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BLCO whith NNPC Nominations & Shipment Procedures CIF (ASWP)
I. Buyer issues LETTER OF INTENT (LOI) addressed to: THE HEAD OF OPERATIONS, COMD, NNPC JVO, BONNY OCEAN TERMINAL, NIGERIA; C/O KG KENTEL ASSOCIATES; which MUST be in line with this procedures.
II. Consultant issues a copy of Consultants Start Agreement and NNPCs APPLICATION FOR REGISTRATION FORM for Buyers completion.
III. Within 48hours from issuance, Buyer returns the forms with evidence of payment of CONSULTANTS ADMIN/PROCESSING FEES of $4000 or N500,000 along with form CO7(Details of directors) and Buyers address and banking coordinates for processing.
IV. Seller issues full styled contract with banking coordinates and POP on Sellers name, which can be verified through NNPC/Shell offices/Bonny Offshore Terminal.
V. Buyer and Seller sign/seal contract and exchange them via email. The e-copy signed by both parties is considered legally binding and enforceable. This should be completed within two working days.
VI. Within four banking days afterwards, Buyers bank issues a NON-OPERATIVE, irrevocable, non-transferable and confirmed letter of credit as in Annex A of the contract for the total cost of the first shipment of the product, including the Programming /Reassignment fees of $600,000.
VII. Within four banking days of receipt of the LC confirmation, Sellers bank would issue a 2% Performance Bond to activate the LC as per copy in Annex B of contract. If in doubt, buyers bank could inquire by SWIFT if sellers bank is in a position to issue a 2%PB to activate buyers non-operative LC prior to issuance. This confirmation could be obtained within 24hours from sellers bank (Text is in annex C of contract) .
VIII. Seller issues NNPC LIFTING APPROVAL/FINAL LIFTING APPROVAL FORMS for completion.
IX. Within same period , the product would be reassigned and cargo officially programmed in buyers name to reflect on Shell network screen and Lloyd s of London for buyers confirmation as consignee of the product.
a) Seller shall during the same period nominate a vessel through the MARINE TRANSPORT DEPARMENT (MTD) of NNPC and give to the seller: ship name/flag, call letters, captains name and a copy of the Aspatankvoy CPA, and shall appoint a local shipping agent to coordinate all legal procedures.
b) Seller confirms the above data through the vessel agent(MTD or other as specified) , owners and Lloyds. Vessel will then proceed to the loading terminal for pre-loading inspection. After loading, captain endorses all documents as per inspection.
X. Vessel proceeds to buyers DISPORT while the captain would be provided with details of the receiving facility; completes delivery process and collates all documents to buyers bank for payment.
XI. The buyer pays for the cargo and all commissions as recorded in the MFPA section of the contract by SWIFT WIRE TRANSFER to the respective parties nominated bank accounts within three working days after product delivery on out-turn barrels basis.
XII. This contract would lapse if after FOUR working days of verification of POP/signing, the buyer fails to post the letter of credit. The seller would be at liberty to cancel it automatically afterwards.
XIII. PRICE: $7 gross; $4 net to buyer; $1 each to Buyer/Sellers Agents and Facilitators.
XIV. QUANTITY: A test shipment of FOUR million barrels over two months; with a consideration for rolls and extension to twelve months based on satisfactory performance by both parties.
NOTE THE FOLLOWING:
BUYER IS EXPECTED TO PAY AN ADMIN/PROCESSING FEE OF $4000 OR N500, 000 TO THE CONSULTING FIRM PRIOR TO ISSUANCE OF THE CONTRACT.
THE PROCEDURES ARE NON-NEGOTIABLE
THE ONLY ACCEPTABLE MEANS OF COMMUNICATION BETWEEN BOTH BANKS SHALL BE BY SWIFT.
THIS PROCEDURE IS VALID FROM 1ST JULY TO 30TH SEPTEMBER, 2006; AND COULD BE CHANGED OR AMENDED WITHOUT PRIOR NOTICE.