Product: Bonny Light Crude Oil(BLCO)
Price: $10 less $4


PROCEDURE: CIF
1. Buyer and Seller sign Contract (this Agreement).

2. After signing of Agreement between buyer and seller. Buyers bank contact sellers bank requesting sellers bank readiness to give an operative 2%PB upon the receipt of buyer irrevocable, divisible, unconditional, Non Operative, Revolving, Transferable, confirmed Standby Letter of Credit via MT 760.

2a. Sellers Bank reply to buyers' bank Stating their readiness to give an operative 2%PB to activates buyer Non-Operative irrevocable, divisible, Revolving, Transferable, confirmed Standby Letter of Credit.

3. Buyer and its bank within 48-72hrs swift an irrevocable, divisible, unconditional, Non Operative, Revolving,  Transferable, confirmed Standby Letter of Credit via MT 760 covering the total cost of cargo (2MBBL) for each month delivery, which shall be revolving for 12Months delivery to the designated account of the seller.

4. Upon the receipt of buyer irrevocable, divisible, unconditional, Non Operative, Revolving, Transferable, confirmed Standby Letter of Credit via swift MT 760, sellers bank response within 3-5 banking days with their 2%PB to activates the irrevocable, divisible, unconditional, Non Operative, Revolving, Transferable, confirmed Letter of Credit via swift MT 760 and makes it operative.

5. Appointed NNPC Seller immediately nominates vessel and program vessel with NNPC for loading after confirmation of buyer placing of Full Bank Instrument that cover cost of cargo. Seller load vessel through NNPC terminal.

6. Seller notifies Buyer with copies of documents, within (72 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 48hours.

7. 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. Upon Q&Q, discharge commences.

8. Buyer pays for total cost of product by MT-103 into the nominated sellers account by the Nigerian National Petroleum Corporation as stated herein the approval contract on the out-turn barrels discharged.

9. Roll Over.
CIF TRANSACTION 2
1 Seller signs and seals the contract and dispatches to the Buyer in form of email.
2. Buyer countersigns the contract and dispatches a duplicate copy to the Seller in form of e-mail. Buyer and Seller deposit same at their respective Banks.
3. Buyer’s bank request by swift from seller’s bank readiness to receive instrument in favour his client for the transaction and seller’s bank within bank 48 respond by swift to receive the instrument and commence the transaction as agreed and on schedule
4.      Buyer’s bank raises a 10 % (total value of product) Standby LC in favor of Seller to his bank. (Text Format for SBLC on the last page).
5.      Seller upon confirmation of the 10% SBLC, loads vessel and issue preliminary cargo documents in buyer’s name.
6.       Upon completion of loading, Seller issues ATB to buyer’s Inspectors. Vessel sails to agreed point for inspection.
7.      Sellers bank send valid shipping documents which shall include the following:
 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”.
8.      Seller’s loaded vessel arrives buyer’s port of discharge. Buyer obtain all necessary clearance for the safe berthing of the vessel at buyer’s disport.
9.At disport, vessel master issue ATB to buyer inspector to board and take sample for quality and quantity analysis. Buyer’s inspectors board and conducts Q&Q inspection at buyer’s expenses and raises the remaining 90%(total value of product) in a Standby LC or MT 103 for the entire product.
10.Seller confirms instrument as in clause 9 above and discharge commence. Upon successful discharge, full payments are made via swift at out-turn of barrels discharge within 5 banking days.

CIF PROCEDURE:
1.      Seller signs and seals the contract and dispatches to the Buyer in form of email.
2.      Buyer countersigns the contract and dispatches a duplicate copy to the Seller in form of e-mail. Buyer and Seller deposit same at their respective Banks.
3.      Buyers bank request from seller’s bank, readiness to place 2%PB to activate buyer’s Standby Letter Of Credit. Seller’s bank confirms readiness to place 2%PB upon receipt of buyer’s Confirmed, Fully Funded Standby Letter Of Credit
4.      Upon successful communication, Buyer’s bank raises a 100% (total value of product) Standby LC in favor of Seller to his bank in the agreed format.
5.      Seller upon confirmation of the 100% (total value of product) Standby LC in favor of Seller to his bank, calls in vessel into the terminal for loading in Buyers name. Vessel Loads.
6.       Upon completion of loading, Seller issues NOR to buyer’s port of discharge and harbor or storage master respond with acknowledgement
7.      Vessel sails to buyer’s port of discharge.
8.      Sellers bank send valid shipping documents which shall include the following:
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”.
9.      Seller’s loaded vessel arrives at the buyer’s discharge port; Buyer conducts Q&Q inspection at buyer’s expenses and confirms LC before discharge is done.
11. Letter of Credit crystallizes after vessel discharge and relevant documents have been handed to Buyer.



PROCEDURE: TTO
Seller signs and seals the contract and dispatches to the Buyer in form of email.
Buyer countersigns the contract and dispatches a duplicate copy to the Seller in form of email.
Buyer and Seller deposit same at their respective Banks.
Buyer's bank contacts Seller's bank by Swift 199/799 for familiarization.
Seller's bank responds by Swift 199/799.
Buyer’s Bank Issues a Non-Operative SBLC to Seller's Bank.
Seller's Bank issues PB to Buyer's Bank to activate the SBLC. Buyer Places Pay Order to Intermediary Accounts in the Contract.
Seller upon Verification and Confirmation, issues Authority to Board (ATB) to Buyer’s Appointed Surveyors and Supercargo at the agreed point.
Buyer’s Surveyors and Supercargo go onboard; Supercargo Remain Onboard while Surveyor Collect Sample and come down for Laboratory Test Analysis and release Report to Buyer and Seller respectively.
Seller grants Buyer access to vessel owners through the Agents and Buyer Perfects Charter Agreement, Voyage Charter.
Seller issues the Complete Shipping Document to enable Buyer Process the Full Cash Payment for the Cargo.
Payment is released by KTT (SWIFT TRANSFER) at Out Turn Barrels to Seller’s Bank and Intermediary Accounts, upon presentation of Transaction Document at the Buyer’s Bank within 72hours of Surveyors Report.
Buyer’s Vessel sails to Discharge Port.

PROCEDURE: TTT 1
Seller signs and seals the contract and dispatches to the Buyer in form of email.
Buyer countersigns the contract and dispatches a duplicate copy to the Seller via e-mail and return with valid vessel details (CPA, Q88, ATL AND RECEIPT OF CHARTER)
Buyer’s bank open communication with Seller’s bank requesting readiness to receive instrument in favour of seller and to activate it with 2%PB.
Upon successful communication, Buyer’s bank raises a 100 % (total value of product) Standby LC in favor of Seller to his bank (SBLC Text format shall be issue) and seller issue 2%PB in favour Buyer to Buyer’s bank.
Seller confirms the instrument Operative, load the vessel at the terminal and issues a marine NOR to buyer’s vessel.
Buyer vessel master open communication and confirms readiness to receive product, acknowledge receipt of NOR and issues ETA for agreed point for STS.
Upon successful communication, seller’s vessel master at the instruction of seller issues final ETA to buyer’s vessel master and sail accordingly.
Two vessel berth along each other and tie up for transshipment at agreed point for STS.
Seller vessel master issues invitation to buyer’s inspectors to cross over form buyer’s vessel to seller’s vessel and take sample for Q&Q.
Upon successful Q&Q, Seller apply for draw down of 10% for documentation and Transshipment commences.
Upon transshipment, seller issues documents for the cargo to buyer and copy sent to the buyer bank.
Buyer shall make payment with 48hours by swift MT103 to all account as contain in the transaction contract.
Upon confirmation of payment, buyer’s vessel is release to sail.
Roll over.


TTT TRANSACTION 2
Seller signs and seals the contract and dispatches to the Buyer in form of email.
Buyer countersigns the contract and dispatches a duplicate copy to the Seller via e-mail and return with valid vessel details (CPA, Q88, ATL AND RECEIPT OF CHARTER)
Buyer pays N1.5Million naira only to seller nominated account. Upon confirmation of payment, seller vessel within 72hours issue official marine NOR to buyer’s receiving vessel.
Both vessels master open communication and agreed at a safe point for STS.
Buyer issue Fully Funded LC/SBLC/BG in favour seller to seller’s bank.
Upon successful confirmation, seller’s vessel master at the instruction of seller issues final ETA to buyer’s vessel master and sail.
Two vessel berth along each other and tie up for transshipment at agreed point for STS between buyer and seller.
Seller vessel master issues invitation to buyer’s inspectors to cross over form buyer’s vessel to seller’s vessel and take sample for Q&Q.
Upon successful Q&Q, Seller apply for a draw down an amount as shall be agreed by the two parties for logistics and documentation.
Seller issues cargo documents as contained in the contract including WOT in buyer’s name and send to buyer. Transshipment commences.
Upon transshipment, seller’s bank issues documents for the cargo to buyer’s bank.
Buyer shall make payment with 72hours by swift of MT103 to all account as contain in the transaction contract.
Upon confirmation of payment, buyer’s vessel is release to sail.
Roll over.



NNPC DIRECT PROCEDURE FOR THIS QUARTER
Nominations, Shipment & Procedures TTO

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.      Buyers confirm the Lay can details given on the first page of the contract.
3. Buyer’s bank issues an MT799 (Blocked Funds) in favour of the Seller to the Sellers bank in the acceptable verbiage attached on the last page of this SPA.
4. Upon confirmation of the MT 799(Blocked Funds) by the Seller’s bank, Seller intructs vessel master to issues a marine ATB to buyers’ super-cargo / inspector to go on-board for
physical examination (Q&Q) of the loaded cargo. Q&Q is done.
5.Buyer’s bank issues a Standby Letter of Credit in favour of Seller to Seller’s bank.
6. Loaded vessel clearance is done & original documents in Buyers name(re-assignment) are handed over to Buyers bank and payment is done to the NNPC’s account(Seller) and the commission agents via swift wire transfer.
7.Buyer takes over vessel and it sails to buyers destination.

Nominations, Shipment & Procedures CIF

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.      Buyers confirm the Lay can details given on the first page of the contract and pays USD $365,000 to any NNPC nominated a/c for immediate re-assignment of cargo to his official name.
3.Seller nominates a vessel and forwards vessel details for Buyers confirmation. Seller loads vessel.
4.upon completion of the loading of the vessel, Buyers issue a full Standby LC in favour of NNPC to its designated bank account.
5.upon confirmation of the placement of the Standby LC in favour of NNPC, seller processes the outward clearance of the vessel to set sail.
6.Vessel issues a Marine Nor/ETA to Buyers Port of discharge. Vessel sails.
7.upon arrival at Buyers Port of discharge, Buyers independent inspectors perform destination inspection to confirm out turn of barrels.
8.Buyers bank swifts’ payment via wire transfer to NNPC and all other commissions to intermediaries.
9.Vessel discharges into buyers’ Tank farm.

SHELL PROCEDURE
CONTRACT & BANKING PROCEDURE FOB/TTT

BUYER signs Sales and Purchase Agreement and returns along with a valid and verifiable Pre-CPA.

Within 3 Banking days, SELLER’s laden Vessel would send Notice of Readiness (NOR) to BUYER’S Nominated Vessel. BUYER’S Vessel must reply to the NOR signifying readiness to receive Product. Then Seller fully executes contract and return.

Within 5 Banking days of neither receipt of this NOR, BUYER must supply to SELLER and to SELLER’s Bank Proof of Availability of Fund (POF – MT799) to pay for the Product by Swift. The Buyer advises us the copy of the swift POF.

On receipt of this Swift, SELLER shall instruct its Laden Vessel to move to Agreed Transshipment Point to be alongside BUYER’S Nominated Vessel for Transshipment with all the shipping documents.

BUYER’S Inspectors and Representative comes on-board for Q and Q Inspection on both Vessels.

Transshipment is conducted.

Q and Q is conducted again on both Vessel. Both Masters signs the transshipment document. Representative of BUYER and Inspecting Agents sign as witness

24 hours full payment after Q&Q and Q&Q must be done on the day of transshipment or the following
day max. Buyer’s Bank pays for Cargo and all Agents etc as mentioned in this Contract via KTT swift transfer to seller’s bank and Agents bank. NB: BG or any instrument will be cash 24hours after Q&Q.

Vessel sails off.

NOTE: There is readily available,verifiable legal documents of this BLCO allocation and can be released upon request by the buyer. There is also loaded cargo/vessel details for buyer's FULL confirmation. Whereas the allocation papers can be sent to prospective buyers for verification,loaded vessel details,being highly classified documents can only be sent via bank to bank(buyer and seller's bank).