Atlantic Gas & Energy

Comprehensive Oil and Gas Trading Procedures

At Atlantic Gas & Energy, we enforce a highly systematic and efficient procedure for all our oil and gas transactions. We understand the importance of transparency and accuracy, and we ensure all parties involved in the transaction are well-informed and satisfied.

Standard Fob Transaction Procedures

Procedure 1

Submission of Initial Documents

  • The buyer submits an Irrevocable Corporate Purchase Order (ICPO) and a Notice of Readiness (NOR) from their tank farm or ship.
  • The buyer's ICPO must include relevant documents such as a passport, company profile (CP), Proof of Funds (POF), and other required forms.
  • Pricing discounts will be offered upon acceptance of the terms represented in the ICPO.

Seller Response and Agreement

  • The seller responds with a Confirmation Letter of fuel availability.
  • The seller issues a Joint Participation Agreement (JPA) to the buyer.
  • Once the buyer signs the JPA, the seller issues a Commercial Invoice (CI).
  • After receiving the signed CI, the seller issues a Dip Test Authorization (DTA) to proceed with the fuel transfer.

Fuel Transfer and Payment

  • The buyer receives a successful SGS report, and the seller arranges the fuel transfer to the buyer's tanks.
  • Upon confirmation of the complete fuel transfer, the buyer makes the payment for the fuel.
  • The seller issues Proof of Product (POP) and other relevant Title documents to the buyer.

Note: The procedures may vary based on the seller, and the buyer's banking must be in the US or have a corresponding bank in the US for transactions.

Procedure-2

Initial Documentation

  • The buyer issues a Letter of Intent (LOI) along with the complete purchase requirement, Know Your Customer (KYC) information, and company profile (CP).

Seller Response

  • The seller issues a Soft Corporate Offer (SCO) to the buyer.

Formal Agreement and Verification

  • The buyer issues an Irrevocable Corporate Purchase Order (ICPO) accepting the seller's price, terms, and procedures.
  • The buyer provides a signed Bank Comfort Letter (BCL) from their bank, showing the availability of funds.
  • The seller issues a draft of the Sale and Purchase Agreement (SPA) contract and a Commercial Invoice (CI).
  • Upon signing the SPA and providing verifiable storage tank coordinates, the buyer's tank farm coordinates (TSA) are verified by the seller.

Partial Proof Of Product (PPOP)

  • The seller provides Partial Proof of Product (PPOP) documents via Email or Fax, including Authorization/Authority to Sell (ATS), Product Quality Passport (Dip Test result), Letter of Commitment to Supply, and other relevant documents.

Verification and Payment

  • The buyer verifies the PPOP and provides a verifiable Tank Storage Receipt (TSR) or vessel storage for injection.
  • The buyer issues an SBLC via SWIFT MT760 to the seller's bank.
  • The seller issues a 2% Performance Guarantee to the buyer.

Quality Inspection and Payment

  • The seller provides Dip Test Authorization for Q&Q and a complete Fuel Injection Report.
  • Upon satisfactory Q&Q/Dip Test Inspection, the buyer releases the full payment via MT103 TT wire transfer to the seller's nominated account, and fuel injection to the buyer's tanks commences.
  • The seller issues the Title Transfer of Product Ownership / Certificate of Ownership to the buyer's company and all necessary Export Documents.

Payment to Intermediaries

  • The seller pays all intermediaries involved in the transaction as per the agreed-upon terms in the IMFPA/NCNDA.

Procedure-3 (FOB Rotterdam & Houston)

Buyer Submission and Seller Response

  • The buyer issues an ICPO, including necessary documentation such as a Company Profile, Proof of Funds, and Passport Copy.
  • The seller responds with a Commercial Invoice (CI) and Proof of Product (POP) documents, including TSR, Injection Report, Dip-Test Authorization, and more.

Dip-Test and Payment

  • The buyer conducts a Dip-Test in the seller's tank using SGS or equivalent and verifies the report.
  • The buyer provides evidence of Tank Storage at the destination port.
  • After loading the first shipment, the seller's Bank sends the Commercial Invoice and full Bill of Lading/shipping documents to the Buyer's Bank.
  • Upon satisfactory Q&Q inspection and positive report, the buyer releases payment via SWIFT MT103/TT to the seller's bank.
  • The buyer organizes Q&Q inspection at the discharge port, and upon confirmation of receipt of payment, the seller instructs the ship's captain to discharge the cargo.
  • The seller sends the title ownership documents to the buyer and pays all intermediaries' commissions as per IMFPA within 24 hours of receipt of payment from the buyer.
Atlantic Gas & Energy

Transaction Procedure for CIF (ASWP)

Seller's Offer and Buyer's Confirmation

  • The seller sends an official FCO to the buyer, including terms and transaction procedure.
  • The buyer issues an Irrevocable Corporate Purchase Order (ICPO) with complete banking references, a company profile, and necessary documents.
  • The seller issues the buyer a draft Contract (SPA) and a Proforma Invoice (PI).

Contract Execution and PPOP

  • The buyer returns the signed SPA and PI and the completed and signed NCND/IMFPA.
  • The seller issues an approved, countersigned SPA incorporating the NCNDA/IMFPA as an Annexure within the SPA document.
  • The seller provides Partial Proof of Product (PPOP) documents, including passport product analysis, Authorization to Sell (ATS), Company Registration Certificate, and more.

Bank Instruments and Full POP

  • The buyer issues an inoperative, transferable/non-transferable SBLC/DLC.
  • The seller issues a 2% Performance Bond (PBG) to activate the SBLC/DLC.
  • The seller provides Full Proof of Product, including a License to export, Certificate of Origin, Certificate of Quality, and more.

Q&Q Inspection and Payment

  • The ship arrives at the destination port, and a nominated inspection agency conducts a Q&Q inspection.
  • Upon satisfactory inspection, the buyer's Bank releases the full CI amount to the seller's Bank account, and the Title of Ownership is transferred to the buyer.
  • The seller sends documents from shipping on board the vessel.

NNPC Approved Procedure for BLCO

Scope of the Contract

  • The seller and buyer represent the lawful owner and have the capability to purchase, receive, and pay for the commodity.
  • The commodity offered for sale is Export Grade Bonny Light Crude Oil.
  • The quantity offered is Two Million Barrels every month for twelve consecutive months on a CIF basis.
  • The Loading Port for the Product is Bonny Terminal or any other Terminal within the Federal Republic of Nigeria.