FOB (Free On Board) is a term in international commercial law specifying at what

point the seller transfers ownership of the goods to the buyer. Under the Incot
erms 2010 standard published by the International Chamber of Commerce, FOB is on
ly used in non-containerized sea freight, and also defines ownership transfer. T
he owner of the goods is responsible for damage or loss during transport, so the
point of ownership transfer is important.
Cost, insurance and freight (CIF) is a trade term requiring the seller to arrang
e for the carriage of goods by sea to a port of destination, and provide the buy
er with the documents necessary to obtain the goods from the carrier.
A letter of credit (L/C) is a document, typically from a bank (Issuing Bank), as
suring that a seller (Beneficiary) will receive payment up to the amount of the
letter of credit, as long as certain documentary delivery conditions have been m
et. In the event that the buyer (Applicant) is unable to make payment on the pur
chase, the Beneficiary may make a demand for payment on the bank. The bank will
examine the Beneficiary's demand and if it complies with the terms of the letter
of credit, will honor the demand.
A commercial invoice is a document used in foreign trade. It is used as a custom
s declaration provided by the person or corporation that is exporting an item ac
ross international borders.[1] Although there is no standard format, the documen
t must include a few specific pieces of information such as the parties involved
in the shipping transaction, the goods being transported, the country of manufa
cture, and the Harmonized System codes for those goods. A commercial invoice mus
t also include a statement certifying that the invoice is true, and a signature.
https://en.wikipedia.org/wiki/Commercial_invoice
ARDLC
AUTO-REVOLVING DOCUMENTARY LETTER OF CREDIT: Reserve money for the payment
of any contract, if the seller fulfill your part in the period (form of payment
). Authorization to give buyer for confirmation of funds from the LOI for payment
of any contract.
Single L/C that covers multiple-shipments over a long period. Instead of arrangi
ng a new L/C for each separate shipment, the buyer establishes a L/C that revolv
es either in value (a fixed amount is available which is replenished when exhaus
ted) or in time (an amount is available in fixed installments over a period such
as week, month, or year). L/Cs revolving in time are of two types: in the cumul
ative type, the sum unutilized in a period is carried over to be utilized in the
next period; whereas in the non-cumulative type, it is not carried over.
A standby letter of credit (SLOC/SBLC) is a guarantee of payment issued by a ban
k on behalf of a client that is used as "payment of last resort" should the clie
nt fail to fulfill a contractual commitment with a third party.
These are Facts:
Refineries cannot solicit, it is against the law
Before you can Trade It you must Own It .
Production Refinery Contracts (allocations) First Market Price do not have POP Up-F
ront .
Surplus Refinery stock does not exist unless some one fails to perform, the buye
r. In that event those that already have contracts of production will receive fi
rst notice of availability of that stock on those rare occasions and may be perm
itted to CI/Dip&Pay or Dip&Pay. This is rare.
Most of the CI/Dip&Pay or Dip&Pay offers that are circulated on the Net are usua
lly fake and/or fraudulent from start to finish, I would say around 99.9% of the
m ( on the secondary market ). Why waste your time???
On the other hand, if they are not fake, and you do not know the transactional b
ank for the deal you will never see a penny.

There is a difference between buying fuel and trading fuel or other petroleum produc
ts and/or crude oils. The proper terms in the Industry for buying fuel is SPOT o
r Contract of refinery production First Market Price . OR buying and/or trading in
the Secondary Market .
Regardless of what market you play the proper term in the Industry for Having Buy
ers would be you have a buyer for the product OR if you have a Trade Desk then you
would have Exit Buyers .
Regardless of #8, you still need to Buy It , therefore when you can bring a buyer f
orward let it be known: All fuels are available.
If you want it CI/Dip & Pay or Dip & Pay on the Secondary Market, then a real pl
ayer will bring forth a POF first to qualify besides CP, etc.
A Trade Desk flips to exit buyers, but must have the funds to buy it first , all else
is illegal, period. Therefore, once you own it, then you can sell it.
Are there certain laws you have to follow in International Global Trading?
The laws are UCP600, Incoterms 2000 and the ICC Paris. You want to make sure wha
tever you write and whatever documents you sign these laws are mentioned. These
laws are applicable to all trading countries in the world including the US. Henc
e, If your payment instrument is a DLC then you would want to state in your docu
ment that your financial instrument is a Documentary Letter of Credit defined un
der UCP600 procedures. This prevents any misunderstanding of the type of payment
being offered. Also, this removes any grief that could prevail without the UCP6
00 procedures.
What is a soft offer?
There is no such thing as a "SOFT OFFER". A "Quote/Offer" is a soft offer. A quo
te need only to be confirmed. Once confirmed, a full offer is advised. Once acce
pted the contract is advised.
Isn't the buyer with the money the most important thing in securing an oil deal?
Not understanding why the supplier needs to be secured first can get an intermed
iary in a lot of trouble.
If an end buyer issues a DLC (Documentary Letter of Credit) to your account (the
controlling intermediary) under the impression that you have a supplier (becaus
e of quotes you received from another intermediary seller) and the intermediary
seller really did not have a supplier then you can and will be charged on fraud . T
he end buyer went through an expense setting up the DLC and in return was defrau
ded by you. It is without say, you are in a serious situation.
So secure the supplier first, find the buyer second. Once you get a quote from t
he person who is in actual possession of the product (supplier) then seek the bu
yer.
Is there a difference in a "RFQ" (Request for Quote) from an End Buyer to a Buye
r/Seller as opposed to a "RFQ" from the Buyer/Seller to the Supplier?
Yes, there is a difference between the End Buyers RFQ and the Buyer/Sellers RFQ.
The RFQ from the End Buyer to the Buyer/Seller is a request for a quote to buy
the product. The RFQ from the Buyer/Seller to the Supplier is a request for a qu
ote to sell the Supplier s product. This is why an intermediary cannot give an "IC
PO" to a supplier. The intermediary is not purchasing the product. Only the pers
on who is taking possession of the goods is purchasing the product. The intermed
iary only takes possession of the Title not the product. The intermediary deals
in documents only not the product itself. The "Quote from the Supplier is the fi
rst most important document. Without a quote from a real supplier you have nothi
ng to start a deal. Supplier first, buyer 2nd. Here is a small example of a RFQ
transaction:... Your neighbor Joe has a sports car in his driveway for sale and
you say to him ("Hey Joe how much do you want for your sports car; I think I kno
w someone who might want it.) You have just requested for quote from Joe to sell
the car, not to buy. Now you advertise that sports car and a potential buyer as
ks, how much for the car?. The buyer is requesting in here for a quote to buy.

If I have secured a supplier should I ask for a mandateship?

No. A mandate to a supplier is an agent who acts on behalf of a disclosed principa
l. A mandate is not just given to a person; (as implied so often). It has to be
earned, after a strong relationship has been built from many years of dealing wi
th a principle supplier . The mandate agent can only act under the instructions of
their principle (supplier) who must disclose to end buyer immediately when the o
ffer is made to an end buyer; and in closing the deal, the mandate agent would be
paid a by the supplier is often the end result. The mandate agent gets no commis
sion from the buyer s side of the deal.
A mandate agent has to close many deals in order to get any reasonable commissio
n amount from the supplier. Many intermediaries claim mandateship because they t
hink being next to the supplier as a mandate agent is putting them in a great po
sition. This is incorrect. An intermediary in a chain deal will make a great dea
l more money than a mandate agent.
The best position in a deal is the controlling buyer/seller intermediary . The buye
r/sell must know procedures really well and act in the best interest of all pari
ties on both sides of the deal.
Forget about becoming a mandate holder of a principal as it is not a feasible po
sition to hold if you are looking to make the big money. Learn the proper proced
ures, rules and policies and become the legally defined Buyer/seller.
What is really POP?
P.O.P as often seen on the Internet is basically Proof of Product. Intermediarie
s cannot give POP if they have never even seen the goods; and even if one goes t
o the supplier's country and looks at the goods he is going to purchase, there i
s no guarantee that the goods he has seen, will not be sold to someone else tomo
rrow. A Proof of Product ('POP') is often requested by buyers or intermediaries
who believe it will give them some guarantee of the existence of the product and
ability of the supplier to deliver. Many POPs produced are fake. The POP offers
no proof at all, because once a POP has been drafted, it is automatically out o
f date. The product could have been sold to another buyer and no longer exists.
If an end Buyer were dealing with a supplier, anything can be suggested especial
ly in matters of POP. But no matter what the End buyer demands, he will still ne
ed to produce the financial instrument to pay for the goods before a supplier wi
ll even consider making any effort in getting goods ready for delivery. When an
end buyer asks a buyer/seller he needs a POP before financial instrument is in p
lace, he is really saying : Please tell me who your disclosed principal is so I
can circumvent you. POP really does not really give any proof, but it will give
the opportunity for circumvention.
What does NCND or NCNDA mean?
NCNDA stands for (Non Circumvention, Non Disclosure Agreement.) This document is
not worth the paper it is written on. If you have your name on this document an
d get circumvented, do you have hundreds of thousands of dollars to pay to take
this through the international courts? This is a document that is very hard to e
nforce. Only a misinformed or unskilled intermediary/broker would send you a NCN
DA.
Is the NCNDA any protection for an intermediary?
Not even close to protection. The NCND is totally useless piece of paper unless
the product is in your own country. Internationally, this documents floating aro
und the Internet is impossible to enforce in a court of law.
What does FPA, IFPA or IMFPA mean?
IMFPA stands for (Irrevocable Master Fee Protection Agreement.) The FPA (Fee Pro
tection Agreement) and NCND are usually attached to each other. FPA / NCND is no

t the proper way to protect intermediary/broker s interests.

Beware if someone claims to be the Mandate, Supplier, End Buyer while at the sam
e time requesting FPA and NCND. A real mandate never fears circumvention as he i
s protected by the one who extended the mandate to him. A real supplier and a re
al End Buyer don t get commissions.
Does the MFPA (Masters Fee Protection Agreement) enforce payment of commission?
The flawed document MFPA does not protect a commission payment. There are docume
nts under International Law that can protect your commission but the MFPA is not
one of them.
Please help me understand the real meaning of LOI and ICPO
LOI: This term is used out on the Internet by inexperienced traders as a Letter o
f Intent which is incorrect. LOI mean Letter of Indemnity. Inexperience intermediary
seller who is claiming to be the supplier will ask for a Letter of Intent to purch
ase goods. You as an intermediary cannot give a letter of intent to buy goods as
your intentions are not to buy goods but to sell the "Title" of the goods. So y
our letter of intent to buy goods would be a lie. Giving a Letter of Intent only
means Yes I intent to buy the goods but I can change my mind anytime. A letter o
f Intent is not a binding contract. The Letter of Intent is a total waste of tim
e on a worthless piece of paper. An intermediary can only give to the supplier a
n Offer which is to SELL the Title of the suppliers goods.
ICPO: This term means Irrevocable Corporate Purchase Offer. This term will not w
ork for the intermediary. An ICPO may work for the end buyer to the supplier dea
ling with each other but not for an intermediary. An intermediary works with dif
ferent applications. Once again, intermediaries cannot irrevocably offer to purch
ase the goods when not purchasing. They are offering to sell the Title to the said
goods, not purchase and take possession of goods. If any intermediary offers you
an ICPO you know they are inexperienced or trying to scam you. Only the end buy
er can offer such a document.
The intermediary should first ask the supplier for a RFQ (Request for Quote) not i
ssue a (LOI). The next document is an Offer for you as a buyer/seller intermediary
o consider from the supplier ( Offer to Sell ) Not (ICPO). This is all that is neede
d (Quote, Offer). Not understanding the proper procedures and documents for an i
ntermediary one of two things will happen. 1. The deal will collapse, and/or 2.
You as an intermediary will be circumvented. LEARN, STUDY and UNDERSTAND.
Only sometimes these flawed terms and documents will work between an end buyer a
nd a real supplier. Not very often but sometimes, as anything can be implied bet
ween end buyer and supplier. For the intermediary, these terms and documents wil
l NEVER work. In the International Trading business, the only thing needed is a Q
uote Offer
Contract Payments and Delivery of goods .
What does BCL mean?
This stands for Bank Comfort Letter. It is a letter provided by the buyer s bank t
o confirm that the buyer has sufficient funds to carry out the transaction. The
intermediary can't give a BCL because intermediaries does not have the money in
their bank account. If you get a BLC from your end buyer and hand it over to the
supplier you have just lost the deal. They will deal directly with each other a
nd you are out. An intermediary cannot deal with a BCL. However it may apply to
a direct buyer doing business with an end Supplier on some occasion - but cannot
simply be applied when intermediaries such as Buyer/Seller are involved.
What does RWA mean?
RWA means (Ready Willing and Financially Able.) Like the BCL the same applies to
RWA. ( Look I have the money to buy"- IT DOES NOT MEAN I WILL BUY) If an intermed
iary asks for a RWA or BCL from a Buyer and the Buyer gives a Genuine RWA/BCL, t

hen the intermediary has to continue with the deal which usually means disclosin
g the supplier to the buyers side - and here is your problem -The supplier is di
sclosed and the buyer changes his mind, then returns to the supplier at a later
time and circumvents everyone in the group. The buyer just saved himself million
s of dollars.
What does EXW stand for and mean?
EXW stands for "Ex-Work s and means The buyer pays for all costs of transport from
pickup at the suppliers premises. "e.g. EXW Clearwater Florida." This means the
supplier has sold off the warehouse floor and at warehouse prices. The buyer ma
kes the arrangements to have it picked up from the warehouse or another place. (
Wherever the supplier says the product will be. The Supplier or Buyer/seller onl
y have to provide the goods as per contract at a designated place and nothing mo
re. The contracted driver gives a pickup receipt to supplier and it is this rece
ipt that allows the supplier to collect on the DLC . If the buyer/seller or supp
lier is going to deliver the goods to the dock, then that's not ex works but FAS
(free alongside ship) The price would now be higher.
What does FAS mean?
FAS means (Free Alongside Ship)) (The supplier pays costs only to the port of lo
ading) . Loading and shipment are then the responsibility of the buyer. Also mea
ns that once you have the goods on the docks on a designated date , then you can
collect on your DLC the moment the goods are placed ready near shore Crane tack
le for lifting on board ship- If the ship as ordered by the buyer is late- That'
s the buyers problem-You get paid once delivery "FAS" has applied as per Incoter
ms delivery rules- However the supplier must clear the goods for export. e.g. "F
AS Port Canavera, Florida". Your custom receipt is presented to your bank to app
ly collection on the DLC.
What does a DLC mean in the international trading business?
A Documentary Letter of Credit (DLC) is a type of financial instrument used to p
ay for goods being ordered. The DLC has terms and conditions applied. The end bu
yer issues a DLC to supplier and if all conditions are met the supplier can obta
in collection of funds. By default a DLC becomes an irrevocable Letter of Credit
.
What is the best form of DLC?
The best form of DLC issuance are confirmed and irrevocable. The CIDLC is guaran
teed by the issuing bank and not the buyer. In other words the bank is saying to
the supplier "we don't care what the end buyer says, you the seller have met th
e condition of the CIDLC, we the bank will guarantee payment for the goods order
ed".
Should I as intermediary accept a revocable letter of credit from the buyer for
payment of goods?
The intermediary should not accept a Revocable Letter of Credit as it can be mod
ified or even canceled by the buyer without notice to the intermediary. The paym
ent instrument should be A Pre Advised "IRREVOCABLE" DLC. The operative word her
e is "IRREVOCABLE". Once the conditions of the Pre Advise has been met the DLC b
ecomes active and the buyer cannot change his mind and cancel the DLC. With a re
vocable DLC he can.
You have said in the past that a TDLC (Transferable Documentary Letter of Credit
) can only be transferred once. If that is the case, then if it is transferred t
o me from the end buyer. How do I get to transfer it to the supplier? Please exp
lain the mechanics of this TDLC.
The end buyer applies for a "TDLC" to pay for purchased goods to you the controll
ing buyer/seller intermediary as the beneficiary. The Transferable Letter of Cred
it is not transferred to your account, it is issued as a Transferable DLC by the
end buyer s bank to your bank account. You being the beneficiary of the TDLC can

transfer the said amount of suppliers invoice to the suppliers bank. This is one
transfer. The balance of the TDLC is left in your account as commission for you
and the other intermediary who assisted you on BOTH SIDES. Once it is transferr
ed to the suppliers bank it cannot be transferred again. One transfer only.
Note: The transferable DLC may be transferred to more than one supplier but can
only be transferred once. Hence, one supplier gets xx% of the TDLC and another s
upplier gets yy% of the same TDLC but once transferred to the suppliers it canno
t be transferred again.
What does Swift MT 760 mean?
SWIFT (Society for Worldwide Interbank Financial Telecommunication) MT (Message
Type) and the numbers indicates one of the many standardized message formats whi
ch comprise the SWIFT messaging system. These types of payment are internal bank
applications for transferring money- Intermediaries cannot use such application
s. When a bank issues an MT 760 it practically issues a payment guarantee, on be
half of a customer, typically having first blocked the same amount of funds in t
he customer's account. Impossible incorrect flawed applications. Intermediaries
can only use Non cumulative revolving UCP600 Bank issued Irrevocable Documentary
Letter of Credits (PA IDLC) when attempting to close a deal.
What does this mean? Branches of a bank in different countries are considered to
be separate banks. Am I to understand that branches of a bank in the same count
ry are considered to be the same bank?
Branches of particular banks are able to perform different functions as perceive
d by the UCP600 provided they are based in different countries. If a bank in Lon
don England issues a Letter of Credit, its branch in Manchester England cannot c
onfirm it as they are both in the same county and therefore are considered to be
the same bank. If the same bank in London England issues a letter of credit and
its office in Dubai were requested to add its confirmation then this is accepta
ble under UCP600 Article 3 (but not necessarily acceptable to the beneficiary) a
s the branches are in different countries.
My buyer wants a sample first before he enters into agreement with me. Should I
send it to him?. This could be very expensive and then he might change his mind.
The buyer is being very inventive. (suppliers hate this). The buyer may be looki
ng to reject the goods even if they perfectly match the shipped goods. This can
easily happen. Any sample given overrides any specs in the contracts. In other w
ords, if the goods arrive different even just a little from the sample, the good
s can be rejected at port. A buyer could create this problem to get the goods at
a lower price. Buyers know what they want. SGS does the analytical inspection o
f the goods and advises exactly what is being shipped. The safest way to go is N
o Samples.
I have been sent an out dated SGS certificate from a company to prove to me that
they have done business in the oil industry before. Is there a way I can check
to see if this certificate is real?
To authenticate a SGS certificate you may contact SGS by telephone (+41 22 739 9
1 11) or fax them the certificate to authenticate at (+41 22 729 98 86). They al
so will offer to validate a certificate online . It is impossible to forge a SGS
certificate as the certificate number can be checked with just a phone call. Yo
u can also email them through their Information Request Page at http://www.sgs.c
om/solution_finder/information_request.htm
I was told that the Bank Performance Guarantee from the supplier was what activate
d the Letter of Credit from the buyer. Is this correct? Also when the Letter of
Credit is activated does this mean it has turned into actual money?
NO, a Performance Guarantee does not activate the L/C and NO, activation of the
L/C does not mean money.

A Bank Performance Guarantee is issued in the form of a Stand by Letter of Credi

t defined by and subject to the rules of ISP98 (International Standby Practice)
by the suppliers bank as a guarantee of delivery to the buyers bank. This is a c
omplete separate entity to the Pre Advised Documentary Letter of Credit.
The Pre Advised Transferable Documentary Letter of Credit is issued by a prime T
op World Bank Per UCP600 banking laws by the buyer for purchase of goods and is
activated only when the Pre Advise conditions are met. The conditions in the Pre
Advise L/C is not the Performance Guarantee.
Activation of a letter of credit is not money in the suppliers bank account. Act
ivation of the L/C means the buyer who issued the L/C cannot change his mind and
void the Letter of Credit unless fraud is proven. The active Letter of Credit t
urns into money only when the delivery documents are presented to the bank and t
he end buyer.
The L/C is always issued first by the buyer and the Bank Performance Guarantee i
s issued by the supplier second.
Note: Sometimes instead of a Bank Guarantee the supplier offers a LDD (Late Delive
ry Discount) applied as a credit of XX% to favor of the end buyer on the Sellers
invoice if delivery fails to be made on time. The buyer sometimes sees the "LDD
" as the favorable choice of delivery guarantee as the % value offered on the LD
D is higher than the % value of the SLC.
The supplier offered us a 2% Performance Bond for the guarantee of the delivery
of the good. My question is: What is the difference between a Performance Bond a
nd a Performance Guarantee?
The Performance Bond (PB) is a guarantee that follows the goods to the destinati
on port in where if the goods can be rejected for good reason, then applying on
the collection of P.B supported by a B.G. Both the Performance Guarantee and the
Performance bond are "based" on performance yet both are different types of per
formance assurance.
A Performance Bond is for a deal that works for the supplier in possession of go
ods and an end buyer taking possession of goods. The delivery of title documents
cannot be secured so an intermediary is not to enter in such deals.
A Performance Guarantee is a guarantee given by the seller s bank to the buyers ba
nk in the form of an unconditional Stand-By letter of Credit. If the delivery fa
ils and the delivery documents are not presented to the bank on the date specifi
ed in the contract, the bank just automatically pays buyer bank the Performance
Guarantee unconditionally, No questions asked.
So the Intermediary must ask the seller to issue a Performance Guarantee (PG) of
2% (Not a Performance Bond) of the total cost as defined in contract, issued as
unconditional as per Stand-by Letter of Credit procedures defined under UCP600
banking rules, issued within 3 days of buyers L/C being transferred.
If the end buyer collects on the "2% PG" (Performance Guarantee) for non-deliver
y of goods, how does the intermediary who is controlling the deal gets compensat
ed for his time and effort?
You as the buyer/seller (controlling intermediary) offer to the end buyer a less
er value to what you obtained from the supplier or you offer no "P.G." to the en
d buyer even though you still get the "P.G." from the supplier.
Does the supplier or the end buyer order the vessel to deliver the purchased goo
ds?
In a FOB deal the End Buyer order/charters the vessel. In a CIF or CFR deal the
Supplier secures the vessel. Even though the vessel is ordered by the supplier,

the buyer is still responsible for the cost of vessel which is on the supplier s i
nvoice.
If one sees the "CIF ASWP" why would you suspect it to be a scam?
CIF ASWP stands for Cost Insurance and Freight to Any Safe World Port. This is a
flawed term which does NOT exist in the real market. The CIF part of the term i
s correct, the ASWP is wrong. There is a simple logic behind this. The shipment
cost cannot be the same to ANY World s Port! For example the CIF (Cost Insurance a
nd Freight) price to ship sugar from Brazil to China would be double compared to
if it was shipped to South Africa. This could make it over half a million dolla
rs price difference. No buyer would be willing to pay extra just to get an easily
quoted CIF ASWP price.
What does NNPC/JVC stand for and mean?
NNPC/JVC stands for- Nigeria National Petroleum Company / Joint Venture Company.
NNPC/JVC is often seen on a fraudulent Sales and Purchase Agreement asking for
banking information. The NNPC is in joint venture with many companies like Shell
, Mobil, Elf, Chevron, Texaco, Agif which means they are doing business with the
se companies. The NNPC are not in partnership with these companies. The NNPC can
not offer a sales and purchase agreement to any intermediary, company or anyone
implying that the companies they are doing business with is part of a sales and
purchase agreement. Anyone offering such a sales and purchase agreement does not
have oil or even access to it.
If the NNPC and Shell or Mobil or any other company are involved in any sales an
d purchase agreement with a principal buyer (which is very doubtful) it has to b
e specifically stated on the sales and purchase agreement. No Sales and Purchase
Agreement can be generic as being offered on the Internet.
How can I figure out the distance by water from the Bonny Port in Nigeria to the
Port in the Bahamas?
Check out www.distances.com
Bottom Line . It is a fact that there is so much misinformed information going on
out there in the international oil trading world that it is hard to know where t
o begin.
There are three important pieces of information we think one needs to be particu
larly aware of.
Shell Screen London
NNPC (Nigerian National Petroleum Company) Lloyds of London
Shell Screen London There is no such thing. There is no website, there is no compa
ny. The "Shell Screen" is a complete lie. Regardless of claims, there is no "She
ll Screen Company" in London run by Lloyds of London or the NNPC, (Nigerian Nati
onal Petroleum Company) or anyone else. The Shell Screen does not exist, it is a c
omplete lie
Lloyds of London Many misunderstand what Lloyds of London really is. Lloyd's is t
he world's leading British insurance market place providing specialist insurance
services (underwriters) to high risk businesses in over 200* countries and terr
itories. Over 300 years ago Lloyd s started out in Edward Lloyd s Coffee House in th
e city of London, UK, ( http://www.solarnavigator.net/lloyds_of_london.htm ) as
a place where people with exposure to risks, could meet people with capital who,
for a price, would agree to insure them. The Society of Lloyds was incorporated
by 1871. By the turn of the century the traditional club of marine underwriters
had become an international market place for high insurance risks of almost eve
ry type. We recommend that you visit the Lloyds web site www.lloyds.com which wi
ll provide you with more information of the many services and the Underwriters,
that Lloyd s of London provide today. Posting or tracking vessels is not one of th
eir services. Many companies will track vessel for a fee, one of them is http://
www.lloydsmiu.com which has no connection with Lloyds of London. http://www.hapa

g-lloyd.com/en/home.html is a large liner shipping company with over 130 ships,

again no connection with the famous Lloyds of London.
NNPC (Nigerian National Petroleum Company) (Government owned and operated) NNPC
was established in April 1, 1977. The NNPC by law MANAGES the joint venture betw
een the Nigerian federal government and a number of foreign multinational corpor
ations, which include Royal Dutch Shell, ExxonMobil, Agip, Total, Fina, Elf, Che
vron, and Texaco.
Through collaboration with these companies, the Nigerian government conducts pet
roleum exploration and development. The NNPC has sole responsibility for upstrea
m (searching for and the recovery and production of crude oil) and downstream (t
he refining of crude oil, the selling and distribution of natural gas and produc
ts derived from crude oil) developments, and is also in control of regulating an
d supervising the oil industry on behalf of the Nigerian Government.
According to the Nigerian constitution, all minerals, gas, and oil the country p
ossesses are legally the property of the Nigerian federal government which is ma
naged by the NNPC. In 1988 the NNPC was commercialized into 12 strategic busines
s units, covering the entire oil industry operations, which is, exploration and
production, gas development, refining, distribution, petrochemicals, engineering
, and commercial investments. In addition to the 12 business units managed by th
e NNPC, the oil industry is also regulated by the Department of Petroleum Resour
ces (DPR).
The DPR ensures compliance with industry regulations; processes applications for
licenses, leases and permits, establishes and enforces environmental regulation
s. The DPR, and NAPIMS (National Petroleum Investment Management Services) one o
f the 12 strategic business units managed by NNPC, plays a very crucial role in
the day to day activities throughout the industry. Requirements for Buying/Selli
ng Marketing Crude Oil. Those who wish to buy and sell Nigerian crude oil must d
emonstrate their commitment to the oil industry through allocation of adequate r
esources of capital, equipment and manpower. Those who are eligible to apply for
an allocation must be an upstream investor who has acquired an oil prospecting
license and has completed a minimum amount of work on the concession.
Only local refineries, international refineries and international recognized oil
& gas traders may apply for an OPL (Oil Prospecting License.) (OPL is a license
granted over an area to a company by the Government for the company to conduct
exploration activities. Once a commercial quantity of petroleum or gas is locate
d in an OPL (Oil Prospecting License), an OML (Oil Mining Lease) may be granted
to the holder of the OPL to carry out Production activities only in the area cov
ered by the OPL license. Usually, the area covered by a single OML is only a por
tion of the preexisting OPL.
Here s how it works. The players are:
The Nigerian Government, (who owns all the oil in Nigeria) NNPC (Nigerian Nation
al Petroleum Company) negotiates the signature bonuses with the bidders NPDC (Ni
gerian Petroleum Development Company) an E&P(Exploration and Production) Unit al
so partnership with Agip (a retail gas and diesel Co.) DPR (Department of Petrol
eum Resources) sets the rules and issues the licenses.
The Nigerian Government offers block (an assigned area for exploration) to be bi
d upon by:
An end user who owns a refinery and a sales outlet.
A world recognized oil trade
r with proof of handling large volume of crude oil in the last three years.
Appl
icants must have a minimum turnover of no less than $100 million and a net worth
of no less than $40 million The applicant must invest in opportunities that are
in the oil industry or gas sector.
Applicants are required to post a $1 million
performance guarantee through a first class Nigerian bank in addition to the re

gular crude oil contract provisions.

Each block is assigned an Oil Prospecting License (OPL) number Ex:
L 244 which participating oil companies can bid upon.

OPL 250

OPL 242

If awarded that block and after oil is located an Oil Mining Lease (OML) is gran
ted to the holder of the OPL to carry out production activities.
High bidder is not always awarded the winning choice block.
Most importantly, and for all those of you who don t know, NNPC does not sell crud
e oil. They only manage the sales of Nigerian oil. Unscrupulous individuals clai
ming to be officials or agents, directors, CEO of oil companies have extorted hu
ge sums of money from foreigners for fraudulent crude oil allocation papers. By
the same token, there is nothing like a Presidential, Task Force , Ministerial,
Diplomatic, International Agents or any other form of special or privileged allo
cation, which can be peddled by hawkers, companies or anyone. The NNPC has not g
iven any mandate to anyone person or persons to negotiate the sale of Nigerian C
rude oil on its behalf.
The real allocations of oil products are quickly marketed and contracted out to
fulfill existing real demand among major oil companies (Shell, ExxonMobil, Chevr
on,, Texaco), this demand of the major oil companies outweighs the oil supply of
Nigeria.
We warn you one more time against having any dealings with anyone claiming to ha
ve access to special allocation. If you are contacted with such an offer you can
verify it directly with the NNPC Group General Manager at +234 9 234 8200.
There is no official or easy entry to this market on a secondary level. In fact,
it is astronomically impossible to enter this market as a non major firm on any
level .. One can safely regard any BLCO offer as a pure and simple myth.
To close .An intermediary needs to learn the proper procedures or will end up suff
ering consequences.
The Reasons:
If the proper procedures are not followed the deal will never close. Or even get
to the acceptance of the offer from the end buyer. 2. If an intermediary use th
e flawed LOI/ BCL/ ICPO/ POP/ MPA/ NCND/ PB/ ASWP documents, they are an untrain
ed trader that has been misguided by another unskilled and untrained trader.
Note: A trader using the above flawed ambiguous procedures is wasting time on de
als that simply cannot be closed. The worst part about this is traders do not un
derstand why it is not working and never gets enough training to correct their m
istakes.
Conclusion:
Every industry and every country has their own standards and different rules and
regulations that govern trading in their jurisdiction. Buyers, Sellers, Brokers
, Intermediaries all need to educate themselves in the proper legal procedures f
or their industry and location.
In any business though, knowledge is power. In the international trading busines
s, knowledge is survival. Not knowing the proper procedures, you will not surviv
e and you will never close a deal.
We look forward to doing business with you and to continue being your resource f
or deals, capital, relationships and advice. Your feedback as always is greatly
appreciated.

OP

Thanks much for your consideration.

NNPC releases list of 36 beneficiaries
Meanwhile the provisional names of the 36 companies that were awarded contracts
to lift crude oil by the federal government through the Nigerian National Petrol
eum Corporation (NNPC) from June 1, 2014 to May 31, 2015 have been revealed.
Although the list is not final as more companies are expected to make the final
list, it signals a paradigm shift to indigenous companies as against previous pr
eference for foreign companies, according to the NNPC.
The list comprises 21 indigenous companies; eight international oil traders; two
foreign refineries; two subsidiaries of the NNPC and three countries, represent
ed by their state-owned National Oil Companies (NOCs).
According to the document, 21 indigenous companies were awarded contracts to lif
t a total of 630,000 barrels per day of crude oil during the one-year period, re
presenting 57 per cent of the 1,179,000 barrels per day awarded to the 38 benefi
ciaries.
The list also showed that eight international oil traders got an allocation of 2
40,000 barrels per day, representing 20.5 per cent of the whole allocations, whi
le two foreign refineries got 60,000 barrels per day, or 5.1 per cent of the all
ocations.
Two subsidiaries of the NNPC were awarded contracts to lift 90,000 barrels per d
ay, which translates to 7.7 per cent, while three countries, represented by thei
r NOCs also got 90,000barrels per day.
A breakdown of the allocations showed that each of the 21 indigenous traders got
an allocation of 30,000 barrels per day.
These companies include A-Z Petroleum Products Limited; Hyde Energy Nigeria Limi
ted; DK Global Energy Resources Limited; Aiteo Energy Resources,; Avidor Oil and
Gas Company Limited; Azenith Energy Resource Limited; Barbados Oil and Gas Serv
ices Limited; Century Energy Services Limited and Crudex International Limited.
Other beneficiaries include Eterna Plc; Bono Energy; Taleveras Limited; Mezcor S
A; Sahara Energy Resources Limited; Tridax Energy SA and Tempo Energy SA.
The rest include Ontario Trading SA; Voyage Oil & Gas Limited; Elektron Petroleu
m Energy and Mining Limited; Ibeto Petrochemical Industries Limited and Emo Oil
and Petrochemical Company. Also included in the list are eight international oil
traders, which got an allocation of 30,000 barrels per day of crude oil each.
They include Addax Energy SA; Elan Oil Limited; Mercuria Energy Trading SA; Spri
ngfield Ashburton Limited; Petro/Ietnam Oil Corporation (PV Oil); Sullum Voe; Vi
tol SA and Delaney. Two foreign refineries -Fujairah Refinery Limited and PTT Pu
blic Company Limited received an allocation of 30,000 barrels per day each while
two subsidiaries of the NNPC - Duke Oil and Calson were awarded 30,000 barrels
per day each.
The NNPC also entered into bilateral commitments with the Republic of Malawi; SI
NOPEC of China and Indian Oil Corporation Limited, with each of these entities r
eceiving 30,000 barrels per day.
NNPC Allocation Verifiaction
What is a POP? What is in a POP? What do we verify? included in a standard POP i

s:
Proof of product/Cargo Ref # Export permit license # Bulk approved MPR # Quantit
y (per quarter) Sometimes the stem number I call the above a partial POP because
these numbers are not coming as an allocation or ATS letter on NNPC letterhead
they are listed in the contract.
When you get the full letter you can often disqualify it right off just by looki
ng closely for evidence of tampering but a partial POP requires a visit into the
NNPC.
Off-OPEC POPs are only verifiable at the NNPC offices in Abuja after the vessel
is loaded. OPEC allocations are verifiable anywhere in the world via the Shell S
creen.
Now here is the sad truth our off-OPEC buyers are constantly asking for ATS, all
ocation letters and POP. The latter two of these POP and Allocation documentatio
n are not verifiable anywhere in the world with any degree of consistency.
We have found the only pathway to verify a NNPC Approved Fiduciary s ATS letter. T
hat is at the offshore loading platform, the Bonny Terminal. AS OF MID JANUARY 2
014 THE TERMINAL IS NO LONGER ALLOWING VISITORS, CITING TERRORIST THREATS
This is a secure facility and requires an appointment set by the seller. The NNP
C staff at the terminal do not want to verify unless the buyer has a signed cont
ract. This is a secure facility, guarded by the military and no one can just vis
it. You have to go with the seller s rep, have a contract signed, a passport and a
n introduction letter from the buyer to get in the door and get the verification
done.
There are three types of sellers that are selling off-OPEC Nigerian crude. Regis
tered lifters, Allotment holders and NNPC Approved Fiduciaries. To get an allotm
ent requires the seller to bring in the buyers POF, so almost all Allotment hold
ers product is already sold. Allotment holders get an allocation award letter.
There is no trustworthy way to verify an allocation. (Nov 2012) Not in London or
Abuja. I will give you several reasons why. We took our allocation information
in from six sellers to the offices (5th floor block B) towers in Abuja. Two of o
ur sellers were already delivering oil to buyers. One of those was direct from t
he NNPC account issued out of the port Harcourt NNPC offices thru the terminal m
anaged by Shell Oil. They told us that none of the documents verified BUT that t
hey would be happy to introduce us to a real seller that they know of.
You can not even verify allocations at the main office because money talks loude
r than honesty.
Now there are some things you need to know about off-OPEC allocations (resellers
= Allotment Holders) They are issued direct by the NNPC only. They list the amou
nt of oil and the source from which that oil is lifted from and they also list t
he size of the source. Allotment holders have a fixed amount of oil allotted usu
ally for a year on a quarterly allotment. The largest allotment I have seen was
for 16 million barrels per quarter. Once their allotment is sold they can not ex
tend or increase their allotment without permission. We have had an allotment ho
lder and registered lifter come to us to get more BLCO because the NNPC would no
t extend their allotment.
Official documents are printed on the NNPC letterhead (it has an NNPC watermark
under the typing) and they are time sensitive and cost money. So a seller (allot
tee) might pay for one after getting the first contract. If he closes that sale
then the amount available is no longer the amount listed because some of that al
lotment has then been sold. This means that the seller may no longer have the ri
ght to sell because he has sold all of his allotment and even though the documen
t may say he has 16M bbls per quarter it may be sold already. A seller is not go
ing to go into the NNPC and pay for an allotment letter every time a potential b
uyer shows up. So he will give out the old letter. Even so, it is not verifiable
as I mentioned before.
NNPC Approved Fiduciaries do not get an allotment, they get an authority to sell
document (ATS Letter) and are selling out of the bulk equity account, so they c
an sell 10 Million barrels per month if they can get fit into the lifting schedu
le. What they need is the buyers POF and they can get it done.
We are mandates for three Fiduciaries selling out of the giant source at + 488 m

illion barrels direct from the NNPC bulk equity account at the moment.
All buyers should expect to be able to verify the Fiduciaries ATS letter to ensu
re the seller had the legal right to sell. We have done this a few times and whe
n a buyer comes to the Bonny Terminal he quickly finds out that the seller is re
al and that there are people at the terminal that know the seller which helps th
e Buyer to be able to trust the purchase contract since they check that also. TH
IS IS NO LONGER POSSIBLE There is a new procedure our sellers are using to sell
oil and totally verify the product. Please see the registration link below.
Now, once a contract is signed and a banking instrument is in place there are li
fting schedule (programing) documents and other documents that are created that
are easily verified just as though the sale was an OPEC sale.
Seller Confirmed RIC
Seller notes:
We are partnered with a gentleman who's family has been in the shipping , buying
, selling coal , iron ore , and various refined oil products.. We have connectio
ns with about 27 different refineries throughout the world and can have fuel for
you pretty much any safe port in this world ... We also are one of the few with
a department of defense license , we fuel couple US naval basis and due to that
we are able to supply great discounts in the secondary market ...
1.Terms are non-negotiable with seller:
Ref: Refinery 3b2c
Offer: Jp54 Rolling Spot, First lift FOB Rotterdam 1M bbl, Contract FOB Rotterda
m 1 to 10 M bbl
Price: Minus 7/5 off NWE Platts (3 day average)
Note: Discharge into Buyer s Tanks ONLY at Rotterdam - Activated bar coded TSR req
uired
Seller pays commissions
Procedures:
Buyer issues full company details and Buyer s banking coordinates to the Seller ei
ther as ICPO or via email from Seller s secured corporate email (NO gmail addresse
s!) to Buyer s corporate email.
Seller issues Conditional Commercial Invoice & IMPFA to Buyer.
Buyer is required to duly sign, seal, date and return the Conditional Commercial
Invoice to the Seller within the expiration time shown on the CI, along with AL
L of the following documents:
Buyers nominated verified Tank Storage Agreement (TSA) and full contact details
of Tank Farm
Buyer s activated & bar coded Tank Storage Receipt (TSR) including Tank Numbers
Buyer s Tank Farm Storage Authorisation Letter to Inject (ATI)
Following Seller s Refinery Suppliers verification of the Buyer s Shore Tank Storage
Facilities, the Buyer will be provided by the Seller WITHIN A MAXIMUM OF (12) T
WELVE BUSINESS HOURS, the Seller s Refinery Suppliers verifiable documents includi
ng and not limited to the following POP:
Pipeline Injection Schedule
Dip Test Authorisation (DTA)
SGS Inspection Report (SGS)
Country of Certificate of Origin
Business Registration
Other relevant supporting Refinery Supplier POP documents.

After verification by the Seller s Refinery Supplier of the Buyer s Tank Storage fac
ility, (within 8-12 hours), after the above is provided to the Buyer from the Se
ller s Refinery Supplier and upon the Buyer s verification and acceptance of the Sel
ler s Refinery Suppliers POP, the fuel is transported to the approved and verified
Storage Tanks of the Buyer and/or Storage Tanks under Buyer s control..
If the Buyer chooses to do so, the Buyer must order their dip test analysis repo
rt (DTAR) on the fuel within (24) Twenty Four hours of delivery to Buyer s confirm
ed storage facility.
Upon confirmation of successful dip test results or Buyer acceptance of POP and
Quality and Quantity of fuel, the Buyer issues payment by (MT103/TT) to the Sell
er s nominated bank account within (8-12) Eight to Twelve hours of confirmation as
agreed by the parties per instruction in the Commercial Invoice.
Upon confirmation of Act of Transfer in Buyer s name (and/or their Nominees/Assign s
Name), Seller sends to the Buyer, Title of Ownership certificate to be followed
by all export documentation in addition to the Authority to Sell (ATS).
Intermediaries are paid as per the signed fee agreements under the IMPFA.
Steps (2) Two to (8) Eight are repeated for all additional lifts, as required by
the Buyer as per the Buyer s logistics.
2.) We can get D6 our terms for CI Dip N Pay would require:
Buyer would need a US Bank (Except Chase) or Canadian banks such as Scotia or To
ronto Dominion can be possible.
NO blocked funds just a DLC would have to be posted to our Wells Fargo account d
irectly linked to the refinery
FOB Port of Origin is where Dip Test will be done. (Once test is done and bank c
onfirms right fuel in tanker then payment made)
The quantities we like to start new clients off with would be about 50k barrels
of Jet A 1 and 100,000 MT for the D2 (In this case D6) and Mazut. (We can RAMP U
P quickly to meet buyers needs)
Our pricing for Diesel products will be based on a 3 days average while Jet A1 i
s weekly.
Please emphasize that we are direct seller that is refinery direct with no produ
ct in storage there is no middle man going to the seller if this buyer can confi
rm I will get information forwarded for review. Then from there set up conferenc
e call with buyer to discuss in detail.
These procedures are the same for all fuel request in some cases we can work wit
h foreign banks as long as they can deal with Wells Fargo Chicago (its the bank
we use in relationships with refineries)
Nothing changes on any fuel products the key is getting buyers information pleas
e remember if they cant work with our account linked to refinery at Wells Fargo
(Chicago possibly Manhattan as well) then there is no need for us to waste time
with them.
This is how it works with D6 and yes we can get it from the refinery we have the
relationships.
- There are 50+ blends of D6
- We would need a signed spec sheet directly from the buyer
- Price Point
- How much needed

- Where it is going
- Banking they use and type of CL
If they cant get the signed spec sheet they have no relationship with that buyer
.
Seller Confirmed: SUN
This is NOT a CI DIP & Pay.
We have US Reseller from Gazprom who has an available 1M up to 5M Barrel of JP54
for 12 months terms at USD$XXX per Barrel FOB Novorossiysk or Vladivostok. . Pl
ease find below the NON-NEGOTIABLE procedure:
Product: Aviation Kerosine Colonial Grade 54 (JP54)
Price: USD$ XXX per Barrel
Port: Novorossiysk or Vladivostok
Shipment: FOB /
Supplier: US Reseller for Gazprom
1.0 Buyer sends Company Profile (CP) and ICPO and Bank Reference (BR) to seller
(including Buyer's Bank coordinates from a Top 25 Bank)
2.0 Seller sends SPA (Sales Purchase Agreement)
3.0 Buyer signs SPA and return it to seller which then signs it then give copy t
o the Buyer
4.0 Buyer issues an irrevocable, transferable and divisible Letter of Credit ( LC )
t sight in favor of the Seller

5.0 Seller issues 2% Performance Bond in favor of the Buyer

6.0 Seller issues the PPOP with Dip Test inspection by Societe Generale De Surve
illance ( SGS ) or any qualified equivalent surveyor via the Seller s Bank Officer to
the Buyer s Bank Officer for Buyer s own verification. The Partial Proof of Product ( P
POP ) will be as listed below, but not limited to the following documents:
TANK STORAGE RECEIPT ( TSR ),
INDIGENOUS DIP TEST ANALYSIS REPORT - ( DTAR ),
Refinery Commitment to Supply Product,
FRESH SGS INSPECTION REPORT
Authority to Sell and Collect ( ATSC ),
Export License.
7.0 Seller shall then call / collect on the LC at SIGHT
fied by the Buyer or any of its representative/s.

after the PPOP has been veri

8.0 Seller Transfer Title and the Buyer must pick up the Cargo within 72 hours o
f verification.
9.0 SBLC (365+1) TT/MT103 for the 2nd to 12th shipment.
I am direct to the US Seller.

Please note that this can only work with a DIRECT BUYER only. Once your buyer ag
rees to the terms, I will put them directly to the US Reseller. Please also note
that this US Reseller is one of the Top Major US Supplier of Oil and Gas to the
US GOVERNMENT.
Please request Buyer's ICPO and Bank Reference (as attached format), immediately
to proceed to the next step. This is the most secure way of checking that the P
POP is available and lodge inside CITIBANK USA. This will also eliminate any dou
bts of fraud to the PPOP as the US Law is very strict on this kind of transactio
n especially if it involves the Bank.
This product is available now and will be on a FIRST COME FIRST SERVE BASIS.
I have many more sellers not listed here.
If you are a buyer or buyer rep.
Send me a formal request .
KYC Know Your Client
Who are they? Ask them if they are a broker or a buyer. I will only deal with bu
yer mandate or buyer.
Where are they located?
Have they bought before?
How long have you known them?
Are you direct to them?
What due diligence have you done to guarantee that they will perform?
What are their buying procedure?
What bank do they use?
Where are their bank located?
How much fuel can they buy?
Once I know the volume, customer, destination, CIF or FOB I can give you a quote
. Spot or contract.
Truly not interested in giving out prices without know more about the customer,
length of contract, etc
Need genealogy to of the people involved.
As you can see I know my sellers. I expect you to know yours and have done some
due diligence on them.