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:
© Copyright 2024