BONNY LIGHT CRUDE OIL (BLCO) BUY & SELL PROCEDURES

FOB PROCEDURE (USA Buyer)

 

Our policy for FOB Nigerian contracts is as follows:

 

• Seller provides SPA with partial POP.

• Seller send POP documents as follows:

a) Title of ownership (First and last page of contract with NNPC)

b) Tank receipt in their name

c) SGS report

• Buyer will verify above via their office in Lagos

• Signing contract

• Seller will issue a 2 % operative PB (2%PB can be operative to be activated by the buyer’s DLC)

• Buyer will open a DLC with Seller bank’s covering one month liftings from BNP PARIBAS Geneva

• Seller will nominate loading dates

• Buyer will arrange the vessel

• After loading, seller/NNPC will present loading documents to Buyer’s bank for payment