Date 23 March 2012
D6 Virgin Fuel Oil
Fixed USD$2.38 Gross / USD$2.33 Net per Gallon***ALL PRICES ARE SUBJECT TO
CHANGE WITHOUT NOTICE***
GENERAL INFORMATION: Commodity: D6 Virgin Fuel Oil
Quantity: 4,800,000,000 Gallons / 400,000,000 per Month delivered twelve times per
Month
Delivery Time: 10 to 15 (Ten to Fifteen) working days (HOUSTON SEAPORT)
Liftable Amount: 100% Per Lift
Payment Terms: First month shipment paid by MT103 with SBLC posted to
guarantee payment and all other payments by MT103 with SBLC posted for the
balance of payments until the end of the term of the
contract. Paid 100% at Loading Port. Loading Port: Houston (FOB PORT)
Delivery: CIF to Houston ¨C Buyer must show/have logistics capability at Port
of Houston
Commission: 50% Buyer side ¨C 50% Seller side
Inspection: SGS, Intertek or Equivalent
Grade: See Specifications Below
Contract Term: 12 months (with rolls and extensions)
PROCEDURE
1.1 Buyer issues ICPO/LOI to Seller and NCNDA/IMFPA
1.2 Seller issues draft contract. The contract includes Buyer´s/Seller´s detailed
banking information. Along with Commercial Invoice, Refinery allocation documents
showing proof of supply & POP i.e Fast Cut SGS, Intertek report for each delivery!
1.3 Seller/Buyer sign and seal the contract
1.4 Buyer´s Bank via Bank to Bank (SWIFT) issues the Proof of Funds with preadvice
SBLC with Contract Number to Seller´s Bank with a copy to Seller´s Escrow
Attorney for verification.
1.5 Seller, via Bank to Bank (SWIFT) issues Proof of Product with the SBLC
amended, if required, verbiage to Buyer´s Bank. Seller will issue the 2%
Performance Bond to Buyer´s Bank , equivalent to one month Value of the order
(400,000,000 gallons). This P.B will not be operative and will become operative upon
Buyer´s issuing the agreed SBLC. This P.B will be in effect for the entire term of the
contract. Verbiage of the P.B must be accepted by buyer´s Bank.
1.6 Buyer´s Bank Swift's operative SBLC to Seller´s Bank with a copy to the Seller´s
Escrow Attorney for final approval. The SBLC must be Issued and confirmed by a
top 20 Prime World Western Bank as reported in www.bankersalmanac.com .
1.7 After Seller receives from Buyer the Operative SBLC, Seller will immediately
issue Delivery Schedule to Buyer for confirmation/agreement.
1.8 Seller ships Virgin D6 Fuel Oil after Buyer and Seller mutually and finally agree
upon the shipment schedule to Houston Port, USA. Upon arrival at Discharge Port,
Buyer immediately performs Dip Test and upon verification of product immediately
pays via MT/103 to Seller.
1.9 After Seller receives payment from Buyer, Seller within 3 banking days will
transfer commissions to Brokers and Agents.
SPECIFICATIONS:
