SCO for PTK FOB — EN590, JetA1, D6, LPG, ULSD

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SCO for PTK FOB — EN590, Jet A1, D6, LPG, Diesel

The FOB Procedures listed on the bottom half of this page can be used for any of the products listed at the top half of the page.
All products on this page are

  • Origin: Non-Sanctioned, Non-Russian Kazakhstan Standard
  • Port – Incoterm: FOB – Rotterdam / Houston / All Safe World Ports
  • Inspection: SGS or equivalent
  • Payment: MT-103/TT within 24 hours after a successful Dip Test
  • https://en.wikipedia.org/wiki/PetroKazakhstan

We inform you that we are ready, willing, and able to sell the following product/s:

Product EN590

Trial Lift ready to sell (included in the contract) 50,000 to 1,000,000 Metric Tons
Quantity Annual Contract Up to 1,000,000 Metric Tons per month with R&E
FOB Price US$420/MT $430 MT
$5 Dollars Buyer/$5 Dollars Seller side.

Product JETA1

Trial Lift ready to sell (included in the contract) 500,000 to 10,000,000 barrels
Quantity Annual Contract Up to 10,000,000 barrels per month with R&E
FOB Price US$64 /per BBL Net $66
$1 Dollars Buyer / $1 Dollars seller side

Product D6

Trial Lift ready to sell (included in the contract) 10,000,000 to 800,000,000 Gallons
Quantity Annual Contract Up to 800,000,000 Gallons per month with R&E
FOB Price US$0.80/$0.85 per Gallon
$0.025 Buyer/$0.025 Seller side

Product LPG

Trial Lift ready to sell (included in the contract) 50,000 to 500,000 Metric Tons
Quantity Annual Contract Up to 500,000 Metric Tons per month with R&E
FOB Price US$370/MT $380 MT
$5 Dollars Buyer/$5 Dollars Seller side.

Product Ultra Low Sulfer Diesel

Trial Lift ready to sell (included in the contract) 50,000 to 1,000,000 Metric Tons
Quantity Annual Contract Up to 1,000,000 Metric Tons per month with R&E
FOB Price US$440/MT $450 MT
$5 Dollars Buyer/$5 Dollars Seller side.

FOB PROCEDURE 1: TANK TO TANK (with TTTIA)

  1. Buyer issues an official ICPO with the seller’s procedure, passport copy, banking details along with their Tank Storage Agreement
  2. Upon successful validation of the Buyer’s ICPO, logistic company, and storage agreement with the Local port authority, Seller issues a Commercial Invoice to the buyer. Buyer signs and returns the CI to the seller.
  3. Upon receipt of the Signed CI, Seller will issue a Tank to Tank Injection Agreement (TTTIA) to be fully completed, signed, and sealed by the Buyer and its Storage Facility. Upon receiving the fully endorsed TTTIA, Seller issues the POP below to the Buyer along with NCNDA/IMFPA to be signed by all intermediaries involved in the commission structure of the transaction.
    • Injection Report
    • Product Passport
    • 24 Hours SGS Report
    • Product Certificate of Origin
    • Tank Storage Receipt (TSR)
    • Authority to Sell & Collect (ATSC)
    • Commitment/Guarantee to Supply
    • Unconditional Dip-Test Authorization
    • Product Title Holder Transfer Agreement
  4. At Buyer’s option, Buyer may perform a Dip Test in Seller’s tank at Buyer’s expense.
  5. Upon successful verification of POP or Dip Test in the seller’s tank, Buyer provides a Tank Storage Receipt (TSR) with sufficient storage to accommodate the Seller’s injection programming. Seller then injects the product into Buyer’s tanks.
  6. Buyer makes the payment for the product via MT103. Seller transfers the Title Holder & Ownership of the product to the Buyer.
  7. After successful Trial Lift (First Lift), Seller issues SPA/Contract for 12 months with R&E to Buyer for processing.
  8. Within 24 hours of the completion of the injection, Seller pays commissions to all intermediaries involved, for the initial lift and all subsequent lifts.

FOB PROCEDURE 2: TANK TO TANK (with 3/2)

  1. Buyer issues an official ICPO with the Seller’s procedure passport copy, banking details along with its Tank Storage Agreement for seller’s approval.
  2. Seller issues a Commercial Invoice. Buyer then signs, seals and returns the CI to the Seller.
  3. Buyer and Seller will jointly pay the lease for the Buyer’s tank farm. The Buyer pays for 3 days, and the Seller pays for 2 days after the Seller verifies that the Buyer’s tank farm has received the payment from the Buyer for a total of 5 paid days of tank lease.
    • Buyer will forward a copy of the wire confirmation for its 3 days to the Seller.
    • Buyer will provide a letter to Seller stating that the storage obtained by buyer and seller will only be used for this transaction.
    • Buyer will request that its tank farm provide a letter addressed to Seller stating that the storage obtained by Buyer and Seller will only be used for this transaction.
    • Seller will forward a copy of the wire confirmation for its 2 days to the Buyer.
  4. Seller provides Buyer with the following FULL POP Documents:
    • Fresh SGS Report, less than 48 hours
    • Unconditional Dip Test Authorization
    • Injection Report
    • Tank Storage Receipt with GPS Coordinates
    • Tank Farm Bar-code Information
    • Letter of Commitment to Supply.
    • Authority to Sell & Collect (ATSC)
    • Endorsed Injection Schedule by the Seller and Buyer Tank Farm
    • A Physical Authority To Verify (PATV)
  5. Optionally, Buyer may conduct its own Dip-Test in Seller’s tank at Buyer’s expense.
  6. Seller injects the fuel into Buyer’s tank after successful SGS Q&Q report and Buyer makes payment by MT103 TT Wire Transfer according to the final product value Invoice.
  7. Seller transfers the title of ownership per Buyer’s instructions. Buyer lifts the product.
  8. Seller pays all intermediaries involved in the transaction, NCNDA/IMFPA, and subsequently, monthly contract shipment continues as per terms and conditions of the title sales and purchase agreement contract between buyer and seller.

FOB PROCEDURE 3: TANK TAKE OVER (TTO)

  1. Buyer accepts the seller’s working procedure and issues an Irrevocable Corporate Purchase Order (ICPO) with its banking details and signatory Passport copy.
  2. The Seller issues Commercial Invoice (CI) for the product, Buyer countersigns and returns to the Seller.
  3. Seller receives the countersigned CI, Buyer requests a 5-day (five day) tank extension invoice for the dip test in the Seller’s tanks.
  4. Upon receipt of the Buyer’s payment, the Seller opens communication with its Tank Farm Management for the creation, issuance, and Buyer’s endorsement of the Tank Take Over documentation. Upon complete registration of the Buyer’s documentation with the port authority, Seller issues the PPOP documents below:
    • Authorization to Sell and Collect
    • Product passport/Analysis
    • Product Certificate of Origin
    • Injection report
    • Unconditional Dip-Test Authorization
  5. Buyer confirms receipt of the PPOP documents and conducts its inspection and Dip-Test with its SGS team. Upon successful verification of PPOP and the Dip Test in the Seller’s tank, Buyer makes the payment for the total amount of the product via MT103. Seller confirms the Buyer’s payment and transfers title ownership of the product to the Buyer. The Buyer then completely takes over Seller’s storage tanks.
  6. After successful Trial Lift (First Lift), Seller issues SPA/Contract for 12 months with R&E to Buyer for processing.
  7. Within 24 hours of the completion of the injection, the Seller pays commissions to all intermediaries involved for the initial lift and on all subsequent lifts.

FOB PROCEDURE 4: TANK TO VESSEL (TTV)

  1. Buyer sends Seller an ICPO with banking details, company information, and passport after review of Seller’s Soft Corporate Offer, along with a CPA.
  2. Seller issues a Commercial Invoice (CI) for the available quantity to the Buyer. The Buyer signs, seals, and returns the CI to the Seller.
  3. Seller issues to Buyer the following:
    • Product Passport.
    • Certificate of Origin.
    • Commitment Letter to Supply.
    • Authorization to Sell and Collect.
    • Statement of Product Availability.
    • Three (3) Day Tank Extension Fee Invoice (refundable if Seller’s fuel does not pass inspection and deductible from the cost of the fuel if Buyer waives its own dip test in favor of verifying Seller’s SGS).
  4. Buyer pays for the Tank Extension and upon Seller confirmation of the payment, Seller issues the following POP along with NCNDA/IMFPA to be signed by all intermediaries with the commission structure involved in the transaction.
    • SGS Test (24 hours).
    • Unconditional Dip Test Authorization (UDTA).
    • Authorization to Verify (ATV).
    • Tank storage receipt (TSR)
    • Injection Report.
  5. Upon the countersigning of the UDTA, the Buyer has the option to schedule SGS/Intertek to conduct a Dip Test of the product in the Seller’s Tank at the Buyer’s Expense.
  6. Upon successful Dip Test OR acceptance of the Seller’s SGS report, Buyer provides Vessel details (Q88) to Seller and Seller shall immediately submit the Notice of Readiness to Inject.
  7. Seller commences injection into the Buyer’s Vessel and issues the Injection Report to the Buyer.
  8. Upon confirmation of the total quantity injected into Buyer’s vessel, the Buyer makes 100% payment by MT103 TT Wire Transfer for the total product. Seller transfer the Title Holder & Ownership of the product to the Buyer.
  9. After successful Trial Lift (First Lift). Seller issue SPA/Contract for 12 months with R&E to Buyer for processing.
  10. Within 24 hours of the completion of the injection, the Seller pays commissions to all intermediaries involved for the initial lift and all subsequent lifts.

TERMS AND CONDITIONS

  • Fuel Origin: Kazakhstan Standard
  • Loading Ports: Aktau / Bautino / Pavlodar
  • Delivery Ports: Rotterdam / Houston / ASWP
  • Incoterms: FOB / CIF
  • CIF Payment Terms: MT103 / SBLC / DLC MT 700 / LC
  • Commissions: 50/50% Paid to Sell and Buy Side, Sell Side is Closed
  • Max. Trial Lifts: 2,000,000 Barrels; 200,000 Metric Tons; 200,000,000 Gallons
  • Prices: Subject to Change without Notice.
  • Procedures: Seller Procedures Only, Non-Negotiable
  • Inspection: SGS or Equivalent
  • Insurance: By Seller Covering 110% of the Shipment Value
  • Fuel Availability: Fuels on this SCO are always available. Your CI is your Guarantee of an Allocation.

NOTE ON THE USE OF FIDUCIARY RECEIVERS

Sanction policies, along with their effects on International Banking practices, have dramatically affected the availability of funds when using foreign wire transfers. To facilitate timely transactions, our sellers will use regionally based fiduciary receivers rather than have funds sent directly to the refineries.

UNDERSTANDING FUEL PRODUCER PROCEDURES DOCUMENT

ICPO SUBMISSION POLICY AS OF 1/1/2025

Before processing a new order with our sellers, the buyer and buyer mandate (if applicable) must sign the Understanding Fuel Producer Procedures Document accompanying the Soft Corporate Offer (SCO). They must also provide Proof of Funds (POF) sufficient to cover storage or tank extension requirements for the chosen procedure.

Potential Buyers need to understand what these Sellers are looking for from a Buyer BEFORE engaging in any transaction. This will ensure a successful lift and minimize the possibility of failure.

  1. Pricing is “refinery direct” and is not connected to Platts, which is based upon “traders”‘ prices.
  2. These refineries have been in business for years (one since 1949) and have delivered fuels of all types for decades, successfully.
  3. Manufacturers have a massive investment in their fuels through refining, transporting, and storing them at the major ports around the world, so they expect Buyers to make a similar investment prior to transferring fuel to them.
  4. Thus, manufacturers do NOT PROVIDE PROOF OF PRODUCT (POP) FOR FREE. Buyers must demonstrate an INVESTMENT in the ability to RECEIVE fuel prior to receiving POP in a transaction, REGARDLESS OF PROCEDURE.
  5. These investments are generally paid to 3rd party logistics providers and NOT to the manufacturers themselves, unless the procedure calls for a Tank Extension. Manufacturers generally take no fees and only make money by SELLING FUEL.
  6. This policy favors Buyers with currently rented tanks, which is a de facto demonstration of an investment in the ability to receive fuel once POP is approved.
  7. Manufacturers’ Procedures CANNOT be changed in any way. DO NOT ATTEMPT to negotiate the Procedure once a transaction starts. This will ONLY lead to cancellation.
  8. If you EXPECT problems during a transaction, you will certainly find one. This will terminate an otherwise good transaction. Complete your due diligence in advance.

Procedures are like train tracks. If you stay on the rails, you get to your destination. If you go OFF them, you become a Train Wreck. Don’t be a Train Wreck!

Finally: An ICPO is an ORDER. It is NOT an opportunity to NEGOTIATE the Procedure. Do not substitute Logistics Companies in the middle of a transaction, this is a RED FLAG. It is assumed that you have completed your due diligence to ensure you are ready for the transaction. Ensure you understand what is required to receive your POP at the appropriate time, as indicated by the procedures.

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