Procedure CIF 1:
I. Buyer and Seller sign and seal this Contract including banking coordinates and exchange the signed copy by electronic mail. The electronic signed copy by both Parties is considered legally binding and enforceable.
II. Buyer having signed the contract, is expected to send signed Contract with POF from Buyers bank by SWIFT to Seller’s bank.( SEE POF FORMAT BELOW,)
III Seller, upon receipt of POF from Buyers bank, within (5) banking days issues Provisional Lifting Right and Nominated vessel details in Buyers name for one way voyage charter to Buyers port of destination,
which buyer will verify on NNPC lifting Data base schedule for that month.
IV. Buyer upon receipt and confirmation of Para 3, within five (5) banking days, issues confirmed, irrevocable, and operative Letter of Credit for two million barrels in favour of Seller and validity to cover 35 banking days. The LC must come from top US/European Bank. , (PLS FORWARD YOUR LC DRAFT FOR NNPC INPUT BEFORE SENDING TO SELLERS BANK)
V. Within seven (7) banking days of confirmation Para IV above, Seller furnishes CPA & Q88 and the following documents to Buyer and/or Buyer’s bank:
*1 Clean – on – board ocean Bills of Lading
*2 Certificate of quantity (SGS or equivalent)
*3 Certificate of Analysis (optional)
*4 Certificate of Origin
*5 Certificate of Quantities
*6 Seller’s commercial invoice
*7 Vessel ullage report {optional}
*8 Receipt of samples (optional)
*9 Cargo Manifest
VI. After the vessel has discharged its cargo at Buyer’s designated port outlined above and Buyer has received the Discharge Report as shall be confirmed by the Captain of the vessel, including all relevant documents presented by the Seller after the time of cargo delivery as required by the LC, Buyer must make payment by KTT Wire Transfer to Seller’s Bank Account payable at it’s counter for this transaction and to beneficiaries named in Master Fee Protection Agreement in the contract for fees.
VII. Payments are made by Swift Wire Transfer directly to the Seller’s bank accounts and commission agents as stipulated in the MFPA in this contract within three (3) international banking days after product delivery and discharge at Buyer’s nominated port of discharge against presentation of stated shipping documents (non-negotiable copies) at Buyer’s bank.
VIII. The signatures on this contract by the Buyer and by Seller means both accept all the content as for Quantity, Discount and Procedures.
FORMAT FOR P.O.F
"PROOF OF FUNDS. (MT 799)"
We.......Bank…. hereby inform you that, following instruction of our client.....we are ready and prepared to issue our irrevocable, transferable, (auto revolving) divisible Letter of credit for the amount of US$..150,000,000.00... as per the following text:
Quote
............TEXT OF LC TO BE ISSUED.................
Unquote
The L/C will be issued upon receiving the following:
1) PROVISIONAL LIFTING PERMIT WITH STEM AND WINDOW DETAILS
2) NAME AND IMO. NUMBER OF NOMINATED VESSEL IN OUR CLIENTS NAME.
We engage with you with full bank responsibility that, upon receiving the above documents, within five (5) days we shall issue the letter of credit with the verbiage as above or with the changes you could require and our client will approve.
Bank Officer One Bank Officer Two
Procedure CIF 2:
.1 Buyer and Seller sign and seal this Contract including banking coordinates. The electronic signed copy by both Parties is considered legally binding and enforceable and must not be changed. The executed SPA and is lodged in their respective banks.2. Buyer’s bank shall issue by swift wire transfer to Seller’s/Fiduciary Bank, a non-operative, confirmed and irrevocable instrument (DLC/ SBLC/ BG) for the total cost of Cargo.
3. Seller loads vessel and gives to the Buyer all Loading Documents, Q88 and Captain’s name. Vessel’s captain will provide NOR (Notice of Readiness) to the Buyer to confirm the product.
4. Within three (3) business days of Two (2) & Three (3) above, The NNPC Bonny Terminal Administrator authorizes Master of its loaded vessel to issue a full confirmed POP / NOR to Refinery discharge port facility.
5. The Harbour Master shall acknowledge the receipt of the NOR confirm from Captain of the vessel the issued NOR. The harbor Master shall send a confirmed POD to the vessel Captain for issuance of ETA after Q and Q Inspection report. ( he shall do so in writing to the Seller by email).
6. The Seller shall establish full communication and control between the Buyer and the Captain of the vessel
7. The Seller shall prepare the Logistics, obtain security clearance and cause Vessel Master to proceed for Q and Q Inspection by a nominated Agency of the Buyer at a preferred location.
8. The Captain of the vessel shall issue a confirmed ETA after a successful Q and Q report.
9. The terminal shall then;
a. Fully Re-register a confirmable allocation in Buyer’s name on Shell Screen and NNPC London.
b. Register all documentation in Buyers name. Such documentation shall be confirmable at NNPC Abuja, London, Shell Screen. (The documentation shall include valid BOL, Warrant of Title, CPA, Insurance and SGS report.
c. Clear the vessel out of Nigeria waters and sail to Buyers disport with required documentation within Seven (9) To Ten (10) days from the receipt of Buyers Instrument.
10. Within 24hrs after berthing at POD, Buyers Inspectors shall carry out Q and Q Inspection inside the vessel before Discharge and issue a report to the Captain, Seller’s Bank and Buyer’s Bank.
11. The Seller Shall collate all stipulated cargo / marine documents, Invoice and swift same to Buyer /Buyer’s Bank for Payment. Buyer’s Bank shall within Five (5) days receipt of all the transaction documents as enumerated in the SPA SWIFT ALL.
