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For real businesses only

BLCO Procedure, we/seller have the ATS, (no other way)

Bonny-Light Crude Oil (BLCO)

For a cooperation we need from buyer, for the first contact the following documents:

Company Data

1) Company Profile

2) Letter of Intent (LOI)

3) Import Licence

Bonny-Light Crude Oil (BLCO)

TRANSACTIONPROCEDURES (normal) and for ASIAN see below

Proceeder for bonny-light crude oil buying (normal)

 

NNPC CIF Nominations, Shipment &Transaction Procedure: {SBLC}

  1. Buyer & Seller sign and seal Sales & Purchase Agreement (SPA). Electronically signed copy of the SPA is legally binding and lawfully enforceable. Both parties lodge the fully executed SPA with their respective banks. Buyer sends Seller.full details of the Receiving Port of Discharge (POD) to include full details of harbor master, shipping agency, Inspection Company, and supercargo etc

NB: After both Seller/Selling &Buyer/Buying Companies have issue their detailed current/updated Client Information Sheet (CIS)/ KYC including passport/license data page of Both Seller & Buyer, Seller shall instruct his financial partner’s bank to issue letter of assurance to place 2%pb to Buyer’s bank upon the receipt of RWA from buyer’s bank to issue standby letter of credit via MT760 swift transmission upon the receipt of the assurance letter

2a. Buyer’s Bank (Any Top 50 World Prime Bank), within three (3) banking days of submitting signed contract to both Buyer’s and Seller’s Bank, issues Stand-By Letter of Credit via SWIFT MT760 (Seller’s Verbiage) transmission covering one hundred percent (100%) of estimated value of cargo to Seller’s nominated bank account and Buyer’s Bank provides carbon copy of SWIFT to Seller for immediate confirmation and authentication.

2b. Within five (5) banking days, Seller’s Bank issues a two (2) percent Performance Guarantee to Buyer’s Bank via SWIFT MT760.

  1. Within twenty-one (21) banking days, Seller nominates vessel and pays himself for charter. Details of Chartered Vessel are sent to NNPC Marine Transport Department (NNPC-MTD) for Programming of Loading Window & issuance of Laycan. Upon acceptance of vessel by NNPC-MTD. Seller pays mandatory and official cargo deposit of $2.5m in Bank Draft to NNPC-MTD and also raise $1m bank Draft as Vessel Indemnity to NNPC. NNPC-MTD confirms these payments and issues Laycan, Stem Number, Keyboard PIN Number for the vessel loading window. Seller pays all Port Charges (NPA, NIMASA, CUSTOMS, NAVAL Clearance etc) and clears vessel into loading terminal for loading. Seller raise fresh Bank Gurantee to NNPC to cover total quantity cost of quantity allocated on LAYCAN awaiting to be loaded into Seller Vessel and gives SWIFT copy to NNPC for confirmation. NNPC-MTD confirms Bank Guarantee and vessel is loaded.

Seller will furnish both Buyer & Vessel Home-office/Foreign Handler and The Buyers with details of LAYCAN for their records.

NB: Twenty-one (21) banking day period involves Nominating the Vessel, Payment for Charter, Securing Laycan & Loading Window from NNPC, Sailing Vessel to Nigeria & Clearing Vessel into Loading Terminal & Actual Loading.

  1. Vessel is loaded and Seller Secures Full Cargo Documents and Title issued in both Seller’s and Buyer’s name to include:

Clean Ocean Bill of Lading, One (1) Original and Three (3) Copies

Seller’s Commercial Invoice, One (1) Original and Three (3) Copies

Certificate of Origin issued by NNPC, One (1) Original and Three (3) Copies

Certificate of Authenticity issued by NNPC, One (1) Original and Three (3) Copies

Cargo Manifest, One (1) Original and Three (3) Copies

Certificate of Quality, One (1) Original and Three (3) Copies

Certificate of Quantity, One (1) Original and Three (3) Copies

Master’s Receipt for Samples

Master’s Receipt for Documents

Tanker Ullage Report

Tanker Time Sheet

Charter Party Agreement

Certificate of Ownership (Title)

NNPC Authority to Sell (ATS)

Export Clearance Permit (NPA waiver, Custom Clearance Certificate etc.)

Q&Q Inspection Report Performed at Loading Port by Intertek

Other relevant documents related to the cargo

NB: Non-negotiable electronic copies of some of these Above Cargo documents will be sent to the Buyer and Buyer’s and Seller’s Banks. Q&Q Inspection is conducted at the Buyer’s POD and result released to both Buyer & Seller.

  1. Vessel is loaded and Seller secures all documentation and outward clearance for loaded vessel to sail to Buyer disport. Seller raises insurance cover on cargo even as loaded vessel captain sends Marine Notice of Readiness (NOR) to Buyer Shipping Agency at Disport. Buyer Shipping agent acknowledges NOR and reply their readiness to receive the cargo on behalf of the Buyer.
  1. Vessel sails to POD. Further ETA updates to be sent to Buyer’s POD at ten (10) and five (5) days and then at forty-eight (48), twenty-four (24), and twelve (12) hours prior to arrival at POD. Upon arrival at Buyer’s POD, vessel announces arrival to Port Authority/Navy. Buyer’s shipping agency clears vessel into the POD Anchorage.

NB: The loaded vessel will only anchor in the international waters of the POD country pending Clearance form Buyer shipping agent. Any expenses; port charges, levies, security, tugging etc. that might arise as a result of vessel coming into the POD country harbor/port/terminal/storage or waters will be borne by the Buyer. All clearing processes will be carried out by the Buyer’s Shipping Agent. If after seventy-two (72) hours upon vessel arrival and there is congestion at the port which thus causes delay, Buyer shall bear cost of demurrage.

  1. Vessel is cleared into Buyer Discharge Port and Vessel Master issues a Marine Authority To Board (ATB) to Buyer’s nominated Inspectors as per Buyer’s format. Q&Q analysis is conducted at Buyer’s expense. Inspection Agency must be either SGS, INTERTEK, SAYBOLT, CIQ or equivalent and must be acceptable to Seller. The final Q&Q report is sent to both Buyer and Seller respectively.
  2. Upon receipt of the Inspector’s Q&Q report by both Buyer & Seller. Seller issues the Final Commercial Invoice based on out-turn barrels inspected.

NB: The Calculated Price for The Final Commercial Invoice Shall Be Based on the Q&Q Report at POD and On The THREE-DAY AVERAGE OF DATED (DTD) BRENT Day of Closing. As Stated in The Daily Published PLATT’S CRUDE OIL MARKET-WIRE REPORT/EUROPEAN MARKET-SCAN.

  1. Buyer’s Bank makes Full Payment in USD to Seller’s Nominated Bank Account via Telegraphic Transfer within three (3) banking days of receiving the Final Commercial Invoice. Buyer’s Bank will advise Seller’s Bank by SWIFT or tested telex quoting the value date of the transfer, the amount, the invoice number, and the clearing bank, if any. Such advice is to be sent in due time so as to enable Seller’s Bank to credit Seller with value on due date.

NB: If Full Payment is not received within a maximum of five (5) banking days of Buyer receiving the Final Commercial Invoice, Full Cargo Document and Title on Cargo, Seller’s Bank has the right to call the Buyer’s Stand-By Letter of Credit for settlement of total cost of cargo.

  1. Seller’s Bank confirms Payment and Seller sends Original Copies of all Shipping Documents, Title and Discharge Certificate to Buyer via Courier.
  1. Seller instructs Vessel Master of Loaded Vessel to Discharge Cargo into Buyer’s Storage Facility.
  1. Seller pays all Brokers Commissions per signed NCND Master Fee Protection Agreement.

CAVEAT: BOTH SIGNATORIES TO THIS MUTUALLY ACCEPTED AND AGREED CONTRACT HEREBYSTATE THAT, IN THE EVENT OF DEFAULT, NON PERFORMANCE, DELAYS IN RAISING INSTRUMENT WITHIN ONE MONTH(30 calendar days) OF SIGNING THIS CONTRACT OR ANY FAILURE IN DELIVERY OF CARGO OR IN FULFILLING ANY AGREED TERMS AND CONDITIONS AS HIGHLIGHTED IN THIS CONTRACT; OR BREACH OF CONTRACT BY EITHER PARTIES TO THE CONTRACT, THE DEFAULTING PARTY SHALL PAY THE SUM OF TWO MILLION DOLLARS ($2,000,000) TO THE OTHER PARTY IRREVOCABLY WITHOUT ANY NEED FOR LITIGATION WITHIN THIRTY DAYS OF DEFAULT.

Proceeder for bonny-light crude oil buying (ASIAN only)

 

CIF Nominations, Shipment & Transaction Procedures/Verbiages:

{S.B.L.C with Operative 2% PB upfront}

 

  1. Buyer & Seller sign and seal Sales & Purchase Agreement (SPA) for trial shipment of 2 million bbls BLCO with API at disport minimum 34, and discount price on dated Brent GROSS…. and NET …,

and pricing Period 3/NOR/3, with latest valid NOR at POD 40 days after confirmed reception of the SBLC by Seller’s bank, otherwise the deal will be considered null and void for Seller being unable to supply within the 40 forty days period and the 2% PB Performance Guarantee will be irrevocably and automatically cashed without any need for litigation and as arranged between the banks.

 

Electronically signed copy of the SPA is legally binding and lawfully enforceable. Both parties lodge the fully executed SPA with their respective banks. Buyer sends Seller full details of the Receiving Port of Discharge (P.O.D) to include full details of harbor master, shipping agency, Inspection Company etc. Buyer/Buying Companies must issue their detailed current/updated Client Information Sheet (C.I.S)/ K.Y.C including passport data page of Buyer, as well as also the Seller.

 

  1. Buyer’s paying bank (Top 50 World Prime Bank) shall within 3-5 working days of signing this contract issue Pre-Advice via MT799 swift transmission (see Annex .A.) to Seller nominated bank account stating Buyer/Issuer readiness to swift SBLC (including value, duration and acceptable verbiage) via MT760 transmission within3-5 banking days upon receipt of 2% Performance Bond via MT760 transmission from Seller’s nominated Bank. Buyer/Issuer Bank provides carbon copy of SWIFT to Seller for immediate confirmation and authentication.

 

  1. Seller’s fiduciary bank confirms and authenticate PRE-ADVICE and within 3-5days SWIFT the 2% Performance Bond (Performance Bond Guarantee, as per Buyer/Issuer accepted verbiage. See Annex B) in the value of $4,700,000.00 (Four Million, Seven Hundred Thousand US Dollars) via MT760 transmission to Buyer/Issuer Bank account and provides carbon copy of SWIFT to Buyer for immediate confirmation and authentication.

 

  1. Immediately within 3-5 banking days upon receipt and confirmation of the validation of the 2% PB SWIFT, Buyer’s financing bank shall issue S.B.L.C via MT760 swift transmission in the value of $270,000,000.00 (Two Hundred And Seventy Million Dollars) to Seller fiduciary bank as per accepted verbiage and duration (see annex C). Buyer’s Bank provides carbon copy of SWIFT to Seller for immediate confirmation and authentication.

 

  1. Within Fifteen-Twenty (15-20) banking days, Seller nominates vessel and pays for charter. Details of Chartered Vessel are sent to N.N.P.C Marine Transport Department (MTD) for Programming of Loading Window & issuance of Laycan. Upon acceptance of vessel by N.N.P.C Marine Transport Department, Seller pays mandatory and official cargo deposit of $2.5m in Bank Draft to N.N.P.C and also raise $1m bank Draft as Vessel Indemnity to N.N.P.C. N.N.P.C (MTD) Marine Transport Department confirms these payments and issues Laycan, Stem Number, Keyboard Pin Number for the vessel loading window. Seller pays all Port Charges (N.P.A, N.I.M.A.S.A, Customs, Naval Clearance etc.) and clears vessel into loading terminal for loading. Seller raise fresh Bank Guarantee to N.N.P.C to cover total quantity cost of quantity allocated on Laycan awaiting to be loaded into Seller Vessel and gives Swift copy to N.N.P.C for confirmation. N.N.P.C Marine Transport Department (MTD) confirms Bank Guarantee and vessel is loaded. Seller will furnish both Buyer & Vessel Home- office/Foreign Handler with details of Laycan for their records.

N.B: Fifteen-Twenty (15-20) banking days period involves Nominating the Vessel, Payment for Charter, Securing Laycan& Loading Window from N.N.P.C, Clearing Vessel with Customs, NIMASA & N.P.A & sailing Vessel into Loading Terminal & Actual Loading & Full Cargo Documentation. After Seller’s bank had received and has confirmed the acceptance of the SBLC via swift MT760, buyer gives 40 days to Seller for to nominate, load and bring the loaded Vessel with valid NOR at POD, that means Seller has full 40 days after SBLC receive & accept confirmation to perform.

 

  1. Vessel is loaded and Seller Secures Full Cargo Documents and Title issued in both Seller’s and Buyer’s name.Seller furnishes Buyer with copies of the CPA, Q88 and issues full shipping cargo documentation from NNPC to Buyer. The documents to be sent by Seller to Buyer will include but not limited to the following:

 

  • Clean Ocean Bill of Lading, One (1) Original and Three (3) Copies
  • Seller’s Commercial Invoice, One (1) Original and Three (3) Copies
  • Certificate of Origin issued by N.N.P.C, One (1) Original and Three (3) Copies
  • Certificate of Authenticity issued by NNPC, One (1) Original and Three (3) Copies
  • Cargo Manifest, One (1) Original and Three (3) Copies
  • Certificate of Quality, One (1) Original and Three (3) Copies
  • Certificate of Quantity, One (1) Original and Three (3) Copies
  • Master’s Receipt for Samples Master’s Receipt for Documents
  • Tanker Ullage Report
  • Tanker Time Sheet
  • Charter Party Agreement
  • Certificate of Ownership & Warranty of Title (N.N.P.C Certified Title on cargo)
  • N.P.C Authority to Sell (A.T.S)
  • Export Clearance Permit (Nigerian Ports Authority waiver, Custom Export Clearance Certificate etc.)
  • Q&Q Inspection Report Performed at Loading Port by Intertek
  • Other relevant documents related to the cargo

N.B: Non-negotiable electronic copies of some of these Above Cargo documents will be sent to the Buyer and Buyer’s and Seller’s Banks. Q&Q Inspection is conducted at the Buyer’s Port of Discharge and result released to both Buyer & Seller.

 

  1. Vessel is loaded and Seller secures all documentation and outward clearance for loaded vessel to sail to Buyer disport. Seller raises insurance cover on cargo even as loaded vessel captain sends Marine Notice of Readiness (N.O.R) to Buyer Shipping Agency at Disport. Buyer Shipping agent acknowledges N.O.R and reply their readiness to receive the cargo on behalf of the Buyer.

 

  1. Vessel sails to Buyer choice Port of Destination.Communication with Vessel Master opens with the Buyer immediately after sailing.Further E.T.A updates to be sent to Buyer’s P.O.D at ten (10) and five (5) days and then at seventy-two (72), forty-eight (48), twenty-four (24), twelve (12), and valid NOR six (6) hours prior to arrival at P.O.D. Upon arrival at Buyer’s P.O.D, vessel announces arrival to Port Authority/Navy. Buyer’s shipping agency clears vessel into the P.O.D Anchorage.

N.B: The loaded vessel will only anchor in the international waters of the P.O.D country pending Clearance from Buyer shipping agent. Any expenses; port charges, levies, security, tugging etc. that might arise as a result of vessel coming into the P.O.D country harbour /port/terminal/storage or waters will be borne by the Buyer. All clearing processes will be carried out by the Buyer’s Shipping Agent. If after seventy-two (72) hours upon vessel arrival and there is congestion at the port which thus causes delay, Buyer shall bear cost of demurrage.

 

  1. Vessel is cleared into Buyer Discharge Port and Vessel Master issue a Marine Authority to Board (A.T.B) to Buyer’s nominated Inspectors as per Buyer’s format. Q&Q analysis is conducted at Buyer’s 50% and Seller’s 50% expense. Inspection Agency must be either S.G.S, Intertek, Saybolt, C.I.Q or equivalent and must be acceptable to Seller. The final Q&Q report is sent to both Buyer and Seller respectively.

 

  1. Seller instructs Vessel Master of Loaded Vessel to Discharge Cargo into Buyer’s Storage Tanks. Vessel discharges the cargo into Buyers facilities.

 

  1. Upon receipt of the Inspector’s Q&Q report by both Buyer & Seller, Seller issues the Final Commercial Invoice based on discharged out-turned barrels (inspected).

N.B: The Calculated Price for the Final Commercial Invoice shall be Based on the Q&Q Report at P.O.D and On the Seven-Day Average of Dated (D.T.D) Brent Day of Closing 3/NOR/3. As Stated in The Daily Published Plats Crude Oil Market-Wire Report/European Market Scan.

 

  1. Buyer’s paying Bank makes Full Payment in U.S.D to Seller’s Nominated Bank Account via Telegraphic Transfer / MT103 within five (5) banking days of receiving the Final Commercial Invoice. Buyer’s Bank will advise Seller’s Bank by Swift or tested telex quoting the value date of the transfer, the amount, the invoice number, and the clearing bank, if any. Such advice is to be sent in due time so as to enable Seller’s Bank to credit Seller with value on due date.

N.B: If Full Payment is not received within a maximum of seven (7) banking days of Buyer receiving the Final Commercial Invoice, Full Cargo Document and Title on Cargo, Seller’s Bank has the right to call the Buyer’s Stand-By Letter of Credit for settlement of total cost of cargo.

 

  1. Seller’s Bank confirms Payment and Seller sends Original Copies of all Shipping Documents, Title and Discharge Certificate to Buyer via Courier. Title transfer commences after full payment is done (Title transfer latest 10 days after full payment is done).

 

13.Buyer pays all Brokers’ Commissions as per signed N.C.N.D/IMFPA Master Fee Protection Agreement.

 

14.End of transaction. Another transaction starts.

 

Important Notices

 

NOTE 1: In case of Default , Non-Performance (valid NOR) within 40 days after receiving the SBLC, or in case that the product specifications are not matched with +/- 5% of the BLCO specifications as stated in the SPA, then  the 2% PB Payment Guarantee will be irrevocably and automatically cashed without any need for litigation and  as arranged between the banks.

 

NOTE 2: Buyer do not need any documents or POP documents upfront, it is the 2% upfront PB irrevocably payment guarantee that gives assurance of a genuine Seller and Business.

NOTE 3: Buyer final destination/disport must be supplied before this contract is signed in order to make adequate preparation for the delivery. Deliveries to China and far east Asia countries take more than 40 days to freight from Nigeria.

NOTE 4: SBLC verbiage shall be supplied by the Seller Fiduciary bank, while 2% PB guarantee bond verbiage shall be supplied by the Buyer/Issuer Bank. All other swift messages (RWA &Pre-Advice) shall be standard acceptable verbiages.