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    Sample Procedures For Oil or Gas Sale

    Uploaded by

    George Thomas
    The document outlines procedures for FOB and CIF product delivery. For FOB, it involves the buyer issuing a purchase order, seller providing documents like certificate of origin and bill of lading, buyer providing a tank storage agreement, successful product inspection, payment, and title transfer. For CIF, key steps include buyer issuing a purchase order, signed contract, seller providing partial documents, buyer opening a letter of credit, seller chartering a vessel and providing full documents, shipment, payment on delivery.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Sample Procedures For Oil or Gas Sale

    Uploaded by

    George Thomas
    344 views4 pages
    The document outlines procedures for FOB and CIF product delivery. For FOB, it involves the buyer issuing a purchase order, seller providing documents like certificate of origin and bill of lading, buyer providing a tank storage agreement, successful product inspection, payment, and title transfer. For CIF, key steps include buyer issuing a purchase order, signed contract, seller providing partial documents, buyer opening a letter of credit, seller chartering a vessel and providing full documents, shipment, payment on delivery.

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    Sample Procedures for oil or gas sale

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    The document outlines procedures for FOB and CIF product delivery. For FOB, it involves the buyer issuing a purchase order, seller providing documents like certificate of origin and bill of lading, buyer providing a tank storage agreement, successful product inspection, payment, and title transfer. For CIF, key steps include buyer issuing a purchase order, signed contract, seller providing partial documents, buyer opening a letter of credit, seller chartering a vessel and providing full documents, shipment, payment on delivery.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    344 views4 pages

    Sample Procedures For Oil or Gas Sale

    Uploaded by

    George Thomas
    The document outlines procedures for FOB and CIF product delivery. For FOB, it involves the buyer issuing a purchase order, seller providing documents like certificate of origin and bill of lading, buyer providing a tank storage agreement, successful product inspection, payment, and title transfer. For CIF, key steps include buyer issuing a purchase order, signed contract, seller providing partial documents, buyer opening a letter of credit, seller chartering a vessel and providing full documents, shipment, payment on delivery.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    I FOB PROCEDURES: CI DIP&PAY PROCEDURES

    1. Buyer sends ICPO to Seller along with CP.1


    2. Seller issues CI (commercial invoice) to Buyer, and Buyer Signs and returns to Seller with
    acceptance letter. 
    3. Seller sends PPOP; 2
    a. Fresh SGS REPORT. 3
    b. Export License 
    c. TSA 4
    d. Notice of Readiness (NOR)
    4. Buyer contact Seller tank farm and sign TSA pay for 5 days tank extensions. 5
    5. Seller issues DTA, Tank Storage Receipt and Pre-Injection Report to Buyer. 6
    6. Buyer confirms readiness within 48 hours of receiving the NOR; Seller injects fuel into the
    Buyers nominated Shore Tank Storage Facility / Vessels.
    7. Buyer conduct dip test, if Q&Q compliant, Seller issues Title of ownership Certificate to be
    followed by all export documentation. 
    8. Buyer makes payment by MT103 T/T wire transfer for the total product available.

    1
    ICPO – International Confirmed Purchase Order | Conditions Precedent
    2
    PPOP – Partial Proof of Product = set of documents
    3
    SGS – Inspection and survey company report when product injected to tank(s) or latest available.
    4
    TSA – Tank Storage Agreement – shows SELLER has agreement to store product.
    5
    This process allows BUYER to have time to est and issue its own Q&Q from independent surveyor.
    6
    DTA – Dip Test Authority.
    FOB PROCEDURES: CI DIP&PAY PROCEDURES

    1. Buyer sends ICPO to Seller along with CP. 


    2. Seller issues CI (commercial invoice) to Buyer, and Buyer Signs and returns to Seller with
    acceptance letter.
    3. Seller sends PPOP LIST;
    a. Certificate of Origin (COO)
    b. Dip Test Indigenous result (Product Composition at point of origin)
    c. Statement of Product Availability in Storage tank
    d. Tank Storage Receipt (With Tank Coordinate)
    e. Copy of License to Export issued by an appropriate agency.
    f. Commitment to Supply
    g. Certificate of Conformity on the Product
    h. Certificate of Incorporation
    i. Assurance to Inject
    j. Conditional Dip Test Authorization (D.T.A.)
    k. Conditional Authorization To Verify (A.T.V.)
    4. Buyer Contact Tank Farm to finalize Dip Test Authorization which will enable Buyer or Buyer
    Representative and SGS team visit and conduct dip test for lift-able quantity. Buyer Pay for the
    tank Clearance Access and Dip test permission as required by the tank farm, upon receipt of the
    Tank Storage Receipt (TSR), Conditional Dip Test Authorization (D.T.A) and conditional
    Authorization To verify (A.T.V)
    5. Buyer confirms the Q&Q of the product injected into the storage tank and the Seller injects the
    product into the Buyers tank or vessel and furnish buyer with the change of ownership transfer,
    buyer makes payment by MT103/TT for the Total product Available.
    6. Seller release the ownership transfer certificate to the buyer and all relevant document
    relating to the exportation of the product
    FOB PROCEDURE

    1- Buyer issues an official ICPO


    2- Seller issues draft SPA and commercial invoice (CI) to buyer, buyer signs and returns to seller 
    3- Seller issues certificate of origin/product passport /bill of lading/vessel notice/cargo manifest
    for buyer's verification and confirmation of product availability 
    4- Within 24 hours, buyer provides seller its lease tank storage agreement (TSA) for confirmation
    and tank storage receipt (TSR) after approval of the TSA. 
    5- Seller issues full POP including Dip Test Authorization (DTA) to buyer's bank 
    6- Upon successful dip test inspection, buyer pays for the total product value via TT/MT103 and
    seller transfers title deed of product ownership to buyer 
    7- Seller pays all intermediaries accordingly within 72 hours.
    CIF PROCEDURE

    1. Buyer confirms Soft Offer and issues an official ICPO 


    2. Seller issues Draft contract to buyer, Buyer returns countersigned contract to Seller with a
    letter of acceptance 
    3. Seller reviews signed contract and send a copy of the signed and sealed contract in PDF to
    buyer, both parties lodge with their respective banks. 
    4. Seller releases to Buyer the below listed Partial POP Documents.  
    (a) Refinery Commitment to Supply
    (b) Certificate of Origin
    (c) Statement of availability of product
    (d) Product quality passport (Analysis test Report) 
    (e) Allocation transaction product code certificate (ATPCC)  
    5. Buyer issues BG or SBLC swift MT760 (According to the contract verbiage) within five (5)
    banking days. 
    6. Seller signs the CPA with a shipping company and issues the Full POP documents and 2% PB to
    buyer’s bank. 
    7. Shipment commences as per contract schedule. 
    8. Within 3 working days of Vessel arrival, buyer release full payment via MT103 after CIQ/SGS at
    the destination port. 
    9. Seller pays all intermediaries accordingly within 72 hours. 

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