BLCO BUYER LETTER
The article was generated because buyers are often misinformed about how to buy Nigerian Oil. Here is the procedure that this buyer required:
3. After successful conduct of Q+Q on Nigeria Waters, Seller Gives the vessel Documents, ATS with SGS to buyer for confirmation. After successful confirmations Buyer’s bank raises bank instrument, MT103, covering the entire cost of the loaded cargo, to the Seller’s bank in favor of the Seller.
4. Upon the successful confirmation of the Buyer’s bank MT103 by the Seller’s bank, Buyer, with the assistance of the Seller, re-charters the pregnant vessel(s) from the vessel(s) Owners/Handlers.
The following is our response to this BLCO BUYER:
BLCO BUYER LETTER
Dear Buyer,
This is a TTO deal. There is not a single seller in Nigeria that can agree to these procedures.
TTO deals can ONLY happen when there is a broken deal.
Here is why:
The NNPC will not approve the loading of a vessel unless there is a verified (advised) BUYERS banking instrument with blocked funds. This is constant for every type of transaction, CIF or FOB. So the way you get a TTO deal is if after there are blocked funds and the vessel is loaded, for some reason the payment will not process and the seller is left with a loaded vessel and no buyer. Then the vessel sits, out of the harbor, awaiting someone to by the cargo.
So if this buyer wants a TTO deal he can wait to clean up a broken transaction or buy from some other country where the seller is stupid enough to sell Crude without a good buyer’s Verified funds AND that country will allow such. All of the BLCO (and any other crude oil type) sold out of Nigeria on the primary or secondary market is controlled and at least partially owned by the Nigerian government. The controlling body is the NNPC. You can not buy Nigerian oil from any other source. All Allotment holders are holding an allotment from the NNPC and selling on behalf of the NNPC.
That is why there is ALWAYS a NNPC ATS (Authority To Sell) letter issued for every sale.
No seller is going to load a vessel with his own money and then wait in open water for a buyer to show up – not one.
Furthermore real sellers, since they are selling the NNPC’s product, they are bound to follow the procedure REQUIRED by the NNPC. Even if a seller wanted to sell with other procedures there are a few procedures that can not and will not be allowed to be changed – like the requirement for blocked funds before loading a vessel.
Please let your seller know that he can not dictate buying procedures to the country of Nigeria or to our Seller, an NNPC allotment holder. All real sellers are aware of the minimum requirements to sell Nigeria’s oil. Fake sellers will gladly agree to those procedures because they do not know what they are doing because they have never sold any crude oil.
Get yourself a real buyer and come back to us to buy REAL Nigerian Crude oil. Real buyers all know they can not get a vessel loaded without blocked funds.
We do not play in the TTT or TTO market – that is where the frauds are working (or the real unfortunate sellers must work) to sell crude oil. Our seller is well known by the NNPC and has a name to protect.
Good luck to you,
Jeff Scott – CFO
Nigerian oil Services LLC