[oyeyinka keni]

The Taiwan CPC bitumen 60/70 80/100
FOB USD500/MT in bulk
FOB USD560/MT in steel drum

TERMS AND CONDITIONS

We only doing annual contract no spot, only BG+TT or SBLC for payment

We are RWA to secure our crude in Russia, refine the same using one or more refineries in Russia into finished products such as D-2, JP or Mazut to the specs required by the Buyers, and export/sell them to the Buyers around the world. We mostly use Rosneft/Gazprom/Government Refineries for production contracts though we use other refineries at times. Hence, we are neither refinery nor Re-sellers or Brokers. So, we never keep anything in stock and every qty is tailor made for a specific client. And we don't hold allocations for the same reason.

The Min. Order quantity is normally 50,000 MT/month x 12 months and the Max. Order quantity we can accept is about 500,000 MT/month x 12 months for any single client for D-2 or Mazut. The Min. Order quantity is 360,000 Barrels/month x 12 months and the Max. Order quantity is about 1.5Mn Barrels/month x 12 months for any single client for Aviation Kerosene Jet Fuel A-1. Of course, the contracts can be signed with rolls and extensions. Our basic terms are as follows :

Prices/Discount :

Our Prices are attractive as we offer a discount of 5% on applicable Platts (FOB or CIF as preferred by the Buyer) as a floating contract based on Platts prices on the day of each shipment (average of 3 days), against security deposit of 1 month value BG/SBLC.

First Delivery : Max. Within 30-45 days after financial instrument.

Payment Terms :

Buyer will arrange an Irrevocable, Unconditional BG/SBLC to be issued & confirmed by a Top Western Bank for a face value of min. 1 month shipment of commodity valid for a period of 13 months, as security deposit for the contract, in favor of the Seller. Value of Financial Instrument will be calculated based on current market Price as per Platts (and not with discount). Of course, the BG/SBLC can make a reference to the S&P Contract.

Buyer will pay for the purchased commodity by direct wire transfer, to the account(s) of the Seller within 5 days, after presentation of shipping documents at loading port & discharge ports, by the Seller to the Buyer’s Bank.

The Buyer has the choice to either pay for the final month shipments by wire transfer and request BG/SBLC returned or allow use of BG/SBLC as final payment. If there is balance either plus or minus will be settled between the parties.

Procedures of Our Group in brief :

The Buyer issues LOI with the Specifications of the product, the name & location of the Bank, which will issue & confirm the financial instrument, and strictly as per the banking procedures and payment terms herein stated.

Seller speaks to Buyer and then issues a FCO to the Buyer.

The Buyer signs, seals and returns the FCO along with ICPO with permission to seller for soft probe within 3 days.

Seller sends Draft Contract for review and acceptance, Buyer returns Draft Contract to Seller with full information within 3 days, and then Seller & Buyer sign the Contract.

Within five (5) banking days after receiving the signed contract, Buyer’s bank issues the RWA or PRE-ADVISE of the availability of BG/SBLC to Seller’s Bank via SWIFT with copy to Seller by Fax or E-Mail. The RWA or PRE-ADVISE will clearly confirm that Buyer’s Bank will within 5 banking days after receipt & satisfactory verification of POP, issue an irrevocable, unconditional, transferable, operative BG/SBLC (as per attached format) with a face value of min. 1 month shipment of commodity being US$ XXX, 000,000 valid for 13 months from the date of issue as security deposit and payable upon maturity.

Within five to seven (5 to 7) banking days after receipt of RWA or Pre-advise from the Buyer’s Bank, Seller’s Bank will send the Partial Proof of Product to Buyer’s Bank. (If the Buyer wishes, Seller can send an invitation to the Buyer to visit the Russian Refinery and Seller at a TTM for more verification).

For the avoidance of doubt, the partial POP will consist of the following documents only:

Copy of the Refinery’s commitment to produce the product for the length of the contract,
Copy of the confirmation letter to transport the product to the port of loading,
Copy of telegram / letter that confirms availability of the product in the pipe line, and Copy of the Deal Passport.

Within five (5) banking days after successful verification of the partial POP, the Buyer’s Bank, XXXXXXXXXXXXX (Name & Location of the Issuing & Confirming Top Western Bank) will issue to Seller’s Bank the operative Financial Instrument (BG/SBLC) with a face value of US$ XXX,000,000 for a period of 13 months as per Contract.

Within five to seven (5 to 7) banking days after receipt of acceptable BG/SBLC from the Buyer’s Bank, Seller’s Bank will issue a 2% Performance Bond Guarantee, for the face value of Financial Instrument.

Shipments commence as per Contract terms.

Each party thereto will bear their respective banking costs and charges.

Payment for each shipment is made within 10 days on delivery at discharge port by TT against loading port and discharge port docs.

Commissions/Consultancy Fees :

Will be paid by Buyer to all parties concerned as per NCNDA/IMFPA issued & signed by Buyer from the discount offered to him. Seller will have nothing to do with the commissions.


Our price structure is as below:

1. 5% discount from PLATTS Rotterdam for each month BG or SBLC.
1 month is 5%, 2 months is 10%...4 months is 20%.

2. Then T/T payment is made against each shipment delivery. T/T payment is calculated based on average PLATTS at the time of loading i.e. one day before, the day of loading and one day after loading. Meaning to say, if PLATTS goes down, buyer will benefit and if PLATTS goes up, seller will not lose. We think it is fair and proper way to conduct this business.
If the average PLATTS at time of loading differs from BG value (either + or -), it will have to be settled as per shipment delivery.

3. The one month or 4 months BG is only as a deposit to guarantee TT payment after delivery. And it can use for final settlement or return to buyer after the contract period as per buyer’s choice.

4. at this moment, PLATTS D2 is about US$600. 1 month BG will be then US$570; 4 months BG is US$480 subject to FCO confirmation.

5. M100- 1 month BG is US$310/300 and 4cmonths BG is US$240/230 subject to FCO confirmation.

6. in summary, OUR’s price is not fixed for the whole contract period. If it is fixed, there will be a lot of default payment by buyer when PLATTS goes down though they already signed a contract; on the other hand when PLATTS goes up, seller may not honor the contract as they prefer to sell to new buyer and make more money.

Werepresent High-Apex Group Co., Ltd located in Taiwan, have 14 branch office & 5 joint ventures in Mainland China, special in China market doing import/export & Brokerage except 5 factories, We doing scraps & Iron Ore business in Taiwan over 30 years & have 7 own yards, recently few years we develop to Mainland China and neighboring countries, according to different situations or products, we sometimes as end-buyer, sometimes as Mandate, sometimes as Middleman, In summary: In this business we have different roles to serve as, our mainline is Bitumen, Sulfur, Steam Coal, D2, M-100, LNG, Urea, NPK, Fish Meal, Palm Oil, Rice, Yellow Corn, Sorghum, Tapioca, Steel Billet, Steel Drum, Iron Ore, Lead ingot, Lead Scrap, Steel Scrap, Cooper Scrap, PCB Scrap, Paper Scrap, Petroleum Coke, Petrochemical, Technology Information, Silicon Chunk, Silicon Ingot, Silicon Wafer, Silicon Scrap, Solar Cell, PV Module, Medicine, Gold Marine - Deep Sea Water, Surgical Mask, Barite & Fluorite, Mobile Phone & Note Book
- Main business : trading bitumen, scraps and other material between Taiwan, USA, China and Russia, yearly turnover over US$ 80 mill.
- Other business: global scouring and brokerage as agent and mandate for Oil & Bitumen, Like Korea SK Taiwan CPC Thailand IRPC and Russian Gazprom, Rosneft & Lukeoil

We can supply products in realistic terms. We never ask a penny before shipment is made for any reason whatever.

We know about China market, normally can’t offer you fixed price because of the way we have structured the oil deals, especial D2. However, since Mazut is not on Platts, we can offer it on Fixed Price depending upon the price prevailing on the date of finalization. The current Mazut price is around US$350/MT that we can supply on fixed price. Procedures and Payment Terms of course are as per what we sent you already. Please review carefully & revert to us.

In summary, OUR’s price is not fixed for the whole contract period. If it is fixed, there will be a lot of default payment by buyer when PLATTS goes down though they already signed a contract; on the other hand when PLATTS goes up, seller may not honor the contract as they prefer to sell to new buyer and make more money.

Anyway we hope that you can understand what we say, if any misunderstand please don’t hesitative to contact us

we are basically for D2 & M100, as our experience BG longer the price of the more advantageous, for example, four months BG M100 price between USD250-270, one month BG M100 price between USD300-320, the other factor is the quantity, we are the representative of oil suppliers only， our company belong to buyer side, will share buyer side commission

buyer can povide issue ICPO with soft probe or BCL, no need to show the unit price or nominated their fantasy price it’s up to the buyer, but the final price will be clearly in FCO

Anyway you want to do oil through our channel, first need IPCO and BCL , if no BCL then authorize Soft Probe to verify if all pass the verify we will make Final FCO for you and will give you exactly prices, in the whole transaction we will not requirement any advanced deposit with buyer even 1 cents