OUR SALES PROCESS IS STRICTLY BANK TO BANK COMMUNICATIONS ONLY.
BONNY LIGHT CRUDE OIL FOB SALES AT BONNY PORT, NIGERIA
| Crude Oil type | Bonny Light Crude Oil |
| Origin | Federal Government of Nigeria |
| API Gravity | 34 – 37 |
| Loading port | Bonny Ocean Terminal, Federal Government of Nigeria. |
| Sales type | Strictly FOB sales at Bonny Ocean Terminal, Federal Government of Nigeria |
| Selling price | Brent Platt price per barrel |
| Trial shipment quantity | Two million barrels |
| Long term monthly quantity | Buyer’s preferred quantity between two – ten million barrels per month |
| Long term duration | Twenty-four months with extension |
| Incentive from the Seller | 1. The Seller would provide empty vessels at Bonny loading port that Bonny Light Crude Oil would be loaded into monthly. 2. The Seller will pay vessel voyage charter cost covering monthly voyage to the Buyer’s destination safe port or ports. |
| Mandatory payment guarantees for trial lifting shipment of two million barrels bonny light crude oil. | 1. Refineries: Purchase Order attested by Refinery’s official bank (this option is strictly for refineries only). 2. Suppliers: Buyer’s bank (a top world bank) would give verifiable MT199 payment guarantee by SWIFT as payment guarantee covering trial shipment value. Shipment payment strictly in United States Dollars is paid by MT103 or Wire transfer. 3. Suppliers: Buyer’s bank (a top world bank) would give verifiable MT799 payment guarantee by SWIFT as payment guarantee covering trial shipment value. Shipment payment strictly in United States Dollars is paid by MT103 or Wire transfer. |
| Mandatory payment guarantees for long term bulk lifting monthly shipments of ten million barrels for twenty-four months. | 1. Buyer’s bank (a top world bank) gives verifiable Non Divisible Non Transferrable Direct Letter of Credit (DLC) by SWIFT covering the monthly shipment value and is valid for 366 days. Shipment payment strictly in United States Dollars is by paid MT103 or Wire transfer. 2. Buyer’s bank (a top world bank) would give verifiable Non Divisible Non Transferrable Standby Letter of Credit (MT760’SBLC) by SWIFT covering the monthly shipment value and is valid for 366 days. Shipment payment strictly in United States Dollars is paid by MT103 or Wire transfer. |
Fourteen day sales process for the trial shipment of two million barrels.
Day One – Day Three (three days):
- Seller sends official offer to the Buyer, the Buyer responds with official acceptance to sales process and Buyer’s KYC.
- Seller sends KYC and Memorandum of Understanding for the trial shipment which the Buyer signs and returns to the Seller within 48-hours with notarized purchase order or for Refineries Bank Attested Purchase Order (refineries only); the MOU and purchase order are submitted to both parties banks.
Day Four – Day Six (two days):
- The Buyer’s bank sends verifiable MT199 or MT799 or Equivalent payment guarantee or Bank Attested Purchase Order (item 2 above) to the Seller’s bank confirming trial shipment payment would be made immediately loaded shipment documents are given by the Seller’s bank.
Day Seven – Day Sixteen (nine days):
- Seller pays NNPC upfront for the loading of the two million barrels trial shipment including port loading logistics, then sends the official NNPC terminal loading notification (ship laycan reference) as proof of upfront payment, Laycan reference is in the Seller and Buyer’s names and sent through the Seller’s bank to the Buyer’s bank.
- Vessel is loaded with Bonny Light Crude Oil, Seller’s bank sends the following to the Buyer’s bank:
- Seller’s commercial invoice.
- SGS report of loaded shipment in Seller and Buyer’s names for confirmation by the Buyer
- Relevant loaded shipment documents in the Seller and Buyer’s names for confirmation by the Buyer.
- Within 48-hours the Buyer’s bank makes payment on commercial invoice by MT103 or bank wire transfer to Seller’s bank.
- Seller confirms payment and sends the following documents to the Buyer:
- Loaded shipment Title warranty transferred in the Buyer’s name and full set of shipment documents.
- Transaction receipt stating Buyer has paid for the loaded shipment.
- Vessel charter documents to Buyer’s destination port paid by the Seller; the seller would pay for entire voyage to destination port including five days extra for the buyer to discharge at the destination safe water port.
- Vessel sails out of Bonny loading port, Nigeria to Buyer’s destination port. This ends the trial shipment. Please note that the Buyer is responsible for all inspection and discharge expenses at the destination port, the Seller is only helping the Buyer with vessel charter voyage expenses. Any vessel charter expense incurred after what is paid for is solely borne by the Buyer.
Sales process for the long term monthly lifting:
- Seller and Buyer sign long term contract which is then submitted to both parties banks.
- Buyer’s bank gives Non-Transferable Non-Divisible Direct Letter of Credit (DLC) or MT760’SBLCby SWIFT to Seller’s bank covering monthly shipment full value and valid for 366 days and renewed for another 366 days (24 months).
- Seller will give official confirmation letter validating that the Seller is transferring to the Buyer, bonny light crude oil lifting rights for X million barrels monthly for a period of twenty-four months at bonny loading port. The monthly shipment title warranty and shipping documents would be in Buyer’s name would be handed over to the buyer’s bank after bulk shipment quantity is loaded and seller’s bank confirms bulk shipment payments have been made in full.
- Sales processes of days seven to sixteen of the trial sales trade process is repeated monthly for bulk loading and payment confirmation of X million barrels of bonny light crude oil (duration for the bulk loading, MT1O3 bulk payment confirmation, handing over of loaded shipments would not exceed nine days in total monthly).