D2 - FOB - Novorossysk

Soft Offer

Spots Available:

FOB

Novorossysk 

Lift Rate:

250,000MT lift-able every 3-5 Days until completed

Price:

Platts Minus $5 US to Platts Minus $15 under average 3 day revolving over Rotterdam, Dubai, and Black Sea Platts.  Price will go down to a discounted price level and eventually roll to below Platts if the market continues to rise in price.  In addition, if the Buyer wishes to secure product immediately, the price will be negotiable.  Price will be set and applied to each lift of product at the time of lift, based on the formula listed above.

Product:

D2 GOST 305-62, Low Sulfur, High Speed - .01-.02

Fully refined, ready for commercial sale

Procedures:

1) ICPO

2) Buyers Bank sends a request via email or fax for a confirmation call bank to bank, to confirm Soft POP, and Soft POF.

3) Then the Buyers bank will issue 1 of 3 documents.  A MT799 Pre-Advise, or a BCL, or an RWA.  The RWA or BCL has to be signed by 2 bank officers.

4) The Buyers Bank will then receive 90% of the POP from the Sellers Bank which will include the phone numbers to the ministry and the codes to verify the POP.

5) Then the Buyer will place USD $2,000,000 (USD Two Million Dollars) in their own bank trust account.  A trust agreement will be issued by the Seller.

6) Then simultaneously the titles will be reassigned and the Charter Party agreements will be signed and stamped and the product approved to be released.  The USD $2,000,000 (USD Two Million Dollars) will be exchanged for those documents and lifting will commence immediately.

7) Also at that time the Buyer will lodge the MT103/23 conditional to pay for at least a minimum of 100K MT with a RDLC attached to it. 

The Sellers are willing to do a Table Top Meeting (TTM) for the exchange of the POP originals and the assignment of the 103 at the Buyers Bank.  Also the Seller will meet the signatory in Russia for the inspection and the introduction to the Ministry to assign the Buyers registration number.

The title owner is the refinery and the crude provider, this is the reason for the escrow fees for Transneft.  The fees are included in the total purchase price of the product, but the refinery will not fill the tank and pay the fees until they know the funds are blocked.