Procedures of petroleum products.
Due to the rapid changes in the oil and gas sector, we ensure that our procedures remain fair, transparent, and compliant with international standards.
Every step of the process is designed to guarantee safety, reliability, and mutual protection for both parties, fostering trust and maintaining the highest level of operational integrity.
The handling and management of petroleum products follow strict procedures to ensure efficiency, safety, and quality at every stage of the supply chain. from production to end-user delivery is carefully monitored in line with international standards and best industry practices.
Production and Refining
Crude oil undergoes refining to produce various petroleum products such as gasoline, Each product is processed under strict quality control to meet regulatory and market requirements.Quality Testing and Certification
Before transportation, all products are tested and certified to verify compliance with international specifications.Transportation and Logistics
Petroleum products are transported via pipelines, railways, tank trucks, or marine vessels. Specialised equipment and procedures are used to prevent contamination, leakage, or loss during transit.Storage and Inventory Management
Storage terminals and tank farms are designed with modern safety and environmental systems. Products are stored under controlled conditions to maintain quality and ensure readiness for delivery.Distribution and Delivery
Efficient distribution systems ensure timely delivery to customers.Documentation and Compliance
Every transaction involves detailed documentation including contracts, certificates of quality, customs clearance, and transport records ensuring transparency, traceability, and regulatory compliance.
(FOB ROTTERDAM & HOUSTON)
1) The Buyer Issue ICPO with his International Passport Copy (Data Page) to the Seller.
2) The Seller Issues Commercial Invoice (CI) for the available quantity in the Seller’s Storage Reservoir to the Buyer, Buyer signs and returns the CI to the Seller with their signed Tank Storage Agreement (TSA) for the Seller’s Verification, and then seller return the signed commercial Invoice & inspection letter to inspect buyer tank farm before releasing the full PPOP Document with fresh SGS Report.
3) The Seller issues the Partial POP documents as below and sends to the Buyer.
(i) Fresh SGS (not older than 48 hours)
(ii) Certificate of Origin
(iii) Authorisation to Verify (ATV)
(iv) Unconditional DTА
(v) Commitment to Supply
(vi) Tank Storage Receipt (TSR)
(vii) ATSC
(ix) Injection Report.
4) The Buyer conducts inspection by SGS on buyer’s expense.
5) Seller issues the NCNDA/IMPFA to all intermediaries involved in the transaction and for endorsement.
6) Upon successful dip test of the product, Seller commences injection to Buyer’s tank or
vessel, Buyer makes payment of the product via MT 103 and Seller transfer Title
FOB PROCEDURE.
1. Buyer issues ICPO & Tank storage agreement TSA
2. Seller issue commercial invoice C.I. to the buyer, buyer sign and return commercial invoice
3. Seller lodge the finalised Commercial Invoice with the bank and seller proceeds to verify and pay two (2) days buyer tank storage as a commitment to supply and upon confirmation of seller payment by buyer tank operator buyer immediately pay additional 3 days to obtain the total of 5 days tank storage receipt needed for the transaction issued in buyer name.
4. Seller inject the product into buyer tanks and provide buyer with the below POP documents
a. 48 hours fresh SGS report (Analysis report Q&Q of the product)
b. Injection Report
c. DTA (Dip Test Authorisation)
d. Certificate of Origin
e. ATSC (Authorisation to Sell and Collect)
f. Statement of Availability of Product
g. ATV (Authorisation to Verify)
5. NCNDA/IMFPA will be signed by all intermediaries involved with seller bank endorsement.
6. After confirmation of the above POP documents and product in tanks, buyer make payment for total cost of product value via MT103 and seller transfer to buyer the product title and one (1) year contract.
7. Seller pays all intermediaries involved in the transaction according to the signed NCNDA/ IMFPA
FOB PROCEDURE FOR TANK TO VESSEL
1. Buyer issues official ICPO addressed to the refinery or representative with buyer vessel
details.
2. Seller issues Commercial Invoice (CI), buyer signs and returns the signed
invoice to seller with NCNDA / IMFPA.
3. Seller provide buyer with the below listed PPOP.
* Product Passport (product analysis report)
* Authorization to verify (ATV)
* Tank Storage Receipt (TSR)
* Statement of Product Availability
* Commitment and Assurance Letter to supply
* Authority to sell and collect (ATSC).
4. Buyer to extend seller’s tank and dip test is conducted immediately with buyer’s team to
obtain fresh SGS report.
5. After successful Dip Test in Seller’s tanks, Buyer takes over seller’s tank or Seller injects
product into buyer’s vessel / Tank
and buyer conducts its own DIP TEST Inspection for Q & Q of the Petroleum Products
aboard vessel / Tank.
6. After successful Q &Q Dip test on the product, buyer makes the payment for the total
value of product injected into the
Vessel/tanks through the means of MTI03 -TT.
7. Upon seller receives the payment for the product from the buyer, seller issues to buyer
the Title ownership of the product and all exporting document of the Product.
8.Seller pays all intermediaries involved in the transaction
TANK TAKE-OVER PROCEDURE
1. Buyer issue ICPO with banking details.
2. Seller issues complete Tank Take-Over (TTO) draft contract of loaded consignment for Buyer’s vetting and signature which shall immediately be reverted to Seller for notarization/endorsement by a competent authority.
3. Seller endorses TTO contract, returns a copy to Buyer with the following proof of product documents that were issued in the initial Buyer’s name via email;
a) Certificate of Product Origin
b) E.T.A. (Estimated Time of Arrival) Of Vessel
c) Bill of Lading
d) Tanker Vessel Q88 Document
g) Ullage Report
h) Freight/Cargo Manifest
i) Notice of Readiness
k) Invoice ($1,590,000.00) down payment
4. Buyer verifies and confirms the PPOP documents, and One Million- Five Hundred and Ninety Thousand United State Dollars ($1,590,000 USD) of the total value of the product within Two (2) days to Seller’s nominated account. One Million- five Hundred and Ninety Thousand United State Dollars ($1,590,000 USD) deposit shall eventually be deductible from the total cost of the product.
5. Upon receipt of down payment, Seller transfers the product title to Buyer as claimant and consignee of the said tanker vessel to include Certificate of Ownership of the cargo with shipping documents re-issued in the name of the potential Buyer while consequently ensures that the Master of Vessel and their local shipping agent assists the Buyer and/or his agents wherever necessary, and facilitate the application of port entry permit. Master of Vessel and/or Shipping Agent shall provide the necessary Vessel Certificate and/or relevant documents to facilitate this requirement expediently.
6. Simultaneously, Seller shall re-route the vessel to Buyer’s destination port and issues Buyer the Master Authorization-To-Board (MATB) along with Dip-Test Authorization (DTA) for Buyer and/or its Agents to board vessel and conduct SGS inspection of the consignment aboard the vessel (where applicable) which shall be done after port formalities.
7. Upon arrival of the vessel at Buyer’s discharge port, CICC shall be executed at the customs specified pre-inspection berth. And after completion of the hazardous waste manifest and standards check (SGS/CIQ/CCIC), ninety-seven (97) % or the balance payment shall be paid before product may be discharged/offloaded.
8. Seller out pays the intermediaries involved within 50 hours upon receipt of payment from the Buyer The bank information of the Buyer
TM FOR TTV & TTT PROCEDURE FOB.
HOUSTON, ROTTERDAM, JURONG, FUJAIRAH & CHINA PORTS.
1. Buyer submits an ICPO along with a Company Registration Certificate or any valid identification document and CPA/TSA, for (Refinery)’s verification and registration.
2. (Refinery) issues a draft Commercial Invoice (CI) to the buyer.
3. The buyer signs and returns the CI to (Refinery).
4. (Refinery) sends a Draft TTM appointment request letter to the buyer for approval by the buyer’s nominated Logistics Company.
5. Buyer returns the Approved TTM appointment letter from the buyer’s nominated Logistics Company. This enables the buyer’s and (Refinery)’s inspectors and representatives to conduct a TTM at the buyer’s designated logistics terminal.
6. Upon approval of the TTM by the buyer’s logistics company, the meeting is scheduled for a specific date and time. The meeting agenda includes:
a. Verification of identification documents for all attendees.
b. Presentation of Proof of Funds (POF) by the buyer.
c. Presentation of hardcopy Proof of Product (POP) documents and SGS certification by (Refinery) within 48 hours of fresh inspection.
d. (Refinery)’s inspection of the buyer’s designated tank/vessel to ensure smooth operational execution during the injection process.
7. After a successful meeting, the buyer may choose to conduct an additional Dip-Test in (Refinery)’s tank at the buyer’s expense.
8. (Refinery) issues NCNDA /IMFPA to Intermediaries for further processing.
9. (Refinery) injects the product into the buyer’s tank/vessel.
10. The buyer makes the full payment for the confirmed product as indicated in the CI.
11. (Refinery) transfers ownership of the product to the buyer as per the buyer’s instructions.
12. (Refinery) pays all intermediaries involved in the transaction. Subsequently, monthly contract proceed as outlined in the terms and conditions of the sales and purchase agreement between the buyer and (Refinery).
REFINERY WORKING PROCEDURES (ESROW HK ) (JURONG ROTTERDAM HOUSTON
FUJAIRAH)
1. The buyer issues a formal ICPO containing a company profile.
2. The seller issues a commercial invoice. The buyer returns the verified commercial invoice to the seller in the final version in PDF format.
3. The buyer and seller submit the signed commercial invoice to the escrow lawyer selected by both parties for review. After the review, the escrow lawyer sends the “Escrow Agreement” to the buyer and seller for signature. The escrow law firm can be select ed in Hong Kong. The escrow lawyer’s fees are borne by the refinery. If the buyer needs his own lawyer to follow up, the buyer’s lawyer fees are borne by the buyer.
4. The buyer and seller sign the “Escrow Agreement” and return it to the escrow lawyer.
5. After signing the Escrow Agreement, the Buyer and the Seller shall each deposit USD ($500.000 )into the trust account of the escrow lawyer as a performance bond, which will be credited to the Seller’s account after the immersion test is successful, As an advance payment for this transaction. if the immersion test fails, the Buyer’s performance bond will be returned to the Buyer and the Seller’s performance bond will be paid to the Buyer as liquidated damages.
6.The Seller authorizes the Buyer (unconditional immersion test authorization) to conduct immersion tests (quality and quantity) inspections at its tank facilities in Singapore Port and provide the complete POP documents listed below:
A. Product Ownership Certificate;
B. Copy of Product Availability Statement;
C. Product Passport;
D. Certificate of Origin;
E. Fresh SGS Report (no more than 24 hours in Singapore);
F. Injection Report;
G. Supply Guarantee Undertaking;
H. Authorization for Sales Collection;
I. Authorization for Immersion Test (OTA)
J. Authorization for Physical Verification (ATV).
7. The Buyer conducts an immersion test in the Seller’s tank and the Seller injects the product into the Buyer’s vessel/ Buyer’s tank after the Q&Q test is successfully completed. The Buyer shall pay the product price via USDT (TRC20) within 48 commercial banking hours after the final injection report of the product is issued.
8. Upon receipt of payment, the Seller transfers the ownership of the product to the Buyer and issues the following documents to the Buyer:
A. Certificate of Transfer of Ownership; and
B. Certificate of Insurance.
9. The Seller and the Buyer shall each pay all brokerage fees.
10. The Buyer and the Seller shall sign an annual contract agreed by both parties intermediaries.
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