1.
NNPC is a government corporation and works based on
government approved policies and procedures. Thus, they
cannot fashion procedures to suit individual buyers.
2.
NNPC does not sell crude oil on a SPOT basis. The
transaction is strictly CIF and it is an initial **-month
contract with possibility for roll-over and extensions up to
*8 months.
3.
The discount offered at this time is a gross
of $8.*0
and a net of $5.*0 (non-negotiable) to
buyer with $3.*0 shared *0/*0 by both sides.
4.
Seller Side comes closed and the buyer's side
-open.
5.
The verbiage that comes with the draft contract (we
believe this has already been submitted for your review) is
the approved verbiage for the DLC buyer is expected to use in
issuing his instrument. There is no later agreement to
be arrived between seller and buyer banks. Buyer should
ensure that the verbiage provided in the draft contract is
accepted by his bank. This is a standard verbiage for
MT**0, Again, NNPC
cannot vary the procedures to suit individual
buyers.
6. There is no need for an LOI if buyer or his
representative provides buyer full corporates details which
include:
a. Buyer's full legal company Name
b. Buyer's Address:
c. Buyer's email address
d. Full Banking Details or Client Information sheeet.
d. Buyer's DIRECT telephone number.
These details could be that of buyer's representative if the
representative provides NNPC with a legal appointment letter
from buyer to act on his behalf.
e.
An IMFPA with buyer side information completed.
Buyer does not need to sign the draft contract.
He can suggest some
minor
changes which may be approved by NNPC if they are in keeping
with the policies governing the corporation. Sending
the draft contract back with or without suggested
modifications and an IMFPA indicates that buyer has accepted
NNPC procedures and intends to abide by them in toto.
There is therefore, no need for an LOI or an
FCO.
7.
Seller's bank details are included in the approved
verbiage of the DLC buyer is expected to issue
after receiving copies of the contract by
courier subsequent to the electronic
version.
8.
NNPC
cannot issue Authority to Sell (ATS) to itself or proof of
product prior to buyer signing the contract. Note also
that NNPC does not issue performance bonds. The
procedures in the draft SPA are the only ones under which
NNPC deals. Buyer is expected to
accept them or
reject them. The only
acceptable instrument is MT**0. Please see NNPC full
CIF procedures in the draft SPA attached. Below is the
transaction process.
Transaction Process:
1. Seller Consultant (Me) sends NNPC draft contract
with DLC verbiage to Buyer representative (You).
2. Buyer reviews and accepts seller procedures in
their entirety and returns the draft contract with buyer
corporate details and an IMFPA. (Only one paymaster on both
sides). The IMFPA is a separate document rather than
subjoined to the contract itself. (One is attached
hereto for your convenience).
3. NNPC reviews and signs the draft contract and
returns it to me to be forwarded by you to buyer.
4. Buyer signs the draft contract and returns same to
NNPC through the same communication protocol.
5. NNPC nominates a transaction account, and sends 6
hard copies to me (seller consultant) through Fedex to be
forwarded to buyer in compliance with the communication
protocol established by an MOU between NNPC and Seller
Consultant.
6. Buyer notarizes the 6 hard copies and retains 2
copies and sends back to me, the remaining 4 copies to be
returned to NNPC.
7. Buyer provides his bank with the notarized
contract documents to enable his bank issue a DLC to NNPC.
8. After NNPC receives buyer's instrument, the
product is programmed for the buyer and all relevant
documents are issued to him in duely. (Procedure item 7.5).
9. Procedures items 7.6, 7.7 and 7.8 are executed in
that sequence.
