PROCEDURES ON FOB SALES OF BLCO PRICE
The price for each barrel of Bonny Light Crude Oil loaded into Buyer Vessel shall be ated Brent?on the date of Bill of Lading, as published by McGraw Hill Marketwise, less a gross discount of US $6.00 per barrel. Nett to Buyer: US $4,00 per barrel, US $1.00 per barrel to seller Agents, US $1.00 per barrel to the Buyer combined Agents.
PROCEDURE
Please we want serious buyers to send us A LOI with destination and full refinery address.
.1 Buyer and Seller signs SPA, which shall be binding upon the parties, original (4) copies.
.2 Buyer nominates Vessel with Charter Party Agreement for Official Programming.
3 Seller releases Programming Stem and Window Number to the Buyer for immediate Confirmation.
a. Seller opens a 2% PB to activate LC in 4 below.
.4 Buyer releases L.C. after confirmation to seller bank.
a. Programming on Shell Screen
b. Programming by NNPC Operations
.5 Buyer and Ship Owner confirm Programming details with NNPC and at the loading Terminal.
.6 Buyer Vessel is called into the Terminal for Loading. Payment shall be calculated on Out-Turn Barrels in united States Dollars (USD) by SWIFT WIRE Transfer and commission to Agents, at sight against presentation of clean and proper documents and every shipment under this contract as follows:
Signed Commercial Invoice
1. Certificate of Quality
2. Certificate of Quantity
3. Bill of Lading
4. Certificate of Origin
5. Master Receipt of samples
6. Master Receipt for documents.
FOr the CIF we have the following discount; US$5 below brent Price. Net to buyer is US$3, while US$1goes to the seller agents and US$1 goes to the buyer combined agents.
Part ii
Please we wish to add some few things for the interest of our buyers/their agents for quicker consultation.
1. For CIF; We have the following Discount:
Gross is US$5 per barrel, of which US$3 Net to buyer and US$2 goes to the seller and buyers combined agents.
Requirements: We need the refinery/company profile with a proof of fund from a PRIME BANK in USA or Europe.
2. Procedures on CIF. to Europe or USA
1. Signing of SPA
2. Buyer issues non-operative irrevocable but divisible DLC to the Seller's bank., but PB from the seller will be issues before the DLC.
3. Seller releases vessel details to the buyer for confirmation
4. NOR/ ETA (Notice of readiness for sales/ Estimated time of Arrival)
5. Loading /Q & Q
6. Delivery: (a) Within 18 days to Europe
(b) Within 25 days to United State
(from date of conformation to instr.)
7. Post discharge Q&Q
8. Payment within 3 banking days
BG A vessel will be chartered in buyers name
SLC A vessel will be chartered in buyers name
SOURCE: NNPC Direct.
For proof of product, you can verify as here-under on SHELL/NNPC SCREEN.:
1. Product: Nigeria Bonny Light Crude Oil
POP:
Allocation Number: COSD/MKT/34B
LIFTING PERMIT REF NO: REF/P12038/S.18/VOL 32/147
EXPORT LICENCE NO: EXP. T/28/VOL 11/612
CARGO STEM NO SNL 06020.
2.
TRANSACTION CODE: NNPC/BLCO/BON/395
EXORT ALLOCATION LICENCE REF. NO: EXP.T/28/VOL4/540
BULK ALLOCATION LICENCE REF. NO: P1/INSP/US/2018/VOL.60/055
CARGO AUTHORITY REF NO: P1/2038/S.18/VOL.71/077-9
Part iii
Sample of SPA, buyers may send theirs.
PRELIMINARY
SALE/PURCHASE AGREEMENT
This Agreement is made and entered into and executed on this Thursday, June 10, aa,
BETWEEN
(A)
Represented By : Mr.
Title :
Nationality :
Passport Number :
AND
(XYZ)
????????
(hereinafter referred to as "XYZ")
Represented By : ?????.
Title : ?????.
Nationality : Citizen of ???
Passport Number : ???
RECITALS
A. XYZ has the capability to sell ??? barrels of ??? Light Crude Oil per months for a term of ? year (hereinafter referred to as "the Crude Oil?.
B. (A) is ready, willing and able to purchase this Crude Oil.
C. In pursuance of the above aims, the Parties now desire to enter into this Agreement in order to establish a mutual cooperation basis and to further set forth their respective rights and responsibilities.
NOW, THEREFORE, in consideration of the premises and the mutual obligations and promises of the Parties as contained herein, the Parties agree as follows:
SECTION 1 SALE & PURCHASE
XYZ hereby irrevocably sells and (A) hereby irrevocably purchases the Crude Oil in accordance with the Terms and Conditions as specified in this Clause 2 and in according to the Procedure as specified in this Clause 3.
SECTION 2 TERMS & CONDITIONS
The Parties hereby agree to the principal terms and conditions, that are applicable to the purchase of the Crude Oil:
Product : ?? Light Crude Oil
Origin : ??
Specification : as per standard export quality
Quantity : ???? barrels per month (+/- 5%)
Term : ? months with possible extensions
Delivery : C.I.F. any safe world port (at Buyer option)
Inspection : by SGS or equivalent
Price : Price per out-turned barrel shall be determined by the price as published in Platt Crude Oil Marketwire Quotation for ????????? )? Rates to be referred to the average of high and low quotations of the three days around the date of Bill of Lading OR Discharge (at Buyer option), less discount
Discount : gross-discount = US$ ?. (?.US Dollar) per barrel
net-discount = US$ ?. (?.US Dollar) per barrel
Commission : US$ ?. (?. US cent) per barrel to intermediaries
Guarantee : 2% Performance Bond from the Seller in favour of the Buyer
Payment method : by irrevocable documentary Letter of Credit (L/C) from first class bank. The L/C shall cover 100% of the value of each cargo in US Dollar.
SECTION 3 PROCEDURE
The Parties hereby agree to the principal Procedure, that will be followed after the signing/execution of this Agreement :
1. XYZ will provide the verifiable Proof of Product to (A) (consisting of Allocation Confirmation, Export License/Permit, Authority to Sell, Lifting Schedule ,COMFIRMATION LETTER FROM NNPC IN LONDON ) and blocks the Crude Oil officially for the duration of this Agreement for (A).
2. (A) will contact ????????. (National Petroleum Company of country ) in order to receive a confirmation for the Proof of Product.
3. Upon satisfactory verification, XYZ and (A) will enter into negotiations for the final sale/purchase contract to agree to the fine details of the delivery and their working relationship. Such final sale/purchase contract needs to be established between the Parties and will be according to international standards.
4. Upon signing/execution of the final sale/purchase contract, the Parties will commence their activities (for example in technical and financial regard) as contemplated therein.
SECTION 4 TERMINATION
4.1 Term
This Agreement shall commence of the date first stated above and shall expire simultaneously with the signing/execution of the final sale/purchase contract, unless previously terminated pursuant to Section 4.1.
4.1 Events of Termination
This Agreement shall terminate in the event:
a) the Parties mutually agree in writing to terminate the Agreement
b) the Proof of Product is not confirmed positively
c) the Parties are unable to agree to the terms and conditions of the final sale/purchase contract
d) the non execution of the final sale/purchase contract referred to above within a period of 2 (two) months from the date of this agreement
SECTION 5 EXCLUSIVITY
4.1 Sole Agreement
XYZ represent and agree that they have not, and during the term of this Agreement they shall not, enter into any agreement or arrangement with any other person, entity or agency with respect to the sale/purchase of the Crude Oil.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives on the date first above written.
?A)??????.
By: ________________
Name:
Title:
(XYZ)
By: ________________
Name: ?????.
Title: ?????.
Please other information will soon be on this site.
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