FOB delivery ports: Rotterdam, Fujairah, Jurong
Origin of products: Kazakhstan. Supplier: direct Kazakhstan Refinery
ULSD 10 ppm EN590 monthly quantities: 20,000 to 300,000 MT
Jet A1 monthly quantities: 500,000 to 3,000,000 Bbls
Light Cycle Oil monthly quantities: 20,000 to 300,000 MT
1. Once Buyer’s agreement with this current Transaction Procedure is confirmed, a preliminary NCNDA is established and Buyer issues ICPO containing the Seller’s working procedure, CIS or detailed Corporate Profile and CPA with a reputable tanker company, for the Seller’s approval.
2. Seller issues Commercial Invoice (CI), Buyer signs and returns CI with provision of Buyer’s Vessel Charter Party Agreement (CPA) for approval (CPA must reflect Seller’s Refinery name as Supplier).
3. Upon verification, clarification and location of Buyer vessel chartered as per CPA, Seller introduces Tank Farm Company (that is storing the Seller’s product) and TSR to Buyer. Buyer will verify with the Tank Farm Company the availability & quantity of product in the tank(s) before extending the Seller’s tank(s) for 2 days. The payment for tank extension is made along with registration of Buyer company name with the port Authority and terminal control management as the consignee of the oil products to enable Buyer and SGS teams to have access into the port to conduct dip test of the oil products in Seller tank(s). Seller provides:
a. Certificate of Origin
b. Commitment Letter to Supply
c. Notice of Readiness
d. Authorization to Sell and Collect
e. Fresh SGS
f. Authorization to Verify (ATV)
4. After the verification of the above documents, Buyer provides Q88 with full details of the Vessel’s Captain, including readiness to receive the product into the vessel (RTRF), to Seller. If Buyer cannot provide reliable and ready Q88 at the loading port, Buyer shall pay for the Title Transfer to enable Buyer to take over the product in Seller’s tank(s)
5. Pre-Injection report DTA is provided. Buyer appoints testing team SGS or equivalent to conduct Dip Test in Seller tank(s) before injection to Buyer’s Vessel. If the SGS report indicates that the product to be supplied fails to meet the specification, the Seller shall with immediate effect refund the 2 days storage tank lease extension back to the Buyer.
6. As soon as the SGS Dip Test passes, Buyer will make 100% Full Payment of the product via MT103/TT to Seller’s nominated Bank and provide Bank Transfer Slip for confirmation. Thereafter, the product will be injected into Buyer’s Vessel.
7. Seller provides Title Ownership documents to the Buyer upon the final confirmation of Buyer payment.
8. Seller pays Commissions to Seller’s side and Buyer’s side as structured in the NCNDA / IMFPA. Monthly deliveries continue as Contractually agreed.
————————————————- End of Transaction procedure———————————————————-
IMPORTANT NOTES:
Seller can deliver:
• JET A1 at fixed prices currently equivalent to an average discount to Platts between 15% and 20%
• ULSD 10 ppm EN590 and Light Cycle Oil at fixed prices currently equivalent to an average discount to Platts between 20% and 30%.
• Final Price is provided to a confirmed Buyer and will depend on product, delivery port, quantity and specifications.
• The above transaction procedure wording is final and will not be changed.
• The standard template for the ICPO to be issued on the Buyer’s letterhead is attached as Annex 1. Following a preliminary NCNDA, Vox will pre-fill and send the ICPO template to the Buyer side with the filled information pertaining to the specific transaction.
• Buyer’s Charter Party Agreement (CPA) shall be established directly between Buyer and a reputable, Top 40 tanker company. CPAs established with Shipping brokers will not be accepted.
• Once documentation mentioned in Paragraph 1 is provided and reviewed by Seller, a conference call may be established if required, between the End Buyer and the direct Seller. Intermediary parties can attend this call.
• Commercial Invoice and subsequent Seller side documentation will be issued by the direct Seller.
• Seller will do only 12 months Contract (No spot deals).
• Consultancy fees for Seller side and Buyer side intermediaries are included in the price paid by Buyer and are transferred by Seller to the intermediary parties.
• Seller side of consultancy fees is closed and includes the Vox team and other seller side parties. Available consultancy fees are to $1 per barrel for Jet A1 and $5 per MT for EN590 or LCO, fully open for sharing among the buyer side intermediaries.
ANNEX 1
ICPO TEMPLATE
ON BUYERS’ LETTERHEAD
DATE:
TO: (Seller Rep)
CC: ops@vox-oil.com – Seller representative/Referring Broker
CC: xxxxxxx – Referring Broker
CC: xxxxxxx. – Referring Broker
FROM: (Buyer)
Irrevocable Corporate Purchase Order
(or Letter of Interest to Purchase)
(BUYER) is domiciled in (COUNTRY) operating in good standing with our Government. We confirm that
(BUYER COMPANY) are ready, willing and able to purchase the following commodities;
1. BUYER: xxxx
2. COMMODITY: xxxx
3. CARGO ORIGIN: (Any OR Non-sanctioned OR Specific country)
4. QUANTITY: xxxx MT/Bbls trial shipment and xxxx MT/Bbls per Month for 12 Months
5. TARGET PRICE: Equivalent to xx% discount to the applicable Platts
6. TOTAL BROKER FEES: $xxxx per Metric Ton/Bbl, included in the price and agreed upon, accepted by Buyer
7. DELIVERY PORT: xxxx
8. CPA WITH: (Name of tanker shipping company with which CPA is established)
9. SPECIFICATIONS: ATTACH Requested Specs Sheet
10. PAYMENT TERMS: Bank Wire After Delivery
11. TOP 100 BUYER’S BANK: xxxx
BUYER’S NAME/COMPANY:
REPRESENTED BY/POSITION:
ADDRESS:
EMAIL ADDRESS, TELEPHONE:
(TEXT OF THE TRANSACTION PROCEDURE)