Discount price is $10/$6



PROCEDURE: CIF TRANSACTION

COST INSURANCE FREIGHT (C.I.F.) PURCHASE PROCEDURE

1.Buyer Issues LOI /ICPO

2.SELLER issue Sales and Purchase Agreement

3.Buyer signs and sends the Sales and Purchase Agreement in PDF format with a letter of acceptance. The
electronically signed and sealed contract is legally binding and enforceable.

4.Seller send PARTIAL POP

a.Authority to Sell (ATS) from NNPC.
b.Proof of Product
b) Proforma Invoice
c) Seller Company Registration.

5. Once material has been vetted within 48 hours, Buyer sends RWA to sellers Bank
indicating their preparedness to issue an SBLC or Bank Gurantee B/G for the pro-forma invoiced value of the first delivery of 1 or 2 million barrels with a validity period of 30 days

6. Sellers bank responds with a (RWA) to issue a Performance Bond to the equivalent value
of 2% of the first delivery of 1 or 2 million barrels.

7. Buyers bank issues the SBLC for the pro- forma invoiced amount of the first cargo valid for
30 days and Sellers bank responds immediately and issues the 2% performance bond .

8. Seller within 24 hours of issuance of SBLC issues nominates vessel and program
vessel with NNPC for loading . Seller load vessel through NNPC terminal.

9 . Seller notifies Buyer with copies of documents, within (48 hours) after complete loading of
vessel from the NNPC Bonny Terminal. Seller issue one voyage charter party agreement and
Q88 in favour of buyer and buyer signs the CPA and return within 24 hours.

A). Notarized Commercial Receipt naming Buyer, contract number, goods and
quality indicating transfer of the title.
B). Shipping advice indicating ,designated vessel name, loading port, estimated loading time,
estimated time of departure, estimated time of arrival in destination port ( FULL ETA).
C). Signed commercial invoice indicating the contract number and the name of the
carrying vessel. (3 originals and 3 copies)
D). Quality and Quantity certificate issued at the loading port.
E). Charter party agreement and Full set( 3 originals and 3 copies) of clean on-board Bills
of lading made out to order; bank endorsed and marked ?freight pre-paid? , indicating the
name of the carrying vessel with the Buyer as the ? Notifying party?.

10.Buyer confirms the vessel with the vessel owners/Managers and opens full
communication with the captain/Master, while cargo sails to buyer port of destination to
discharge the product. At discharge port, Vessel issue ATB to buyer?s inspector to board
the vessel and conduct Q&Q at buyer?s cost.

11.Upon Verification and confirmation of the product, Buyer pays for total cost of product by
SWIFT WIRE TRANSFER MT 103 into the nominated sellers account by the Nigerian
National Petroleum Corporation account and all other commissions to Intermediaries'
nominated Bank Accounts, as stated herein the approval contract on the out-turn barrels
discharged.

12.Vessel discharges into Buyers? Tank farm.

13. Roll Over.






OR



PROCEDURE: CIF TRANSACTION


1. Buyer & Seller Sign. & Seals Contract and exchange the signed copy by electronic mail. The electronic signed copy by both Parties is considered legally binding and enforceable.

2. Seller send Partial POP


a. Authority to Sell (ATS) from NNPC.
b. Proof of Product
c. Proforma Invoice
d. Seller Company Registration.

3. Buyers raises MT799 POF in the verbiage below

4. Seller nominates a vessel in buyer?s name and forwards vessel details for Buyers confirmation. Seller loads vessel.

5. Upon completion of the loading of the vessel, vessel issues a Marine NOR/ETA to Buyers Port of discharge. Vessel sails.

6. Upon arrival at Buyers Port of discharge, Buyers independent inspectors perform destination inspection to confirm out turn of barrels.

7. Buyers bank swifts? payment via wire transfer MT103 to Seller?s NNPC nominated account and all other commissions to intermediaries.

8. Vessel discharges into buyers? Tank farm.