RUSSIAN JP54

RUSSIAN JP54

TO: END BUYER / BUYER MANDATE

Dear Sir,

SUBJECT: SOFT/FULL CORPORATE OFFER

We hereby declare that, the Seller, with full corporate authority, makes a commitment to sell the crude oil products, hereby certifies, represents and warrants, that it can fulfill the requirement of this contract and provide the commodity herein mentioned and under the terms and conditions agreed between the Seller and end user company for the sales and supply of listed below:


JP54 GRADE 54: 

MINIMUM QUANTITY (100,000 Bbls), 

MAXIMUM QUANTITY (5,000,000 Bbls)
PRICE: TO BE ADVISED IN SCO/FCO, 

TERMS: SPOT OR CONTRACT
PORTS: TO BE ADVISED IN SCO/FCO

CONTRACT BANKING FOR TRANSFEARABLE DLC NON NEGOTIABLE:

Execution of Spot trial lift 42,000,000 gallons FOB Houston USA or CIF Port if Available

1. Seller issues FCO/Acceptance Form to the Buyer.

2. Buyer signs FCO and return it to seller together with an ICPO and Company profile and full banking coordinate.

3. Buyer’s bank issues “BANK READINESS TO PROCEED” Annexure 4 of the SPA message or BG POF (verbiage to be approved by seller) and logistic details; tank numbers, terminal and other needed information for the first lift quantity.

4. Seller issues draft contract for buyer to review and sign manually. Conference call between buyer and seller to be arranged. Seller sign and seal manually and scan back to buyer to officially confirm the signed SPA. (Electronically signed copies of the contract are acceptable until originals are exchange). After the SPA is fully signed, seller will arrange the delivery of the product.

5. Seller will issue CI for the Initial Liftable Quantity.

6. Buyer signs, seals and return to Seller Commercial Invoice and partial proof of product will be sent to the buyer which includes the documents as follows:

• Pre-injection Report
• Fresh SGS Report from the loading Port
• Dip Test Authorization

7. Buyer performs Dip Test for lift-able quantity AT THE LOADING PORT, and within 24 ( twenty-four) hours of receipt of the positive report of SGS, the Buyer’s bank issues the payment for the Lift-able quantity, by MT 103 against the transfer of title. If a fresh SGS is issued to the buyer, (less than 72 hours) by seller, buyer will verify the report and close the sale with MT 103 payment within 24 hours.

8. Within 24 (twenty-four) hours after the success of the first lift-able quantity, the contract procedure will be followed as below.

Execution of the contract procedure CIF Rotterdam for 210,000,000 gallons (5 Million Barrels) for 12 months. Procedure 1, 2, 3, and 4 to precede the procedure below;

9. Upon fully executing the Contract by and between the Parties, the Parties agree to lodge the Contract with their respective transaction banks and follow the procedures below:

(a) Buyer shall instruct the Buyer’s Bank to issue a “Bank Readiness to Proceed” message to the Seller’s Bank. This confirmation is accomplished by SWIFT MT199 to the Seller’s Bank, on a Bank-to-Bank basis as per the sample verbiage detailed in Annexure “4” in the SPA and issued by the same Buyer’s Bank that will issue the Financial Instrument. Skip this step if there is a liftable quantity as this is already submitted in step 4.

10. Within 1 (one) International Banking Day of receiving the “Bank Readiness to Proceed” message SWIFT 199 per 10(a) above, the Seller shall confirm by email to the Buyer the final bank coordinates for its nominated Transaction Bank.

11. Upon receipt of the seller’s final bank coordinates, the Buyer shall instruct its Bank to issue a Pre-Advice Message by SWIFT MT 799 to the Seller’s Bank, on a Bank-to-Bank basis as per the sample text supplied by the Seller as detailed in Annexure “5” of the SPA. The seller’s bank will transmit a 799 reply message to buyer’s bank.

12. The Buyer’s Bank will deliver by SWIFT MT760 ICC 600 Standby letter of Credit to the seller/Assignee or Nominee’s bank. The financial instrument (with AVAL if required by the Seller’s bank) is to be authenticated, verified and confirmed Bank-to Bank.

13. Within the Seller and the Seller’s Bank Acceptance of the Financial Instrument (with AVAL if required) (hereinafter referred to as “Clearance”), the Seller shall issue the required 2% Performance Bond and the Seller shall instruct its Bank to forward the Full Proof of Product (POP) documents.

14. First contract delivery is to be within 10 days from the Seller’s Bank/Seller’s Clearance of the Financial Instrument (with AVAL if required). First contract delivery of the Commodity is contingent on the Buyer nominating Discharge Port, Tank Farm and Tank Details for inclusion in the Loading Schedule followed by the Seller confirming the Loading Schedule of the Commodity.

15. Payment shall be made for all deliveries against a satisfactory quality and quantity report performed by the Inspection Company, by the Buyer within 1 (One ) International Banking Day, and Payment shall be released by T/T, MT103.

Terms of Delivery:
Once the Full Corporate Offer has been accepted, signed and returned to the seller, a contract shall be signed. This document is noted to be a legal binding document once accepted by buyer.

The Banking procedures are as follows:
SPOT DEAL WITH POSSIBLE ROLLS AND EXTENSION TO BE AGREED BETWEEN SELLER AND BUYER ONLY DEPENDS ON CREDIBILITY OF THE PREVIOUS LIFT SATISFACTORY BY BOTH PARTIES.

Any further questions please contact our representative in Selected States, as detailed below: 

Email: myphoenixcalibre@gmail.com 

Blogsite: http://phoenixoil.blogspot.com/