In oil buying process we strictly adhere to our established procedures, which are neutral, transparent, and structured to prevent scams and fraud in the oil trade. Our processes are designed to ensure compliance, security, and fairness for all parties involved.

FOB Basis Oil Trading Procedure:

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Storage Tank Take Over (TTO) Dip & Pay FOB Procedure

Incoterms: FOB 2020 Fujairah, Jurong, Rotterdam
Product location: In storage tanks at Fujairah, Jurong, Rotterdam
Mode of delivery: Ex- Storage Tanks at load port- Fujairah, Jurong, Rotterdam (Tank to Vessel)
Price basis: Negotiable on PLATTS NWE/ Asia-pacific/Arab Gulf market scan FOB TTO
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents & DIP and Pay

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + Signatory ID/Passport Copy+ CIS
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA.
4. Seller issues POP documents, including but not limited to:
a) Fresh Q&Q report by SGS or Saybolt-Corelab or Intertek, which must be:
1) Current & Compliant (under 48 hours old)
2) State composite samples were drawn by the Inspection Agency from the shore tanks
3) Quantity in shore tanks was assessed by the Inspection Agency
4) The shore tanks are sealed by the Inspection Agency and, tank nos. & seal nos. are indicated on the Report.
b. Valid TSR (tank storage receipt) with actual verifiable data to identify the physical tank.
c. Injection report from the storage tank
d. Certificate of origin (non-sanctioned) and euro5 certificate
e. ATSC (authorization to sell & collect) in the name of the buyer
f. ATV (authorization to verify)
g. Terminal access code (tac)
5) As the buyer will not cover the cost for a 3-day tank extension or send SGS or Intertek for a dip test without valid verification of the product in the tank. So, seller’s team extends the tank for 3 days and obtain new TSR, terminal access and permit in buyer’s name to enable the buyer to conduct the dip test to have a fresh SGS. This three day extension cost will be paid by the buyer if Test result comes positive.
6) This dip test by the buyer should be done within 48 hours of receiving TSR.
7) After a successful dip test buyer make 100% product payment via swift MT and lift product.
8) Seller issue buyer CHANGE OF OWNERSHIP CERTIFICATE and PRODUCT ALLOCATION CERTIFICATE. All intermediary is paid within 48 hours and seller and buyer may roll and extend the contract for future business.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek including composite sampling, sealed tank details, tank number and seal numbers. Last injection report when the product was injected to the seller’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

TANK TO VESSEL (TTV) FOB PROCEDURE

Incoterms: FOB 2020 Fujairah, Jurong, Rotterdam
Product location: In shore tanks at Fujairah, UAE / Jurong, Singapore.
Mode of delivery: Ex-storage tanks at load port- Fujairah, Jurong, Rotterdam (Tank to Vessel)
Price basis: Negotiable on PLATTS of NWE, Asia-pacific/Arab Gulf market scan FOB TTV Fujairah, Jurong, Rotterdam
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + Signatory ID/Passport Copy + CIS
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA,
4. Buyer accept the proforma invoice and sign the SPA and Share the CPA.
5. Seller issue Commercial Invoice (CI) for the Buyer to review, sign, and return to the Seller within 24 hours along with the Charter Party Agreement (CPA) (Note: If the buyer is convinced that the seller can deliver, they are happy to share:
– a. CPA along with the ICPO,
– b. Q88 along with the reviewed and signed CI.)

6. Partial Proof of Product (PPOP) issued by the Seller:
– a. Commitment to supply
– b. Authorisation to Sell and Collect (ATSC)
– c. Certificate of Origin Availability of Product (EUR5 Certificate)
– d. Product Passport Quality Analysis
– e. SGS fresh report not older than 48 hours
– f. Injection report (wherever applicable)
7. Above documents verified and confirmed by the Buyer within 48 hours.
8. Following documents issued by the Seller to the Buyer to confirm within 24 hours.
– a. Valid Tank Storage Receipt (TSR)
– b. Terminal Access Code (TAC)
– c. Hub No.
– d. Authorisation to Verify (ATV)
– e. Booking No.
– f. Dip Test Authorisation (DTA)

9. The Buyer, within 24 hours, appoints SGS to conduct the Dip Test at the Seller’s Tank in the presence of the Buyer’s representative.
10. Upon completion of the Dip Test, the Buyer remits payment per invoice via MT103/TT.
11. Upon receiving clean, clear funds into the Seller’s nominated bank account as per the invoice raised, the Seller shall transfer the cargo and transfer the Title of the product to the Buyer.
12. The vessel will be allowed departure from the port after full payment to the Seller and transfer of cargo & title to the Buyer.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek including composite sampling, sealed tank details, tank number and seal numbers. Last injection report when the product was injected to the seller’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

VESSEL TAKEOVER (VTO) FOB PROCEDURE

Incoterms: FOB 2020 FOB VTO
Product location: In Vessel tanker on high seas.
Mode of delivery: Vessel Tanker Take Over
Price basis: Negotiable on PLATTS Asia-pacific/Arab Gulf market scan FOB TTV Fujairah/Jurong Gasoil 10 ppm (AFUJP00).
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + Signatory ID/Passport Copy + CIS
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA, Buyer accept the proforma invoice and sign the SPA.
4. Seller issue Commercial Invoice (CI) for the Buyer to review, sign, and return to the Seller within 24 hours .
5. Seller releases following full sets of POP Documentation:
– CPA copy ( Charter Party Agreement Copy) between Vessel owner & seller.
– Contact Detail of the Shipping line who has booked the Vessel.
– Bill of Lading
– Cargo Manifest
– Certificate of Origin (COO)
– Product quality passport (Analysis test Report)
– Q&Q certificate with full report issued by SGS/Intertek/Saybolt – Corelab or Equivalent.
–  Vessel Q88.
– Ullage Report
– NOR.
– Time Log Sheet.
– Ship’s Tank Dry/Cleanliness Certificate.
– Master’s Receipt of sample & Documents.
–  Product release note.
– Seller’s Product Export License
– Seller’s company registration
– Custom Clearance documents from last port for shipping agent to verify
– Commitment to Supply.
– Commercial Invoice
– ATSC

6. Buyer verifies POP and request for DTA, ATB & Physical ATV from seller
7. Buyer conducts DIP TEST AT BUYER EXPENSES, and Seller submits Commercial invoice , certificate of origin (COO) and other papers to buyer’s bank including an affidavit to transfer titleholding after payment.
8. Buyer bank transfers payment within 72 hours and seller transfers titleholding to buyer.
9. Buyer parallelly completes Vessel tank takeover (VTTO) paperwork with the shipping company.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek. Last injection report when the product was injected to the vessel’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

SHIP TO SHIP (STS) FOB PROCEDURE

Incoterms: FOB 2020 Ex Vessel Tank on high seas
Product location: In vessel tanks on High Seas.
Mode of delivery: Ship to Ship (STS)
Price basis: Negotiable on PLATTS Asia-pacific/Arab Gulf market scan FOB TTV Fujairah Gasoil 10 ppm (AFUJP00).
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + CIS + Signatory ID/Passport Copy + CPA
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA, Buyer accept the proforma invoice and sign the SPA.
4. Seller issue Commercial Invoice (CI) for the Buyer to review, sign, and return to the Seller within 24 hours .
5. Seller releases following full sets of POP Documentation:
– CPA copy ( Charter Party Agreement Copy) between Vessel owner & seller.
– Contact Detail of the Shipping line who has booked the Vessel.
– Bill of Lading
– Cargo Manifest
– Certificate of Origin (COO)
– Product quality passport (Analysis test Report)
– Q&Q certificate with full report issued by SGS/Intertek/Saybolt – Corelab or Equivalent.
–  Vessel Q88.
– Ullage Report
– NOR.
– Time Log Sheet.
– Ship’s Tank Dry/Cleanliness Certificate.
– Master’s Receipt of sample & Documents.
–  Product release note.
– Seller’s Product Export License
– Seller’s company registration
– Custom Clearance documents from last port for shipping agent to verify
– Commitment to Supply.
– Commercial Invoice
– ATSC

6. Buyer verifies POP and request for DTA, ATB & Physical ATV from seller.
7. Buyer conducts DIP TEST AT BUYER EXPENSES, and Seller submits Commercial invoice , certificate of origin (COO) and other papers to buyer’s bank including an affidavit to transfer titleholding after payment.
8. Buyer bank transfers payment within 72 hours and seller transfers titleholding to buyer.
9. Buyer parallelly completes ship to ship injection of fuel related paper works with the shipping company.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek. Last injection report when the product was injected to the vessel’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

FOB VESSEL TO TANK (VTT) PROCEDURE

Incoterms: FOB 2020 FOB VTT
Product location: In Vessel tanks on high seas or at OPL
Mode of delivery: Vessel Tanker to Storage Tank (VTT)
Price basis: Negotiable on PLATTS Asia-pacific/Arab Gulf market scan FOB VTT Fujairah/Jurong Gasoil 10 ppm (AFUJP00).
Inspection: SGS/Intertek/Saybolt-Corelab or equivalent at seller’s tank
Payment terms: By MT103 against verification of agreed POP documents.

1. Seller issue FCO with signatory ID/Passport Copy with full CIS and Government issued Fuel Export License copy.
2. Buyer issues ICPO + Signatory ID/Passport Copy + CIS
3. Seller share the RECAP and issue Pro-Forma Invoice & SPA, Buyer accept the proforma invoice and sign the SPA.
4. Seller issue Commercial Invoice (CI) for the Buyer to review, sign, and return to the Seller within 24 hours .
5. Seller releases following full sets of POP Documentation:
– CPA copy ( Charter Party Agreement Copy)
– Contact Detail of the Shipping line who has booked the Vessel.
– Bill of Lading
– Cargo Manifest
– Certificate of Origin (COO)
– Product quality passport (Analysis test Report)
– Q&Q certificate with full report issued by SGS/Intertek/Saybolt – Corelab or Equivalent.
–  Vessel Q88.
– Ullage Report
– NOR.
– Time Log Sheet.
– Ship’s Tank Dry/Cleanliness Certificate.
– Master’s Receipt of sample & Documents.
–  Product release note.
– Seller’s Product Export License
– Seller’s company registration
– Custom Clearance documents from last port for shipping agent to verify
– Commitment to Supply.
– Commercial Invoice
– ATSC

6. Buyer verifies POP and request for DTA, ATB & Physical ATV from seller
7. Buyer conducts DIP TEST AT BUYER EXPENSES, and Seller submits Commercial invoice , certificate of origin (COO) and other papers to buyer’s bank including an affidavit to transfer titleholding after payment.
8. Buyer bank transfers payment within 72 hours and seller transfers titleholding to buyer.
9. Buyer parallelly completes Vessel tanker to Storage Tank Injection process paperwork with the logistics company.

Important Notes:
1. Q&Q report must be current and prepared from either SGS, SAYBOLT or Intertek. Last injection report when the product was injected to the vessel’s tank.
2. Full Proof of Product (POP) and Fresh SGS must be issued in name of Ametheus/Exit Buyer.
3. ATSC must clearly authorize the Buyer to sell and collect the product.

Tank-to-Tank (TTT) FOB Procedure

Co-payment by buyer and seller of buyer’s tanks. FOB transaction procedure for petroleum products, tank-to-tank within the port.

This procedure arose for two reasons. First. When suppliers bring their resource, for example, to Rotterdam, they discharge it into a common port pipeline system, from which it is pumped to a specific onshore tank. To save time and money, suppliers do not rent tanks at the port, but want to pump oil directly into the buyer’s tanks. Accordingly, they are ready to take over the first 2-3 days of the lease of the customer’s tank while the injection is in progress.

The second reason for this procedure is that due to the proliferation of fake sellers, suppliers in order to prove to the buyer that they are real resource holders, are willing to assume part of the cost of the client to rent tanks.

Risks: Since the supplier bears part of the cost of tank rental, the supplier checks the storage facilities offered by the buyer and chooses the one he likes and is willing to pay for. Very often suppliers impose their trusted storage tanks on their customers, with which the buyers have no previous experience.

Fraud: We have witnessed several times when a supplier imposed his tank farm on a customer, made the first payment to the tank farm, and then the customer paid his part of the tank farm rent. After that the tank farm turned out to be non-existent, and the payments about the alleged first payment to the supplier turned out to be fake. Be careful with oil depots, check the real availability of tanks. There are a lot of fraudsters who charge for the lease of non-existent oil storage tanks in the port.

FOB tank-to-tank (TTT) Procedure Terms:

  1. Buyer issues ICPO and Company Registration Certificate or any I.D. With TSA & POF for seller’s approval.
  2. Seller issue Draft Commercial Invoice, Buyer signs and returns to Seller.
  3. Seller present product SGS Report to Buyer & Buyer’s Tank farm only to verify and confirm product specification, upon confirmation of SGS report by Buyer tank farm storage company, Seller lease and pays the buyer’s tank for 3 days and Buyer do pay his Tank Farm Company for 3 days after his Tank Farm Company has received the payment from Seller Company.
  4. Seller provides buyer with PARTIAL POP Documents:
    A. Authority to Sell & Collect (ATSC)
    B. Letter of Commitment to Supply
    C. Product Authentication Certificate
    D. ATV – Authorization For Physical Verification. ATV (Authorization For Physical
    Verification) is to be signed by buyer’s tank farm and Endorsed.
  5. Seller provides buyer with COMPLETE FULL POP Documents:
    A. Fresh SGS Report less than 48 hours
    B. Dip Test Authorization-Unconditional
    C. Injection Report
    D. Tank Storage Receipt with GPS Coordinates
    E. Tank Farm Bar-code Information.
    F. Registration Certificate & Export License Copy
    G. Endorsed Injection Schedule by the buyer & buyer Tank Farm
    H. Irrevocable Commitment to Supply for Spot and 12 months Contract Injection Schedule signed by buyer & buyer’s tank farm
  6. Buyer conducts Dip-Test in seller’s tank, via SGS on buyer’s cost seller inject the fuel I to buyer’s tank and Buyer makes payment based on Q&Q by MT103 wire transfer / TT according to the final Commercial Invoice.
  7. Seller transfers the title of ownership as per Buyer’s instruction. Buyer lifts the product.
  8. Seller pays all intermediaries involved in the transaction and subsequently monthly contract shipment continues as per terms and conditions of the sales and purchase agreement contract between buyer and seller.

POF via SWIFT for Tank to Tank (TTT) FOB (2nd Option)

Confirmation of customer’s solvency via SWIFT. FOB transaction procedure with oil products, from tank to tank inside the port.

There are suppliers who only care about confirmation of the customer’s solvency, but the seller wants this confirmation in the most reliable way that currently exists – in the form of a SWIFT message from the buyer’s bank via MT 199/799.

In order for a customer to give proof of solvency via SWIFT MT199 or MT799, the customer needs to have the full amount collected in their current accounts. Most banks not only require that the money is available before sending SWIFT, but also that this money “lay” on the accounts before this 3-5 days. The bank will also charge a % commission for issuing this SWIFT. Often on such large transactions buyers use credit facilities. If the buyer wants to issue proof of solvency at the expense of the existing credit line, the bank’s commission for issuing such SWIFT will be even higher.

Risk: The buyer collects in his accounts the full amount needed for the purchase. The buyer actually pulls money out of circulation and freezes it for a few days to confirm his solvency, but in return he has no guarantee that the seller actually has the resource available right now.

SAMPLE TEXT OF THE PROCEDURE:

  1. Buyer issues LOI and sends along with CIS/KYC documentation.
  2. Seller issues FCO and sends along with KYC documentation.
  3. Buyer returns signed FCO and issues ICPO and Charter Party Agreement (CPA)
  4. Seller issues Commercial Invoice.
  5. Buyer signs Commercial Invoice and returns it seller.
  6. Buyer provides acceptable POF (MT199 / MT799 Pre-Advice (Not Blocked Funds) / DLC / SBLC) as per Appendix 1.
  7. Seller provides the following PPOP within 3-4 working days of the verification of the MT799 Pre-Advice:
  • Commitment to supply.
  • Certificate of origin.
  • Product passport.
  • DIP Test Analysis. (Fresh Q&Q from an accredited testing company in Rotterdam 24-48 hours old)
  • Tank Storage Receipt (TSR) (Includes GPS Co-Ordinates & Tank Hub Numbers)
  • Injection Report.
  • ATV / Authorization to verify (physical verification of TSR).
  1. Buyer conducts Q & Q analysis on product in Sellers tanks.
  2. Buyer pays within 24 – 48 hours via MT103 as well as providing Seller with Vessel information and NOR from his Shipping Company and details of Port Clearance through the nominated vessel terminal.
  3. Seller on receipt of MT103 bank transfer and Buyers Port Clearance Payment:
  • Commences the injection/lifting into the Buyers vessel as per schedule.
  • Releases the complete POP documents to the Buyer including the Resource Confirmation Letter
  • Issues Authority to Sell and Collect (ATSC) and Transfers Title of Ownership into the Buyers name.
  1. Seller issues 12-month delivery contract for acceptance.
  2. Buyer issues a revolving IRDLC/MT700 OR SBLC/MT760 for the contract.
  3. Seller pays Seller Intermediaries and Buyer Intermediaries within 48 hours.

gks@ametheus.com || +91-9999999538

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