Transaction Procedure:

1. Buyer and Seller sign and seal the Sales and Purchase agreement (SPA) with full banking information. The electronic signed copy is considered legally binding on both parties. Both parties deposit copy with their respective banks.

2. Buyer’s bank shall within days post a BANK COMFORT LETTER BY SWIFT to Seller's bank stating Buyer’s capability to issue SBLC for the cargo upon receipt of Seller’s Non Operative 2% performance bond.

3. Upon receipt and confirmation of the Buyer’s BCL (without disclaimer), Seller’s bank shall within days issue a Non Operative 2% Performance Bond in favour of Buyer.

4. Upon receipt and confirmation of Seller’s Non Operative 2% Performance Bond, Buyer’s bank shall within days issue a Standby Letter of Credit (MT760) in favour of Seller to activate Seller’s performance bond.

5. Upon receipt and confirmation of Buyer’s SBLC, Seller nominates, and loads vessel in Buyer’s name.

6. Vessel Captain issues NOR/ETA to Buyer’s Discharge Port and receives confirmation from Buyer’s harbour master of readiness to receive cargo and Seller issues copies of all cargo documents assigned in Buyer's name, and moves vessel to Buyer's port of discharge.

7. Buyer clears vessel at port of discharge and ATB is issued to Buyer's inspectors, the Q&Q is conducted and Q&Q report is sent to both Buyer and Seller.

8. All original copy of cargo documents are handed over to Buyer’s bank.

9. Buyer makes full payment to Seller via MT 103 conditional to title transfer and pays all Brokers.

10. Vessel Captain discharges cargo into Buyer's tanks.
*******

Eastern Union Energy Services LTD
www.easternunionenergy.com

FAQ On Our Operations

1. Can you bend your procedure to accommodate ours?

Answer:

No we cannot bend our procedure. Our procedures for all petroleum products secured by EASTERN UNION are crafted to satisfy you our esteemed customers. Any shift or bend will not ensure smooth business operations. Our prime reason for being in business is to satisfy clients by creating a very comfortable business procedure to benefit parties to any transaction. The procedure affords a 50:50 win for both parties.

2. What types of financial instruments are more appropriate for you?

Answer:

What we term financial instrument is basically financial Payment Guarantee by a competent bank (a prime world bank). We accept irrevocable, transferable, assignable, divisible Payment Guarantee, such as SBLC, and MT103 or wire transfer for final payment. This is the only method we accept for guaranteed payment appropriate for our business because this is the appropriate financial Payment Guarantee acceptable by NNPC, our supplier. Anything short of what our supplier requires from us will not be accepted.

3. We want to make full payment after our vessel is loaded and Q&Q conducted without the issuance of Payment Guarantee. How feasible?

Answer:

Put yourself in the shoes of the competent Seller, would you accept that condition, especially with the nature of the Crude Oil business? Is this prudent? This request will be very difficult to grant by any experienced Seller because the only language NNPC understands is “Payment Guarantee” and the financial capability of the buyer or off taker before any vessel is programmed for lifting and discharge. Since this is the language of our supplier, it automatically becomes our language. We do not raise instrument (payment guarantee) on behalf of our Buyer and we are sorry about that. Buyer should be wary of any Seller that promises such, it might be fraud! We do not accept payment guarantee or proof of fund sent to our private company emails, payment guarantee are issued to our bank and any Seller requesting payment guarantee sent to his private company email is a fraud, and any Buyer succumbing to such nonsense is also a fraudulent company. However, we shall always request a payment guarantee sent to our local bank via our correspondent bank where we have our account domiciled for this business.

Note: we advise Buyers to send their payment guarantee format for our bank's perusal before they send the real payment guarantee. Payment guarantee formats can be sent to us via our private email.

4. Is this business a bank-to-bank transaction?

Answer:

Many people understand the phrase “bank to bank” to mean that it is the bank that does the business transaction on behalf of the parties i.e. buyer and seller. If this is what is connoted then the phrase “bank to bank” is confused. Our bank, i.e. seller’s bank is responsible for advising us as soon as buyer’s bank opens communication for the issuance of the Letter of Credit or Payment Guarantee. Seller’s bank is responsible with receiving the Payment Guarantee on behalf of seller, it is also responsible for receiving the final payment on behalf of seller; and it is responsible for presenting final documents for payment by buyer as agreed upon by parties. These responsibilities of our bank explained is what is termed “bank to bank” transaction and they are disseminated through safe telex messages. It is not the responsibility of our bank to negotiate with our clients, nor is it the responsibility of our bank to issue our Full Corporate Offer, Cargo and Vessel Documents, etc. These are not bank items to be issued by our bank. In summary our bank is not responsible for our business deals, negotiations and transactions but only responsible for any financial obligations expected by our company, and to give us financial expert advises.

6. Are you capable of a 12-month contract - with possible rolls and extensions of delivering any quantity of Nigeria Light Crude Oil, Low Pour Fuel Oil, Automotive Gas Oil, etc, to our satisfaction?

Answer:

Yes we can deliver to any serious buyer’s satisfaction any quantity of barrels/MT of petroleum product advertised and secured by us for a 12-month contract with possible rolls and extensions even ad infinitum. While we assure you of our strength and capability to sell and deliver legitimate petroleum products, buyer should also assure us of their willingness, ability, readiness and financial capability to accept and purchase products of interest.

Eastern Union Energy Services LTD
08030654233
easternu9ion@gmail.com
52D825A5

Most, if not all Crude Oil Buyers under the off-OPEC business platform make this silly mistake. They ask, "we want to see your ATS, Allocation Documents, etc, from NNPC". 

Why are these documents not presented for 'legal' off-OPEC deals?

This is the angle that requires thorough explanation as to the legality of crude oil documents from NNPC.

Crude oil documents mostly requested from off-OPEC sellers by crude oil buyers are documents for OPEC deals, like ATS, Allocation Documents, Cargo Documents, etc. In all earnest, so called sellers who parade these documents seem to do so to curry the favor of Buyers who do not know the trend here, to buy from them.

Off-OPEC platforms are “legal black markets”, hence the business here is, "Buyer places Payment Guarantee and Seller loads the agreed cargo quantity in Buyer’s name as the consignee. After proper Quantity & Quality inspection, Buyer pays in full for the cargo and vessel sails off to Buyer’s port of discharge." Any deviation from this is tantamount to fraud.

If any Buyer insists on documents like ATS, Bulk Allocation Documents, etc, such Buyer should approach the NNPC for OPEC deals. Note: OPEC deals do not give discounts to Buyer's. OPEC deals do not favour individual companies or groups who demand huge discounts of $12 and so on, so they resort to Off-OPEC platforms.

Please be wary of any so called Seller who presents documents like the ones listed above in an OFF-OPEC terrain. Bottom line, they're cloned documents.

Off-OPEC deals simply obey this simple business language and rule...

“show me your payment guarantee as a Buyer and I will load vessel with crude oil in your name as the consignee and you pay me when you are satisfied with the cargo”.

Under off-OPEC, no Buyer is allowed to make upfront payment before he receives his cargo. The exceptions to this is if there are standing business relationships and trust between Buyer and Seller and if Buyer wants cargo lifted and sailed to a safe water for quality and quantity inspection. Such monies are for logistics to sail vessel to these safe waters (Nigeria waters, Ghana waters, Togo waters, and Cotonou waters). Such monies, however, are also guaranteed by the Seller to be used for what it was paid for.

Any Seller with experience who has sold crude oil under off-OPEC platform in the past can show proof of this by showing you vessel details of such transactions (that is, if need be), but no Seller will reveal the names of his Clients, that becomes breach of confidentiality under the contract agreement. No Buyer wishes to reveal his identity beyond what should be revealed.

Evidence abound that most Sellers in the country have not sold crude oil, and this is not due to lack of experience, but because Facilitators and foreign Buyer firms do not understand the “legal black market” (off-OPEC) for the country’s crude oil. They confuse OPEC deals to off OPEC operations.

Be informed...in business, knowledge is power, in oil and gas business, knowledge is survival!!!

Eastern Union Energy Services LTD
08030654233
easternu9ion@gmail.com
52D825A5

NNPC Allocation Verification (ATS/POP)-NEED TO KNOW INFO:

What is a POP?

What do we verify?

What is included in a standard POP is?

- Proof of product/Cargo Ref #
- Export permit license #
- Bulk approved MPR #
- Quantity (per quarter)
- Sometimes the Stem Number

The above is only a Partial POP because these numbers are not coming as an Allocation or ATS Letter on NNPC letterhead – they are listed in the contract. No Email Address OR Phone Numbers to be included. When you get the full letter you can often disqualify it right off just by looking closely for evidence of tampering but a partial POP requires a visit into the NNPC.

Off-OPEC POPs are only verifiable at the NNPC/JVC Marketing Department, Bonny Ocean Terminal, Rivers. Also verifiable in NNPC, Abuja after the vessel is loaded. But OPEC Allocations are verifiable any where in the world.

Now here is the sad truth – off-OPEC Buyers are constantly asking for ATS, Allocation Letters and POP. The latter two of these - POP and Allocation Documentation are not verifiable anywhere in the world with any degree of consistency. We have found the only pathway to verify an NNPC Approved Fiduciary’s ATS Letter. That is at the offshore loading platform, which is the Bonny Terminal.

AS OF MID JANUARY 2014 THE TERMINAL NO LONGER ALLOWS VISITORS, CITING TERRORIST THREATS

This is a secure facility and requires an appointment set by the Seller. The NNPC staff at the terminal do not want to verify unless the Buyer has a signed contract. This is a secure facility, guarded by the military and no one can just visit. You have to go with the Buyer’s or Seller’s rep, have a contract signed, a passport and an Introduction Letter from the Buyer to get in the door and get the verification done. And there is fee to be paid for such verification. It is not free.

There are three types of sellers that are selling off-OPEC Nigeria crude.

(1) REGISTERED LIFTERS,
(2) ALLOTMENT HOLDERS AND
(3) NNPC APPROVED FIDUCIARIES.

There is no trustworthy way to verify an Allocation. Not in London or Abuja.

I will give you several reasons why.

You cannot even verify Allocations at the main office because money talks louder than honesty. Now there are some things you need to know about OFF-OPEC allocations (Resellers= Allotment Holders). They list the amount of oil and the source from which that oil is lifted from and they also list the size of the source. Allotment holders have a fixed amount of oil allotted usually for a year on a quarterly allotment. Once their allotment is sold they cannot extend or increase their allotment without permission. Official documents are printed on the NNPC letterhead (it has an NNPC watermark under the typing) and they are time sensitive and cost money. So a Seller (Allottee) might pay for one after getting the first contract. If he closes that sale then the amount available is no longer the amount listed because some of that allotment has then been sold. This means that the seller may no longer have the right to sell because he has sold all of his allotment and even though the document may say he has 16mbbls per quarter it may have been sold already. A seller is not going to go into the NNPC and pay for an Allotment Letter every time a potential Buyer shows up. So he will give out the old Letter. Even so, it is not verifiable as mentioned before.

NNPC Approved Fiduciary do not get an allotment, they get an authority to sell document (ATS Letter)and are selling out of the NNPC/JVC Bulk Equity Account, so they can sell 10/20 Million barrels per month if they can get fit into the lifting schedule. What they need is the buyers Financial Bank Instrument like MT799 / SBLC OR BG and they can get it done.

If you have a genuine interest in bulk purchase of Petroleum Products, you will do well contacting us and we will match your order with a ready seller.


Eastern Union Energy Services LTD
easternu9ion@gmail.com
08030654233
52D825A5