SCO for Sardar Neft FOB — EN590, JetA1, D6, LNG, LPG

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SCO for Sardar Neft FOB — EN590, JetA1, D6, LNG, LPG

Valid until June 1, 2025

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: Turkmenistan
  • Port – Incoterm: FOB – Houston, Rotterdam, Jurong / Alashankou Terminal, China (Pipeline Takeover)
  • Inspection: SGS or equivalent
  • Payment: MT-103/TT within 24 hours after a successful Dip Test
  • https://sardarneft.kz/

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

Product EURO4, EURO 5 – DIESEL EN590 10 ppm

Trial Lift ready to sell (included in the contract) 100,000 to 200,000 Metric Tons
Quantity Annual Contract Up to 500,000 Metric Tons per month with R&E
FOB Price US$480 / $490
* Commissions included.

Product AVIATION JET FUEL A1

Trial Lift ready to sell (included in the contract) 1,000,000 barrels
Quantity Annual Contract Up to 3,000,000 barrels per month with R&E
FOB Price US $68 / $70 per BBL
USD $1 seller side closed, $1 buyer side, Commissions included.

Product VIRGIN FUEL OIL D6

Trial Lift ready to sell (included in the contract) 100,000,000 Gallons
Quantity Annual Contract Up to 200,000,000 Gallons per month with R&E
FOB Price US$0.80 / $0.85 per Gallon
$0.025 seller closed $0.025 Buyer side

Product LNG

Trial Lift ready to sell (included in the contract) 50,000 Metric Tons
Quantity Annual Contract Up to 500,000 Metric Tons per month with R&E
FOB Price US$340 / $350 USDMT
$5 USD seller side closed $5 USD Buyer side
* Commissions included.

Product LPG – LIQUEFIED PETROLEUM GAS

Trial Lift ready to sell (included in the contract) 50,000 MT Spot
Quantity Annual Contract 500,000 with R&E
FOB Price $340 USD per MT $350 USD MT seller closed
$5 Buyer commissions included

TERMS AND CONDITIONS

  • Fuel Origin: Turkmenistan
  • Delivery Ports: Houston, Rotterdam & Jurong / Alashankou Terminal, China (Pipeline Takeover, CIF)
  • Incoterms: FOB & CIF
  • Payment Terms: TT/MT 103
  • Inspection: SGS or Equivalent
  • Commissions: 50%/50% paid to the sell and buy sides. Sell Side Is Closed.
  • Max. Trial Lifts: 2,000,000 Barrels; 200,000 Metric Tons; 2,000,000,000 Gallons
  • Fuel Availability: Fuels on this SCO are ALWAYS available. Your CI is the guarantee of an allocation.
  • Prices: Subject to change without notice.
  • Procedures: Seller Procedures Only, non-negotiable.
  • Contracts: Maximum contract amounts are indicated in the Price Table

W. FOB TRANSACTION PROCEDURES (TANK TO TANK)

  1. Buyer issues: ICPO, Tank Storage Agreement (TSA), and Buyer passport.
  2. Seller issues Commercial Invoice, Buyer signs and returns back to Seller for countersigning.
  3. After complete verification of the Tank Storage Agreement (TSA) by the seller company, Buyer contacts their tank farm to arrange invoice for seller to pay for 3 storage days to Buyer’s tank Storage Company to confirm Seller’s readiness towards the transaction.
  4. Upon receipt of payment for 3 storage days by the Buyer’s tank Storage Company, the Buyer makes payment for an additional 3 storage days to complete the 6-day TSR. The Seller and Buyer representatives signs the NCNDA/IMFPA.
  5. Seller transfers product allocation to buyer and releases the following documents to Buyer:
    • Product Passport.
    • Certificate of Origin.
    • Authority to Sell and Collect.
    • Injection schedule along with the NOR (Notice of readiness) to commence the injection of the product in buyer’s tanks and Injection commences as per agreed SPOT Lift Quantity.
  6. Upon Completion of Injection; Seller releases the following documents to Buyer:
    • Injection Report.
    • Recent SGS Quality Survey
    • Dip Test Authorization.
  7. Buyer proceeds with inspection of product with SGS agent in his own tanks. Upon Buyer’s successful Q&Q dip test on the product, Buyer makes the payment for the Total Value of the product injected into the Tanks by TT/MT103.
  8. Seller releases to Buyer the product Title Ownership documents and Buyer lifts the product with his vessel Tanker.
  9. Seller pays intermediaries as per NCNDA/IMFPA.

X. FOB TRANSACTION PROCEDURES (TANK TO TANK)

  1. Buyer issues: ICPO, Tank Storage Agreement (TSA), and Buyer passport.
  2. Seller issues Commercial Invoice, Buyer signs and returns back to Seller for countersigning.
  3. Seller releases Inspection Approval Letter to Buyer to be signed by the Buyer and the Buyer’s Tank Farm. All parties’ signs NCNDA
  4. Upon receipt of the signed Inspection Approval Letter from Buyer’s Tank Farm, Seller issues the below documents to buyer:
    • Quantity and Quality Certificate (SGS) 48hrs fresh
    • Tank Storage Receipt (TSR).
    • Certificate of Origin
    • Product Passport (Dip Test Result).
    • Statement of Product Availability.
    • Refinery Commitment to Supply.
    • Authorization to Sell/Collect (ATSC).
    • Injection Report
    • Dip Test Authorization (DTA)
  5. Upon successful verification of documents by the Buyer, Seller & Buyer’s representative and the SGS Team meets at seller tank storage for dip test on the product and presentation of the hard copy Proof of Product documents to buyer representatives face to face.
  6. Upon confirmation of product Q&Q, Seller seals the tanks in buyer’s name for 10 days, Buyer pay for product by MT103/ TT and Seller immediately begins injection into buyers’ tank storage.
  7. Seller pays all intermediaries according to the signed NCNDA/IMFPA for monthly deliveries.

Y. FOB TRANSACTION PROCEDURES (TANK TO TANK)

  1. Buyer issues: ICPO, Tank Storage Agreement (TSA), and Buyer passport.
  2. Seller issues Commercial Invoice, Buyer signs and returns back to Seller for countersigning.
  3. Seller issues Non-Disclosure Agreement for signatory by the buyer, buyer’s tank farm and Seller Seller present product Injection Report and SGS report (quality and quantity) to Buyer’s tank farm, upon verification of Injection Report & SGS report by Buyer tank farm, Buyer contacts their tank farm to secure their storage space.
  4. Seller issues Injection Programming Agreement (IPA) to the buyer to be signed by the Buyer and Buyers tank farm company
  5. Seller transfers product allocation to buyer and releases the following documents to buyer:
    • Product Passport
    • Certificate of Origin.
    • Authorization to Sell/Collect (ATSC).
    • Unconditional Dip Test Authorization (UDTA)
    • Injection schedule along with the NOR (Notice of readiness) to commence the injection of the product in buyers’ tank and injection commences as per agreed SPOT Lift Quantity.
  6. Buyer conducts dip test on product and the Seller commences injection into the Buyer’s tank storage space. releases the following documents to Buyer:
    • Injection Report.
    • Recent SGS Quality Survey
  7. Buyer proceeds with inspection of product with SGS agent in his own tanks. Upon Buyers Successful Q&Q dip on the product in his own tanks, Buyer makes the payment for the total value of the product injected into the tanks by TT/MT103.
  8. Seller releases to the Buyer the product Title Ownership documents and Seller pays all intermediaries according to the signed NCNDA/IMFPA.

Z. CIF TRANSACTION PROCEDURES – PIPELINE TAKE OVER

  1. Buyer issues the following documents:
    • ICPO with seller working commercial procedure
    • Buyer’s company registration certificate.
    • Buyer’s passport copy
  2. Seller issues sales purchase agreement (SPA) to Buyer, Buyer reviews, amends (if necessary), signs and return the sales purchase agreement (SPA) to seller for countersigning along with customer information sheet (CIS).
  3. Seller gives Partial proof of products (PPOP) documents to buyer.
    • Pipeline Shipment Bill of Lading (Trackable) showing present location of product.
    • Product Quality and Quantity report issued by the Pipeline Company to affirm reception of product quality/quantity at the Pipeline facility.
    • Product Quality and Quantity Analysis report issued from the Refinery Laboratory.
    • Commitment to Supply and Statement of availability of product
    • Commercial invoice of 2.5 percent commitment guarantee (USD, RMB, HK Dollar payment options available)
    • Within 5 banking days, Buyer pays invoice of 2.5 percent security guarantee to seller via TT/MT03 wire transfer.
  4. The seller sends instructions to the pipeline company to continue with the commencement of the transportation of the product. Upon commencement of product transportation, the seller’s bank sends the below full POP documents to the buyer’s bank.
    • Allocation Title Ownership Certificate.
    • Contract to transport the product to the loading port.
    • Tank Storage Receipt
    • Product Allocation Export Permit.
    • Bill of Lading.
    • Pipeline Shipment Bill of Lading (Trackable)
    • Product Quality and Quantity report issued by the Pipeline Company
    • Chamber of International Commerce Kazakhstan in Buyer’s Company Name
    • Commitment to Supply and Statement of availability of product
    • SGS Quality and Quantity Certificate of product inside the Pipeline. (Borne by Seller)
  5. The Seller signs the NCNDA/IMFPA between all intermediaries involved, with the notarized copy sent to the Seller’s bank and Buyer’s Bank.
  6. Upon arrival of the product at the Chinese port, Buyer conducts CIQ at the destination port and the Buyer makes payment via swift fund transfer within 5 banking days to the Seller for the total shipment value after the Discharge of the product. The Seller, within 48 hours, pays the intermediaries involved according to the signed and notarized NCNDA/IMFPA.

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.

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.

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!

PIPELINE MAP PREVIEW

SIMPLIFIED PIPELINE MAP TRANSPORTATION ROUTE (TURKMENISTAN to CHINA)

Turkmenistan to Uzbekistan to Kazakhstan (via Kenkiyak, Kumkol, and Atasu) to Alashankou

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