Oil & GAS
2. Seller’s legal department conducts due diligence on Buyer and issues Commercial Invoice (CI) to Buyer and Non-Circumvention & Non-Disclosure Agreement (NCNDA) along with Irrevocable Master Fee Protection Agreement (IMFPA) if approved within 48 hours. Buyer signs CI, Intermediaries / Mandates fill out their account information according to brokers involved as stipulated on the NCNDA/IMFPA and return to Seller for countersigning and endorsement before lodging documents with its bank.
3. Seller issues to Buyer the below Partial Proof of Product (PPOP) documents for verification of the product:
• Refinery Commitment to Supply
• Product Quality Passport
• Statement of Product Availability
• Certificate of Origin
• Tank Storage Receipt (TSR)
• Company Registration
4. Upon Successful Verification of the PPOP, Buyer provides its Tank Storage Receipt with a minimum of three (3) days valid period and plans for the Dip Test schedule.
5. Upon successful Dip Test in Seller’s Tanks, Buyer makes payment for the total cost of product based on the SGS Report and Seller transfers The Title Ownership, Authorization to Sell and Collect (ATSC), product Export License and all related documents to Buyer. Buyer lifts product into its Vessel or completely takes over Seller’s tanks for further product storage according to Tanks lease time agreed.
6. Seller pays Intermediaries / Mandates according to the commission structure signed and agreed on the Non-Circumvention & Non-Disclosure Agreement (NCNDA) along with Irrevocable Master Fee Protection Agreement (IMFPA).
7. Seller issues final agreement to Buyer to review contract on R&E Monthly Deliveries.
8. Buyer reviews and approves contracts and issues Standby Letter of Credit (SBLC) or Documentary Letter of Credit (DLC) that is Irrevocable, Non-Transferable and Auto Revolving for 12 months shipment value. The SBLC or DLC shall run for the length of Contract and for each lifting as scheduled.
2. Seller issues Draft Contract / Sales & Purchase Agreement (SPA Open for amendments if any) along with Non-Circumvention & Non-Disclosure Agreement (NCNDA) along with Irrevocable
Master Fee Protection Agreement (IMFPA). Buyer signs Draft Contract/SPA and Mandates/Brokers sign the NCNDA/IMFPA including their banking information for commission and exchange the copies electronically with Seller.
3. Seller registers the contract officially with the appropriate authorities and sends final contract and copy of the notarized Partial POP documents which includes:
• Refinery Commitment to Supply
• Product Quality Passport
• Statement of Product Availability
• Company registration/License
• Certificate of Origin
4. Buyer issues their financial guarantee (SBLC MT760 or DLC 700) to cover the first shipment to Seller’s bank in 5 working days.
5. If Buyer fails to issue SBLC or DLC in 5 working days, in alternative Buyer shall make guarantee deposit of 3% TT wire from the total value of the contract to Seller’s fiduciary bank account as performance guarantee to secure the allocation which will be deducted from the first shipment.
6. Upon confirmation of Buyer’s SBLC/DLC or guarantee deposit of 3% TT wire to Seller’s bank, Seller will issue 2% Performance Bond, full POP and shipping documents via Swift bank to bank as shown below:
• Injection Report
• Copy of License to Export
• Copy of the Charter Party Agreement(s) to Transport the Product to Discharge Port
• License to Export
• Allocation Title of Ownership Certificate
• Product Allocation Export Permit.
• SGS/Saybolt Certificate of Quality and Quantity, One (1) Original and three (3) copies
• Vessel Q88
• Bill of Lading
7. Shipment commences and upon arrival of the vessel tanker at the discharge port, Buyer conducts SGS inspection and makes operative SBLC/DLC or makes payment for the full shipment via TT wire or MT103.
8. Seller pays Intermediaries / Mandates 48 hours after confirming payment from Buyer according to signed Non-Disclosure Agreement (NCNDA) along with Irrevocable Master Fee Protection Agreement (IMFPA).
2. Seller’s legal department conducts due diligence on Intending Buyer and issues Memorandum of Understanding (MoU) and Commercial Invoice (CI) for the product quantity on board vessel, Non Circumvention & Non-Disclosure Agreement (NCNDA) along with Irrevocable Master Fee Protection Agreement (IMFPA) if approved within 48 hours. Intending Buyer signs MoU and CI, Intermediaries / Mandates fill out their account information according to brokers involved as stipulated on the NCNDA/IMFPA and return to Seller for countersigning and endorsement before lodging documents with its bank.
3. Seller sends Buyer the Proof of Product documents below:
• Refinery Commitment to Supply
• Product Quality Passport
• Certificate of Origin
• Quality Inspection Certificate
• Authorization to Verify (ATV)
• Authorization to Sell and Collect (ATSC)
• Bill of Lading
• Ullage Report
• Cargo Manifest
• Vessel Q88
• Buyer is issued a master invoice for five percent (5%) rerouting protocol and Security
Guarantee fee to Seller’s nominated bank Account
4. Buyer confirms receipt of the above documents and makes 5% payment for the total product value of the product that is to be deducted when paying the balance after discharging at Buyer’s port.
5. Seller issues approval to Export License Certificate, Authorization to Board the Vessel (ATB), Dip Test Authorization (DTA) and all shipping documents will be re-issued in Buyer’s name and vessel will be “rerouted” to the Buyer’s discharge port.
6. Upon arrival of the vessel at Buyer’s discharge Port, Buyer pays the balance Ninety Percent (95%) of total product value after successful CIQ/SGS or equivalent inspection via T/T-MT103 and the Title Ownership will be transferred to Buyer.
7. Seller pays Intermediaries / Mandates 48 hours after confirming payment from Buyer according to signed Non-Disclosure Agreement (NCNDA) along with Irrevocable Master Fee Protection Agreement (IMFPA).
2. Seller issues Commercial Invoice (CI) for the available quantity, Buyer signs and return Commercial Invoice.
3. Seller provides the following Partial Proof of Product (PPOP) documents to Buyer:
a) Statement of product availability
b) Commitment letter to supply
c) Tank storage receipt
d) Certificate of origin
e) Company Registration Certificate
f) Non-Circumvention & Non-Disclosure Agreement (NCNDA) / Irrevocable Master Fee Protection Agreement (IMFPA).
4. Buyer requests for invoice from Seller’s Storage Company from the information on Seller’s Tank Storage Receipt for Injection Clearance fee.
5. Seller issues Authorization to Verify (ATV) document to Buyer. Buyer and its SGS team contacts Tank farm for a physical test and verification from after confirmation of Injection Clearance fee and PPOP document from Seller.
6. Seller provide Buyer with the below listed documents after injection is completed.
a) Title Ownership
b) Authorization to Sell and Collect (ATSC)
c) Product Export License and all related documents to Buyer.
7. Buyer receives satisfactory report from SGS and Buyer makes payment for total cost of product injected into its Vessel via MT103.
8. Seller pays commission to intermediaries involved in the transaction in line with signed NCNDA/IMFPA.
2. Seller issues commercial invoice (CI), Buyer signs and returns back commercial invoice alongside Buyer tank storage agreement (TSA) for verification.
3. Seller provide Buyer with the below listed PPOP:
• Product Passport (product analysis report)
• Commitment Letter to Supplier
• Tank Storage Receipt (TSR)
• Tank to Tank Injection Agreement (TTTIA) to be signed by Buyer’s tank farm
• Non-Circumvention Non-Disclosure Agreement (NCNDA) / Irrevocable Master Fee
Protection Agreement (IMFPA)
4. Seller provides Buyer with unconditional DTA, SGS report.
5. (NCNDA/IMFPA) will be signed, Buyer within 24 hours after successful dip test in Seller tanks provide tank storage receipt (TSR) Seller proceed for Tank-to- Tank injection and provide Buyer with the injection report of the product into Buyer tanks.
6. Buyer make payment for total cost of product injected into Buyer tanks via MT103, Seller transfer title ownership to Buyer with all exportation documents required of Buyer for the transaction.
7. Upon conclusion of first lift transaction Seller pays all intermediaries involved in the Transaction and proceeds with the signing of contract with Buyer
LOADING PORTS:
ROTTERDAM / HOUSTON / KAZAKHSTAN / FUJAIRAH / JORONG PORTS
INSPECTION:
SGS FOR THE QUALITY & QUANTITY TEST REPORT
INSURANCE:
PAID BY SELLER, COVERING 110% OF SHIPMENT VALUE