PETROLEUM PRODUCTS FROM RUSSIAN REFINERY

IC PETROLEUM KAZAKHSTAN REFINERY

PETROLEUM PRODUCTS 

PETROLEUM PRODUCTS FROM KAZAKHSTAN REFINERY

• • Seller is directly REFINERY
  • All the Agreements will be done with REFINERY

  — The payments will be done directly to REFINERY

1- FOB TRANSACTION PROCEDURE (Tank toTank or Tank toVessel)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller issues to Buyer
4. a) Commercial Invoice CI, for the available quantity(After sign of the CI , The below documents will be sent) b) Certificate of Incorporation
   1. Certificate of Origin
   2. Commitment Letter to Supply
   3. Statement of Product Availability to supply
   4. ATSC
5. Seller issues to Buyer Tank Extension Payment Invoice for the minimum of 5 days, Buyer proceed with Tank payment extension and return transfer evidence copy.
6. Seller issues Dip Test Authorization letter sign by all parties including buyer and Seller only.
7. Upon the sign of DTA by all parties Seller and Buyer, Seller issues to Buyer.
   • Fresh SGS Report,
   • Tank receipt,
   • Injection Report,
   • Export License,
   • Refinery Reservoir Receipt
8. Buyer order SGS to Conduct Dip test of the product in the Seller Tank on buyer expense upon successful dip test, Buyer provides Vessel Details or Tank Details, Seller shall immediately submit the (SGS) inspection Report along with the full Proof of Product (POP) to the Buyer.
9. Buyer makes 100% payment by MT103 TT wire transfer for the total product
10. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.
11. The seller issues a 12 months contract for the buyer’s review and execution if needed.

2-STANDARD TERMS AND CONDITIONS FOR (Tank to Tank)

1. After Buyer issues LOI, Seller representatives issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and

Seller Representative

2. Buyer issue official ICPO indicates Sellers Procedure & Terms (signed/Sealed) with TSA or Tank company’s ATV to Seller and with POF . Note: (In order to use that procedure the buyer must make ready his tank and the seller representative must confirm it, If Buyer TSA doesn’t meet with seller verification’s, Buyer have no other choice to extend on seller tanks to Enable Buyer dip and lift from seller 

3. Seller issues Commercial Invoice CI, for the available quantity to Buyer,

4. Buyer Signs and returns the CI to Seller

5. Seller issues, Dip Test Authorization Letter (DTA) to sign by all parties including Buyers Tank Farm.

6. Buyer signs Dip Test Authorization Letter (DTA)

Buyer issues his signed DTA to Buyer’s Tank Farm, Buyer’s Tank Farm signs and returns the signed DTA to Buyer and Seller Representative, Buyer returns the signed DTA to Seller.

7. Upon the sign of DTA by all parties Seller issues
   1. Fresh SGS Report,
   2. Tank Receipt,
   3. Injection Report,
   4. Certificate of Origin,
   5. Refinery Reservoir Receipt.
   6. NCNDA/IMFPA signed by all buyer groups with commission structures

8. Buyer orders SGS to Conduct Dip test of the product in the Seller Tank on buyer expense. Upon successful dip test, Buyer provides Tank Details, Seller shall immediately submit the (SGS) inspection Report along with the Full Proof of Product (POP) to the Buyer.

9. Buyer makes 100% payment by MT103 TT wire transfer for the total product. The Seller transfers the title ownership to the buyer.

10. Seller pays Commission to all intermediaries involved in the transaction within 48 hours after confirmation of the Buyer Payment.
11. The seller issues a 12 months contract for the buyer’s review and execution if needed.

3- TRANSACTION TRADING PROCEDURE: (Tank to Vessel)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller issues commercial invoice CI, for the available quantity to Buyer, Buyer Signs and returns to Seller
4. Seller issues to Buyer Product Passport and the Logistic Payment Invoice for Buyer to pay for the injection fee from the Seller’s tank into Buyer’s vessel.
5. Upon the confirmation of the injection fee by the Logistics Company, Seller issues Dip Test Authorization letter sign by all parties. NCNDA/IMFPA signed by all buyer groups with commission structures to issue the deal through Tank to Vessel.
6. Upon the sign of DTA by all parties Seller issues Fresh SGS Report, Tank receipt, Injection Report, Certificate of Origin, Refinery Reservoir Receipt.
7. Buyer order SGS or INTERTEK to Conduct Dip test of the product in the Seller Tank on buyer expense upon successful dip test, Buyer provide vessel details (Q88), Seller shall immediately Submit the (SGS or INTERTEK) inspection Report along with the full Proof of Product (POP) to the Buyer.
8. Buyer makes 100% payment by MT103 TT wire transfer for the total product and Seller pays Commission to all intermediaries involved in the transaction within 48 hours after confirmation of the Buyer Payment.
9. The seller issues a 12 months contract for the buyer’s review and execution if needed

1- OPERATIONAL TERM AND  PROCEDURE: C.I.F (A)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller Issue Draft Contract (SPA) Sales and Purchase Agreement for Both parties Final Endorsement.
4. Seller Issue to Buyer
5. Confirmation / Commitment letter to Supply,
6. Tank Receipt
7. Certificate of Origin of the Product.
8. Statement of Availability of the Product in Reservoir
9. Product Passport
10. Charter Party Agreement (CPA)
11. Buyer and seller both together Pay for logistic of the petroleum product to buyer Destination port and the cost of logistic will be split (50%/50%) each party will bear his own cost via MT103 T/T Wire transfer.

Note: Buyer will jointly secure the logistic of the petroleum Product to his Destination Port/discharge port. This fee will be deducted from the total product value.

6. Upon Finalization of the Logistics for the Delivery of the Petroleum Product to the Buyer Port of

Destination/Discharge Port, Seller Commence Loading of the Petroleum Product into the Vessel Tanker (Ship) provided by Seller and Provide to Buyer the Following Proof of Product Documents and Shipment Documents; a) Bill of Lading, Vessel Detail’s (q88).

1. b) Dip Test Report for Quality and Quantity of the product by SGS, Saybolt, Intertek or similar. c) Certificate of Conformity of the Product
2. d) Certificate of Origin issued by the Chamber of Commerce.
3. Upon Buyer Receipt of the Above Proof of Product Document and Shipment Document, Buyer Issue DLC MT700 or SBLC MT760 to Guarantee payment for the product and Seller Issue 2% P.B.
4. Shipment Commence and Buyer Releases Payment via MT103 — T/T for the Total Cost of the Product after SGS at Buyer Discharge port And Seller through the Ship Captain hands over all Exportation Document and Certificate of Ownership to Buyer.
5. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.

2- TRANSACTION  TRADING PROCEDURE CIF (B)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller review Buyer ICPO and apply for export Quota from the Ministry of Energy, after a successful Quota application from the Ministry, seller issue a Sales Purchase Agreement(SPA) along with ICC WARNING LETTER open for amendments and final endorsement. On the basis of a confirmed Quota, seller applies for Export Allocation code from the Energy Ministry and customs clearance which will be paid by the exit buyer immediately on the signing of the SPA.
4. Seller issue to buyer Partial POP Consisting of the following documents below a) Product Passport
5. Commitment to Supply
6. Statement of Product Availability
7. Company Export License and/Company Registration Certificate
8. Confirmed Quota, Allocation and Allocation Export Code and Customs Clearance Certificate
9. Seller Appoints and signs Charter Party Agreement with the Shipping Company which will be an open and interwoven information between the exit Seller/Refinery and exit Buyer for readiness of the shipping commencement.
10. Buyer Bank swift SBLC MT760 to Seller bank via MT 799, Seller Bank Open Communication with Buyers bank and provides, the Full Proof of Product listed below
    1. Charter Party Agreement (CPA)
    2. SGS Report.
    3. Dip Test Analysis.
    4. Vessel Q88/Bill of Lading.
    5. Ullage Report/Vessel Manifest.
    6. Customs Export Clearance Certificate.
11. Shipment Commences as Scheduled in the Final Contract, Seller clears vessels from the commercials terminal (Russia Shore), Buyer confirms shipping documents with shipmaster while seller Effects delivery to buyer destination according to contract schedule.
12. Vessel arrives at destination port and Buyer conduct inspection on the goods. Upon confirmation of product quality and quantity at unloading port, Buyer release payment to Seller by TT/MT103 within three (3) banking days after the discharge of the cargo at the destination port and CIQ /SGS inspection.
13. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.

3- OPERATIONAL PROCEDURE: FOR TABLE TOP MEETING (TTM) C.I.F (C)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller verify ICPO and issue Draft Sales Purchase Agreement(SPA) open for amendments to Buyer.
4. Buyer review Draft Sales Purchase Agreement(SPA) signs and returns with Buyer’s international passport copy to seller.
5. Seller legalized the signed Contract with the Ministry for approval and sends the scan copy of the Approved Draft Contract via secured e-mail to buyer.
6. Upon buyer receipt of the Approved contract buyer within 24 hours buyer issue official letter of readiness to pay for the Booking of Allocation of the product in other for buyer company name as the allocation title holder of product.
7. Within 24 hours of receipt of buyer letter of readiness to pay for the booking allocation of product, sellers issue allocation invoice to Buyer Company proceed with the payment.
8. Upon confirmation of allocation in buyer company name, seller issues invitation to the buyer and two of his representative to visit the refinery office for Top Table Meeting and signing of the necessary documents related to the finalization of the transaction.
9. After Top Table Meeting, seller bank issue non-operative 2%PB & Full POP documents listed below to buyer bank; via SWIFT.
   1. Copy of License to Export, Issued By the Department of the Ministry of Energy.
   2. Copy of Approval to Export, Issued By the Department of the Ministry of Justice.
   3. Copy of Statement of Availability of the Product.
   4. Copy of the Refinery Commitment to Produce the Product.
   5. Copy of the OJSC AK Transnet Contract to Transport the Product to the Port.
   6. Copy of the Port Storage Agreement.
   7. Copy of the Charter Party Agreement (S) To Transport the Product to Discharge Port. h) Dip Test Authorization
   8. Tank Receipt
   9. SGS Report.
10. Upon receipt of the non-operative 2%PB & Full (POP) by buyer’s bank issue SBLC via MT760 to Seller’s bank for first monthly shipment to seller nominated bank to guarantee shipment.
11. Shipment commences as per contract schedule.
12. Within 5 working days of Vessel arrival, buyer release full payment via MT103/TT for one Month shipment after CIQ or SGS at the destination port.
13. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank

4- OPERATIONAL TERM AND  PROCEDURE: C.I.F (D)

Without using bank instruments

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller Issue Draft Contract (SPA) Sales and Purchase Agreement for Both parties Final Endorsement.
4. Seller Issue to Buyer
5. Confirmation / Commitment letter to Supply,
6. Tank Receipt
7. Certificate of Origin of the Product.
8. Statement of Availability of the Product in Reservoir
9. Product Passport
10. Charter Party Agreement (CPA)
11. Buyer and seller both together Pay for logistic of the petroleum product to buyer Destination port and the cost of logistic will be split (50%/50%) each party will bear his own cost via MT103 T/T Wire transfer.

Note: Buyer will jointly secure the logistic of the petroleum Product to his Destination Port/discharge port. This fee will be deducted from the total product value.

6. Upon Finalization of the Logistics for the Delivery of the Petroleum Product to the Buyer Port of

Destination/Discharge Port, Seller Commence Loading of the Petroleum Product into the Vessel Tanker (Ship) provided by Seller and Provide to Buyer the Following Proof of Product Documents and Shipment Documents; e) Bill of Lading, Vessel Detail’s (q88).

1. f) Dip Test Report for Quality and Quantity of the product by SGS, Saybolt, Intertek or similar. g) Certificate of Conformity of the Product
2. h) Certificate of Origin issued by the Chamber of Commerce.
3. Upon Buyer Receipt of the Above Proof of Product Document and Shipment Document, Buyer pays 10% of the total cost of products to guarantee buyer’s capability.
4. Shipment Commence and Buyer Releases Payment via MT103 — T/T for remaining 90% Total Cost of the Product after CIQ at Buyer Discharge port And Seller through the Ship Captain hands over all Exportation Document and Certificate of Ownership to Buyer.
5. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.

5- OPERATIONAL TERM AND  PROCEDURE: C.I.F (E)

Without using bank instruments

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller review Buyer ICPO and apply for export Quota from the Ministry of Energy, after a successful Quota application from the Ministry, seller issue a Sales Purchase Agreement(SPA) along with ICC WARNING LETTER open for amendments and final endorsement. On the basis of a confirmed Quota, seller applies for Export Allocation code from the Energy Ministry and customs clearance which will be paid by the exit buyer immediately on the signing of the SPA.
4. Seller issue to buyer Partial POP Consisting of the following documents below f) Product Passport
5. Commitment to Supply
6. Statement of Product Availability
7. Company Export License and/Company Registration Certificate

j)Confirmed Quota, Allocation and Allocation Export Code and Customs Clearance Certificate

5. Seller Appoints and signs Charter Party Agreement with the Shipping Company which will be an open and interwoven information between the exit Seller/Refinery and exit Buyer for readiness of the shipping commencement.
6. Buyer pays 10% of the total cost of product to Seller’s nominated account TT wire transfer MT103 and Seller provides to Buyer the Full Proof of Product as listed below:
   1. Charter Party Agreement (CPA)
   2. SGS Report.
   3. Dip Test Analysis.
   4. Vessel Q88/Bill of Lading.
   5. Ullage Report/Vessel Manifest.
   6. Customs Export Clearance Certificate.

7. Shipment Commences as Scheduled in the Final Contract, Seller clears vessels from the commercials terminal , Buyer confirms shipping documents with ship master while seller Effects delivery to buyer destination according to contract schedule.
8. Vessel arrives at destination port and Buyer conduct inspection on the goods. Upon confirmation of product quality and quantity at unloading port, Buyer release payment of the remaining 90% to Seller by TT/MT103 within three (3) banking days after the discharge of the cargo at the destination port and CIQ /SGS inspection.
9. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.

1- TANKER TAKE OVER TRANSACTION PROCEDURE (TTO)(A)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO to the exact quantity in the sanitized MOU to the Seller with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller issues original MOU to the Buyer within 24 hours.
4. Buyer countersigns the original MOU and forward back to the Seller.
5. Seller issues below documents to the Buyer:
   1. Certificate of Product Origin
   2. Storage Tank Receipt
   3. Product Passport (Quantity & Quality Dip Test Analysis Report)
   4. Bill of Lading
   5. Tanker Vessel Q88 Document
   6. Vessel Estimated Time of Arrival (ETA)
   7. Vessel (N.O.R) Notice of Readiness
   8. Ullage Report
   9. Cargo Manifest
   10. Invoice for Title Takeover Payment fee of $650,000 USD to seller nominated partner’s account
6. Buyer’s shipping agent makes contact with vessel master to verify and confirm above POP documents/vessel position. Buyer’s bank transmits US$650,000 via SWIFT MT103/TT to the Seller’s nominated bank as transaction guarantee for the total product value within 48 hours.
7. Seller’s transfers Title ownership to the Buyer after payment receipt confirmation by the Seller’s bank. Seller’s bank transmits full POP documents to the Buyer’s bank.
8. Buyer’s bank transmits payment for the balance cargo value to Seller’s bank via SWIFT MT103/TT after successful Quality and Quantity inspection and at sight of complete set of original shipping documents at Buyer’s discharge port within 24 hours.
9. Seller’s bank transmits commission payment to all Intermediaries as per IMFPA within 48 hours on confirmation of receipt of payment from Buyer’s bank.

2- TANKER TAKE OVER TRANSACTION PROCEDURE (TTO)(B)

1. After Buyer issues LOI, Seller representative issue SCO to Buyer. After SCO, Zoom Meeting with The Buyer and Seller Representative
2. Buyer issue official ICPO to the Seller with POF indicates Sellers Procedure & Terms (signed/Sealed).
3. Seller issues complete Tanker Take over Draft contract of the loaded cargo(MOU)
4. Buyer signs TTO Draft contract and return to the Seller
5. Seller endorse TTO contract, Seller sends to buyer, the following POP documents which were issued in the initial buyer’s name via email.
   1. Certificate of Origin
   2. Declaration of Ownership
   3. Bill of Lading
   4. Q88
   5. Cargo Analysis Sheet (CAS)
   6. Vessel Cargo Manifest
   7. Invoice for 5% total cost of the product
6. Buyer confirms and verifies the POP documents and Issue TT MT103 payment for the minimum of 5% of the total value of the product to Seller nominated account, to obtain Certificate of Ownership of the cargo and the shipping document will be re-issued in the name of the potential buyer. Seller will re-route the vessel to buyer’s destination port upon confirmation of buyer’s payment and sends to buyer the information of the clearing agent for the vessel simultaneously and the 5% will be deducted from the total cost of the product.
7. Upon arrival of the vessel at the buyer’s discharge port, the buyer verifies the product, performs Dip Test on board seller’s vessel and pays for the product via TT MT103 before CIQ and discharge of the vessel.
8. Seller release payment to all intermediaries as per signed NCNDA/IMFPA within 48 hours of receiving the payment for the product from the Buyer’s bank.