BONNY LIGHT CRUDE OIL

Product Description

CONTRACTUAL CONDITIONS:

CONTRACT FOR SALES AND PURCHASE AGREEMENT

FOR NIGERIA BONNY LIGHT CRUDE OIL

[CIF DELIVERY]

THIS AGREEMENT IS MADE ON THIS *0TH DAY OF JANUARY ***2

BY AND BETWEEN

SUPPLIER:NNPC BONNY OCEAN TERMINAL BONNY, RIVERS STATE , NIGERIA .

      THE LAST QUARTER CRUDE OIL ALLOCATION ***1

SELLER:                        PETROGEOPHYSICAL OIL LIMITED

ADDRESS:                              Bonny Terminal Office Complex, Bonny,                                                    Rivers State,Nigeria.

Represented by:           Engr.Anthony Kupoma Borogu              

Passport Country/Nbr:   A******4.  Citizenship: Nigeria

Telephpone No:

Facsimile:

 E-mail:

Hereinafter referred to as("Seller")and:

BUYER:

 ADDRESS: 

Represented by: 

Passport Country/NO:  

Phone No:

  Hereinafter referred to as (“Buyer”)

d.      The Gross Discount to the Buyer shall be US $*1.*0 (Eleven Dollar & *0 cent) per barrel. Net Discount to the Buyer is USD $7.*0and USD 4.*0Commissions for the Seller and Buyer Representatives i.e. USD $2.*0 to the Seller’s Side(CLOSED) and USD $2.*0 to the Buyer’s Side

*4. BANKING AND PURCHASE PROCEDURE.

a. Seller shall issue Sales & Purchase Agreement with Seller's Full Banking Co-ordinates and with Proof of Product (POP) already stated in this contract on ANNEX G. The bulk POP will only be confirmed through the NNPC, London and Shell screen London upon the receipt and confirmation of Buyer’s payment instrument.This confirmation i.e. the crude oil allocation reassignment and programming on the NNPC London and Shell Screen in favor of the buyer as the owner and consignee of the month cargo shipments will only be done and effective upon confirmation of the swift  bank  instrument. This is secondary contract allocation under the custody of NNPC BONNY OCEAN TERMINAL OFFICE.

b.Buyer and Seller sign and seal this Contract including banking coordinates and exchange the signed copy by electronic mail. The electronic signed copy by both Parties is considered legally binding and enforceable. The buyer shall obtain a letter from his bank confirming their readiness to swift the MT**9 requesting for the non-operative bonds from the seller’s bank.

c.Buyer’s Bank shall within two (2) banking days of *4.b above send a pre-advice swift by MT**9 requesting the seller’s bank to post a non-operative two percent performance bond to their bank.

d.On the buyer’s receiving the 2% non-operative bond, the buyer’s bank shall swift the SBLC by MT**0 covering the month cargo shipments to seller nominated bank account holder.

e. Upon Seller’s bank receiving the banking instrument,all loading clearance documents and title transfer shall be issued in the buyer’s name. And cargo loaded on the dated laycan. NNPC Bonny Ocean Terminal officewill also issue directly to the Buyer and copy the mandated Seller, a letter of Product Allocation Approval and Reassignment. NNPC will also certify PETROGEOPHYSICAL as her Official agent and mandate seller in the transaction.

f. Within Four to Five (**5) banking days of *4.c, Seller shall reassign   allocation to Buyer’s name and program for verification on Shell Network Loading Screen, NNPC London and Bonny loading terminal. (Article *3, Clause b)and Seller shall provide the Bonny Oil Terminal Loading Program Notification Form” verifiable on the Shell Screen London with barrels in the name of the Buyer (VERIFIABLE POP).(except the Aspatankvoy CPA).

g.Within and after one (1) banking day of *4.d, the NNPC Bonny Ocean Terminal office shall issue to the nominated bank the needed documents on the transaction certification to enable the nominated bank swift the Proof of Product (POP) to the buyer’s nominated bank.

h. Within *8 hrs of *4.e above, Seller shall provide The Aspatankvoy Charter Party Agreement (CPA) for the designated vessel marked "Freight Prepaid" to Buyers destination. The Seller will give the Buyer verifiable Vessel name, call letters, and Captain’s name of the Vessel that is to load for CIF delivery and signed copies of the Charter Party Agreement with the Shipping AgencyFailure of Seller to do so shall be a default event and Buyer shall collect the PB.

i.   Within ten (*0) days of *4.g above Vessel shall proceed to the Bonny Loading Terminal and load cargo. Inspectors shall conduct quality and quantity assessment; and all relevant shipment documents shall be endorsed/receipted by the Vessel captain, with a copy forwarded to Buyer.

j. After the vessel has discharged its cargo at Buyers destination port and Buyer has received the Post Discharge Q & Q Report from SGS and after all documents are presented by the Seller after the time of cargo delivery as required by the RDLC, Buyer shall make payment by Telegraphic Transfer to Seller’s nominated Bank Account for oil and to Seller and beneficiaries named in Master Fee Protection Agreement in the contract for fees.  

k. Payments are made by swift wire transfer directly to the Seller’s bank accounts and commission agents as stipulated in the MFPA in this contract withinthree (3) international banking days after product delivery to Buyer’s nominated port of discharge against presentation of stated shipping documents (non-negotiable copies) at Buyer’s bank.