Procedure & Timeline

We have had many buyers request to see what an actual BLCO transaction looks like, how long it takes and what happens on each day.
As a result we are publishing this Oil Transaction Timeline and Procedure. This procedure is specifically for a delivery to Rotterdam. All of the banking preliminaries happen before the first BG is issued by the buyer. Prior to that is all of the negotiations, an agreed upon procedure by the buyer (LOI) and proper due diligence after receiving the contract and supporting documents.

Here is the Oil Transaction Timeline and Procedure:

day 1) Buyer places banking instrument ($500,000 BG)

day 3) Seller’s finished confirmation of BG and forwards to NNPC for programing of the lift
Vessel is nominated

day 7) Lifting commences

day 8) Vessel clears terminal, sends NOR and ATB for inspectors to board

day 9) Inspection is completed, results sent to the parties

day 11) Buyer issues an SBLC for 20% of the cargo value.

day 12) sellers bank confirms and clears vessel to leave Nigerian Waters

day 26) Vessel arrives in buyers port and sends ATB for inspectors to board

day 27) Inspectors finish report and send to parties

day 28) Seller presents documents to buyers bank for payment

Day 30) everybody is paid

day 31) vessel discharges into buyer’s tank farm

From Day 12 to Day 26 is the transit time to Rotterdam (approximately 14 days). If the product was going to Houston transit time would be about 19 days, to China 41 days. So this CIF Timeline should give any buyer a realistic idea of what happens when.

Jeff Scott – CFO – “Author” Google
Nigerian Oil Services : an American company serving the Nigerian petroleum industry.