NIGERIAN LIGHT CRUDE OIL
BLCO
RESEARCHED SELLER’S PROCEDURE
FOR
NIGERIA, COTONOU & GHANA
WATERS
SeaGate is an oil brokerage and facilitation company, that
has created a niche for herself by serving as a channel
specifically for buyers to access the Nigerian Oil market.
We identified the challenges genuine buyers face and has
chosen to bridge the gap and be part of their success story.
SeaGate evaluates Sellers but DO NOT represent any.
We SERVE both the Buyer and the Seller
We EARN only on the side of the buyer.
Ayo Kolawole
NIGERIA BONNY LIGHT CRUDE OIL
TRANSACTION PROCEDURES
TTO, TTT, FOB & CIF
1. TTO WITH 2% PB IN COTONOU WATERS
e
2. TTO WITH 2% PB IN GHANA WATERS
3. TTO WITH Q&Q & PAYMENT IN NIGERIAN WATERS
at
4. FOB SPOT WITH UPFRONT 2% PB LOADING IN COTONOU WATERS
5. FOB SPOT LOADING AT BONNY TERMINAL, NIGERIA
aG
6. TTT WITH TRANSSHIPMENT IN COTONOU/BENIN WATERS
7. CIF With 2% PB & SELLER FIRST SENDING A PRE-ADVICE VIA MT199
8. CIF With 2% PB & BUYER FIRST SENDING A PRE-ADVICE VIA MT199
Se
9. LOI FORMAT
NOTE:
After making a choice of suitable procedure
Send us an LOI instantly with reference to chosen procedure
This will enable us connect with the appropriate seller.
Our feedback to you will determine the next step to be taken.
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
TTO COTONOU WATERS
1
TTO PROCEDURES FOR COTONOU
PRICE = $12/$8 (WITH 2% PB IN COTONOU WATERS)
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
TTO PROCEDURE:
1. Buyer issues LOI and Company Profile.
T
2. Seller issues sign Contract (SPA) to Buyer.
T
O
3. Buyer returns the signed SPA with
a. Buyer ATB Format with nominated Inspection company name and Inspector
I.D. & contact details
b. Supercargo Seaman I.D. with Contact details.
C
O
4. Seller SWIFT via MT-199 a PRE-ADVICE to Buyer bank for confirmation.
O
T
5. Buyer bank SWIFT a NON-OPERATIVE BG/SBLC via MT-760 or DLC for full value
of the cargo in favor of the Seller.
6. Seller post 2% Performance Bond in favor of the Buyer to activate BG.
O
N
7. Seller delivers’ vessel to Cotonou and issues MATB/CLEARANCE to Buyer's
Supercargo and Inspector in Cotonou waters for them to board.
U
8. Buyer Supercargo and Inspector board loaded vessel (at Buyer's expense) in
Cotonou waters. Inspector collects samples and come down while Supercargo
remains on board.
W
9. Buyer's inspectors perform Q&Q and report is presented to both Buyer and Seller.
A
10. Seller introduces Buyer to vessel owners to complete re-charter of the vessel in
Buyer’s name.
T
11. All Cargo/Shipping documents are releases to the Buyer in his name.
R
E
12. Instrument (MT-103) is released to Seller account and Buyer pays commission to
Buyer and Seller agents.
13. Vessel is allowed to sail to Buyer's POD.
S
N.B:
•
•
•
The above procedure is a standard for this seller.
Seller will NOT allow any alternative buyer’s procedure.
Thank you.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
TTO GHANA WATERS
TTO PROCEDURES FOR GHANA WATERS
PRICE = $12/$8 WITH 2% PB
PROCEDURE:
1. Buyer issues LOI and Company Profile.
2. Seller issues sign Contract (SPA) to Buyer.
T
T
3. Buyer returns the signed SPA with:
a. Buyer’s ATB Format, which shall include the nominated Inspection Company
& contact details,
b. A photocopy of the Supercargo I.D. with telephone number.
4. Seller SWIFT via MT-199 a PRE-ADVICE to Buyer bank for confirmation.
O
G
5. Buyer bank SWIFT a NON-OPERATIVE, Irrevocable, Transferable and Divisible
Stand By Letter of Credit SBLC or Bank Guarantee BG via MT-760 or DLC for
full value of the cargo in favor of the Seller.
H
6. Seller post 2% Performance Bond in favor of the Buyer to activate BG.
A
7. Seller issues NOR and ETA to Ghana waters, clears vessel to an agreed point in
Ghana waters.
A
N
8. In Ghana waters, seller instructs the loaded vessel master to issue MATB/
CLEARANCE to buyer’s inspectors to come on board.
W
9. Buyer Supercargo and Inspector board loaded vessel (at Buyer's expense) in
Ghana waters. Inspector collects samples and come down while Supercargo
remains on board.
A
10. Buyer's inspectors perform Q&Q and report is presented to both Buyer and Seller.
E
T
11. Seller issues Commercial Invoice for the value of the measured barrels as
determined by the Q&Q report, and collates and transfers all shipping documents
and vessel re-charter in Buyer's name.
S
R
12. Payment for the full Cargo is effected by the Buyer’s Bank SWIFT MT-103 WIRE
TRANSFER to Seller’s designated Account and to all Agents, Facilitators and
Consultants.
13. Seller introduces Buyer to vessel owners to complete re-charter of the vessel in
Buyer’s name.
14. Buyer takes over Vessel and is allowed to sail to POD.
NOTE:
If the vessel to be used is NNPC vessel, then you may expect other necessary info as
may be appropriate.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
2
TTO NIGERIA WATERS
TTO PROCEDURES FOR NIGERIAN WATERS
PRICE = $12/$8
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
TTO PROCEDURE:
1. Buyer issues LOI and Company Profile.
2. Seller issues sign Contract (SPA) to Buyer.
T
3. Buyer return sign SPA to Seller with:
a. Buyer’s ATB Format, which shall include the nominated Inspection Company &
contact details, (Note that NNPC requires the Buyer’s supercargo to have apart
from his int’l passport, a seaman passport, safety certificate and discharge
certificate) and the Supercargo must also be an approved NNPC/JV certified
Super cargo.
b. A photocopy of the Supercargo I.D. with telephone number.
c. Tugboat receipt & details.
O
T
IG
N
E
4. Seller issues verifiable Marine ATB and Clearance for Buyer’s Supercargo
and Inspector to board in Nigerian waters.
IA
R
5. Buyer provides Seller with a Scan Copy of a Managers’ Check or Bank Endorsed
Corporate Check in favor of the Seller value N10 million to cover Logistic &
Documents.
W
6. At Buyer’s own expense, Buyer’s Inspectors and Supercargo board loaded vessel
within 48 hrs. after MATB & CLEARANCE is issued in Nigerian water to confirm the
cargo, and conduct Quality and Quantity (Q&Q) inspection.
T
A
7. Buyer Inspector carries and Q&Q and SGS report is sent to both Seller and Buyer
and their respective banks, and Buyer and Seller confirm Q&Q Tests Results.
S
R
E
8. Buyer Bank releases Manager’s Check to Seller or Seller cashes Bank Endorsed
Corporate Check value N10 Million = US $60,000 account for Logistic &
Documents, and there after Buyer Bank SWIFT MT103/72 to Seller account for
entire loaded cargo minus N10m = $60,000.
9. Seller issues Commercial Invoice for the value of the measured barrels
as determined by the Q&Q report, and collates and transfers all shipping documents
and vessel re-charter in Buyer's name.
10. Payment for the full Cargo is effected by the Buyer’s Bank SWIFT MT-103 WIRE
TRANSFER to Seller’s designated Account and to all Agents, Facilitators and
Consultants within 48 hours after Tanker Take-Over by the Buyer.
11. Buyer takes over the Vessel and sails to Buyer’s POD.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
3
TTT LOADING IN COTONOU WATERS
4
TTT PROCEDURES FOR TRANSSHIPMENT IN COTONOU
PRICE = $12/$8
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
TTT PROCEDURE:
1. Buyer issues LOI and Company Profile.
T
2. Seller issues SPA.
T
T
3. Buyer and Seller sign and seal Contract including banking coordinates
and exchange the signed copy by electronic mail. The electronic signed copy
by both Parties is considered legally binding and enforceable.
N
O
T
O
C
4. Buyer return sign SPA to Seller with vessel complete particulars:
a. Charter Receipt,
b. CPA,
c. Q88,
d. Captain International color passport,
e. Inspection company details and
f. ATL.
U
O
5. Seller places Supercargo on Buyer vessel to confirm vessel readiness
for Transshipment.
6. Seller loaded vessel sails to COTONOU/BENIN/TOGO WATERS for Q&Q.
A
W
7. Buyer Inspector boards Seller loaded vessel and carries out Q&Q (at
Buyer expense.)
8. After successful confirmation of Q&Q, Buyer SWIFT MT-103/72 for entire cargo.
T
Seller
furnishes
Full
S
R
10. Within seven (7) banking days of above,
POP/Cargo documents to Buyer bank in Buyer’s name.
E
9. Seller vessel alongside Buyer vessel and carries out TANK-TO-TANK
TRANSSHIPMENT of product to Buyer vessel.
11. Buyer instructs its bank to release payment/MT-103 for the entire cargo to seller
account. Payment for the full Cargo is effected by the Buyer’s Bank via SWIFT
WIRE TRANSFER to Seller’s designated Account, and to all Agents, Facilitators
and Consultants immediately after Tank-To-Tank Transshipment is completed, and
with the presentation of all stated shipping documents.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
FOB LOADING IN COTONOU WATERS
5
FOB PROCEDURES FOR LOADING IN COTONOU
PRICE = $12/$8 (WITH 2% PB LOADING IN COTONOU WATERS)
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
FOB PROCEDURE:
1. Buyer issues LOI and Company Profile
B
FO
2. Buyer and Seller sign and seal Contract including banking coordinates
and exchange the signed copy by electronic mail. The electronic signed copy
by both Parties is considered legally binding and enforceable and return with Buyer vessel complete particulars:
a. Charter Receipt
b. CPA
c. Q88
d. ATL.
O
C
O
T
3. Seller’s vessel captain issues Notification of Readiness (NOR) to Buyer
vessel Captain. Buyer vessel Captain replies with ETA.
N
4. Seller’s bank issues in favor of Buyer 2% Performance Bond.
U
O
5. The Buyer's bank, from receipt of the Seller's 2% PB, opens the
agreed instrument, either a: (SBLC/BG via MT760 or TRDLC or MT-103/72)
in favor of the Seller covering the total cargo to activate Seller’s PB.
6. Seller loaded vessel sails to COTONOU INTERNATIONAL WATERS for Q&Q.
W
7. Seller places SuperCargo on Buyer vessel to confirm vessel readiness
for Transshipment.
A
8. Buyer Inspector boards Seller loaded vessel and carries out Q&Q (at
Buyer expense.)
E
T
9. After SGS Reports comes out, Seller vessel alongside Buyer vessel and
TRANSFER crude to Buyer vessel.
R
10. Buyer SWIFT MT-103/72 to sellers bank for payment for the entire cargo.
S
11. Within seven (7) banking days of above, Seller furnishes Full POP documents to
Buyer and/or Buyer’s bank.
12. Payments are made by SWIFT MT-103 Wire Transfer directly to the Seller’s bank
accounts and agents’ commissions as stipulated in the IMFPA in this contract
within three (3) international banking days after product Tank-to-Tank
Transshipment against presentation of stated shipping documents (nonnegotiable copies).
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
FOB LOADING IN BONNY TERMINALS
6
FOB PROCEDURES FOR LOADING IN BONNY TERMINALS
PRICE = $12/$8
1. Buyer issues LOI and Company Profile
B
FO
2. Buyer and Seller sign and seal Contract including banking coordinates
and exchange the signed copy by electronic mail. The electronic signed copy
by both Parties is considered legally binding and enforceable and return with Buyer vessel complete particulars:
a. Charter Receipt
b. CPA
c. Q88
d. ATL.
N
O
B
3. Vessel details are confirmed. Seller supercargo boards Buyer vessel to confirm
Buyer vessel readiness to load.
4. Vessel is then programmed for Buyer’s Lifting schedule/LAYCAN dates
in conformity with ICC practice.
Y
N
5. Upon confirmation that the vessel has been programmed for loading, Terminal
issues Notification of Readiness (NOR) to vessel Captain.
6. Vessel Captain replies with ETA.
E
T
7. Vessels calls’ in and start loading.
R
8. Seller calls on board or issue Marine A.T.B with proper coordinates to Buyer’s
Inspection Agency for Quality and Quantity analysis.
M
9. Buyer’s Inspectors board Buyer’s vessel to take samples, and calibrate.
IN
10. Upon a positive QnQ, buyer’s bank SWIFT MT103/72 for the total value of
the cargo to the seller’s bank in favor of seller.
LS
A
11. Seller issues Commercial Invoice for the value of the measured barrels
as determined by the Q&Q report, and collates and issue all shipping documents
in Buyer's name.
12. Vessel is escorted out of Terminal by NNPC Naval security, and sails
to International waters.
13. Payment for the full Cargo is effected by the Buyer’s Bank via SWIFT MT-103
WIRE TRANSFER to Seller’s designated Account and to all Agents, Facilitators
and Consultants immediately after vessel reaches International waters.
14. Vessel sails to Buyer's POD.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
CIF PROCEDURES - 1
7
CIF PROCEDURES – SPAIN & ROTTERDAM PORTS
SELLER ISSUES A PRE ADVICE FIRST
PRICE = $9/$6
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
CIF PROCEDURE:
C
1. Buyer issues LOI and Company Profile.
IF
2. Seller issues sign SPA.
-S
3. Buyer sign SPA, and return with Port of Discharge (POD) information and
coordinates in order for Seller captain to send NOR/ETA to Buyer POD (Port of
Discharge) for delivery.
A
P
4. Seller issues a Pre Advice via SWIFT MT-199 to Buyer bank confirming “seller will
SWIFT an OPERATIVE 2% PB to buyer bank in favour of buyer after receiving
buyer non-operative instrument.”
/R
IN
5. Buyer Bank respond and SWIFT a Discountable NON-OPERATIVE Bank
Guarantee (BG) or NON-OPERATIVE Standby Letter of Credit (SBLC) or NONOPERATIVE Documentary Letter of Credit (DLC) in favour of Seller to Seller
account.
T
T
O
6. Seller then SWIFT OPERATIVE 2% Performance Bond in favour of the Buyer to
activate the Buyer Discountable Non-Operative Bank Guarantee (BG) or NonOperative Standby Letter of Credit (SBLC) or Non-Operative Documentary Letter of
Credit (DLC). Buyer instrument becomes active.
7. Seller loads vessel in Buyer name, and release Full Proof of Product documents to
Buyer including Charter Party Agreement.
R
E
8. Seller Captain sends NOR/ETA to Buyer Port of Discharge/Rotterdam to move
loaded Vessel for Q&Q/SGS Inspection.
M
A
D
9. Vessel sails to Buyer POD. When vessel arrives at Buyer POD, the cargo is
offloaded into Buyer shore tanks, and inspected by SGS inspection company (or
equivalent) to determine the final Commercial Invoice value, and to confirm the
cargo quality.
10. Buyer´s Bank releases Payment via SWIFT MT-103 to Seller account for
the delivered/offloaded Cargo, and the presentation of complete paperwork/POP
documents sent to the appropriate bank giving title of the product to the Buyer.
11. Payment of the Cargo, and the Commissions are effected within 72 hrs. to seller
account and all agents involve after verification of SGS Report at the discharge
port.
12. Shipment continues as per Contract.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
CIF PROCEDURES - 2
8
CIF PROCEDURES – SPAIN & ROTTERDAM PORTS
BUYER ISSUES A PRE ADVICE FIRST
PRICE = $9/$6
QUALITY AND GRADE: The quality of this product shall be regular NNPC standard
and export grades of Bonny Light Crude Oil, Nigeria origin.
C
CIF PROCEDURE:
1. Buyer issues LOI and Company Profile.
IF
2. Seller issues sign SPA.
P
-S
3. Buyer sign SPA, and return with Port of Discharge (POD) information and
coordinates in order for Seller captain to send NOR/ETA to Buyer POD (Port of
Discharge) for delivery.
A
4. Buyer SWIFT a Pre Advice via MT-199 confirming “buyer will SWIFT a NonOperative Bank Guarantee (BG) or Non-Operative Standby Letter of Credit (SBLC)
or Non-Operative Documentary Letter of Credit (DLC) to Seller bank after receiving
seller 2%PB.”
IN
5. Seller then SWIFT an OPERATIVE 2% Performance Bond to buyer bank in favour
of the Buyer.
/R
6. Buyer Bank respond and SWIFT a Discountable NON-OPERATIVE Bank
Guarantee (BG) or NON-OPERATIVE Standby Letter of Credit (SBLC) or NONOPERATIVE Documentary Letter of Credit (DLC) in favour of Seller to Seller
account that is activated by Seller OPERATIVE 2%PB.
O
T
T
7. Seller loads vessel in Buyer name, and release Full Proof of Product documents to
Buyer including Charter Party Agreement.
E
8. Seller Captain sends NOR/ETA to Buyer Port of Discharge/Rotterdam to move
loaded Vessel or Q&Q/SGS Inspection.
D
R
9. Vessel sails to Buyer POD. When vessel arrives at Buyer POD, the cargo is
offloaded into Buyer shore tanks, and inspected by SGS inspection company (or
equivalent) to determine the final Commercial Invoice value, and to confirm the
cargo quality.
A
M
10. Buyer´s Bank releases Payment via SWIFT MT-103 to Seller account for
the delivered/offloaded Cargo, and the presentation of complete paperwork/POP
documents sent to the appropriate bank giving title of the product to the Buyer.
11. Payment of the Cargo, and the Commissions are effected within 72 hrs. to seller
account and all agents involve after verification of SGS Report at the discharge
port.
12. Shipment continues as per Contract.
OCTOBER 2014
SeaGate Oil & Gas Resources Limited
www.seagateoil.com +2348075003300
9
Buyer’s Own Company Name
Date:
Ref no:
To:
SeaGate Oil & Gas Resources Limited
LETTER OF INTENT
We, (buyer’s own company name), are able, willing and ready to
purchase x million barrels of Bonny Light Crude Oil with rolls and
extensions.
Commodity:
Bonny Light Crude Oil
Origin:
Nigeria
Specifications:
Per NNPC Specifications
Quantity:
x,000,000bbls plus rolls and extensions.
Contract length: 1 year. x,000,000 bbls per month
Price:
Based on Platt’s Mcgraw Hill.
Inspection:
By SGS Equivalent
Delivery:
TTO or TTT or FOB or CIF
Procedure:
TTO Ghana Waters Only
POP:
Certificate of product allocation from NNPC
Yours Faithfully
Buyer’s name:
Address:
Buyer’s signature: