OUR SALES PROCESS IS STRICTLY BANK TO BANK COMMUNICATIONS ONLY.
|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 CIF deliveries to any safe water port in the world.|
|Selling price||One dollar per barrel discount on Brent Platt price|
|Trial shipment quantity||Two million barrels|
|Long term monthly quantity||Buyer’s preferred quantity between two to six million barrels per month|
|Long term duration||Twenty-four months with extension|
|Mandatory payment guarantees for trial lifting shipment of two million barrels bonny light crude oil. Payment strictly in United States Dollars.||1. Buyer’s bank (a top world bank) gives verifiable MT760 Standby Letter of Credit by SWIFT as payment guarantee covering one hundred percent value of the trial shipment. Shipment payment is by MT103 or Wire transfer. |
2. Buyer’s bank (a top world bank) gives verifiable MT799 payment guarantee by SWIFT as payment guarantee covering one hundred percent value of the trial shipment. Shipment payment is by MT103 or Wire transfer.
|Mandatory payment guarantees for long term bulk lifting monthly shipments for twenty-four months. Payment strictly in United States Dollars.||1. Buyer’s bank (a top world bank) gives verifiable Non Divisible Non Transferable Direct Letter of Credit (DLC) by SWIFT valid for 366 days and would cover one hundred percent value of the monthly shipment. Shipment payment by MT103 or Wire transfer. |
2. Buyer’s bank (a top world bank) gives verifiable Non Divisible Non Transferable Standby Letter of Credit (MT760’SBLC) by SWIFT valid for 366 days and would cover the monthly shipment. Shipment payment by MT103 or Wire transfer.
Trial shipment of two million barrels.
CIF Sales Process:
- Seller sends official offer to the Buyer, the Buyer responds with official acceptance to sales process and Buyer’s KYC.
- Seller sends KYC, Pro-forma invoice and Memorandum of Understanding for the trial shipment which the Buyer signs and returns to the Seller within 48-hours with purchase order, the MOU and the purchase order are submitted to both parties’ banks.
- Seller’s bank (top World Bank in the world located in US and Europe) sends confirmation that two million barrels would be loaded in buyer’s name.
- Buyer’s bank gives to Seller’s bank MT760 or MT799 for 100 percent value of quantity.
- Seller loads two million barrels within 3 days after receiving payment commitment from buyer.
- The following shipping documents are sent by Seller’s bank to the Buyer’s bank (all shipping documents are in seller’s name):
- Loaded vessel bill of laden.
- Loaded vessel Q88.
- Loaded vessel SGS quality and quantity inspection certificate.
- Loaded vessel certificate of origin.
- Loaded vessel certificate of authenticity.
- Loaded vessel cargo manifest.
- Loaded vessel Master’s receipt of samples.
- Loaded vessel Master’s receipt of documents.
- Loaded vessel cleanness report at loading port.
- Loaded vessel charter party for the voyage to buyer’s nominated destination port.
- Loaded vessel Title warranty in the Seller’s name.
- Loaded vessel captain sends Notice of Readiness (NOR) to Buyer, buyer’s destination port harbor master and sails out of loading port to destination port (transponder left on for tracking)
- Loaded vessel announces arrival at destination port to the buyer and destination port harbor master.
- The buyer clears loaded vessel into port at buyer’s expense.
- Buyer’s inspection conducts physical quality and quantity inspection on loaded vessel, the results are sent to buyer and seller.
- The following shipping documents are sent by Seller’s bank to the Buyer’s bank:
- Seller’s commercial invoice for the sale of the loaded vessel.
- Buyer’s inspection team’s quality and quantity inspection result at discharge port.
- Loaded vessel documents given on item 6 above.
- Buyer’s bank makes payment of shipment at destination port by MT103 wire transfer to seller’s bank.
- Seller’s bank confirms payment of shipment.
- Loaded vessel discharges shipment into buyers storage tanks at destination port..
Long term sales process after successful completion of the trial transaction:
- Seller and buyer sign long term contract.
- Seller’s bank sends to the Buyer’s bank 3% performance bond by SWIFT for the quantity required monthly by MT760 valid for 366 days.
- Seller’s bank sends by SWIFT DLC for 100% value of the monthly quantity
- Process 6 to 14 above is repeatedly monthly till the end of contract.