Spot Transaction Confirming our telephone conversation, these are the terms for the SPOT transaction. 1ML BBLS Bonny Light Crude Oil – Standard NNPC Export Grade at least in accordance with below listed Specifications: SPECIFICATIONS SPECIFIC GRAVITY: 37 DEGREE API WATER CONTENT: 0.2% REID VAPOUR PRESSURE: 6.52 PSIG, MAX SULFUR CONTENT: 0.14 POUR POINT: BELOW 40 DEGREE .F Delivery is DES (Delivered ex Ship); to NWE / Med Cargo Payment on delivery basis Q & Q at discharge port Price – FOB + Freight Vessel to be chartered directly in Buyer’s name by Seller Vessel + Charter party terms to be approved by Buyer PROCEDURE: 1) Seller nominates performing vessel with Q88 and provisional charter party terms. The performing vessel must comply with International Shipping Standards and acceptable to receiving terminal. Charter party of the performing vessel (including freight rate, demur rage and all other terms and expenses) must be agreed with Buyer prior to vessel’s fixture. 2) Buyer will confirm or decline nominated vessel within 48 hours 3) Upon approval of vessel and charter party terms; Buyer will sign SPA and place an Irrevocable Documentary Letter of Credit (IRDLC) for the full value of cargo 4) Upon confirmation of IRDLC, Seller charters the performing vessel in Buyer’s name 5) Vessel sails to Buyer’s discharge port 6) Payment on delivery basis Q & Q at discharge port. NB: As you can see in the procedure, there is no risk to the Seller as Payment instrument will be placed prior to vessel being chartered in Buyer’s name. So long as the vessel is approved and all details as presented verified, the financial instrument (Irrevocable Documentary Letter of Credit) will be issued post-haste. Full freight will be reimbursed to Seller simultaneous to cargo payment on delivery. Shipment is to North West Europe or Mediterranean. All I would need at this stage would be: - Name and details of the vessel - ETA and Lay can for loading - Charter Party terms
Posted on: Wed, 19 Mar 2014 13:20:35 +0000
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