C O R P O R A T E S O F T O F F E R
16 SEPTEMBER, 2008
D2 DIESEL OIL TERM CONTRACT OFFER
2 or 5 or 190 0r 20 or 40 Million MT X 12 months USD $485 Gross / $475 FOB or CIF (Price is the same)
Prices subject to change with market condition
ICPO to be addressed:
XXXXXXXXXXXX
1. PRODUCT : GAS OIL L0.02-62, GOST 305-82
2. ORIGIN : Russia
3. SPECIFICATION : Based on Standard Specification see Appendix “A”.
4. QUANTITY : TBD
5. CONTRACT DURATION : Twelve (12) months with extension as agreed by both parties to
60 months.
6. INSPECTION : By SGS or equivalent Survey company pays by Seller at
Loading Port and Buyer pays at Discharge Port.
7. CONFIRMATION : The order is confirmed after the Seller receives and accepts the
Signed contract for this order (Signed and sealed by both parties).
8. BUYERS DOCUMENTATION : Permit to Import, Signed End User Allocation and Import
License from the authorities to enter the Terminal. Others to be
determined during Negotiation.
9. PRICE :USD $485 / $475 per metric ton by CIF.
C O R P O R A T E S O F T O F F E R
10. TERM OF PAYMENT : a) Monthly Payment by Revolving, Assignable,
Irrevocable, Divisible, Transferable Confirmed
Documentary Letter of Credit (RDLC).
11. PERFORMANCE BOND : The seller will issue a performance bond based on 2% of the
value of one month’s delivery. The Performance Bond will be
issued based on INCONTERM ICC500 after the Sellers Bank
receives the Operative, RDLC with blocked funds letter.
12. LAYCAN : For the first delivery within Forty Five (45) working days after
Receiving Positive Verification, Authentication, and Validation
of the DLC and Blocked funds.
13. COMMISION PAID : Seller will pay the intermediaries and Agents commission (as
set out in the Irrevocable Master Fees Protection Document,
annexed to the Main Contract.
PROCEDURES
1. Buyer issues Irrevocable Confirmed Purchase Order (ICPO) and Bank Comfort Letter (BCL) with
rights to Soft Probe. Permission for a soft probe, the ICPO must contain the following clause at
the end.
“we hereby provide our authorization to the bank of the seller (Seller Name) to conduct and enquiry
into our financial capacity in regards to this transaction (soft Probe).”
2. The Seller will issue a softcopy of Agreement to the Buyer and when both parties agree on the draft,
and then both parties sign the Contract in a way convenient to both. If by courier, then four originals
will be sent to the buyer for signing and return. Electronic signature is acceptable.
3. The Buyer shall within Five (5) International Banking Days from receipt of executed contract,
instruct their bank, which must be a “Prime 25 World Rated Bank” to block in their own
account,
sufficient funds to cover One (1) full months value of the commodity. When Blocked, the
Buyer’s bank, shall issue the Seller’s bank a “Blocked Funds Letter, Samples of the “Blocked Funds
Letters” are in Annex “C” and “D” attached.
4. The Seller’s Bank shall within Five (5) International Banking Days, issues Non Operative Performance
Bond for 2% of one month value.
5. The Seller’s Bank shall within Ten (10) International Banking Days of positive verification of the
Blocked Funds Letter, issue a Ready, Willing and Able (RWA) and the Seller’s bank shall send by
SWIFT, the POP to the Buyer’s bank
7. On Verification, Seller’s bank will immediately make the Performance Bond from Clause 4 above,
operative.
C O R P O R A T E S O F T O F F E R
8. Buyer’s Bank, within Three (3) international banking days of the PB becoming operative, will issue to
Seller’s Bank an Operative, Irrevocable, Revolving, Transferable, Divisible and Assignable
Documentary Letter of Credit (RDLC) (One month supply value).
9. After the Seller’s bank receives and confirms the RDLC (and other documents listed above), within Forty
Five (45) working days the Seller shall proceed to start loading the Commodity based on the RDLC
received and confirmed quantity, port of delivery, import license and other related documents from the
buyer. The second and subsequent deliveries will be within blocks of Thirty (30) Working Days. (As per
loading schedule).
10. The Monthly Lot payment shall be made against the Seller’s invoice (and other documents listed in the
contract) on presentation of the listed documents to the Buyer’s bank; the RDLC shall then be
automatically topped up for the next month’s shipment.
11. Others are as per contract.
Please enter Legal Company Name and Blocked funds / RDLC Issuing Bank Co-ordinates for inserting in
Contract Documents.
Bank Name :
Bank Address :
Account Name :
Account Manager :
S.W.I.F.T. Code :
Telephone number :
Fax Number :
Bank Officers Name :
I hope the above meets with your approval. I am looking forward to receiving your ICPO and BCL
Thank you for your consideration
C O R P O R A T E S O F T O F F E R
ANNEX ‘A’
RUSSIAN GAS OIL L0 -6, GOST 305-8 LOWEST SULPHUR CONTENT (0.0 %) AND
EXPORT QUALITY GRADE SPECIFICATIONS.
TEST ITEM TEST METHOD LIMITS
1. Appearance
Visual
C & B
2. Calculated
ASTM D 976-91
Min 47
3. API Gravity @ 60* F Upper
ASTM D 405-96
Report
API Gravity @ 60* F Lower
ASTM D 4052-96
Report
4. Specific Gravity @ 15.6/15.6*C Upper
ASTM D 4052-96
0.82-0.84
Specific Gravity @ 15.6/15.6*C Lower
ASTM D 4052-96
0.82-0.84
5. Kinematics Viscosity @ 40*C
ASTM D 445-01
1.8-4.1
6. Pour Point* C
ASTM D 97-96a
min-10
7. Sulphur Content % WL
ASTM D 5453-00
max .02%
8. Water ad Sediment %vol.
ASTM D 2709-96
max 0.05
9. Flash Point (P.M.) * C
ASTM D 93-00
min 52
10. Distillation: Initial Boiling Point* C
ASTM D 86-01
Report
Distillation: 10% Boiling Point* C
ASTM D 86-01
Report
Distillation: 50% Boiling Point* C
ASTM D 86-01
Report
Distillation: 90% Boiling Point* C ASTM D 86-01 max-357
11. Colour ASTM ASTM D 1500-98 max 2.0
C O R P O R A T E S O F T O F F E R
ANNEX ‘B’
(PLEASE NOTE: TWO BANK OFFICERS MUST SIGN THIS LETTER)
(ON BANK LETTER HEAD OF BUYER’S BANK)
BANK COMFORT LETTER
C0NFIRMATION OF FUNDS CERTIFICATE
DATE :
BANK NAME :
ADDRESS :
TELEPHONE :
FACSIMILE :
SWIFT :
TELEX :
ROUTING # :
ACCOUNT NUMBER :
ACCOUNT NAME :
TO : SELLER COMPANYXXXXXXXXXXXXXXXX
We, the undersigned Bank Officer’s, Hereby certify and confirm with full responsibility that the above
client’s
financial capabilities at today’s date (Name of Company) is financially capable of fulfilling a contract of
up to
(Quantity) Metric Tons of (Product Name) per month and can enter the contract for (One Year), is
reserved in this
Bank at the request of (Buyer’s Company Name) for the finalization of contract for the purchase of
(Name of
Product).
These funds are Available for the purchase of the above identified Product. In issuing this statement, The
Bank
Recognized their Liability in accordance with the term of the Contract should it proceed.
…………………….………….. …………………………………
NAME OF BANK OFFICER 1 NAME OF BANK OFFICER 2
TITLE: TITLE:
SIGNATURE: SIGNATURE:
BANK SEAL & CHOP
C O R P O R A T E S O F T O F F E R
ANNEX ‘C’
DATE :
CONFIRMATION VIA : SWIFT WIRE FORMAT MT-760
SENDER BANK :
:
BANK OFFICER :
SWIFT CODE :
ACCOUNT NUMBER :
ACCOUNT NAME :
BANK SCREEN CODE :
BANK ACCESS NO. :
TELEPHONE :
FAX :
RECEIVER BANK NAME :
BANK ADDRESS :
BANK OFFICER :
SWIFT CODE :
TELEPHONE :
FAX :
FOR BENEFIT OF :
ACCOUNT NUMBER :
BLOCKED FUNDS
WE, , , REPRESENTED BY THE UNDERSIGNED OFFICERS, HEREBY CONFIRM WITH FULL
BANK
RESPONSIBILITY AND LIABILITY, AND ACKNOWLEDGE THAT AN AMOUT OF (USD$) IN CASH FUNDS HAVE BEEN UNILATERALLY AND FIRMLY RESERVED BY OUR CLIENT : ;
ACCOUNT
NUMBER FOR A PERIOD OF SIXTY (60) DAYS FROM THE DATE OF THIS LETTER.
WE ALSO CONFIRM THAT OUR CLIENT HAS FULL CUSTODY OVER SAID FUNDS IN HIS ACCOUNT AND THESE FUNDS SHALL
REMAIN RESERVED AND UNDER HIS EXCLUSIVE INSTRUCTIONS. WE FURTHER CONFIRM THAT THESE FUNDS ARE GOOD,
CLEAN,
CLEARED, UNENCUMBERED LEGTIMATELY EARNED FUNDS OF A NON-CRIMINAL ORIGIN AND ARE FREE AND CLEAR
FROM ANY
CLAIMS, LIENS AND ENCUMBRANCES WHATSOEVER.
WE ALSO CONFIRM THAT THIS BLOCKED FUNDS LETTER HAS BEEN ISSUED UNDER OUR ABOVE CLIENT EXCLUSIVE
INSTRUCTIONS THAT THESE FUNDS ARE EXCLUSIVELY BLOCKED AND RESERVED FOR THE BENEFIT OF
XXXXXXXXXXXXX LTD
WITH ACCOUNT NUMBER XXXXXXX, AT YOUR BANK, FOR THEIR USE AND BENEFIT EXCEPT FOR THE TRANSFER OUT OR
RELEASE OF THESE SAID FUNDS.
THIS IS AN OPERATIVE BANK INSTRUMENT AND IS SUBJECT TO THE UNIFORM COMMERCIAL CODE AS IT RELATES TO
BANK
CREDIT INSTRUMENTS. THIS CALLABLE BANK CONFIRMATION IS VALID FOR SIXTY (60) DAYS AND MAY BE VERIFIED ON
A
BANK-TO-BANK BASIS.
FOR AND ON BEHALF OF
BANK OFFICER NAME BANK OFFICER NAME
TITLE/POSITION TITLE/POSITION
TELEPHONE BANK TELEPHONE
FACSIMILE SEAL FACSIMILE
C O R P O R A T E S O F T O F F E R
ANNEX ‘D’
(On Bank Letterhead)
USD BLOCKED FUNDS LETTER
Issue Date :
Registration Ref :
To : Company Name : Xxxxxxxxxxxxx Ltd
Company No. :
Represented By : Mr. Xxxxxxxxxxx
Passport No. :
Dear Sirs
REFERENCE CODE : --------------------
Account Name :
Account Number :
1. We ……………………… (BANK NAME & ADDRESS)………..………………, hereby confirm with full bank
responsibility and liability,
and acknowledge that an amount of UNITED STATES DOLLARS xxxxxxxxxx xxxxxxx MILLION
(USDxxx,000,000.00) in cash funds are presently deposited with us by our above client.
2. We further confirm that our above client has full custody over said funds in his/their account and under his/their
exclusive instructions, we have received irrevocable instruction that these funds are exclusively blocked and
reserved for the benefit of Xxxxxxxxxxxxx Ltd (Company No. ………………), represented by Mr. Xxxxxxxxxxx
(Xxxxxxxxxxx Passport No. ……) for their use and benefit except for the transfer out or release of these said funds.
3. We furthermore attest and confirm that this irrevocable United States Dollars Blocked Funds Letter has been
issued on the blocked and reserved of the said funds under the above account for a period of sixty (60) calendar days
from ……………………2008 to ………………2008.
4. We will recognize and accept instructions directly from Xxxxxxxxxxxxx Ltd (Company No. ………………),
represented by Mr. Xxxxxxxxxxx (Xxxxxxxxxxx Passport No. M…….) only with respect to the following
transactions:
a. Verifying that the funds in this account are kept intact for the said sixty (60) calendar days (Reference Code : ).
b.Scanning the account at any time to ensure that the funds are intact
(Reference Code : ).
5. Under no circumstances will Xxxxxxxxxxxxx Ltd (Company No. ………………), represented by Mr.
Xxxxxxxxxxx (Xxxxxxxxxxx Passport No. …….) have any authority whatsoever to withdrawal, transfer out,
release or collateralize the above funds.
6. We further confirm that these United States Dollars Funds are good, clean, cleared funds of non-criminal origin
and obtained from legal source/s and that they are free and clear from any claims, liens and/or encumbrances
whatsoever.
7. We are ready to confirm this on bank-to-bank basis.
For and on behalf of ……..…….(BANK NAME AND ADDRESS)…………….. this letter signed by two
internationally authorized bank officers as follows.
(Bank Seal)
Bank Officer’s Name & Title Bank Officer’s Name & Title
(Two Bank Officers’ Signature and Bank Seal