BLCO CIF ROTTERDAM WITH 2%PB

CIF ROTTERDAM with 2%PB (Australian Energy Company)

Commodity: BONNY LIGHT CRUDE OIL
Origin: Nigeria
Specification: As per the International standard.
Quantity: 2.000.000 US Barrels +/-5%
Duration: SPOT with possible annual contract thereafter
Price: Dtd Brent minus discount to be agreed
Commission: To be agreed. Seller and Buyer cover their intermediaries and mandates against their separate MFPA directly.
Delivery term: CIF Rotterdam or China at Buyer’s option
Payment: After delivery with MT 103 against shipping documents secured by an Irrevocable Non-Transferable, Non-Assignable, Non-divisible Documentary Letter of Credit. DLC can be substituted with conditional SBLC (see verbiage below)
Guarantee: Performance bond 2% issued by the Seller
Buyer’s Bank: HSBC Melbourne or ANZ Melbourne Australia or WESTPAC Sydney

Procedures:

Seller issues Full Corporate Offer
Buyer issues Irrevocable Corporate Purchase Order
Seller issues draft contract, signed and sealed to the buyer and send together with his Company profile.
Buyer sign, seal and return to Seller including Buyer’s Company Profile, with SPA lodged to Buyer's Bank. Seller lodges the same with his Bank. The electronically signed and sealed contract is legally binding and enforceable.
Within three banking days of the receipt of the executed contract the Seller’s bank will send (Ready, Willing and Able) RWA to the Buyer’s bank through bank to bank communication.
Within three banking days from receipt of the RWA from Seller’s bank the Buyer’s bank responds with his RWA.
Within three banking days of receipt of the RWA from the Buyer’s bank, Seller shall send to the Buyer’s bank (in bank to bank system) a non-operative Performance Bond covering 2% of the invoice value and the Seller delivers the ICC recognized notary certified the Proof of Product documents confirming availability of the product and seller’s rights to sell the product (by courier service) to the Buyer’s address for onward transmission to the Buyer’s bank. The copies of such set Seller delivers by e-mail to the Buyer to speed up the verification process.

The Proof of Product (POP) should consist of the following documents issued in Original or copies certified by the ICC recognized notary:

POP allocation document issued or assigned, sealed and signed by NNPC showing Seller as beneficiary, valid for the actual period of timeExport License issued, sealed and signed showing Seller as beneficiary valid for the actual period of time.
Export Permit issued or assigned, showing Seller as beneficiary, valid for the actual period of time and showing the product particulars.
Seller’s Company Act of Incorporation.
Loading Terminal confirmation on readiness to receive and load the product.
Pro-forma of the Commercial Invoice based on the calculated price and quantity supported by the respective copies of Platt’s indication and Bladings if any.

8. Buyer's Bank within 3 (Three) banking days after positive verification of POP,PB and the Seller’s company if not black listed within the inter-banking system, issues operative Non-transferable Documentary Letter of Credit (DLC) to Seller's Bank in favour of Seller which activates Seller’s Performance Bond automatically.

9. The Seller within 5 (five) banking days confirms acceptance of Buyer’s DLC nominates a vessel and notify the Buyer for acceptance.

10. Within 3 (three) banking days of the vessel’s acceptance by the Buyer, the Seller provides the electronic copies of the ASPATANKVOY Charter party agreement, available shipping documents and information on the loaded Cargo vessel for the buyer’s independent check as to the form of issue.

The documents that will be handed over by the Seller’s bank to the Buyer’s bank for confirmation that the product has been discharged and shall be subject to effect the payment, are as follows:

One (1) original and three (3) copies of the Commercial Invoice, based on the loaded quantity and quality by SGS report. Showing name of vessel, date of completion, discharge quantity and state of delivery.
Full set of three (3) original and non-negotiable copies of Bill of Lading, The B/L to be signed in original by the owner and master of vessel endorsed to the Buyer showing destination. Marked “Freight Prepaid and “Clean on Board”.
One (1) original and three (3) copies of the Certificate of Quantity issued at the discharge port,One (1) original and three (3) copies of the Certificate of Quality issued at the discharge port,
One (1) original and three (3) copies of the Certificate of Origin, countersigned and stamped by a local Chamber of Commerce at loading port
One (1) original and thee (3) copies of the Master’s Receipt of samples,
One (1) original of the Ullage report issued at loading terminal,
One (1) original and three (3) copies of the Cleanliness Report at loading port,
One (1) original and three (3) copies of the Certificate of Ownership assigned to the Buyer,
Copy of Platt’s indication from the date of Bill of Lading to support the Invoice value
One (1) original and three (3) copies of the Custom Clearance at the loading port
Any other documents pertaining or related to this transaction, duly signed by the authorized person(s) and as required by and specified in the Documentary Letter of Credit

11. Upon confirmation of shipping documents’ approval by the Buyer as issued in correct way by the Seller, the loaded ship sets off sailing to Buyer's Destination.

12. Upon Vessel arrival at Destination, the Cargo shall be inspected by the Buyer's designated inspectors for Q & Q and product verification before the Cargo shall be discharged.

13. Upon Verification and confirmation of the product after full discharge, the Buyer’s bank shall settle payment with the Seller by Swift against the shipping documentation as per contract.