ZAHRAT AL ARZ REFINED OIL PRODUCT TRADING L.L.C
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is the premier provider of trusted expertise in the oil and gas industry. We achieve this through our relentless focus on our Seller Target, and by working diligently to meet our Qualified Buyers targets. We fully understand the capabilities of our sellers and business partners, and can quickly and efficiently match these capabilities to any buyer's needs. We hire only the best in the market, and each member of our team is committed to providing an unbiased perspective to help our clients monitor market movements, assess commodities, recognize opportunities, mitigate risks, and plan with greater confidence. Markets are constantly changing, but our real-time news, market analysis, pricing assessments, and fundamental data always provide a valuable reference point. We are constantly investing in our products and services. We've enhanced our forecasts, datasets and tools, and now offer the most powerful analytics offering available to ensure our clients can drive value in the markets of their choice. We work closely with qualified buyers as well as authorized and signed sellers worldwide who meet the required financial criteria to transact petroleum products. We also provide a platform for our clients to exchange ideas and make valuable connections. We work closely with qualified buyers as well as authorized and signed sellers worldwide who meet the required financial criteria to transact petroleum products. We also provide a platform for our clients to exchange ideas and make valuable connections. We work closely with qualified buyers as well as authorized and signed sellers worldwide who meet the required financial criteria to transact petroleum products. We also provide a platform for our clients to exchange ideas and make valuable connections.
TANK STORAGE
TANK STORAGE GLOBAL SUPPLIERS DIRECTORY
TANK STORAGE
ONSHORE TANK STORAGE
An Oil Terminal (also called a Tank Farm, Oil Installation or Oil Depot) is an industrial facility for the storage of oil, petroleum and petrochemical products, and from which these products are transported to end users or other storage facilities. An oil terminal typically has a variety of above or below ground tankage; facilities for inter-tank transfer; pumping facilities; loading gantries for filling road tankers or barges; ship loading/unloading equipment at marine terminals; and pipeline connections. Oil terminals may be located close to, or be part of, oil refineries; or be located in coastal locations where marine tankers can discharge or load cargo. Some terminals are connected to pipelines from which they draw or discharge their products. Terminals can also be served by rail, barge and road tanker (sometimes known as "bridging"). Oil terminals are also located near cities from which road tankers transport products to petrol stations or other domestic, commercial or industrial users.
In most oil terminals there is no processing or other product transformation on site. The products from a refinery which are stored in the terminal are in their final form suitable for delivery to customers. Blending of products may be undertaken, and additives may be injected into products, but there is usually no manufacturing plant on site. Modern terminals have a high degree of site automation. Marine oil terminals have jetties to provide a deep water mooring for tankers. Jetties have loading/unloading arms for transferring cargo to/from ship to shore. Facilities for vapor recovery may be provided. Some oil terminals receive crude oil production from offshore installations. Crude oil received by pipeline may have been ‘spiked’ with natural gas liquids (NGL), and is known as live crude. Such oil needs to be processed or stabilized to remove the lighter fractions such as ethane, propane and butane to produce a dead or stabilized crude that is suitable for storage and transport. Such oil terminals may include processing facilities to treat the oil to achieve an oil Reid vapor pressure (RVP) of 10 to 12 psi (70 to 82 kPa). The process facilities include oil heaters to warm the oil which then routed to separator vessels. In the separators the lighter fractions flash off from the oil and are further processed to separate them into their individual components. The now stabilized oil can be routed to storage and then sold or sent for further processing.
The storage tanks at an oil terminal may includes fixed roof tanks, internal floating roof tanks and external floating roof tanks. Floating roof tanks are generally used for more volatile products to reduce evaporation loss. Fixed roof tanks which have a vapor space above the product and which breathes in or out as the product is removed or the tank is filled. Some tank may be fitted with internal heating coils using hot water or steam to keep the contents warm. This reduces the viscosity of the product to ease transfer and pumping. Terminals may also have ‘Horton spheres’ which are used to store liquefied petroleum gases such as propane and butane.
STANDARD FOB TRANSACTION PROCEDURES
PROCEDURE 1 :
The buyer will need to submit an ICPO with a Notice of Readiness (NOR) from their tank farm or ship, along with the relevant documents and forms that will be sent to the Buyer. Once terms represented therein are accepted by the Buyer, pricing discounts will be offered. NOTE: No NOR, No deal. This is a very strict policy instituted by the refineries and must be adhered to. The procedures are as follows: 1) Buyer tenders ICPO (with passport & CP) and POF & NOR to Seller 2) Seller responds with Confirmation Letter of fuel availability; 3) Seller issues a Joint Participation Agreement (JPA); 4) Upon receipt of signed JPA, Seller issues CI; 5) Upon receipt of singed CI, Seller issues DTA; 6) Upon Buyer’s receipt of successful SGS report, Seller arranges fuel transfer to Buyer’s tanks; 7) Upon Buyer confirming complete transfer of fuel, Buyer pays for fuel and Seller issues POP & other relative Title docs. ** PLEASE NOTE: These procedures will adjust slightly based on which seller eventually tenders an offer. Seller conducts its banking transactions via the Bank of America Global Markets Trade Desk in New York; your buyer’s banking has to be either in the US or have a corresponding bank in the US.
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PROCEDURE-2 :
1. Buyer issues LOI with complete purchase requirement, and KYC + CP 2. Seller issues SCO 3. Buyer issues Irrevocable Corporate Purchase Order (ICPO) accepting seller's price, terms and procedures along with signed RWA /BCL from his bank evidencing availability of funds to transact, and vaid TSA/CPA 4. Seller issues draft of Sale and Purchase Agreement (SPA) contract along with Commercial Invoice. Buyer signs SPA and returns to seller along with verifiable storage tank coordinates. Seller verifies and approves Buyer’s tank farm coordinates, (TSA). 5. Seller provides following Partial Proof Of Product (PPOP) documents via Email or Fax to Buyer. A. Authorization/Authority to Sell (ATS) B. Product Quality Passport (Dip Test result of Product) C. Letter of Commitment to Supply D. Statement of Product Availability E. Reservoir Storage Receipt. F. Allocation Transaction Passport Code Certificate 6. Within 3 days upon the receipt & verification of the above PPOP documents, Buyer provides verifiable Tank Storage Receipt (TSR), Authorization to Inject (ATI) at the Loading port with injection permit. Buyer issues SBLC via SWIFT MT760 to seller's bank. 7. Seller issues 2% Performance Guarantee to Buyer 8. All parties sign NCNDA/IMFPA. 9. Seller issues (DTA) Dip Test Authorization for Q&Q along with complete Fuel Injection Report from the Pipeline/ Transportation Company. 10. Upon satisfactory Q&Q/Dip Test Inspection carried out by either SGS or similar inspection agency, Buyer releases full cost of the liftable product via MT103 TT wire transfer to Seller’s nominated Account within 72 hours and injection to buyer's tanks commences. 11. Seller issues the Title Transfer of Product Ownership / Certificate of Ownership to buyer’s company along with all necessary Export Documents. 12. Seller pays all intermediaries involved in the transaction as per IMFPA/NCNDA.
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PROCEDURE-3
FOB (ROTTERDAM & HOUSTON) TERMS AND PROCEDURES / NON NEGOTIABLE 1. Buyer issues ICPO + C/P + POF + Buyer's Passport Copy for Data File (OR) Company License. 2. Seller issues commercial invoice (CI) along with POP documents listed below to the Buyer who returns signed and sealed Commercial Invoice (CI) to the seller. TSR (Tank Storage Receipt) Injection Report Unconditional Dip-Test Authorization Letter of Acknowledgement Dip-Test Inspection Schedule ATV (Authorization to verify) 3. Buyer Dip-tests in Seller's tank using SGS (or equivalent) and receives fresh Q&Q Report along with ATSC (Authorization To Sell and Collect). 4. Within 72 Hours, Buyer provides TSR or Vessel storage for Injection of product into the Buyers hired tanks or vessel and returns the NCND/IMFPA signed by all parties involved in the buyer's side to the seller. 5. Buyer pays total cost of product via SWIFT MT103. 6. Seller confirms Buyer's payment receipt, completes injection into buyer's storage tanks/vessel, 7 Both parties release payment to all intermediaries on each side Involved in the transaction. 8. Contract begins with Rolls and Extensions.
Read MoreIMMEDIATE JET FUEL BUY REQUIREMENT
products are running
D2 DIESEL GAS OIL
D2 is a refinery abbreviation for Gasoil. It is the second distillate from the crude oil, and can be used without reformers and additives. The principal difference between GASOIL and D2 is the content of sulphur. ISO has a standard for D2 that most of oil companies use as their reference.
JET FUEL/ ATF (JET A-1/ TS-1)
Jet fuel, Aviation Turbine Fuel (ATF), or Avtur is a type of fuel designed for use in aircraft powered by gas-turbine engines. It is clear to straw-coloured in appearance. The most commonly used fuels for commercial aviation are Jet A and Jet A-1 which are produced to a standardized international specification. During the refining process only 8% of the crude oil is made up of Jet fuel.
LIQUEFIED NATURAL GAS /LNG
Liquefied Natural Gas (LNG) is natural gas, cooled to minus 161°C until it becomes a liquid. It is stored under atmospheric pressure and reduced in volume by the ratio of 1:600. It is easier and less costly to transport, particularly where access to pipelines is not available.
LIQUEFIED PETROLEUM GAS /LPG
LPG (Liquefied Petroleum Gas) is predominantly propane and butanes, either segregated or in various ratios and mixtures of each product. LPG is a by-product of crude oil production (Associated Gas) and a by-product of natural gas production (Non Associated Gas).
D6 VIRGIN FUEL OIL/BUNKER OIL
D6 is also be known as Residual Fuel Oil and is of high-viscosity. This fuel oil requires preheating to 220 – 260 Degrees Fahrenheit. D6 is mostly used for generators. D6 is a type of residual fuel, mainly used in power plants and larger ships. The fuel requires to be preheated before it can be used.
EN590 DIESEL (10PPM) ULSD
EN590 (10PPM ULSD) had been introduced along with the European emission standards. With each of its revisions the EN 590 had been adapted to lower the sulphur content of diesel fuel - since 2007 this is called ultra low sulphur diesel as the former function of sulphur as a lubricant is absent
Articles
Countries in the region differ greatly from one another, which influences the risks they face and the potential response – NOCs differ in terms of organizational maturity and NOCs differ. Table 1 below reflects their scope, capabilities, global reach, and market strength - defining the ability of these companies to develop new assets, diversify their investment portfolios, and enhance efficiency.
Subcontracting
Statistics
US Finalizing an order is generally a lengthy process and the main contractor reserves the full and uncompromising right to determine who will be awarded a subcontract. However, after working closely with several main contractors, we feel the process is not really as rigorous as it generally seems in the initial stages!! Subcontract India, with its wide base of expert consultants, works closely with the main contractor(s) through the whole process of selecting the most suitable subcontractor for any work wishing to be subcontracted by the main contractor. It is always very difficult to set a definite timeline for the process of awarding a subcontract. However, once we present a subcontractor's company profile along with the Letter Of Interest for a particular work to the Main Contractor, it generally takes between one to four weeks for the Main Contractor to confirm if they consider that subcontractor suitable for that particular work. If found suitable, the Main Contractor would issue a Letter of Intent mentioning all the details of the work. The Bill of Quantities (BOQ) would also be issued by the Main Contractor which can either be priced (complete prices mentioned) or empty. If the BOQ is priced , then the subcontractor needs to confirm its acceptance upon checking all the details mentioned therein. If the BOQ is empty, the subcontractor would need to fill this up and submit for approval. There might be several rounds of discussions prior acceptance or rejection of the BOQ by the Main Contractor. If accepted, a Work Order will follow with all terms and conditions for the subcontractor to comply. Subcontracts India plays a crucial role in getting its clients subcontracting work they desire. It provides guidance and the necessary thrust through the entire process of Order Finalization with the Main Contractor. Transparency of the deals that we strike is the cornerstone of our business. The most important factor that plays a crucial role in a subcontractor getting awarded a business is our ability to instill a fair amount of confidence and trust in the Main Contractor about the subcontractors we represent. There are simply no shortcuts. Subcontracts India practices a policy of thorough and rigorous scrutiny of all aspects of
reports
Understanding the subcontract: A subcontractor is a person who is hired by a general contractor (or main contractor or main contractor) to perform a specific task as part of the overall project and is usually paid for services rendered to the project by the constructing general contractor. While the most common concept of a subcontractor is in the construction and civil engineering works, the range of opportunities available for a subcontractor is much broader and it is possible that the largest number now work in the IT and information sectors of the business. The incentive to hire subcontractors is either to reduce costs or to mitigate project risks. In this way, the general contractor receives the same or better service than the general contractor could provide himself, with less overall risk. Many subcontractors work for the same companies rather than for different companies. This allows subcontractors to further customize their skills. A subcontract is a procurement instrument used to procure certain goods or services for a funded program or project. The subcontractor agrees to carry out the objectives of the purchaser as specified and specified in the contract. There are two types of subcontracts: 1. Cost recovery
The media
As a contractor, it is important to make careful decisions when hiring a subcontractor. Subcontractors may abandon work or display unprofessional behavior while on the job, and because they are not employees, the contractor will have no way to discipline them if they cause difficulties around the project. Firing a subcontractor might be seen as avoiding the contract and, in any case, would leave the contractor needing to hire someone else to complete the work. The subcontractor still represents the contractors' business while working on their clients' property
SERVICES
tankers
.SCI is the largest Tanker owner in India, with a well-diversified fleet of crude oil tankers consisting of all sizes: MR, LR-I, LR-II, Aframax, Suezmax and VLCC Tankers. SCI's Tanker tonnage paralleled the growth of Indian oil industry since the mid-1970s. Till late 1990s the tonnage predominantly catered to Indian crude oil and product transportation. This was done keeping in view the specific constraints of terminals/ports in India and infrastructural limitations like draft, availability of tankages, length/capacity of jetties, etc. SCI's Tanker Commercial Department looks after scheduling and deployment of Tankers for feeding crude oil to various Indian oil refineries. Lighterage operations on the east and west coasts are also undertaken to facilitate quick turnaround of Tankers, which otherwise cannot call on ports due to port restrictions/limitations. The department also ensures commercial deployment of in-chartered tonnage, to meet its obligations of lifting cargo under the Contract of Affreightment (COA).
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container
Liner & Passenger Services Division (L&PS) includes Container Services & Marketing (CS&M), Break-Bulk (BB) and Freight Reconciliation Dept. Container Services forms the largest segment in L&PS Division. This segment provides worldwide coverage for containerized cargoes in and out of Indian Sub-Continent through a combination of direct calls, slot sharing, slot charters and feeder arrangements. SCI Services are predominantly India centric and, hence, SCI provides dedicated and comprehensive coverage to all parts of the country in line with Governments policy of promoting Coastal Shipping & Inland Waterways. Additionally, SCI also covers the Indian Sub-continent locations comprehensively. Break-bulk shipments are being catered to on space charter basis, as and when cargo enquiry is materialized. SCI has space charter arrangements on containerized vessels as well as break-bulk vessels of various Main Line Operators. Focus of SCI and especially CS&M Department has always been to be alive and responsive to the emerging challenges in the industry and adopt the best industry practices and provide its business partners and clientele, safe, reliable and economical shipping services, which is an integral part of our vision and objectives. During the last year, we have made conscious efforts to become even more eco-friendly by resorting to prudent fuel management and optimal network management and scheduling of ships and promoting coastal movement of containers along the Indian coast and we have successfully expanded our coastal business & today we are one of the major coastal operators. Our operating philosophy makes it imperative that we streamline and standardize our procedures and information flow to enable optimum asset utilization, speedier and more consistent decision making, and achieve synergy between Operations, Commercial and Equipment Control segments of the departmen
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percentage
Average customer review
It's time to move on
files
Articles
M100/Fuel Oil GOST 10585-75/99/2013 D6 Virgin Diesel Bunker Fuel D2 Diesel Fuel/EN 590 GOST R 52368-2005 D2 Gasoil L0.2/62 GOST 305-82 EN590 (10PPM) USLD Fuel Oil 380 CST Jet Fuel (JP54)/Aviation Kerosene colonial grade #95 Octane Crude Oil (Heavy & Light) Russian Export Blend Crude Oil R.E.B.C.O. GOST 51858-2002 Jet A1, TS-1 (PREMIUM/REGULAR) T-1 REGULAR LNG LPG PETCOKE BITUMEN ETHANOL
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Wholesale oil and gas trading platform
ELIGIBILITY & COMPLIANCE FOR OIL & GAS TRADING
Traders transacting through this platform have undergone our rigorous and extensive vetting and background checks and are certified to be capable of transacting successfully. The platform directly engages in every aspect of the transaction process to ensure the smoothest experience in implementation of the sale and delivery of fuel. BUYER ELIGIBILITY: A proven multi-year track record in oil & commodity trading. A proven ability to receive and transport the product upon delivery. Sufficient available capital, or credit line, to purchase the product. Banking at a reputable bank. Storage and Shipping Arrangement must be in place Holding import or trading licenses to receive or transport the product in/through/to any country or territory where this might be required. Not selling the product to any party residing in, liaised with, or transporting to a location in, a country or territory under trade embargo by the United States of America, European Union, Hong Kong S.A.R. or the United Nations
SELLER ELIGIBILITY:
Seller must be the Title Holder and must unconditionally provide proof of title holding/allocation Seller must submit their Corporate and Tax registration details Seller must submit his Transaction Terms beforehand. Seller must submit verified Technical Specification of the product(s) it intends to sell. Verification agency must be a neutral inspection agency of International repute Seller must have an official website detailing Corporate information and activities. Email addresses with public domain servers are not accepted. Seller must provide sufficient proof of successful past transaction(s) in the oil & gas sector
Trader Due Diligence:
In order to become a Qualified Oil & Gas Trader, the applicant needs to undergo a due diligence carried out by our internal compliance team on the buyer or seller (applicant) and his company. The financials of the companies, oil & gas trading track records and current ability to purchase, store, and transport fuel are thoroughly scrutinized. The procedure to become a Registered Trader: The potential Oil & Gas Trader fills the Buyer KYC Template / Seller KYC Template and submits online to Global Oil & Gas Trading (Subcontracts India). Our compliance team will review the information submitted and might request for further information relating to the Buyer's / Seller's company details, financial status, trading history and product requirements. Upon a positive review of the application, the buyer/seller deposits one time Commitment Fee. Subsequently, one of our sourcing managers will contact the Buyer/ Seller directly to discuss purchase requirements, product availability and transaction procedures. Once all parameters are satisfactorily met, the company will be registered as a Qualified Buyer / Seller and will receive our regular product offers via email.
The below points are important:
Only experienced Traders can apply to become a Qualified Traders on this platform. We do not accept applications from Brokers or Intermediaries. Only authorized directors or senior officers of the buying/ selling company can submit an application for registration. We do not accept applications by unauthorized persons. Every Oil & Gas Trader will have to meet our Prescribed Standard prior being able to trade on this platform.
rading Also Actively Assists Several Other Types of Oil and Gas Investments
Broadly speaking, we facilitate four main types of oil and gas investments: 1. Exploration These companies or projects buy or lease land and invest money in drilling. If they strike oil, the investment can pay off 10 times over – sometimes much more if the company uses borrowed money (leverage) to finance operations. If not, they may lose nearly everything they invested in that particular project. Pure exploration companies are best suited for those with very high tolerance for investment risk. These plays are highly speculative. 2. Developing These projects drill near proven reserves, hoping to unlock further value. These are somewhat less speculative, but there are never any guarantees that their efforts on any one plot of land will bear fruit. 3. Income These projects involve the acquisition of plots of land, either through lease or purchase, over proven oil and gas reserves, and seek to create a steady stream of income over and above expenses. This is generally the safest way to get involved specifically in the drilling and extraction operations, and is more of an income play than a speculative play. The risk is that the oil or natural gas will run out faster than expected. This investment is for those seeking a passive income stream, but who can take on more risk than those investing in other traditional income generators, like investment grade bonds and annuities. 4. Services and Support These companies provide a nearly unlimited menu of supporting services to the oil and gas industry. Examples include transportation, shipping and logistics companies, pipeline companies, construction and rigging companies, drilling and refining hardware and equipment manufacturers, refiners, and many others. Investing in these companies is similar to investing in any other company involved in B2B services, logistics, technology, and the like. Some of these investments don’t rely on increasing fuel prices to be profitable. For example, pipelines make money by charging a fee per barrel transported. They’ll make roughly the same amount regardless of whether fuel prices rise or fall, as long as demand remains consistent.
OUR SERVICES ENSURE SMOOTH TRANSACTION
Oil and Gas buyers constantly endeavor to explore and expand their supply base. They look for the most competitive price, superior product quality and an extremely efficient and flawless delivery service. Global Oil and Gas Trading provides its clients (both buyers as well as sellers) a fair, trustworthy, efficient and professional platform. Be it alacrity, transparency, uprightness, competitiveness, or ease of doing business, there is no need to look any further. We are exemplary in what we do and our clients rarely find any reason to complain. Based on the initial information the client provides to us through our online submission forms, one of our highly proficient staff will quickly determine the best move forward considering the client's specific requirements, contact the client personally, and will assist in getting started with the best suited counterpart. We service qualified buyers and/or sellers who are serious about expanding their international trade transactions. For best long term results, we encourage clients to establish mutually beneficial mandate relationship with us. Clients can take great advantage of our expertise in sourcing commodities, products and services and get rid of the never ending stress of finding genuine buyers or sellers and let our professional team work for them. We make sure that all offers made through this platform are genuine and the products are of the highest world standard. We welcome you to take the opportunity to put our resources and expertise to work for you. Please feel free to contact us, should you have any questions.
STANDARD TRANSACTION PROCEDURES
Oil and Gas Transaction Procedures vary from client to client and it is always extremely difficult to get both buyer as well as seller agree to any one set of Transaction Procedures. This Platform does not participate directly in any of the sale or purchase transactions between traders. However, as a facilitator of any deal transacted through this Platform, the management tries hard to put in place a mutually acceptable transaction procedure between clients on a case to case basis. Whereas it is mandatory for all clients (buyers as well as sellers) to submit their own set of transaction procedure while submitting their specific buy or sell offers, The Platform management intervenes to make certain clients drop clauses which inevitably leads to any kind of upfront payment. We are listing a few examples below: Splitting "Shipping Charges" and asking the buyer to pay half of those charges to the shipping company prior actual shipment or handover of shipment. Asking for issuance of any Banking Instrument prior verification of PPOP documents by the buyer. Asking the buyer for Tank Storage Receipt (TSR) or Charter Party Agreement (CPA) prior providing Proof Of Product, Location, and valid Inspection Report. Asking for any kind of payment on the pretext of any government charges. Providing "third-Party Fiduciary/Banking details that do not relate directly to either the buyer or the seller. Please read our ideal transaction procedures for FOB, CIF, and Spot (Dip & Pay) transaction
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Jet fuel / ATF (aviation turbine fuel) price this week Get better at searching, analyzing and taking action on tank terminal data Oil trading glossary OIL & GAS BLACK LISTS
Terms of dealing with brokers / intermediaries
what we expect
ZAHRAT AL ARZ REFINED OIL PRODUCT TRADING L.L.C has its own comprehensive due diligence process and we expect the same from all brokers and facilitators who wish to work with the platform. Intermediaries who are not direct to end buyers or end sellers should avoid trying to contact us and wasting valuable time. Please read the following carefully as this will decide whether or not ZAHRAT AL ARZ REFINED OIL PRODUCT TRADING L.L.C can work with you:
NCNDA / IMFPA
The first thing that will appear to any amateur broker is that we have to sign NCNDA (Non-Fraud Non-Disclosure Agreement) and IMFPA (Intermediate Master Fee Protection Agreement). First of all, all the NCNDAs and IMFPAs floating in the market are either fake or invalid and have not been approved by the ICC. Brokers need to understand that our platform administrators have no problem signing the NCNDA. However, it must be real. We only use the original ICC Publication 769 E (ICC Form Contract) which can be purchased here. Any other publicly available NCNDA draft with the ICC logo and mostly called ICC 400/500/600 is useless and invalid. Read the official warning from the ICC here. Many brokers claim to be authorized and then require NCNDA; Beware of these individuals and companies. Real mandates are never afraid of getting scammed because they are protected by the company you extended the mandate to. Second, global oil and gas trading can't just sign the NCNDA with every individual and company that comes claiming to be directly with its principal. Brokers who want to work with ZAHRAT AL ARZ REFINED OIL PRODUCT TRADING L.L.C should be ready with detailed information about their company, website, company profile, registered office address and business phone numbers to start with. Not all emails will be deleted from public dmain servers (gmail, yahoo, hotmail, etc.) except for most of them.
mediator series
We do not work with long chains of brokers. This means that if a broker is approached, they must be direct with their primary boss (the ultimate buyer or the ultimate seller). There can be absolutely no exceptions to this basic rule. Being new to the business is not a bad thing, but we do expect a broker to do their homework before reaching out to us. We receive tons of emails where individuals claim to be "near" to the seller/buyer, but being "near" is not straightforward. We are not here to teach business to everyone who emails us, do your homework. It is always difficult to operate when there is no transparency. We expect you to do your due diligence before sending us any document or inquiry. As moderators, facilitators and traders, we feel it is our corporate responsibility to do proper homework before sending anything to our principals. In short, we can work with you if: 1. You have knowledge of the commodity. 2. You are direct with the final seller/buyer. 3. You are willing to share the principal's details.
DOCUMENTS PROVIDED
DOCUMENTS PROVIDED BY THE BUYER
At the very beginning of the cooperation we require following documents from the Buyer, who should be able to present them: Company profile of the Buyer The name of Signatory entitled to act in the name of the company (with number and copy of his passport) Company Registration Certificate, Directors' Names, Directors' residential address and contact details, Details of Other shareholders of the company, Company's Import License, contact details (fax, website, e-mail, phone, mobile, etc). The name of the bank intended to be used for the transaction, Bank SWIFT code, Account Nummber/IBAN, Bank Officer's Name and contact details Required specifications of the petroleum products, volumes, port of discharge Verification of whether company has already transacted such trading business, and if not then whether the company has achieved a level of qualification required to transact such business. Written statement that Buyer accepts and agrees to Seller's Procedures. If Buyer hasn't closed any similar transactions earlier, it is necessary to state it in initial letter and provide us with a brief proposal of how they are planning to proceed. The Seller / Title Holder expects full transparency from potential Buyers. Transparency and credibility can be proven to some extent by the documents provided by the Buyer at the very beginning. To make the process of buyer's registration easier, we have incorporated the Buying Form and have made it mandatory for all buyers to register on line by filling and submitting this form.
DOCUMENTS PROVIDED BY THE SELLER/ TITLE HOLDER
The way a Seller/Title holder expects full transparency from potential Buyers, the Buyers too want this gesture reciprocated by the Seller/Title Holder. Transparency and credibility can be proved by documents provided by both the Buyer as well as the Seller/ TitleHolder at the very beginning. These documents can be easily verified and can prove that our Seller holds the title to all offered products, export licenses(where necessary) and other relevant documents. This means that throughout the process both Buyer and Seller are obtaining more credible information about each other. Our expert team will remain associated with the entire process from exchange of necessary documents up to the closure of the deal (delivery at the destination port and payment to seller included). Following documents are provided by the Seller/Title Holder to the buyer at different stages of the deal as detailed in the SPA (Sale & Purchase Agreement): POP - Proof of Product (set of documents that serve as a Seller's proof that the product is real) Partial Proof Of Product (PPOP) Documents typically consist of: SGS Inspection Report or equivalent (SGS) Dip Test Analysis Report (DTAR) Certificate of Origin (COO) Tank Storage Receipt (TSR) Full Proof Of Product (Full POP) are sent by Secured Mail to the Buyers Bank / Buyer and typically consist of: Copy of License / permit to export, issued by the department of the ministry of energy (If applicable) Copy of statement of availability of the product Copy of the refinery commitment to produce the product Copy of the pipeline corporation contract to transport the product to the loading port Refinery certificate of product Copy of the port storage agreement (TSR - If applicable) Dip Test Authorization letter (DTA)Copy of SGS or equivalent report (SGS)
DOCUMENTATIONS / TRANSACTION PROCEDURES FOR FOB RUSSIAN PORT / ROTTERDAM PORT
PROCEDURE 1 : BUYER SUBMITS ICPO AND NOTICE OF READINESS (NOR) FROM THEIR TANK FARM OR SHIP The buyer will need to submit an ICPO with a Notice of Readiness (NOR) from their tank farm or ship, along with the relevant documents and forms that will be sent to the Buyer. Once terms represented therein are accepted by the Buyer, pricing discounts will be offered. NOTE: No NOR, No deal. This is a very strict policy instituted by the refineries and must be adhered to. The procedures are as follows: 1) Buyer tenders ICPO (with passport & CP) and POF & NOR to Seller 2) Seller responds with Confirmation Letter of fuel availability; 3) Seller issues a Joint Participation Agreement (JPA); 4) Upon receipt of signed JPA, Seller issues CI; 5) Upon receipt of singed CI, Seller issues DTA; 6) Upon Buyer’s receipt of successful SGS report, Seller arranges fuel transfer to Buyer’s tanks; 7) Upon Buyer confirming complete transfer of fuel, Buyer pays for fuel and Seller issues POP & other relative Title docs. ** PLEASE NOTE: These procedures will adjust slightly based on which seller eventually tenders an offer. Seller conducts its banking transactions via the Merrill Lynch Commodities Trade Desk in New York; your buyer’s banking has to be either in the US or have a corresponding bank in the US. Is your Buyer incorporated in the US or EU and where is their banking transacted? PROCEDURE-2 : BUYER SHOWS PROOF OF STORAGE AGREEMENT (TSA) AT FOB PORT OR IN SHIPPING VESSEL (CPA) 1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) with seller procedures along with Buyer Company Profile and Valid Passport Copy. 2. Seller issues Draft Contract along with Commercial Invoice. Buyer sign and return to seller along with verifiable storage tank coordinates. (Tank Farm Company), Tank Storage Agreement (TSA) not older than 10 days validity from issued date, Seller verifies and approves Buyer’s tank farm coordinates, (TSA). 3. Seller provides following PPOP documents via Email or Fax to Buyer. A. Authorization/Authority to Sell (ATS) B. Product Quality Passport (Dip Test result of Product) C. Letter of Commitment to Supply D. Statement of Product Availability E. Reservoir Storage Receipt. F. Allocation Transaction Passport Code Certificate 4. Within 3 days upon the receipt & verification of the above PPOP documents, Buyer shall provide storage tank that will be suitable and accepted by seller to inject the product. Prior to the leasing of the tank, seller must give approval to buyer before buyer proceeding with the leasing of his appointed tank. 5. Buyer provides verifiable Tank Storage Receipt (TSR), Authorization to Inject (ATI) Document of his rented Shore tank at the Loading port to the seller with injection permit. 6. All parties sign NCNDA/IMFPA. 7. Seller issues (DTA) Dip Test Authorization, Complete Fuel Injection Report from the Pipeline Transportation Company. 8. Upon satisfactory Dip Test Inspection carried out by the buyer / SGS, Seller immediately issues the Title Transfer of Product Ownership / Certificate of Ownership to buyer’s company alongside with all necessary Export Document. 8.1. Buyer releases full cost of the Liftable product via MT103 TT wire transfer to Seller’s nominated Account within 72 hours and Lifting commences. 8.2. Seller pays all intermediaries involved in the transaction as per IMFPA/NCNDA. PROCEDURE-3 (SOME OF OUR SUPPLIERS PROVIDE THIS OPTION FOB (ROTTERDAM & HOUSTON) TERMS AND PROCEDURES / NON NEGOTIABLE 1. Buyer issues ICPO + C/P + Buyer's Passport Copy for Data File (OR) Company License. 2. Seller issues C/I along with POP documents listed below to the Buyer who returns signed and sealed Commercial Invoice (CI) to the seller. TSR (Tank Storage Receipt) Injection Report Unconditional Dip-Test Authorization Letter of Acknowledgement Dip-Test Inspection Schedule ATV 3. Buyer Dip-tests in Seller tank with SGS (or equivalent) officials and receives Fresh SGS Report not less than 24 Hours alongside ATSC (Authorization to Sell and Collect). 4. Within 72 Hours, Buyer provides TSR or Vessel storage for Injection of product into the Buyers hired TSR or Vessel and returns the NCND/IMFPA signed by all parties involved in the buyer's side to the seller. 5. Upon successful injection, Buyer pays total cost of product via MT103. 6. Seller confirms Buyer's payment receipt and both parties’ releases payment to all intermediaries on each side Involved in the transactions. 7. Contract begins with Rolls and Extensions.
DOCUMENTATIONS / TRANSACTION PROCEDURES FOR TRIAL CONTRACT CIF ASWP
1. Buyer issues ICPO with company registration certificate and company profile 2. Seller issues SPA & CI, buyer countersign within 48hrs hours and Returns signed SPA & CI along with (CPA) charter party agreement from any Russian Shipping company. 3. Seller verifies the Buyers nominated shipping company and jointly signs the (CPA) charter party agreement and as well split the freight charges with the buyer. Seller Returns signed CPA along with POP documents: A. Refinery Product Passport, B. Certificate of Origin C. Statement & commitment to supply, D. export license and Registration Certificate 4. According to signed CPA by buyer and seller. Nominated shipping company on confirmation of the both parties freight charges will issue copy of Q88 and NOR “notice of readiness. 5. Subsequent to Q88 and NOR “notice of readiness”. Seller loads the product into the sellers’ vessel and issues all exportations documents to the buyer. Vessel sails to the buyers destination Port. 6. Upon arrival of the vessel at the buyers discharge port, buyer conducts Q&Q. Subsequent to successful Q&Q report at the buyer discharge port. Buyer makes payment for the total product Quantity via MT103 7. Seller pays commissions to mandates and intermediaries within 24hrs after confirmation of the buyers’ payment
DOCUMENTATIONS / TRANSACTION PROCEDURES FOR 12 MONTHS CONTRACT CIF ASWP
1. Buyer sends ICPO to Seller on receipt of Seller's Soft Offer along with company profile. 2. Seller will revert with Draft Contract address to Buyer Company, buyer signs each page of full Draft contract return to Seller along with NCNDA/IMFPA signed by all buyer group with commission structures 3. Upon Seller receipt of signed contract from the buyer, within 72 hours Seller legalizes and registered the signed contract with the ministry of energy Russian Federation. 4. Seller sends to Buyer via Government Secured Courier Service the Registered /Legalized Hard copy Contract along with the Partial POP, the courier expenses shall be borne by the Buyer which is to be stated in the Draft Contract. (A) Certificate of origin. (B) Refinery registration certificate. (C) Statement of product availability. (D) Export license. (E) Commitment to produce the product. (F) Attestation of allocation certificate. (G) Bill of loading /q88. (H) Analytical report equivalent. 5. Buyer’s bank after satisfaction verification on Seller’s Full POP document and 2% PB and hard copies contract, will then issue the operative payment instrument DLC (issued by Third Party) by SWIFT MT700 for the monthly cargo values 6. The SGS inspection will be borne by the buyer at the loading seaport and Buyer CIQ at the Offloading seaport. 7. Shipment commences as per contract. 8. Buyer’s bank upon arrival of the cargo at the discharge port, payment will be made for the Product by the buyer via MT103 100% after CIQ Inspection at Discharge port. 9. Seller will release payments to the intermediaries involved within 48 hours of receiving the Payment for the product from the Buyer's ban Signed.
WARNING LETTER BETWEEN SELLER AND BUYERS
This is a very important message to anyone involved in the commodities industry on the new measures with respect to Buyers and Sellers conducting transactions. From now on, if an ICPO, LOI, RWA, or BCL is issued and the document is not real, true and/or actually verifiably factual, the Seller will be able to inform the FBI, ICC, and INTERPOL. In addition, after a CI is sent to the Buyer, there should be a formal answer to Seller from Buyer in a timely manner in accordance with the agreement between parties. If there is no response from the Buyer in a timely manner, the buying company will be reported to the FBI, ICC and INTERPOL. If this action is repeated by sellers, they too will also be reported for abuse of the NCND, LOI, ICPO, AND RWA OR BCL, and FOR THIS IS NOW A FEDERAL OFFENSE. It is important to transmit this to all clients that work with providers that are members of the ICC, FBI, and other international organizations. From this point forward, the international codes will be strictly enforced to exclude all intruders that send or transmit false information. Those who submit a false NCND/IMFPA, LOI, ICPO, RWA or BCL, or FCO, as well as FALSE PROOF OF PRODUCT (POP), FALSE PROOF OF FUNDS (POF) WILL BE CHARGED WITH A CRIME. This offense went into effect on November 15, 2008 after a meeting was held between the Federal Reserve, European Central Bank, Interpol, Federal Bureau of Investigation and Central Intelligence Agency. The reason for this measurement is to protect the commodities industry which is a fundamental part of the world’s economy. I have read and understood the severity of the warning above and do realize the serious impact that pertains to all oil and other commodities transactions. Penalty clause: Non performed side paid 2% of total contract value agreed
PETROCHEMICAL SUPPLIER OPERATIONS PROCEDURES
The first step is a formal LOI from the buyer and Company Profile (CP). Supplier has conference call with buyer to discuss Price, Procedures & Logistics in detail. Seller issues Soft Corporate Offer (SCO). Buyer issues and releases to Seller Full ICPO with logistics information. Seller will then issue a SPA / Contract Buyer issues Proof of Funds Seller accepts and returns signed ICPO with CI – Commercial Invoice. Buyer sign CI and send it back within 24 hours and returns it to Seller. Seller provides to Buyer the below Partial Proof of Product documents via email: a. Corporate Invoice. b. Authorization to verify (ATV) c. Passport Product Analysis d. Certified Product Specification Sheet e. Certificate of Origin f. Tank Storage Receipt g. Title Ownership Certificate with all PPOP Export Documents h. Refinery Confirmation, Availability and Commitment to Supply Buyer issue after PPOP verification Information by SWIFT MT 199 to seller’s bank that: Buyer’s bank make payment by MT103 after Q&Q – Quality and Control certificate in loading port seller. After SWIFT confirming Seller issue to Buyer a. Dip Test Authorization b. Authorization to Inject. Buyer makes payment MT103 to Seller. After payment verification Seller start injection to Buyer vessel and transfer title holder.
Operations Procedures Alternative Petrochemical Product Supply
1.Seller issues FCO & CP to buyer 2.Buyer issues ICPO & CP. 3.Seller issues Draft Contract with Commercial Invoice to Buyer. Buyer signs and returns both to Seller for final endorsement. 4.Seller charter and sign charter agreement, seller provides vessel information to buyer, so buyer can arrange for port of nominated vessel (i.e: Rotterdam port), if product is in Shore tanks in Russia already, then seller should provide vessel information for loading, which has been cleared. (**Note:- The Buyer will make a final decision to provide Subject Vessels Q88/CPA/ATV) details and require the seller to provide the Shore Tank TAS/TSR/ATI/ATV, immediately after being issued the DTA by the Seller. 5.Seller issues ATBV for Vessel or Shore Tank Receipt and DTA, so SGS (Or equivalent) can conduct a Dip Test Inspection and take samples for Buyer. 6. Buyer pays within (48) hours of successful SGS (Or equivalent) report being issued for the fuel by MT103. 7. Seller issues product title of ownership and all export documentation and transfers Fuel into Buyers name (“And/Or Their Nominees/Assign’s”) and into Buyers approved Shore Tank Storage Facility and/or the Buyer directly into their Vessel and has the Vessel Re-Routed to the Buyers desired destination port i.e. Rotterdam. 8. After both parties sign & seal the original hard-copy contract, buyer will order their bank to issue the Seller a DLC / SBLC within two banking days in the amount of the value of __________ MT/Gallons for the first shipment delivery Quantity in favor of the Seller. 9. Seller sends next shipment to Russian Port, in accordance to the Laycan Schedule shown in the Contract. 10. After successful testing at Loading Port, Buyer pays Seller via MT103/23, and the SBLC MT760 stays in place for next weeks delivery with a minimum validity of 365 Days Plus 1 Day.
Documents Presented For Payment:
10.1 A full set clean, shipped on board, ocean bill of lading, blank endorsed, blank Order, marked “Freight Prepaid” including SBLC SWIFT MT760 No. in three originals and three copies. 10.1 A full set of clean POP. Vessel details, IMO Q88 CPA- Charter Party agreement CPA Fresh SGS from vessel at Loading port DTAOB- Dip test authorization on Board vessel for Rotterdam port waters
DTAOB- Dip Test Authorization On Board Vessel
ATB- Authority to Board ATB B/L cargo manifest Certificate of authenticity Certificate of quality Certificate of quantity Certificate of origin Tanker Ullage receipt Master’s receipt for sample Master receipt for documents Unless otherwise stipulated in this Contract, the terms and conditions of this Contract shall be interpreted in accordance with the “International Rules for the Interpretation of Trade Terms” (INCOTERMS 2000) provided by International Chamber of Commerce, International Chamber Commerce China Committee Publication No.460.
PROOF OF PRODUCT FOR PETROCHEMICAL SUPPLIES
Copy of License to export Copy of Approval to Export Copy of Statement of Availability Vessel details, IMO Q88 CPA- Charter Party agreement Fresh SGS from vessel at loading port, re-make SGS/CIQ Inspection at discharge port DTAOB- Dip test authorization on Board vessel for Rotterdam port waters ATB- Authority to Board B/L cargo manifest Certificate of authenticity Certificate of quality Certificate of quantity Certificate of origin Tanker Ullage receipt Master’s receipt for sample Master receipt for documents Company's Turnover * Below US$ 100 million Between US$ 100 million and US$ 500 million Between US$ 500 million and US$ 1 Billion Over US$ 1 Billion Option two Option three Contact Person's Mobile Phone * Enter Mobile Phone Number Is In-house Documentation Staff Available? * Yes No Message: * Enter your comment here Contact Person * Enter Contact Person's Name here Skype ID Enter Skype ID here Company's Business Address (If not same as Registered Address) * Please enter complete address including suit number, building number or name, street name, sector number, City name, Country name, ZIP/ PIN
