BONNY LIGHT CRUDE OIL (FOB) PROCEDURES


ARTICLE 23.      PROCEDURES:
 23.1    SELLER ISSUES CONTRACT FOR BUYER’S REVIEW, AND (FORM C12/CIS) TO BUYER FOR COMPLETION.
 23.2   BUYER, INITIALS AND SIGNS THE CONTRACT, COMPLETES AND RETURNS (FORM C12) ALONGSIDE THE CONTRACT TO THE SELLER.
23.3 (ELECTRONICALLY TRANSMITTED COPIES SHALL BE DEEMED ORIGINAL AND BINDING).
23.4      SELLER PROVIDES THE TEXT (VERBIAGE) FOR THE LETTER OF CREDIT (MT760). 
23.5      BUYER PROVIDE DETAILS OF CHARTERED VESSEL, 1- 2- MILLION BARREL (VLCC) VESSEL AND FURNISHES SELLER WITH HIS CHARTER DOCUMENTS.
23.6     BUYER PLACES SBLC, COVERING A FIRST SHIPMENT, WHICH STAYS IN PLACE FOR THE REMAINDER OF THE CONTRACT.
23.7      BUYER RESPONSIBLE FOR INWARD AND OUTWARD CLEARANCE OF BUYER’S VESSEL AND VESSEL IS CALLED INTO PORT FOR LOADING.
23.8      SELLER PROGRAMS BUYER’S NOMINATED VESSEL FOR LOADING IN ACCORDANCE WITH THE GIVEN ETA IN THE NAME OF BUYER AS OWNER AND CONSIGNEE OF THE CARGO.
23.9      VESSEL IS LOADED IN BUYER’S NAME AND FULL DOCUMENTATION IS ISSUED IN THE NAME OF BUYER AND SOFT COPIES SENT TO BUYER.
23.10   WITHIN 24 HOURS AFTER A SUCCESSFUL Q&Q, BUYER’S BANK PAYS FOR THE PRODUCT VIA MT103 WIRE TRANSFER.
23.11   ALL ORIGINAL COPIES OF CARGO DOCUMENTS ARE HANDED OVER TO BUYER AND HIS VESSEL SAILS TO HIS DESTINATION.
23.12        SHIPMENT AND DELIVERY IS EFFECTED TIMELY.

Two Million Barrels of Crude Oil direct from NNPC on Full CIF

We have 2 million barrels of Crude Oil, Direct from the Nigerian National Petroleum Corporation (NNPC
It is a CIF transaction. We will attach the ATS (Authority to sell) for your independent verification before placing the SBLC.
This is our procedure for Cost, Insurance and Freight (CIF) transaction. We can enter 12 Months Contract upon successful conclusion of this Spot. Our Discount is $12 Gross $8 Net

ARTICLE 19.
CIF PROCEDURE:
1. Seller issues Contract and ATS to Buyer.
2. Buyer and Seller sign/seal this contract Agreement and copies sent to their respective banks, which is legal and enforceable.
3. Within 2-3 International Banking Days of having buyer signed contract, Buyer’s bank shall send to seller’s bank a Swift MT-760 SBLC
As per APPENDIX A in favor of the seller covering the entire monthly deliveries cost for the total contractual period of 12 months.
 4. Within 3-5 days of confirming buyer Swift MT7-60 SBLC; the vessels of 2.000.000 Barrels, will be officially assigned in Buyer’s name as the consignee of product by the officer in Marine and shipping department of the Nigerian National Petroleum Corporation (NNPC) Bonny Terminal.
(Proof of Product) with the complete full set of original shipping documents in favor of the Buyer including:
a) Original and Three Copies of Commercial Invoice.
b) Full Set of Three Original and non-negotiable Copies of Bill of Lading.
c) One  Original and Three Copies of Certificate of Quantity.
d) One  Original and Three Copies of Certificate of Quality.
e) One  Original and Three Copies of Certificate of Origin.
f) One  Original and Three Copies of Master’s Receipt of Samples
g) One  Original and Three Copies for Master’s Receipt of each One -copy document
h) One  Original Ullage Report issued at loading Terminal.
i) One Original and Three Copies of Cleanliness Report at loading Port.
J.) One  Original and Three Copies of Customs clearance certificate
K.) Charter Party Agreement (CPA)
L.) One  Original and Three Copies Certificate of Ownership & Warranty of Title.
5.  Seller notifies Buyer with copies within (48 hours) following the Agreement upon confirmation of complete loading, then Nigerian National Petroleum Corporation issues to the buyer and Managers/owners of the chartered vessels formal written permission to the buyer to speak with each loaded vessel captains.
6.  Seller notifies Buyer with the vessel particulars/crew-list (Q88) and location with Master’s official written confirmation to the buyer.
7.  Buyer confirms the vessels with the owners/Managers and opens full communication with the each vessel captain to confirm the cargo of 2,000,000 Barrels and captain issues Authority To Board (ATB) to the Buyer, inviting buyer’s inspectors/agent on-board loaded vessels to carry out the Q&Q inspection. Upon confirmation of Q&Q inspection, each vessel captain shall issue Estimated Time of Arrival (ETA) and Notice of Readiness (NOR) to buyer exit Refinery ports.
8.  Buyer takes over the cargo 2,000,000 Barrels with the Ownership and Warranty of Title, as the consignee with full set of the shipping documents.
9. Payment is made to seller and intermediaries by Swift Wire Transfer via Swift MT103 within 48 hrs through account details stated in this SPA which is presented with the Commercial Invoice after Q&Q ascertained by buyer’s inspection agents and discharge completed against Presentation of the original shipping documents to the buyer.
 Dr Eze

Bonny Light Crude Oil BLCO



Nigeria BLCO Barrel
Nigeria BLCO
Nigeria Bonny Light Crude Oil is a high grade of crude oil with a very high API gravity (low specific gravity), produced in the Niger Delta basin Southern Nigeria and named after the city of Bonny.
The extremely low sulfur content of Bonny Light crude Oil makes it a very much-preferred grade because of its low corrosives to refinery infrastructure and the lower environmental impact of its byproducts.
Other grades of Nigerian crude oil are Brass River crude oil, Forcados crude oil, and Qua-Iboe Crude Oil. The Bonny Light Crude Oil is in high demand especially by American and European refineries.
Nigeria produces high value, light crude oils, low sulfur content–Bonny Light, Bonny Medium, Odudu Blend, Antan Blend, Escravos Light, Brass Blend, Forcados Blend, IMA, Ukpokiti , Pennington Light, and Qua-Iboe Light.
              Nigerian National Petroleum Corporation (NNPC) through its subsidiary the Nigerian Petroleum Development Company (NPDC) is directly in charge of four oil and gas fields with overall production of 15,000 barrels per day (BPD).
            Petroleum production and export play a major role in Nigeria’s financial system and account for almost 90% of her gross earnings. This leading role has pushed farming, the traditional foundation of the economy, from the fifties and sixties, to the background.
            In the late sixties and seventies, Nigeria attained a production level of over 2 million barrels of crude oil a day BPD, Even though production statistics dropped by the eighties because of economic crash. There was a complete rejuvenation of oil production to a record level of 2.5 million barrels per day in the year 2004. Current development strategies are geared towards increasing production.