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.
