Transcation Procedure (OIL & GAS)

CIF TRANSACTION PROCEDURE ASWP

1. Buyer issues ICPO containing the seller’s working procedure with banking details and scanned copy of passport, company registration certificate to seller for approval.

2. Seller issues SPA to buyer (Open for amendment) and forward back to buyer within 3 working days in WORDS FILE for Electronic Signature and Endorsement along with Seller SBLC MT760 verbiage to Buyer bank for confirmation.

3. Seller issue Commercial Invoice (CI) and ICC warning letter buyer Signature and endorsed back within 3 working days

4. Upon receipt of the signed SPA and Commercial Invoice, within 3 business banking days buyer's issue MT799 via Swift 20% of the total one month shipment quantity for seller bank final vetting and upon vetted within five (5) business banking days buyer bank transmit via Swift SBLC MT760 (365 + 1 Day) as guarantee commitment to purchase to Seller Nominated Banker for confirmation and if buyer’s bank fail to transmit Swift SBLC MT760, in alternative within 3 working days buyer’s shall make 10% of the total one month shipment quantity by TT Wire Transfer to Seller nominated bank account to commence the shipping and this payment will be deducted from the total cost of the product after inspection at the discharge port. (Pls Note: 2% PB will not be issued by sellers for alternative provisional guarantee performance payment)

5. Upon Seller bank confirm receipt of the SBLC MT760 seller issue the following PPOP documents and 2% PB;

a) Statement of Availability of Product

b) Commitment to Supply

c) Product Passport (Quality & Quantity Dip Test Analysis Report)

d) Product Allocation Export License

6. Shipment commences once our banker confirm receipt of Swift MT760 and the shipment should arrive at Buyer’s discharge port within 20-25 calendar days.

A) Seller’s Issues Full POP Documents via Email to Buyer, alongside with 2% Performance Bond

Copy of statement of availability of the product.
Copy of the refinery commitment to produce the product.
Copy of the charter party agreement to transport the product to discharge port.
Copy of Vessel Questionnaire 88.
Copy of Bill of Lading.
SGS Report at loading port.
Dip test Authorization (DTA) & ATB
NOR /ETA

B) Upon arrival of the cargo at the unloading discharge port buyer conducts SGS/INTERTEK/SAYBOLT/CIQ or Equivalent Inspection (at buyer expenses) and upon successful satisfaction inspection report, buyer within 48 hours (2 Business Banking days) makes 100% payment for the total value shipment via telegraphic transfer (T/T) MT103 to seller bank account. .

C) Upon receipt of the full total value amount from buyer, Seller pays all intermediaries involved in transactions per IMFPA within 72 hours (3 Business Banking Days).

D) Transfer ownership in accordance with the quality and quantity of the goods specified in the commodity inspection form at the port of discharge.

E) If the inspection oil quality index is included in the quality specification standards attached to this Agreement, Buyer’s has no right to refuse to accept, and if Buyer’s does not verify and confirm within 48 hours, it is deemed that Buyer’s has accepted.

F) If the quality index of the inspected oil exceeds the quality specification standard of the Agreement annex, Buyer’s has the right to refuse acceptance or both parties will negotiate another solution.

G) Buyer’s shall be responsible for the clearance and unloading of the product at the destination port.

FOB ROTTERDAM / FUJAIRAH / CHINA /

SINGAPORE / GEORGIA / KAZAKHSTAN

TRANSACTION PROCEDURES

(TANK TO TANK / TANK TO VESSEL)

TERMS OF TRANSACTION (SBLC MT760 AS BUYER SECURITY TRANSACTION COMMITMENT)

1. Buyer issues an official ICPO along with copy of Passport, Banking Details and Company Registration Certificate.

2. Seller issues Commercial Invoice and Memorandum of Understanding (MOU) to the buyer for reviews any amendment, buyer forward back to Seller within 3 calendar days for signature and endorsement.

3. Buyer’s issues 10% of the total quantity amount of product SBLC MT760 within 4 working calendar

days as security to prove that Buyer will not back out of the transaction. It also serves as proof that

Buyer is genuine, financially capable of closing the deal.

Note: The 10% SBLC shall be carry forward to the next transaction or offset from the current

transaction, which the buyer’s make balance 90% of the total quantity amount.

4. Upon confirmation by Seller Banker received the SBLC, Seller issues the following

documents:

Authorization to Verify (ATV)
Product passport (product analysis report: Dip Test results)
Irrevocable commitment letter to supplier
Tank storage receipt (TSR)
Injection Report
Unconditional DTA
Tank Storage Receipts
48 hours valid SGS Report
Authorization to Sell and Collect – ATS&C

5. (NCNDA/IMFPA) will be signed; Buyer within 24 hours after successful dip test in Seller’s tank, Buyer provide TSR or extend Seller tank USD 500,000 for minimum 5 Calendar days, Seller proceeds for

tank-to-tank injection and provide Buyer with the injection report of the product into Buyer tank.

6. Buyer makes payment for total cost of product injected into Buyer vessel via MT103, Seller transfers

title ownership to Buyer with all exportation documents required of Buyer for the transaction.

7. Upon conclusion of first lift transaction, Seller pays all intermediaries involved in the transaction and proceed with signing of the contract.

FOR TANK TO VESSEL:

6. Upon successful dip test (optional) or successful verification of POP by buyer team. Within 48 hours

buyer's wire transfer balance 90% of the total quantity amount to seller nominated bank (Buyer can

also make full payment by wire transfer and withdraw the SBLC or retain the SBLC as roll and

extension for 12 months) and provides his Final CPA and Q88 for verification and seller issue Tank to Vessel Injection Agreement (TTVIA) to be sign by the shipping company.

7. Buyer vessel shall, within Five (5) calendar working days arrive at the loading port for Tank to Vessel

injection and if buyer vessel fail to load the product within five (5) calendar days, buyer shall continue

extend seller tanks. Seller Commences Immediately the Injection into Vessel and Issues the Title Of

Ownership Certificate to be followed by All Export Documentation.