INCOTERM PROCEDURES AT NO FINANCIAL RISK TO THE BUYER

Transcription

1 PRODUCT: QUALITY: QUANTITY: Contract TERMS: Nigerian Bonny Light Crude Oil NNPC Export Standard Grade Minimum of 2Million Barrels Shipment Per Month Lifting X 12 Months FOB/TTT/TTO-West Africa WITH TTO & CIF Europe/USA/ Asia BUYER S PERFORMANCE GUARANTEE: Buyer shall Issues SBLC /BG OR BLOCK FUND VIA MT760 & MT542 SWIFT Covering the total cost of CARGO per shipment as per Seller s Verbiage SELLER S PERFORMANCE GUARANTEE: Seller issue 2% Performance Bond against the Buyer s SBLC/BG upon Receipt and validation of the Buyer s SBLC. MODE OF FINAL PAYMENT: MT103 CASH WIRE VIA TT against Inspection Report, C/Invoice & Cargo Documents. DISCOUNT FOR CIF & TTO EUROPE/ ASIA: Platts Minus $6 Per Barrel (Brent) ($10/6) DISCOUNT FOR TTO/TTT West Africa: Platts Minus $8 Per Barrel (Brent) ($12/8) DISCOUNT FOR FOB West African Water : Platts Minus $8 Per Barrel (Brent) ($13/9) COMMISSION : $4 Commission to be Split 50/50 Between Buyer and Seller agents. INCOTERM PROCEDURES AT NO FINANCIAL RISK TO THE BUYER Below is our INCOTERM Procedures for FOB/CIF/TTO/TTT at no financial risk to the buyer with NNPC/PPMC/ JV OPERATORS full support. The product offered shall be lifted from NNPC Bulk approved equity share OFF-OPEC Record. 1

2 SHIPMENT PROCEDURE NO.1 1. Seller issues Sales Purchase Agreement to Buyer, while the Buyer sign's and return PDF converted copy with PORT OF DISCHARGE STORAGE FACILITY DETAIL and NOR/ETA format, BUYER INFORMATION SHEET, PASSPORT COPY OF THE DIRECTOR AND CERTIFICATE OF BUSINESS REGISTRATION TO SELLER as both parties lodge SPA with their respective banks. 3. Buyer s bank issues to Seller s bank PREADVICE BY BANK OFFICIAL the full value of $100M. Seller s bank confirms PRE-ADVICE WHILE BUYER'S BANK ISSUES SBLC via MT 760 OR MT542 SWIFT TO THE SELLER'S BANK WITH SELLER'S VERBIAGE in the amount of ($100,000, USD). 4 Seller confirm Buyer s SBLC, and ISSUE A 2% PERFORMANCE BOND immediately thereafter, nominates and load the delivery vessel in Buyer s name and submits to Buyer, vessel documents per Article #6. 5 Buyer verifies/confirms cargo documents for the Vessel/Cargo (Per Lot), which shall properly be reflected on the NNPC DATA BASE at BONNY ISLAND. The Seller instructs the Vessel Master/Captain to issue Marine NOR/ETA to Buyer's Harbor/Terminal Master at Buyer s Storage Facility Port-of-discharge and sail the vessel to the Buyer s Port issuing an ETA every 24 hours until the vessel arrives at the Port of Discharge. 6 Upon arrival at the Port of Discharge, the vessel Captain issues a Marine Authority to Board (MATB) to Buyer s inspection team and to perform the Quality and Quantity (Q&Q) inspection. The Inspection Team, at Buyer s expense, boards the vessel and conducts the Q&Q inspection. 7 Upon confirmation of a positive Q&Q analysis report, Seller will present to Buyer a final Commercial Invoice duly-executed by the Seller for the full value of the measured barrels as determined by the final Q&Q analysis report, together with a full set of original shipping documents (endorsable/assignable) in Buyer s name, to effect payment. 8 Within forty-eight (48) banking hours of Q/Q, Buyer pays in United States dollars via SWIFT MT103 Wire Transfer to the Sellers designated bank account the full value as determined by the final and 2

3 confirmed Q&Q analysis report. 9 Buyer immediately pays all intermediary commissions in accordance with the Fee Protection Agreement provisions of this SPA/Agreement. 10 Seller s bank confirms full payment receipt and acceptance by sending a SWIFT message acknowledgment to Buyer s bank and Seller will render to Buyer the free and clear Certificate of Ownership/Title of Cargo (which shall be endorsable /assignable). Upon successful payment and title transfer of the product, the Harbor/Terminal Master releases the Tank Numbers and the Vessel Captain and Harbor/Terminal Master sign the Discharge or Delivery Note/Certificate for discharge of the cargo/vessel to commence immediately to Buyer s designated storage facility. 11 A repeat of the procedure is applied per each month s shipment/lot until final delivery as per the terms/schedule of The SPA Contract for the next 11 Months until the contract is termed; PROCEDURE FOR TTO CHINA OR EUROPE WATERS DELIVERY NO.2 1. Seller issues Sales Purchase Agreement to Buyer, while the Buyer sign's and return PDF converted copy with PORT OF DISCHARGE STORAGE FACILITY DETAIL and NOR/ETA format, BUYER INFORMATION SHEET, PASSPORT COPY OF THE DIRECTOR AND CERTIFICATE OF BUSINESS REGISTRATION TO SELLER as both parties lodge SPA with their respective banks. 3. Buyer s bank issues to Seller s bank PRE-ADVICE (RWA) BY BANK OFFICIAL to Seller s Bank account Officer for the full value of $100M. 4. Seller s bank confirms PRE-ADVICE (RWA) AND seller issues NOR to the Buyer. 5. WHILE BUYER'S BANK ISSUES SBLC via MT760 OR MT542 SWIFT TO THE SELLER'S BANK WITH SELLER'S VERBIAGE in the amount of ($100,000, USD). 6. Seller confirm Buyer s SBLC, and immediately thereafter, Seller releases cargo documents to the buyer, while CARGO delivery to the Buyer POD takes place 7. Upon arrival at the Port of Discharge, the vessel Captain issues a Marine Authority to Board (MATB) to 3

4 Buyer s inspection team and to perform the Quality and Quantity (Q&Q) inspection. The Inspection Team, at Buyer s expense, boards the vessel and conducts the Q&Q inspection. 8. Upon confirmation of a positive Q&Q analysis report, Seller will present to Buyer a final Commercial Invoice duly-executed by the Seller for the full value of the measured barrels as determined by the final Q&Q analysis report, together with a full set of original shipping documents (endorsable/assignable) in Buyer s name, to effect payment. 9. Within forty-eight (48) banking hours of Q/Q, Buyer pays in United States dollars via SWIFT MT103 Wire Transfer to the Sellers designated bank account the full value as determined by the final and confirmed Q&Q analysis report. 10. Buyer immediately pays all intermediary commissions in accordance with the Fee Protection Agreement provisions of this SPA/Agreement. 11. Seller s bank confirms full payment receipt and acceptance by sending a SWIFT message acknowledgment to Buyer s bank and Seller will render to Buyer the free and clear Certificate of Ownership/Title of Cargo (which shall be endorsable /assignable). Upon successful payment and title transfer of the product, the Harbor/Terminal Master releases the Tank Numbers and the Vessel Captain and Harbor/Terminal Master sign the Discharge or Delivery Note/Certificate for discharge of the cargo/vessel to commence immediately to Buyer s designated storage facility. 12. A repeat of the procedure is applied per each month s shipment/lot until final delivery as per the terms/schedule of The SPA Contract for the next 11 Months until the contract is termed; FOB PROCEDURE DIRECT TERMINAL LOADING NO.3 1. Seller issues Sales Purchase Agreement to Buyer, while the Buyer sign's and return PDF converted copy with vessel CPA, Q88, CPA invoice and ATL made out to NNPC via GGSL., BUYER INFORMATION SHEET, PASSPORT COPY OF THE DIRECTOR AND CERTIFICATE OF BUSINESS REGISTRATION TO SELLER as both parties lodge SPA with their respective banks. 3. The Buyer s bank issue SBLC OR BG OR BLOCK FUND VIA MT760 OR MT542 SWIFT to guarantee performance while seller issues a 2& Performance Bond to guarantee loading and delivering. 4. Seller program vessel for loading and notify buyer accordingly 5. NNPC Terminal open communication with buyer s captain, clear the vessel and escort vessel to loading platform. 4

5 6. Seller loads vessel and buyer s onboard inspector performs Q&Q test. 7. Inspectors release report to both parties while seller issues full cargo documents with CI in Buyer s name. 8. Within 48 hours after inspection, buyer wires full payment to seller designated bank account. 9. Seller confirm payment, clears vessel and vessel sails to buyer s Port Of Destination (POD) 10. Seller and Buyer makes subsequent shipment. TTT PROCEDURE FOR WEST AFRICAN WATERS NO.4 1. Seller issues Sales Purchase Agreement to Buyer, while the Buyer sign's and return PDF converted copy with NOR/ETA format, BUYER INFORMATION SHEET, PASSPORT COPY OF THE DIRECTOR AND CERTIFICATE OF BUSINESS REGISTRATION TO SELLER as both parties lodge SPA with their respective banks. 3. BUYER CAPTAIN TO FOLLOWING S STATING READY WILLINGNESS TO RECEIVE CARGO AND CONFIRM EXACT LOCATION COORDINATES IN NIGERIA WATER: MUST REF: GGSL ( L ADDRESSES TO BE INSERTED HEREIN) 4. SELLER CAPTAIN ACKNOWLEDGE AND MOVED TO LONG-SIDE WITH BUYER VESSEL. 5. BUYER CONFIRM PRODUCT AND ISSUE MT103/72 WITH $1M DRAW DOWN...TO SELLER ACCOUNT 6. CARGO TRANSSHIP AND BUYER PERFORM INSPECTION 7. BUYER RELEASE FULL PAYMENT TO WELLS FARGO BANK (SETTLEMENT ACCOUNT). 5

6 TANKER TAKE OVER-(TTO) WEST AFRICAN WATERS PROCEDURE NO.5 1. Seller issues Sales Purchase Agreement to Buyer, while the Buyer sign's and return PDF converted copy with NOR/ETA format, BUYER INFORMATION SHEET, PASSPORT COPY OF THE DIRECTOR AND CERTIFICATE OF BUSINESS REGISTRATION TO SELLER as both parties lodge SPA with their respective banks. 3. Buyers Block ($500,000.00) Five Hundred Thousand Dollars Via SBLC OR BG (MT760) in Seller's Bank Account for FIRST TRIAL SHIPMENT, and the seller confirm and validate the block fund. 4. The seller authorize loaded vessel captain to issue ETA/NOR to the buyer and Moves Vessel to 12 Nautical Miles in Ghana waters, 5. On arrival, the captain (SELLER) Issues Marine Authority To Board (MATB) to Buyer's Inspectors to Board the Vessel, collect product sample for Q&Q TEST/INSPECTION. 6. After a Successful Q & Q, the ($500,000.00) Five Hundred Thousand Dollars becomes cash and the Buyers Place total cargo instrument. 7. Seller introduces the buyer to the home office of the Vessel handler. 8. Payment for product is released to Seller's nominated bank in 72 hours after transshipment of product by MT-103 (swift transfer) at out-turn barrels upon presentation of the transaction documents at Buyer s bank. 9. Thereafter, the Buyer places another SBLC to be auto-revolving / be validated for 12 months for 8million barrels monthly lifting. These are special offers but Note that the above discount could change on every Monday (London Time) based on the global crude market price fluctuation we offered this based on OFF-OPEC CRUDE OIL Terms and Conditions. ONCE the Contract is signed then the Gross/Net Discount figures REMAIN CONSTANT during Contracts Term for 1year DURATION PERIODS OR AS AGREED. 6