D6 Virgin Oil
Product description
Product Description
Product: D6 Fuel Oil
Origin: USA
FOB: Houston and/or Louisiana. Seller will ONLY discharge into Buyer’s Shore Tank Storage Facility (VERIFIABLE –
Activated – BarCoded TSA/TSR required)
Price: GROSS $1.06/NET $1.04/ Gallon
Quantity: First lift 400,000,000 gallons
Future lifts depend on Buyer’s logistical capabilities and will be mutually agreed per Buyer and the Seller.
Contract: 800,000,000 gallons
Contract Terms: Rolling spots with a potential contract for performing clients.
Payment Terms: Direct wire transfer or MT 103 within 24 hours after confirmation of Analysis Report.
Commissions: $0.04 - $0.02 Seller side (closed); $0.02 Buyer side
All intermediaries’ commissions are paid via bank endorsed IMFPA
PROCEDURES:
1. Buyer provides ICPO with full company details and bank details, CP, and Letter of Authorization addressed to Shell, with the name of the Tank Farm and the authorization to verify that the Buyer has tank and/or vessels under his name.
2. Once Seller receives logistics with ICPO, Shell Oil Company will verify and approve. Shell Oil Company will issue Commercial Invoice with Pre-Injection Report with Seller name to Buyer. Buyer signs and returns Commercial Invoice to the Seller acknowledging Buyer’s legally binding commitment to purchase under the terms and conditions herein.
3. The Refinery calls Storage Farm to verify the tanks detailed in the Tank Storage Receipts are current, valid and in the Buyer’s name and/or under the Buyer’s control under an MOU or similar. The Refinery verifies the Tank Storage Agreement/Lease between the Buyer and the Tank Farm is current, valid and in the Buyer’s name.
4. After verification of Buyer’s storage and logistical capability to successfully receive the fuel to the satisfaction of the Refinery, full POP is provided to the Buyer. Upon Buyer’s acceptance fuel is transported to the confirmed storage tanks of the Buyer.
5. If they choose to do so Buyer must order Analysis Report (Dip Test) on the fuel within twenty four hours of delivery to Buyer’s confirmed storage.
6. Upon confirmation of successful Dip Test results or Buyer acceptance of POP and Quality and Quantity of fuel, the Buyer sends payment (MT103) within twenty four hours of confirmation to the Refinery as agreed by the Parties per instruction in the Commercial Invoice. Upon confirmation of act of transfer in Buyer’s name (and/or their nominee/assigns). Seller sends to the Buyer, title of ownership certificate to be followed by all export documentation. Intermediaries are paid as per the signed fee agreements.
7. Steps two through six repeat for all repeated lifts by the Buyer as the Buyer’s logistics allow.
(PROCEDURES ARE NON-NEGOTIABLE)
Kindly send Buyer LOI+CP for our review.
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