The buyer will need to submit an ICPO with a Notice of Readiness (NOR) from their tank farm or ship, along with the relevant documents and forms that will be sent to the Buyer. Once terms represented therein are accepted by the Buyer, pricing discounts will be offered.
NOTE: No NOR, No deal. This is a very strict policy instituted by the refineries and must be adhered to.
The procedures are as follows:
1) Buyer tenders ICPO (with passport & CP) and POF & NOR to Seller
2) Seller responds with Confirmation Letter of fuel availability;
3) Seller issues a Joint Participation Agreement (JPA);
4) Upon receipt of signed JPA, Seller issues CI;
5) Upon receipt of singed CI, Seller issues DTA;
6) Upon Buyer’s receipt of successful SGS report, Seller arranges fuel transfer to Buyer’s tanks;
7) Upon Buyer confirming complete transfer of fuel, Buyer pays for fuel and Seller issues POP & other relative Title docs.
** PLEASE NOTE: These procedures will adjust slightly based on which seller eventually tenders an offer. Seller conducts its banking transactions via the Bank of America Global Markets Trade Desk in New York; your buyer’s banking has to be either in the US or have a corresponding bank in the US.
1. Buyer issues LOI with complete purchase requirement, and KYC + CP
2. Seller issues SCO
3. Buyer issues Irrevocable Corporate Purchase Order (ICPO) accepting seller's price, terms and procedures along with signed RWA /BCL from his bank evidencing availability of funds to transact, and vaid TSA/CPA
4. Seller issues draft of Sale and Purchase Agreement (SPA) contract along with Commercial Invoice. Buyer signs SPA and returns to seller along with verifiable storage tank coordinates. Seller verifies and approves Buyer’s tank farm coordinates, (TSA).
5. Seller provides following Partial Proof Of Product (PPOP) documents via Email or Fax to Buyer.
A. Authorization/Authority to Sell (ATS)
B. Product Quality Passport (Dip Test result of Product)
C. Letter of Commitment to Supply
D. Statement of Product Availability
E. Reservoir Storage Receipt.
F. Allocation Transaction Passport Code Certificate
6. Within 3 days upon the receipt & verification of the above PPOP documents, Buyer provides verifiable Tank Storage Receipt (TSR), Authorization to Inject (ATI) at the Loading port with injection permit. Buyer issues SBLC via SWIFT MT760 to seller's bank.
7. Seller issues 2% Performance Guarantee to Buyer
8. All parties sign NCNDA/IMFPA.
9. Seller issues (DTA) Dip Test Authorization for Q&Q along with complete Fuel Injection Report from the Pipeline/ Transportation Company.
10. Upon satisfactory Q&Q/Dip Test Inspection carried out by either SGS or similar inspection agency, Buyer releases full cost of the liftable product via MT103 TT wire transfer to Seller’s nominated Account within 72 hours and injection to buyer's tanks commences.
11. Seller issues the Title Transfer of Product Ownership / Certificate of Ownership to buyer’s company along with all necessary Export Documents.
12. Seller pays all intermediaries involved in the transaction as per IMFPA/NCNDA.
Global Oil And Gas Trading - FOB Transaction Procedure
FOB (ROTTERDAM & HOUSTON)TERMS AND PROCEDURES / NON NEGOTIABLE1. Buyer issues ICPO + C/P + POF + Buyer's Passport Copy for Data File (OR) Company License.2. Seller issues commercial invoice (CI) along with POP documents listed below to the Buyer who returns signed andsealed Commercial Invoice (CI) to the seller. TSR (Tank Storage Receipt) Injection Report Unconditional Dip-Test Authorization Letter of Acknowledgement Dip-Test Inspection Schedule ATV (Authorization to verify)3. Buyer Dip-tests in Seller's tank using SGS (or equivalent) and receives fresh Q&Q Report along with ATSC (Authorization To Sell and Collect).4. Within 72 Hours, Buyer provides TSR or Vessel storage for Injection of product into the Buyers hired tanks or vessel and returns the NCND/IMFPA signed by all parties involved in the buyer's side to the seller.5. Buyer pays total cost of product via SWIFT MT103.6. Seller confirms Buyer's payment receipt, completes injection into buyer's storage tanks/vessel, 7 Both parties release payment to all intermediaries on each side Involved in the transaction.8. Contract begins with Rolls and Extensions.
1. Seller sends official FCO on Official Letterhead (with his company Email Address, Phone & Fax Numbers, Tax Registration Numbers) duly signed and sealed with official stamp incorporating his terms and transaction procedure addressed to ........
2. Buyer issues Irrevocable Corporate Purchase Order “ICPO” with complete banking references, Company Profile (CP), Company Registration, Copy of Buyer's authorized signatory's Passport and RWA Letter signed by two of buyer’s bank officers and issued to seller’s name, which stipulates that Buyer is RWA to issue financial instrument (SBLC) for payment guarantee of goods ordered.
3. On receipt of buyer's ICPO and RWA Letter, seller issues (amendable) draft Contract (SPA)and a copy of the Proforma Invoice (PI) in favor of the buyer and NCND/IMFPA completed by Seller's Mandate/Broker.
4. Buyer returns to seller the signed and sealed Proforma Invoice and the SPA along with the IMFPA/NCNDA completed and signed by Buyer, Buyer's Facilitator/ Buyer Mandate Group and all Intermediaries.
5. Seller issues approved, countersigned and sealed SPA which now incorporates the NCNDA/IMFPA as an Annexure within the SPA document. Both buyer and seller lodge the legalized SPA contracts in their respective Banks.
6. Seller issues PPOP, which will consist of the following documents:
I. Passport product analysis.
II. Notarized Authorization to Sell (ATS)
III. Company Registration Certificate.
IV. Tax Registration Certificate
V. Notarized Commitment to Supply
VI. Notarized Statement of availability of Product.
7. Buyer verifies PPOP and if satisfied with the outcome, issues inoperative, transferable / Non-transferable SBLC/DLC – (CHOICE IS BUYER'S)
8. Seller issues 2% PB to activate the SBLC/ DLC.
9. Seller provides FULL PROOF OF PRODUCT, which will include:
10. Ship arrives at destination port and Q&Q inspection is conducted by nominated inspection agency such as SGS or equivalent others on the goods and checks through the Bill Of Lading (BL) and Commercial Invoice. . Upon satisfactory inspection report, the buyer releases payment via MT103/TT to seller's bank (100% payable for each shipment) within 3 banking days.
11. Documents from shipping on board vessel. (To be issued after loading)
12. After confirmation of receipt of payment seller shall instruct ship's captain to discharge cargo.
13. Seller sends the title ownership documents to Buyer.
14. Seller Pays all intermediaries’ commissions as per IMFPA within 24 hours of receipt of Payment for shipment from Buyer.
1. a) Buyer sends confirmation of acceptance of Price and this procedure on official Letterhead along with buyer’s Company Profile, Incorporation Certificate, Copy of Import License, and Copy of Passport of Signatory.
b) Once buyer’s credibility is established by our compliance team, Seller will issue the FCO to the buyer and buyer will issue official ICPO to the seller.
c) Seller will send SPA. Buyer executes this SPA and returns to Seller. Both parties lodge the SPA with their respective Banks.
2. Seller issues Proforma Invoice (PI) for First trail Lift/First Delivery.
3. Buyer’s Bank issues to seller bank, draft of irrevocable Confirmed DLC (as per UPC 600 payable at sight at Port of Discharge for seller’s bank approval
4. In response to the draft, Seller’s bank will issue a pre-advice 2% PBG Swift to buyer’s bank
5. Buyer’s bank will issue a pre-advice DLC.
a. Within 7 to 10 days Seller Issues Fresh Q&Q by SGS/ Bureau Veritas/ Intertek, on behalf of buyer.(not older than 72 hours and also the Certificate of origin (Bank to Bank)
b. Buyer Verifies the report and confirms
c. With the above confirmation from buyer, Buyer ‘s LC and the Seller’s 2% PBG will be activated / becomes operative simultaneously at the same time between both the banks
6. Upon Seller’s Bank approval of LC / within 7 to 10 working days Seller’s Bank sends to Buyer’s Bank following original legal documents such as charter party agreement (Q88), Loading and Delivery schedule etc.
7. Buyer provides evidence of Tank Storage at destination port. Seller loads First Lift/Trial Shipmentat Port of Loading
8. After loading, Seller’s Bank sends to Buyer’s Bank Commercial Invoice and full set of Bill of Lading/ shipping documents (Bank to Bank and Mail for information)
i. At Port of Discharge Buyer organizes Q&Q by SGS or equivalent and after positive report Buyer’s Bank releases full CI amount to Seller’s Bank-account following DLC and simultaneously Title of Ownership is transferred to Buyer
9. MONTHLY DELIVERY: After the Successful Transaction of the trial shipment, BUYER shall issue IRREVOCABLE CONFIRMED NON-TRANSFERABLE DLC Via MT700 for the Products Specifications for which the buyer has issued ICPO/LOI
BUYING BONNY LIGHT CRUDE OIL IS NOW A LOT EASIER
Our BLCO supplier is a US based corporation with more than a hundred years of history behind it and billions of dollars worth of assets across the globe, has a shipping and logistics company as its subsidiary and above all is a stake holder in a Nigerian oil refining company that has huge allocation.
Global Oil and Gas Trading is a proud, mandated sales agency looking into the marketing of the allocated BLCO crude by NNPC. Write to us for your BLCO crude oil requirements on CIF (ASWP) basis.