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PROCEDURE CIF or TTO - BONNY LIGHT AA

The document outlines the procedure for a refinery-approved CIF or TTO transaction involving Bonny Light crude oil, detailing steps from the issuance of an Irrevocable Corporate Purchase Order (ICPO) to payment activation and title transfer. Key components include the issuance of a Sales and Purchase Agreement (SPA), Proof of Product (POP), and the financial instrument required for payment. The process emphasizes the roles of both buyer and seller, including documentation and verification at the discharge port.

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JeissonLeguizamón
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198 views3 pages

PROCEDURE CIF or TTO - BONNY LIGHT AA

The document outlines the procedure for a refinery-approved CIF or TTO transaction involving Bonny Light crude oil, detailing steps from the issuance of an Irrevocable Corporate Purchase Order (ICPO) to payment activation and title transfer. Key components include the issuance of a Sales and Purchase Agreement (SPA), Proof of Product (POP), and the financial instrument required for payment. The process emphasizes the roles of both buyer and seller, including documentation and verification at the discharge port.

Uploaded by

JeissonLeguizamón
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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February 2025

PROCEDURE
REFINERY APPROVED CIF or TTO PROCEDURES

BONNY LIGHT
1.000.000 BBLS TRIAL
4.000.000 BBLS X 12 MONTHS R&E
BRENT -$4 USD per BBL GROSS
COMMISSION: $0,50 USD per BBL

IPCO + KYC + COMPANY PROFILE


ICPO: (COMPANY REGISTRATION, BANKING ACCOUNT, PASSPORT, DISCHARGE PORT, COUNTRY, PROCEDURE,
QUANTITY, SPEC)

TRANSACTION PROCEDURE

PROCEDURE FOR ICPO (Irrevocable Corporate Purchase Order)

1. Buyer's Issuance of ICPO:


o The Buyer issues a detailed ICPO (Irrevocable Corporate
Purchase Order) confirming their readiness to proceed.
o Include:
▪ Buyer's company details (CIS, KYC).
▪ Bank details for payment purposes.
▪ Authorized signatory's passport and company registration
details.
2. Seller's Issuance of SPA (Sales and Purchase Agreement):
o Seller issues the SPA based on the agreed terms and procedures.
o Buyer reviews, signs, and returns the SPA within 72 hours.
o Both parties lodge copies of the SPA with their respective banks.
3. Proof of Product (POP):
o Seller provides Proof of Product documentation:
▪ SGS Report (Q&Q Inspection)
▪ Certificate of Origin
▪ Tanker Ullage Report
▪ Commercial Invoice (CI)
4. Payment Instrument:
o Buyer's bank issues a non-transferable DLC (Documentary Letter
of Credit) or MT760 SBLC in favor of the Seller's bank.
o Bank instrument must be cash-backed, irrevocable, and valid for
one year and one day.
5. Loading Process:
o Upon confirmation of the financial instrument, Seller
commences loading of the cargo.
o Seller sends the following documentation to Buyer:
* Full Vessel Details.
* Certificate of Quality and Quantity.
* Bill of Lading.
* Cargo Manifest.

NOTE: FOR TTO OPTION, THE PRODUCT SHALL BE PAID AFTER BEING
LOADED AND SATISFACTORY SGS

6. Shipping and Verification:


o Vessel departs for the agreed destination port.
o At the discharge port, Buyer's inspection agents (SGS or
equivalent) conduct a verification of Q&Q.
o Buyer receives original shipping documents and certificate of
title to the cargo.
7. Payment Activation:
o Upon successful verification at destination, Buyer's bank
activates the payment instrument (DLC/SBLC) or issues payment
via MT103.
8. Commissions Settlement:
o Seller pays all intermediaries and facilitators within 24 hours of
receiving the MT103 payment.
o Payment follows the terms stipulated in the Irrevocable Master
Fee Protection Agreement (IMFPA).
9. Title Transfer:
o Risk and title to the cargo transfer to the Buyer upon unloading
at the destination port.

Seller pays Buyer´s intermediaries commissions within 24 hours upon


receipt of funds or MT103 payment.

Best regards,

JEISON LEGUIZAMÓN
Legal Representative
ExpointPro SAS
NIT. 901.786.958-1
[email protected]

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