FOB procedure from the onshore tank to the buyer’s ship. Signing of TTVIAC (Tank to Vessel Injection Agreement Contract) by the buyer‘s shipowner.

It can be said that this is a classic FOB TANK TO VESSEL oil sale procedure. The key feature of this procedure is that the buyer needs to have a chartered ship before he has access to check the goods in the seller’s onshore tanks.

Risks: the supplier first provides an incomplete, partial package of documents for the goods, which in fact cannot prove the actual existence of the goods, but in return the buyer must charter a ship for loading, sign a consent from his shipowner to inject the goods into the ship, and pay the port pipeline to carry out the injection. It is only then that the seller will show the full package of documents for the goods or provide the opportunity for a DIP test. The key risks for the buyer are that the buyer may spend a lot of money upfront and the supplier may not have the goods in stock.

This is the most common in our opinion FOB TANK TO VESSEL transaction procedure, and the key task of the buyer in the negotiation process is to extract from the supplier, before the start of his expenses, maximum documents confirming the real availability of goods.

SAMPLE TEXT OF THE PROCEDURE:

1. Buyer will send email to ametheus at [email protected] , [email protected] mentioning their planning of buying oil.
2. On request of buyer seller issue FCO with CIS and company profile of seller.
3. Buyer issues ICPO and will share the CIS (KYC Papers and Business profile of buyer).
4. Seller share the RECAP and issue Pro-Forma Invoice & SPA,
5. Buyer accept the proforma invoice and sign the SPA
6. Seller issues a Commercial Invoice (CI) for the Buyer to sign and returns the CI with the Charter Party Agreement (CPA) which must be signed with a vessel owning company. The CPA signing logistic company must have to have a shipping agent with reachable phone number and email ID.
7. Seller sends the Buyer the following POP Document for Buyers verification.
a) ATSC (Authority to Sell Cargo),
b) Product Passport (product Analysis Report),
c) Availability of the Product Letter,
d) Commitment to Supply Letter.
8. Buyer Share the Q88 along with Proof of Fund or Bank Confirmation Letter (BCL) to show that buyer has capability to take over allocation stocks from the seller.
9. Sellers provide the Storage Reservoir Company details of where the Seller product is currently stored for the Buyer to contact and sign the Tank to Vessel Injection Agreement Contract (TTVIAC) with the Reservoir Company.
10. Buyer issues and present the Tank to Vessel Injection Agreement Contract (TTVIAC).
11. Seller issues Dip Test Authorization document (DTA), which is countersigned & sealed by the Buyer, Seller, and Reservoir Company, along with the NCNDA/IMFPA, to signs by the Seller and Buyer sides, and all Mandates and Intermediaries involved.
12. After the countersigning of DTA by all parties, Seller provides the Reservoir Receipt, a Notice of Readiness (NOR) and injection schedule of injecting the fuel into Buyers’ vessel.
13. Buyer issue the documentary letter of Credit (DLC) to buyer to intitiate the injection.
13. Seller injects the total product allocation into Buyer’s vessel and furnishes Buyer the full Injection Report document to notify and show the Proof of the Products injected into Buyer’s vessel and Buyer pay the total product cost by MT 103 T/T to Seller account. The Seller transfers the Title Ownership Certificate to the Buyer.
14. Seller pays commission to Agents, Brokers and Intermediaries involved in the transaction and Negotiations.

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.

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

For any comments feel free to email at [email protected]

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