BONNY LIGHT CRUDE OIL

Bonny Light Crude Oil CIF Transaction Procedure:

1. Once Buyer’s agreement with this current Transaction Procedure is confirmed, a preliminary NCNDA is established and Buyer sends a Letter of Intent (LOI) and acceptance of this procedure and discount, along with a CIS, KYC or detailed Corporate Profile.

2. Seller releases the draft Contract/Sales and Purchase Agreement. The Seller and the Buyer sign and seal the Sales and Purchase Agreement with full Banking details including brokers’ banking details. Both parties forward a copy of this signed SPA contract to their respective Banks.

3. The Buyer’s Bank issues a Pre-advice in the form of RWA in the Format of MT199 or MT799 to the Seller’s Fiduciary Bank to enquire of the Seller’s willingness to issue a Two Percent (2%) Performance Bond (PB) upon receipt of the DOCUMENTARY LETTER OF CREDIT (DLC) in the Format of MT700 in the Seller’s acceptable verbiage for the entire cargo.

4. The Seller’s Fiduciary Bank responds indicating its willingness to receive the DOCUMENTARY LETTER OF CREDIT (DLC) MT700 in the Seller’s acceptable verbiage and issue a Two Percent (2%) Performance Bond (PB).

5. The Buyer’s Bank issues the DOCUMENTARY LETTER OF CREDIT (DLC) in the Format of MT700 in the Seller’s acceptable verbiage (Annex 1).

6. The Seller’s Bank issues a Two Percent (2%) Performance Bond (PB) to the Buyer’s Bank.

7. The Seller immediately nominates a vessel and programs the vessel with NNPC for loading after confirmation of the Buyer’s Full Banking Instrument that covers the cost of the entire cargo. The Seller also sends the Estimated Time of Arrival (ETA) to the Buyer.

8. The loaded vessel sails to the discharge port where Q&Q analysis is conducted by the Buyer’s nominated Inspection Company. The Inspection Company must be either SGS, Saybolt or a comparable inspection company.

9. The vessel discharges its cargo at the Buyer’s designated port within three (3) international banking days. After the Buyer has received the Discharge Report and all relevant documents presented by the Seller, as shall be confirmed by the vessel Captain, the Buyer makes payment in United States Dollars by SWIFT Wire Transfer directly to the Seller’s nominated Bank account.

10. Payments are made by SWIFT wire transfer directly to the Seller’s and Intermediaries’ nominated Bank Accounts, within two (2) banking days after delivery of Crude Oil at the Buyer’s Discharge Port against presentation and confirmation of stated shipping documents.

————————————— End of Transaction Procedure ————————————–

NOTES:

Changes to the current transaction procedure will not be accepted.

Minimum/Maximum monthly quantities: 2 / 10 million barrels
ORIGIN: NIGERIA
QUALITY: NNPC EXPORT STANDARD GRADE

DISCOUNT to BRENT: NET $6 TO BUYER
SELLER WILL PAY $2 per BARREL CONSULTANCY FEES TO INTERMEDIARIES
VOX TEAM RETAINS $1 per BARREL; THE REMAINING $1 per BARREL IS OPEN FOR BUYER SIDE INTERMEDIARIES
LOADING PORT: TULJA/BONNY TERMINAL

ANNEX 1:
DLC MT 700 VERBIAGE

SWIFT INPUT: FIN 700 ISSUE OF A DOCUMENTARY CREDIT
SENDER:
BANK NAME: BANK ADDRESS:
RECEIVER:
BANK NAME:
BANK ADDRESS:
———————— Message Text ——————————————-
F27: SEQUENCE OF TOTAL:
1/2
40A: FORM OF DOCUMENTARY CREDIT:
IRREVOCABLE TRANSFERABLE
20: DOCUMENTARY CREDIT
NUMBER:
31C: DATE OF ISSUE: 2024xx
40E: APPLICABLE RULES:
UCPURR LATEST VERSION
31D: DATE AND PLACE OF EXPIRY:
2025 xx ADVISING BANK’S COUNTER
51A: APPLICANT BANK: 50: APPLICANT:
59: BENEFICIARY
32B: CURRENCY CODE, AMOUNT:
USD00, 000,000.00
39A: PERCENTAGE CREDIT AMOUNT TOLERANCE:
TOTAL AVAILABLE
39B: MAXIMUM CREDIT AMOUNT:
39C: ADDITIONAL AMOUNTS COVERED:
TOTAL AVAILABLE
41A: AVAILABLE WITH… BY… –NAME/ADDR:
ANY BANK BY NEGOTIATION
42C: DRAFTS AT:
AT SIGHT
42A: DRAWEE:
42M: MIXED PAYMENT DETAILS:
42C AND 42A DETAILS AVAILABLE
42P: DEFERRED PAYMENT DETAILS:
43P: PARTIAL SHIPMENTS:
NOTALLOWED
43T: TRANSSHIPMENT:
NOT ALLOWED
44A: PLACE OF TAKING IN CHARGE / DISPATCH FROM / PLACE OF RECEIPT:
DAP (DELIVERED AT PLACE)
44E: PORT OF LOADING:
44F: PORT OF DISCHARGE /AIRPORT OF DESTINATION:
44C: LATEST DATE OF SHIPMENT
45A: DESCRIPTION OF GOODS AND/OR SERVICES
TERMS: DAP ……PORT
WITH DETAILS ON CONTRACT NO:
46A: DOCUMENTS REQUIRED:
1) SIGNED COMMERCIAL INVOICE IN 1 ORIGINAL AND 3 COPIES MADE IN THE NAME OF THE APPLICANT
DATED AND SIGNED BY HAND BY THE BENEFICIARY, COUNTER SIGNED BY HAND WITH THE COMPANY STAMP BY THE APPLICANT’S AUTHORIZED SIGNATORY.
THE INVOICE MUST BEAR THE FOLLOWING ATTESTATION:
‘WE CERTIFY THAT THIS INVOICE IS AUTHENTIC, THAT IT IS THE ONLY ONE ISSUED BY US FOR THE GOODS DESCRIBED THEREIN, THAT IT SHOWS THEIR EXACT VALUE WITHOUT ANY DEDUCTION OR DISCOUNT.’
2) PACKING LIST ISSUED IN 1 ORIGINAL AND 3 COPIES, DATED AND SIGNED BY HAND BY THE BENEFICIARY, COUNTER SIGNED BY HAND WITH COMPANY STAMP BY THE APPLICANT’S AUTHORIZED SIGNATORY.
3) BENEFICIARY’S STATEMENT CONFIRMING THAT ONE FULL SET OF COPIES OF DOCUMENTS WHICH INCLUDE COMMERCIAL INVOICE, PACKING LIST HAS BEEN SENT DIRECTLY TO THE APPLICANT BY DHL COURIER. COURIER RECEIPT FOR THE SAME MUST BE ATTACHED TO THIS DOCUMENT.
47A: ADDITIONAL CONDITIONS:
BANK TO BANK INSTRUCTIONS:
1) THE COMPLETE SET OF ORIGINAL DOCUMENTS TO BE SENT IN ONE LOT BY THE COURIER SERVICE TO APPLICANT BANK
2) ALL DOCUMENTS SHOULD MENTION OUR L/C NUMBER.
3) ALL DOCUMENTS SHOULD BE ISSUED IN ENGLISH LANGUAGE.
4) UPON COMPLYING PRESENTATION PLEASE SWIFT ADVICE US STATING AMOUNT VALUE, DELIVERY NOTE NUMBER AND DATE, VALUE DATE APPLIED, QUOTING OUR REFERENCE.
71B: CHARGES:
ALL BANKING CHARGES OUTSIDE L/C ISSUING BANK ARE FOR ACCOUNT OF THE APPLICANT.
48: PERIOD FOR PRESENTATION:
DOCUMENTS MUST BE PRESENTED WITHIN 21 DAYS AFTER SHIPMENT DATE BUT WITHIN
THE VALIDITY OF THE L/C
49: CONFIRMATION
INSTRUCTIONS: CONFIRM
53A: REIMBURSING BANK:
78: INST/PAYING/ACCPT/NEGOTIATE BANK:
1) ON RECEIPT OF DOCUMENTS CONFIRMING THAT ALL TERMS OF THE LC HAVE BEEN MET, WE SHALL REIMBURSE YOU ACCORDING TO YOUR INSTUCTIONS WITHIN TWO BANKING DAYS. TT REIMBURSEMENT ALLOWED.
2) THE FULL SET OF DOCUMENTS SHOULD BE SENT BY DHL TO OUR TRADING DESK AT: ______(APPLICANT BANK/REIMBURSING BANK/DRAWEE, ADDRESS OF BANK) ALONG WITH COPIES SWIFT REGARIDNG (A) SHIPMENT DETAILS AND NEGOTIATION DATE AND
DETAILS OF THE DESIGNATED BANK TO RECEIVE THE PAYMENT.
57A: ADVISE THROUGH BANK:
BANK NAME:
BANK ADDRESS:
ACCOUNT NAME:
ACCOUNT NUMBER:
SWIFT CODE:
72: SENDER TO RECEIVER INFORMATION:

THIS CREDIT IS SUBJECT TO I.C.C. 600