SHIP TO SHIP (STS) FOB PROCEDURE

Incoterms: STS FOB 2020
Delivery location: Ex Vessel Tank on high seas at any STS plot at the OPL
Mode of delivery: Ship to Ship (STS)
Platts: Negotiable on PLATTS of NWE, Mediterranean, Arab Gulf (AG), Fujairah, Singapore MOPS
Price basis: FOB TTV Fujairah (Fujairah Platts) / AG whichever is higher, Jurong (Singapore MOPS), Rotterdam (NWE Platts) minus agreed discount
Inspection: Mutual – SGS/Intertek/Saybolt-Corelab or equivalent at seller’s vessel
Payment terms: By MT103 against verification of agreed POP documents and DIP test result
Offer: Subject to tank availability. Buyer must confirm availability and fix price with Seller before proceeding

1. TRANSACTION PROCEDURE

2. Buyer Inquiry Buyer sends email to seller stating intent to purchase, required volume, discharge port, preferred load port (High Seas OPL for STS), and target laycan.

3. Seller Response Seller issues FCO including:

  • Company profile
  • CIS (KYC) of Seller
  • Available quantity, specification, load port (High Seas OPL STS), indicative FOB price (PLATTS Asia-Pacific/Arab Gulf Market Scan FOB TTV Fujairah Gasoil 10 ppm – 3 days average around B/L date)

4. Buyer Commitment Buyer issues:

  • ICPO (Irrevocable Corporate Purchase Order)
  • CIS / KYC of Buyer
  • Company business profile
  • Vessel details (Q88, IMO, CPA) with ≥90 days validity at OPL
  • Authority to Board Vessel (ATB) pre-approval or lightering confirmation

5. Seller Issues Draft Contract Seller issues Draft SPA + Pro-Forma Invoice (PI) + Vessel Recap (NOR, position, ETA OPL).

6. Buyer Signs Contract Buyer reviews, signs, and returns SPA + PI within 24 hours.

7. Seller Provides Partial POP Seller provides:

  • Charter Party Agreement (CPA) copy
  • Vessel Q88
  • Authority to Sell Certificate (ATSC)
  • Export License
  • Company Registration Certificate
  • Last Port Clearance
  • Commitment to Supply
  • Injection Report (last cargo loaded)
  • Fresh SGS Q&Q (not older than 72 hours)

8. Buyer Issues Payment Instrument Upon POP verification, Buyer issues:

  • SBLC/MT760 or RDLC (revolving) for full cargo value, OR
  • 100% MT103-T/T into Seller’s fiduciary bank

9. Seller Issues Full POP & Authorizations Upon instrument confirmation, Seller issues:

  • Dip Test Authorization (DTA)
  • Authority to Board (ATB)
  • Physical Authority to Verify (ATV)
  • Updated Ullage Report
  • NOR (Notice of Readiness)
  • Time Log Sheet / Noon Report
  • Bill of Lading (draft)
  • Cargo Manifest (draft)
  • Certificate of Origin (draft)

10. Buyer Conducts Dip Test Buyer conducts Dip Test at own expense via approved surveyor (SGS/Intertek/Saybolt-Corelab) using lightering or sampling vessel.

11. STS Transfer & Documentation Upon successful Dip Test:

  • STS transfer commences under mutual supervision
  • Seller issues full shipping documents: – Original Bill of Lading (3/3) – Certificate of Origin – Cargo Manifest – Final Commercial Invoice – Master’s Receipt of Samples – STS Operation Log – Product Release Note

12. Payment & Title Transfer Buyer releases full payment via MT103 within 24 hours against documents. Seller transfers title to Buyer upon payment confirmation.

Important Notes:

  1. All SGS reports and POP documents must be issued in the name of the Exit Buyer or Ametheus.
  2. ATSC must clearly authorize the Buyer to board, verify, conduct Dip Test, and take delivery via STS.
  3. STS window: 3 international banking days post instrument confirmation.
  4. No payment = No STS. No exceptions.
  5. Buyer bears all STS operational costs, lightering, sampling, insurance, and surveyor fees.

Buyer Credential Verification Policy

To ensure a secure and reliable transaction process, the financial capability of buyers intending to purchase fuels will be thoroughly verified.

  • Individual Buyers: Credentials of the buyer must be provided for financial assessment.

  • Joint Ventures (JV): If the buyer is importing fuels in partnership with another financially robust entity, both parties must submit their credentials for verification.

All provided information will be reviewed to confirm the buyer’s ability to fulfill the financial obligations of the purchase.

Indemnity Clause: In the oil procurement process, we strictly adhere to our established procedures, which are designed to be neutral, transparent, and structured to prevent scams and fraud in the oil trade. These processes ensure compliance, security, and fairness for all parties involved. Our procedures apply solely subject to the availability of the product.

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Disclaimer : We hereby declare that we do not accept or source any fuel or petroleum products from Russia, Iran, or any other sanctioned country.

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