Trading Procedures
Procedures - Trading Procedures - Oil Buy/Sell Procedure
1. Seller provide Buyer with Soft Offer for oil - price based on "Platt Minus Discount" preferable
2. Buyer reply with LOI including an invitation for TTM (table top meeting) at Buyer's bank in Swiss
3. On TTM Seller have to present to buyer all documentation and certificates for the buy-sell, such as:
- Seller's company profile
- Certificate of ownership of the commodity
- TransNeft security number (talking russian oil)
- Permission/license to export
- Contract with the loading port
- Proof Of Product (POP)
- SGS (or other certification agency) certificate of the goods
- Bank capability letter for the performance bond (PB) of 2%
- Other documentation/certificates needs will be asked on TTM, so Seller have to be ready to provide
Buyer with all needed
4. On TTM at the bank of the Buyer:
- Seller have his bank(bank officer) ready to provide SWIFT (no other transmissions will be accepted!)
with the above needed documentation and the readiness for the transfer of the performance bond (PB)
- After banking approval of all documentation and SWIFT confirmation of the needed POP/certificates
and readiness for PB Buyer and Seller sign a contract
5. Accepted payment is only with non-divisible, non-transferable, irrevocable, revolvable (cargo by cargo
basis ) DLC payable direct to the Seller against the usual (signed) documents
6. Buyer accept commission only of $2 ($1 buy-side:$1 sell-side) no other splits or kick-back's accepted !
7. In the mutually agreed loading period - cargo can be loaded, tranches can start