Oil/Fuel Seller Requirements and Due Diligence Policy

To promote transparency, regulatory compliance, and risk mitigation in our procurement process, we have outlined a structured set of requirements for all potential oil/fuel sellers. This policy is designed to verify the legitimacy, reliability, and traceability of suppliers while ensuring adherence to international trade standards. Please be aware that submissions from landlocked Commonwealth of Independent States (CIS) countries, such as Kazakhstan and Azerbaijan, will not be accepted due to logistical challenges and heightened compliance risks associated with overland transportation routes.

The process for engaging with us as a seller is sequential: it begins with initial submission of your seller profile for due diligence, followed by shipment-specific documentation based on the offered basis (FOB or CIF), and culminates in verification and approval. Below, we detail each step in order, including required documents, their purpose, and submission guidelines.

Step 1: Submission of Seller Profile for Due Diligence

Before any transaction can proceed, all sellers must undergo a thorough due diligence review. This starts with providing a comprehensive seller profile, which serves as a RECAP (Record of Experience, Capabilities, and Performance). The RECAP helps us assess your operational history, credibility, and ability to deliver compliant products. Compile and submit the following information in a single, organized document (e.g., PDF format) via our secure submission portal:

• Past Performance Record: Include copies of old Bills of Lading (BL) from at least three previous shipments of similar products (e.g., oil or fuel). These should demonstrate successful deliveries within the last 24 months. Purpose: To verify your track record in handling comparable transactions and to confirm no history of disputes or non-compliance.
• Tank Storage Agreement (TSA) or Equivalent Tank Engagement Report at the Loading Port: Provide a current TSA or similar contract/report detailing your access to storage facilities at the proposed loading port. This must include contract dates, storage capacity, and any renewal clauses. Purpose: To ensure you have legitimate and secure storage arrangements, reducing risks of supply chain interruptions.
• Refinery Association Membership Certificate (If Applicable): If you are the refinery or directly affiliated with one, submit a valid membership certificate from a recognized industry association (e.g., International Oil and Gas Producers Association or equivalent). Purpose: To authenticate your status as a primary producer and confirm adherence to refinery standards.
• Past Activity Report in the Specific Port and Terminal: Furnish a detailed report of your activities at the intended loading or customs clearance port/terminal over the past 12-24 months. This should include shipment volumes, dates, and any inspection records. Purpose: To evaluate your familiarity and compliance history with the port’s regulations, customs procedures, and infrastructure.

Once submitted, our compliance team will review the RECAP within 5-7 business days. Incomplete profiles will be returned for revision, and we may request additional clarifications. Only after due diligence approval will we proceed to evaluate shipment proposals.

Step 2: Preparation and Submission of Shipment Basis Documentation

Upon due diligence approval, provide documentation tailored to your proposed shipment basis (FOB or CIF). This step ensures product quality, traceability, and legal compliance from origin to delivery. Documentation must be issued by reputable third parties where specified and submitted in verifiable formats (e.g., scanned originals with digital signatures).

FOB Basis Shipment Requirements

For Free on Board (FOB) shipments, where the seller is responsible for loading the product onto the vessel at the port of shipment, documentation must confirm the product’s readiness and quality at the loading point. Select the applicable sub-basis below and provide the required items:

• TTV (Tank to Vessel) Basis Shipment:

  1. Last Injection Report: Submit a report detailing the exact date, time, and volume of when the product was injected into the seller’s storage tank. Include supporting evidence like meter readings or logs. Purpose: To establish the product’s freshness and chain of custody.

     OR

  2. Quality & Quantity (Q&Q) Report: Issued by an independent inspector such as SGS, Saybolt, or Intertek. The report must include:

     • Composite sampling details (e.g., sampling method, locations, and results for key specifications like API gravity, sulfur content).
     • Sealed tank details (e.g., confirmation of tank integrity and sealing process).
     • Tank number (unique identifier for traceability).
     • Seal numbers (for verification of tamper-proofing). Purpose: To independently certify the product’s quality and quantity, minimizing disputes over specifications.
• STS/VTO (Ship to Ship or Vessel Take Over) Basis Shipment:

  1. Last Injection Report: Provide a report indicating the date, time, and volume when the product was injected into the vessel. Include vessel logs or transfer records. Purpose: To track the product’s movement and ensure no adulteration during transfer.

     OR

  2. Quality & Quantity (Q&Q) Report: Issued by SGS, Saybolt, or Intertek, with the same details as above:

     • Composite sampling details.
     • Sealed tank details.
     • Tank number.
     • Seal numbers. Purpose: To provide third-party assurance of product integrity during ship-based operations.

CIF Basis Shipment Requirements

For Cost, Insurance, and Freight (CIF) shipments, where the seller handles costs up to the destination port, documentation focuses on the upstream storage and transfer process:

• Last Injection Report for TTV Transfer: Submit a detailed report on when the oil was injected into the storage tank from which the Tank-to-Vessel (TTV) transfer will occur for the final shipment to the buyer. Include injection dates, volumes, and any pre-transfer inspections. Purpose: To ensure traceability from storage to vessel, confirming the product meets buyer specifications before ocean transit.

Submit these documents within 3 business days of due diligence approval. Our team will verify them against international standards (e.g., ISO or API guidelines) and may conduct independent checks.

Step 3: Verification, Approval, and Transaction Execution

• All submitted documentation must be complete, accurate, verifiable, and dated within the last 6 months where applicable. Falsified or incomplete documents will result in immediate rejection and potential blacklisting.
• Upon successful verification, we will issue a Letter of Intent (LOI) and proceed to contract negotiation.
• If issues arise, we will provide feedback for resubmission, restarting from the relevant step.

This sequential approach minimizes delays and ensures a transparent, compliant process.

Frequently Asked Questions by Sellers

Q: What is the port of destination, and how much quantity is required? A: We determine quantities and destinations after reviewing your supply source and security methods (as outlined in Step 1). This allows us to align with your capabilities and our needs. Typically, quantities range from 50,000 to 500,000 metric tons per shipment, destined for major African ports such as Lagos (Nigeria), Durban (South Africa), or Mombasa (Kenya). Provide your supply details first for a customized quote.

Important Notes

• Document Integrity: Ensure all files are in high-resolution, tamper-evident formats. We use blockchain verification tools where possible for added security.
• Compliance Benefits: Adhering to these requirements not only facilitates approval but also builds long-term partnerships by demonstrating reliability.
• Confidentiality: All submitted information is treated confidentially under our data protection policy.

Thank you for your cooperation in following this structured process. By providing the necessary details sequentially, we can foster a seamless and mutually beneficial partnership. If you have questions at any step, contact our procurement team.

Link: https://ametheus.com/duediligence-on-seller/

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