D6
June 15, 2014
SOFT CORPORATE OFFER
(Production Contracts Only)
Virgin Fuel Oil D6
We as Mandate, on behalf of and upon instructions from our principal supplier, hereby with full corporate authority, offer to you Russian Virgin Fuel Oil D6 on production contract basis:
RUSSIAN VIRGIN FUEL OIL D6-METHOD OF TESTRESULTS
ASTM D5002 Density and Relative Density of Crude Oils
Average API Gravity 29.7 (29.7) (Min) API
ASTM D1298-99 Density @15 Deg C 0.87 (0.8775)(Max) Kg/t
ASTM D97 Pour Point of Petroleum Products
Pour Point< -33 (-36) (BELOW ZERO) oc
Pour Point<-27.4 (-32.8) (BELOW ZERO) oF
ASTM D93 -IP 34 Pensky-Martens Closed Cup
Flash Point
Corrected Flash Point 117 (137) (MIN) OF ASTM D4294
Sulfur Content in Petroleum
Products by EDXRF
Sulfur Content 0.38 (0.358) (MAX) Wt%
ASTM D445 Kinematic /Dynamic Viscosity
Kinematic Viscosity@ 122 °F/ 50°C 17.83 (18.12) (MAX) Mm2/s
ASTM D6304 Water Content by Coulometric Karl Fisher Titration
Water Content 0.20 (0.7) (MAX) Wt% ASTM D482
Ash from Petroleum Products
Average Ash 0.279
(1.007) (MAX) Wt%
ASTM D2161Converstion of Kinematic Viscosity
To SUS/SFS 1Saybolt furoi viscosity 122°F 10.9SFS (MAX) ASTM D5184
Aluminum and Silicon in Fuel Oils by ICP-AES or AAS
Aluminum Content 102 (MAX) Mg/kg
Silicon Content 93 (MAX) Mg/kg
ASTMD95 Water by Distillation, Vol % 0.70 (MAX) vol% ASTMD4530.06 Carbon
Residue 1.11(MAX)
Wt% Method Test Result Units
IP 143 Asphlteness (Heptane lnsolubles
Asphaltene Content 0.080 Wt%
IP 501Determination of AL, Si,V, Ni, Fe, Na,Ca,Zn,Pin Fuel Oii-ICPES
1Aluminium 372 mg/kg
Silicon 187 mg/kg
Sodium 117 mg/kg
Vanadium 1mg/kg
Calcium 779 mg/kg
Zinc 298 mg/kg
Phosphorus 4176 mg/kg
Iron 545 mg/kg
Quantity Available: 400,000,000Gallons (1,300,000MT+/-) per month x 12 month.
Price: Fixed price Gross $665.00 MT CIF
Payment: By Transferable Bank Guarantee (BG) or Transferable Standby Letter of Credit (SBLC) via MT760 issued by a 100 top-rated world bank. Payment is made after arrival of goods by T/T MT103 or MT103 Field 23 within 5 business days.
Payment instrument shall have the clause „Partial Shipments and Partial Drawings permitted“ negotiable at the counters of the Seller’s nominated bank against presentation of documentations.
Performance Bond: Seller’s fiduciary bank will issue operative 2% PB upon receipt and acceptance of transferable, non-operative BG or SBLC from Buyer’s bank . Verbiage and format provided by Seller’s bank.
Procedure (non-negotiable):
1. Buyer confirms and accepts this soft offer, including all terms and procedure therein, issues ICPO with full banking and Company details addressed to “End Seller” via Seller’s mandate, International Product Alliance Ltd., with a letter stating Buyers acceptance and readiness to proceed with the transaction.
2. Seller issues FCO with Seller details. Buyer conducts Due Diligence on Seller as deemed necessary. When satisfied, signs, seals and returns FCO to Seller for further processing.
3. Seller confirms, approves and issues draft contract, along with NCNDA/IMFPA, to Buyer which is open for amendments. Buyer electronically signs and seals and returns the draft
contract to Seller. This is the final SPA which has equal solemnity as the original hard copies and both parties hereby consent to waive the need for signing hard copies of contract.
4. Buyer provides Seller the bank-issued draft of what will be sent to Seller’s fiduciary bank. This draft must be provided prior to formal send off in order for Seller to inform his bank of this transaction and the potential forthcoming bank messages.
5. Both Buyer and Seller lodge signed SPA with their respective banks.
6. Buyer initiates communication with Seller’s fiduciary bank via SWIFT or EMAIL to advise that Buyer is ready, willing and able to issue the non-operative, transferable BG or SBLC via MT760.
7. Upon receipt of acknowledgement from Seller’s fiduciary bank, Buyer’s bank sends Non- Operative BG or SBLC to seller’s fiduciary bank via MT760 (Format to be provided by seller’s bank and accepted by buyer’s bank). Buyer shall immediately send to Seller a copy of the bank to bank communication after it has been formally sent to ensure Seller’s fiduciary bank’s proper follow up.
8. Within 5 business days, Seller or Seller’s refinery issues partial proof of product documents as follows:
- Copy of License to Export.
- Copy of Approval to Export
- Copy of Statement of Availability of the Product.
- Copy of the Refinery Commitment to Produce the Product.
Buyer shall conduct his own due diligence to verify and authenticate to achieve his comfort level before proceeding further.
9. Upon receipt of notification from Buyer to proceed, Seller’s bank issues 2% operative Performance Bond in the form of a bank guarantee via MT760 to buyer’s bank to cause the buyer’s bank instrument to become operative.
10. Upon receipt of 2%PB, Buyer’s bank activates or issues operative, transferable, confirmable SBLC or BG (Format to be provided by seller) to Seller’s nominated fiduciary bank.
11. Within 11 twelve working days seller submits remainder of product soft POP, and both parties lodge the contract with their respective banks.
- Copy of Deeds/Title Ownership
- Copy of Origin (Representing the Allocation and Resource Number, Reference
- Number of POP, Authority Number, Name of Loading port with Contract Number)
- Product Analytic report (Indigenous Survey Company).
- Vessel Bill of Lading, Vessel Notice of Readiness, Authority to Board (ATB) and Estimate Time of Vessel Arrival (ETA)
- Product Performa Invoice, SGS and Tank Receipt
12. Product is loaded and shipped for delivery.
13. After successful Dip Test and Q&Q by and full documents to Buyer, Buyer releases payment by wire transfer (MT103) to the Seller on out-turn shipment delivered.
This offer expires 15 days from the date of offer and must be reconfirmed with us prior to proceeding if you received this offer after the expiry date. Offer subject to prior sale.