies

    Certificate of Quality, One(1)Original and Three (3) Copies

    Certificate of Quantity, One(1)Original and Three (3) Copies

    Master’s Receipt for Samples Master’s Receipt for Documents Tanker Ullage Report
    Tanker Time Sheet Charter Party Agreement

    Certificate of Ownership(Title)

    NNPC Authority to Sell (ATS)

    Export Clearance Permit (NPA waiver, Custom Clearance Certificate etc.)

    Q&Q Inspection Report Performed at discharge port by the Buyer nominated recognized Surveyor
    Company like SGS.

    4. PAYMENT INSTRUMENT

    The hallmark of a good buyer is in his capacity to issue quality payments instrument from a top 20 world 3A
    rated bank and make payments fully,as they fall due.

    Interesting also is the fact that the Seller has such robust industry knowledge and financial capacity to post
    2% performance bond in favour of the Buyer which irrevocably guarantees performance.

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