CONTRACT ABSTRACT FOR
SALE AND PURCHASE AGREEMENT
BONNY LIGHT CRUDE OIL
CIF
The contract is for the shipment and delivery of two million barrels of Bonny Light Crude Oil for a twelve month period. This is an off-OPEC allocation, verifiable at the NNPC Loading Terminal, Bonny. The total discount to the buyer shall be ($9.00) per barrel gross below DTD Brent. ($5.00) is the net discount to the buyer and ($4.00) is to be distributed equally as commissions to the buyer’s agents and facilitators and to the seller’s agents and facilitators. A fee protection agreement shall be incorporated into the SPA.
Delivery shall be CIF to buyer’s port of destination.
CIF PROCEDURES
1. Buyer and seller sign the SPA electronically, depositing copies of the same with their respective banks. The electronic signed SPA is legally binding on the parties.
2. Seller attaches his confirm able & revolving (ATS); Letter of Allocation / Mandate Letter to lift or sell 12.5 million barrels of BLCO on behalf of NNPC.
3. Buyer confirms ATS from the NNPC Loading Terminal, Port Harcourt. Upon said confirmation, buyer issues an operative, irrevocable and confirmable Letter of Credit, via MT760 or MT103/23 by SWIFT to seller’s bank, covering the total cost of a cargo of 2 million barrels of BLCO for the initial shipment. An identical issuance shall take place each month for the duration of this SPA.
4. Seller’s bank shall issue to buyers’ bank a 2% performance bond (PB) after verification of buyer’s MT760.
5. Within 96 hours, seller shall nominate a vessel and programme the same with NNPC for loading of the BLCO cargo. Seller shall inform the buyer, through the captain of the loaded vessel, of the ETD and ETA of the vessel to buyer’s port of discharge.
6. Buyer's obligation at the discharge port shall be for those expenses incurred to facilitate and accommodate the discharge at Buyer's shore tanks as well as all other charges on the cargo.
SALE AND PURCHASE AGREEMENT
BONNY LIGHT CRUDE OIL
CIF
The contract is for the shipment and delivery of two million barrels of Bonny Light Crude Oil for a twelve month period. This is an off-OPEC allocation, verifiable at the NNPC Loading Terminal, Bonny. The total discount to the buyer shall be ($9.00) per barrel gross below DTD Brent. ($5.00) is the net discount to the buyer and ($4.00) is to be distributed equally as commissions to the buyer’s agents and facilitators and to the seller’s agents and facilitators. A fee protection agreement shall be incorporated into the SPA.
Delivery shall be CIF to buyer’s port of destination.
CIF PROCEDURES
1. Buyer and seller sign the SPA electronically, depositing copies of the same with their respective banks. The electronic signed SPA is legally binding on the parties.
2. Seller attaches his confirm able & revolving (ATS); Letter of Allocation / Mandate Letter to lift or sell 12.5 million barrels of BLCO on behalf of NNPC.
3. Buyer confirms ATS from the NNPC Loading Terminal, Port Harcourt. Upon said confirmation, buyer issues an operative, irrevocable and confirmable Letter of Credit, via MT760 or MT103/23 by SWIFT to seller’s bank, covering the total cost of a cargo of 2 million barrels of BLCO for the initial shipment. An identical issuance shall take place each month for the duration of this SPA.
4. Seller’s bank shall issue to buyers’ bank a 2% performance bond (PB) after verification of buyer’s MT760.
5. Within 96 hours, seller shall nominate a vessel and programme the same with NNPC for loading of the BLCO cargo. Seller shall inform the buyer, through the captain of the loaded vessel, of the ETD and ETA of the vessel to buyer’s port of discharge.
6. Buyer's obligation at the discharge port shall be for those expenses incurred to facilitate and accommodate the discharge at Buyer's shore tanks as well as all other charges on the cargo.
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