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Petroleum Procedure

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ndarujaya2
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43 views2 pages

Petroleum Procedure

Uploaded by

ndarujaya2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Otherwise, we appreciate their time and consideration.

Review the procedure if you agree we can start the pricing, payment terms & etc.

*STANDARD SALES - PURCHASE TRANSACTION PROCEDURE*

1. Buyer issues LOI, KYC, Trade License, and Banking details.

1) The Buyer signs the FCO / Commercial Term Sheet and sends it back to the
seller along with ICPO, complete CIS and passport copy of the Buyer signatory.

2) Seller issues Draft SPA (Open for ammendment)

3) Buyer review, sign and return the SPA to Seller. The Seller reviews, signs
and returns the final SPA to the Buyer.
Both Buyer and Seller file the SPA with their respective Banks.

4) Seller issues Proforma Invoice to Buyer to initiate LC opening process.

5) Buyer bank sent the SBLC / DLC Pre-Advise MT799/MT705 to Seller’s Bank.

6) Upon confirmation of SBLC/DLC Pre-Advise, within 12 banking days, Seller will


share PPOP- Partial Proof of Product comprising the following 4 docs:
a) Certificate of Origin
b) Commitment to Supply
c) Statement of Availability of the product
d) Product Passport

7) Buyer reviews the PPOP and asks Buyer’s Bank to send the Payment Guarantee of
SBLC MT 760 / DLC MT 700 Irrevocable, Transferable, Divisible, Assignable,
confirmed to Seller’s Bank, in the Seller agreed DLC format.

8) Seller informs the loading date schedule, after receiving Seller Bank
confirmation of Buyer’s SBLC MT 760 / DLC MT700 Irrevocable, Transferable,
Divisible, Assignable, confirmed.

9) SGS inspection conducted at the Loading Port by Seller and Vessel Loaded
after SGS inspection.

10) Seller Bank sends all the Cargo & Shipping Documents to Buyer’s Bank, within
a week of loading the Goods.

11) When the Vessel reaches the OPL of the destination port, the Seller issues
ATB & DTA for Q&Q Test by Buyer.

12) Buyer conducts the SGS Q&Q inspection at the OPL of the destination port at
Buyer’s cost. After a successful Q&Q inspection at the OPL of the discharge port
and acceptance of the cargo by the buyer, the vessel arrives at the unloading berth
at the Discharge Port and the Buyer instructs the buyer’s Bank to process the
Payment before Discharge against the Loading Port shipping documents in
confirmation with the Q&Q Inspection results at the Discharge Port.

13) Buyer pays by TT/MT103 after Q&Q SGS inspection at the Destination Port.
Unloading /discharge of the cargo will start only after full payment is processed
by the buyer.

14) Seller discharges the Goods to destination port Tanks and Transfer Title of
goods to Buyer.
*DELIVERY TIME:*
First Loading to start: 15-20 DAYS after the authentication of the bank instrument

*First delivery*: 30-40 days for first delivery to Buyer’s Destination Port.

*Payment Terms*:
For transactions involving Africa, Southeast Asia, China, Sri Lanka, and
Bangladesh, we highly prefer receiving Letters of Credit (LC) from prime banks.
We do not specify top rankings such as the top 10 or 25 banks.
Payment will be facilitated at the loading port based on a third-party quality and
quantity report, such as SGS or Intertek.
PETROLEUM

The buyer will execute product payment by MT 103 Only, *No LC monetization.*

**Payment Mode (Guarantee Instrument)**:

- *Option 1*:
If the buyer is willing to issue a Non-Transferable LC, we will receive payment at
the loading port upon submission of shipping documents.
The final payment will be based on the Quantity Analysis Report (SGS/Intertek,
etc.).

- *Option 2*:
If the buyer can provide a Transferable Standby Letter of Credit (SBLC), we will
accept payment at the destination port upon receipt of shipping documents. The
final payment will be determined based on the Quantity Analysis Report
(SGS/Intertek, etc.).

*Special Notes*:

1. Both the ICPO/SPA and the LC must be in the buyer's name. These documents should
originate from the same company and bear the buyer's name.

2. We do not accept LC from subcontractors or companies other than the one placing
the purchase order.

3. For CIF deals, a pre-advice via Swift MT 705 is mandatory to receive Refinery
Partial Proof of Product (POP) documents. whereas in FOB deals, an RWA via Swift
MT 199/99 is required to receive POP documents and to conduct DTA (Dip Test
Authorization) on the Seller's Vessel/Tank.

We believe these options offer flexibility to meet your procurement needs. If you
require additional information or wish to discuss these options further, please
feel free to reach out.

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