Procedure buying Off-OPEC Bonny Light Crude Oil

PROCEDURE FOR CIF: (MT760-SBLC WITH SELLER’S 2% PB)

1) SELLER SENDS SPA AND INSTRUMENT VERBIAGE TO BUYER

2) BUYER SIGNS AND SEALS THE CONTRACT AGREEMENT WITH FULL BANKING COORDINATES OF BOTH PARTIES AND THEIR AGENTS

3) BUYER RETURNS THE SIGNED CIF CONTRACT WITH ATB/NOR FORMAT, COMPANY CERTIFICATE AND CUSTOMER INFORMATION SHEET

4) THE SIGNED CONTRACT AGREEMENT IS LODGED WITH BANKS OF THE RESPECTIVE PARTIES

5) BUYER BANK SWIFTS PRE ADVICE MT199 TO SELLER BANK AND SEND COPY TO SELLER FOR CONFIRMATION

6) SELLER BANK RESPONDS WITH A PRE ADVICE TO BUYER BANK AND SENDS COPY TO BUYER

7) BUYER BANK SWIFTS TOTAL CARGO SBLC MT760 TO SELLER BANK

8) SELLER BANK SWIFTS 2% BOND TO BUYER BANK

9) SELLER INSTRUCTS TERMINAL TO SEND COMPLETE SCANNED CARGO DOCUMENTS, Q88 TO BUYER EMAIL AND COPY ALL OTHER EMAILS.

10) THE VESSEL ISSUE MARINE NOR/ETA, SAIL TO BUYER PORT OF DISCHARGE, ANNOUNCE ARRIVAL TO HARBOUR AND ISSUE MARINE AUTHORITY TO BOARD (ATB) TO BUYER INSPECTORS

11) BUYERS AGENTS AND INSPECTORS BOARD THE LOADED VESSEL TO CONDUCT QUANTITY AND QUALITY INSPECTION

12) WITHIN 72 HOURS OF SUCCESSFUL INSPECTION, BUYER’S INSPECTORS SEND INSPECTION REPORT TO ALL EMAILS

13) WITHIN 72 HOURS OF THE RECEIPT OF THE REPORT, BUYERS BANK SWIFT TOTAL CARGO MT103 TO SELLER BANK

14) TERMINAL SENDS ALL ORIGINAL CARGO, WARRANTY OF TITLE AND PROOF OF PRODUCTS TO BUYER

15) BUYER RELEASE PAYMENT FOR THE PRODUCT TO SELLER NOMINATED BANK AND ALL AGENTS COMMISSIONS

16) VESSEL TRANSSHIPS INTO BUYERS STORAGE OR TANK FARM.

17) TRANSACTION REVOLVES FOR 12 CALENDAR MONTHS WITH PROVISION FOR ROLLS & EXTENSION

NB:
THE LOADED VESSEL SHALL ONLY ANCHOR AT THE INTERNATIONAL WATERS OF DISPORT COUNTRY. ALL EXPENSES: PORT CHARGES, LEVIES, SECURITY, TUGGING, ETC THAT MIGHT ARISE AS A RESULT OF VESSEL COMING INTO THE DISPORT COUNTRY HARBOR / PORT / TERMINAL / STORAGE OR WATERS WILL BE BORNE BY THE BUYER. ALL CLEARING PROCESSES WILL BE CARRIED OUT BY THE BUYER’S SHIPPING AGENT.

PROCEDURE FOR FOB: USING MT799 BLOCKED FUND

1) BUYER AND SELLER SIGN AND SEAL SPA, DEPOSIT IT IN THEIR RESPECTIVE BANKS, EXCHANGE THE SIGNED COPY BY ELECTRONIC MAIL. THE ELECTRONIC SIGNED COPY BY BOTH PARTIES IS CONSIDERED LEGALLY BINDING AND ENFORCEABLE.

2) BUYERS BANK ISSUE MT-799 ACCORDING TO NNPC’S APPROVED INSTRUMENT VERBIAGE, TO CONFIRM BLOCKED FUNDS FOR THIS TRANSACTION INTO THE NOMINATED FIDUCIARY ACCOUNT AS IN THIS CONTRACT

3) UPON PLACEMENT AND CONFIRMATION OF THE REQUIRED BANK INSTRUMENTS, BUYER PROVIDES A VESSEL NOMINATION THROUGH CHARTER PARTY AGREEMENT (CPA), CHARTER RECEIPT OF CERTIFICATE OF OWNERSHIP, QUESTIONNAIRE 88 (Q88) AND AUTHORITY TO LOAD (ATL).

4) SELLER CONFIRMS THE VALIDITY OF THE CR, CPA, Q88, AND ATL

5) SELLER ISSUES LAYCAN AND PROGRAMS BUYER’S VESSEL TO SAIL INTO THE PORT FOR LOADING AND Q&Q ANALYSIS.

6) BUYER CONFIRMS LAYCAN AND PROGRAMMING AND INSTRUCTS HIS VESSEL CAPTAIN TO RESPOND WITH ETA MESSAGES EVERY 12 HOURS TO THE LOADING TERMINAL.

7) UPON BUYER’S VESSEL ARRIVAL AT THE LOADING TERMINAL AND CONCLUSION OF THE LOADING PROCESS, Q&Q ANALYSIS IS CONDUCTED ABOARD THE BUYER’S LOADED VESSEL AND THE REPORT ISSUED TO BOTH BUYER AND SELLER, WITH THE COPY TO THEIR BANKS.

8) UPON RECEIPT AND BANK TO BANK CONFIRMATION OF THE SOFT DOCUMENTS, BUYER PLACES FULLY FUNDED CASH BACKED STANDBY LETTER OF CREDIT OR BG VIA MT-760 IN SELLER’S FAVOUR.

9) SELLER ISSUES COMPLETE SET OF DOCUMENTS IN BUYER’S NAME. FINAL PAYMENT FOR PRODUCT AND COMMISSIONS SIMULTANEOUSLY BY TELEGRAPHIC WIRE TRANSFER ARE MADE DIRECTLY TO THE SELLER’S BANK ACCOUNT VIA SWIFT MT-103.

10) BUYER’S VESSEL SETS SAIL FOR BUYER’S NOMINATED PORT OF DISCHARGE

11) TRANSACTION REVOLVES FOR 12 CALENDAR MONTHS WITH PROVISION FOR ROLLS & EXTENSION