PROCEDURES ON TTO BASES

BLCO ON TTO BASES NIGERIA WATERS

PROCEDURES TO GHANA WATERS:

PRICE $ 12/8

1. Buyer and seller sign contract (Buyer return the signed contract to the Seller with his ATB Format, Super Cargo and Inspectors information.

2. Buyer issues BCL / RWA to Seller's bank..

3. Seller nominates vessel and load and issue MATB and Loading documents to Buyer as POP.

4. Upon the receipt of MATB and Loading vessel documents, Buyer authorizes his bank to issue financial instrument of SBLC or MT 760 to Seller's bank.

5. Upon acknowledgement by Seller's Bank of Buyer's financial instrument, Seller authorizes the Captain of his vessel to set sail to Ghana waters.

6. Upon arrival at 10 to 12 Nautical miles in Ghana waters, loaded vessel Captain announces his presence to the Harbor Master in Tema , Ghana. The Captain then issues MATB and Clearance to the Buyer's Super Cargo and the Inspector for Q & Q inspection.

7. The Inspectors and Super Cargo then board the vessel for Q & Q inspection.

8. Upon the completion of Q & Q inspection, the Buyer receives copies of the Q & Q analysis report and provides a copy to the Seller. Buyer bank issues an acceptable financial instrument such as BG / SBLC /LC to cover the total cost of the cargo or product on board the vessel.

9. Seller then introduces the Seller to NNPC Ship Handler to re-charter the vessel on a one way voyage to Buyer's port of discharge (BPD). (It is important to note here, that NNPC loaded vessels are on a long time charter by NNPC. Buyers can only re-charter them on a one way voyage to Buyer destination from NNPC Ship Handler in Nigeria).

10. Seller prepares all the shipping documents in the Buyer's name and hands over the papers after full payment is made to both Seller and all commission agents through MT 103 and KTT (Bank Key Tested Telex).

11. END OF TRANSACTION

PROCEDURES ON CIF -ASIA

COMMODITY: NIGERIA LIGHT CRUDE OIL [BLCO]

PRICE: Selling price is calculated in United States Dollar of OPEC BRENT price at the

discount of USD 1 2 less USD 8 per barrel.

COMMISSION: USD4.00 per bbl. [Buyer & Seller’s Side– USD2.00/USD2.00]

USD8.00 per bbl. [Oil Refinery Side]

PAYMENT GUARANTEE: Swift MT799 Block Fund to Seller Bank

QUANITY: 2.0M bbls. SPOT Deal

QUANITY: 10.0M bbls. Per month X 72 months CIF POD ASP Contract

DELIVERY: 2.0M bbl. SPOT Deal

DELIVERY: 10.0M bbl. Contract CIF, - POD ASP

1.Buyer and Seller sign and seal this Contract including banking coordinate and exchange the signed copy by electronic mail. The electronic signed copy by both Parties is considered legally binding and enforceable.

2.Seller, Seller’s Financier and Buyer, Buyer's Financier lodge copies of the signed Contracted (Agreement) with their respective banks after Buyer receive Confirmation letter on this SPA from the Seller.

3.Buyer place SWIFT MT799 Block Fund which is to be transmitted via swift from buyer‘s bank (prime bank) to seller’s nominated bank (TERMINAL NOMINATED FIDUCIARY ACCOUNT) within 72 hours after contract signed by both parties copy of this instrument will be sent to the seller for confirmation.

4.Seller financier’s bank issues via SWIFT 2%PB Performance Bond (PB)

to Buyer’s Fiduciary bank in favour of Buyer.

5.Seller nominates a vessel and load within 72hours On buyers company's name.

6.Buyer furnishes Seller with their Tank Farm/POD and Harbour Master details for the purpose of issuance of N.O.R (Notice of Readiness) and E.T.A (Estimated Time of Arrival) by Seller’s Captain.

7.Seller send copies of shipping documents of laden vessel on buyers company name to Buyer and proceeds to get Clearance from Nigeria Navy to enable Seller move the vessel to Buyer’s Port of Discharge. Seller will send a copy of the Nigeria Naval Clearance to Buyer.

Seller renders the following documents in the Buyer’s name and copies to Buyer while the original are handed over to captain on board the loaded vessel.

Ø 1 original and 3 copies of Seller’s Commercial Invoice

Ø Full set of 3 original and non-negotiable copies of Bill of Lading

Ø 1 original and 3 copies of Certificate of Quantity

Ø 1 original and 3 copies of Certificate of Quality

Ø 1 original and 3 copies of Certificate of Origin

Ø 1 original and 3 copies of Master's Receipt of Samples

Ø 1 original and 3 copies of Cargo Manifest

Ø 1 original Tanker Ullage Report issued at loading terminal

Ø 1 Certificate of Ownership

Ø Clearance to depart the territorial waters of Nigeria

NOTE: This entire document going to be sending out to buyer via courier not by email or bank to avoid doctoring online.

8.Seller’s Captain sends out N.O.R (Notice Of Readiness) and E.T.A (estimated Time of Arrival) to Buyer’s Port of Discharge and sails with vessel to Buyer’s POD and upon arrival, invites Buyer’s nominated inspection team to board vessel for Dip Test/Q&Q/CIQ analysis.

9.Seller’s coordinators takes Buyer’s CIQ inspection team on board the pregnant (loaded) vessels and Buyer’s inspectors takes dip test samples and carry out the volume measurements and laboratory analysis on the sample taken from the pregnant vessels, and issue their own inspection quality certificate to both Buyer and Seller within two (2) working day after taking of the product sample, and cargo is discharged into on shore buyer's tank (or Bonded area tank) for CIQ Q & Q Inspection report.

10.Upon conformation and acceptance of the Q&Q/CIQ test result for the product on Seller’s vessel & on shore buyer's tank (or Bonded area tank) by both Buyer and Seller, and a receipt of certificate has being issued to the parties thereof, Seller’s bank sends CI (Commercial Invoice) and original copies of shipping documents including Certificate of Ownership to Buyer Bank.

11.Buyer’s Bank makes full payment via MT103 for the value of cargo based on Dip Test/Q&Q/CIQ report to Seller’s account and service fees to all agents nominated accounts as per IMFPA in this (CIF) contracted (Agreement), buyer will is QQ report upon pregnant vessels arriving at discharging. Huangdao port. sue MT103/TT to seller's account within seven banking days including CIQ