BLCO Buyer Application

Register to Buy BLCO from Verified Sellers

This article is to help inform a real buyer of the registration procedure required to be able to start the buying process.
If you are a buyer wishing to Buy BLCO from Verified Sellers these are the procedures:

1. State in a Sketch Form what your want. We do not need a LOI – just tell us what you want.
   Include the monthly amount in Barrels
   Type of Contract : CIF, TTT, TTO, FOB
   If CIF, Destination Country
   Discount you were hoping for.
   ie: We want 2 M bbls per month CIF to Rotterdam $6 net to the buyer.
   Some offers will include a PB and some will not.
   We will take it from there and match you up with a seller.

We will advise you of availability. At the present time (May 10, 2013) we have 4 different NNPC Approved Fiduciaries that sell out of the bulk equity account of 488,000,o00 barrels. We are not the exclusive seller for these people so this amount is obviously going to be reduced, without notice, as these Fiduciaries sell product.

Each seller has every right to sell via the price and procedure that are acceptable to them. Since there is a high demand they will not entertain unreasonable price requests.

You should know that product coming out of Nigeria is in high demand, being the best feed stock in the world, “Brent vs BLCO“. Nigeria has 50 refineries that are already buying stock at full price via OPEC transactions. We deal exclusively in Off-OPEC where the product is offered at a discount BUT the Seller’s side is ALWAYS CLOSED.
That means every agent in the deal is on the buyer’s side (that includes you and anyone behind you ). The Sellers pay us on the sellers side for the marketing and negotiation services we render them. If that is unacceptable to the buyer or the buyer’s mandate they can apply for the bidding process and buy via OPEC at full price next year or try their luck with another Allotment holder where the seller’s side is most likely also closed. This is just the results of a free market offering. There should almost always be $1 open on the buyer’s side, usually more.

Now this leads to another conclusion. We only want to work with a buyer, a buyer’s mandate or an agent direct to the mandate or buyer; more people than that and it is just too cumbersome to get the deal done. Please remember, this is a business where you are doing all the work on the front end and once the work is done you are paid over and over again without further labor involved.

1. We will work out the basic details of the deal through agents to define price, procedures and commissions. All of this can usually be done via email. Once agreed upon, we will do the next step, which is to send the bank instrument verbiage. Once the buyer’s bank has approved the verbiage we have essentially a pre-qualified buyer. Please review the importance of this step in this article about POF Importance.
2. We don’t need an NCND. I am not sure, but I do not think there has ever been one of these enforced by a court. The reason we do this is for everyone in the deal to know who gets what and to define honorable behavior. Sign an NCND/IMFPA this document is emailed from NOS to the person closest to us in the chain. Each signs and forwards to to the next person until it arrives at the Buyer. The buyer then signs, converts the document to a PDF and mails it to each person. When we get the document back we will forward the SPA to the Seller.
3. When we receive the IMFPA it is time to get a written approval of the price and procedures. When they buyer send this letter to us on his letterhead we then know the buyer is serious and wants to proceed. We also ask for the buyer’s profile so the seller knows who they are dealing with.
4. At this point it is time to take the procedure and the price from the buyer’s approval letter and insert those items into the contract – get final contract approval from the seller and send the contract. Along with the contract we send the NNPC Approved Fiduciary’s Authority to sell document so that the buyer knows this is a legal transaction. This document has already been verified by a different buyer so we know this will not be any problem. We have a separate article about how this is done. Since we have already done this we know where and how to get it done. Read “NNPC Verification”.
5. The buyer now has the contract and the seller’s ATS letter. They can not do their due diligence and get their affairs in order to sign the contract and begin the purchase process.

Now to begin this process it would be best to go to our enrollment page and fill out the form with the items in No. 1 (above) included.
BLCO Buyer Registration
If you have already done this once please feel free to just email us.
Thank you for your interest.
Jeff Scott – CFO Author: Google