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Notice to Crude Oil Sellers

Feb 7, 2012   //   by Administrator   //   Buy Crude Oil, NEED TO KNOW INFO, Procedures  //  Comments Off on Notice to Crude Oil Sellers

For Sellers of Crude Oil from Nigeria or other parts of the world.

If you are offering a product for sale, such as BLCO (bonny light crude oil) and are not in possession of the title of that product then you are not selling anything except blue sky.  You must own the product and have it in your possession.  If you do not, you may be a mandate or an agent or an intermediary.

If you have a contract to sell a crude oil, you may be an agent or a mandate but you still do not own the product. It you are, or believe you are, a mandate then you must have a contract with the supplier of that product.  It will usually give you certain exclusivity appertaining to any deal that proceeds from your efforts.  Most important, it locks you into two things: 1 getting paid by the supplier and 2 a fiduciary responsibility to represent the supplier’s interests specifically.  If you are a mandate, NOS requires that you produce a document stating so on the supplier’s letter head signed by the supplier.  Since you are protected contractually there is no problem supplying that letter since you are guaranteed to be paid when the transaction is completed.  We protect mandates procedurally and contractually.

If you can not produce that proof of a mandate status then you may be an agent or an intermediary.

Either way you can not contract to sell something (BLCO) that you do not own.  Even so there is a place in the market for agents and intermediaries.  Your place is as a referral specialist and you are entitled to compensation. We at NOS also will protect you in the pay line.  If you misrepresent yourself as something that you are not or misrepresent material facts about the crude oil you are attempting to move then there is no protection under the law that will afford you any compensation from any source whatsoever.

NOS only deals directly with suppliers – those that possess the title and the physical ownership of the crude oil.  Both the title and the physical possession must be proved in order for contractual negotiations to begin.  All mandates and agents must step back and reveal the actual supplier once you have received a contract from NOS protecting your rights to compensation.  A mandate has no problem doing so because he is protected contractually by the supplier, an agent has no choice because he can not contract to sell a product he does not have control of – that would be illegal.  There is no other option. NOS deals only directly with suppliers.