Bonny Light Crude Oil (BLCO) Purchase Procedure

About Bonny Light Crude Oil (BLCO)

Bonny Light Crude Oil (BLCO) also known as ”sweet crude” is a high grade of Nigerian crude oil produced in the Niger Delta basin of Nigeria and named after the city of Bonny where it is extracted. The Nigeria National Petroleum Corporation (NNPC) is the official source for BLCO. Nigeria BLCO is one of the best crude oil specification in the world because of its low sulfur content by world standards.  It is in high demand for its low corrosive effects on refinery infrastructure and the low environmental impact of its byproducts. The sulfur content ranges between 0.14% and 0.16%. we also supply Forcados Light Crude Oil, Qua Iboe crude oil and other variant of crude oils. 

PLEASE NOTE THAT THE  PRICE & PURCHASE PROCEDURE SPECIFIED FOR BONNY LIGHT CRUDE OIL ALSO APPLIES TO OTHER VARIANTS OF CRUDE OIL.  

FOB & TTT PURCHASE PROCEDURE FOR BONNY LIGHT CRUDE OIL

1. Buyer sends an ACCEPTANCE LETTER of this offer to Seller and Seller sends an INDEMNITY AGREEMENT for Buyer to sign, NOTARIZE in court and return to Seller as a caution against failure from any party.

2. Seller sends their signed  contract (SPA) for  Buyer to counter-sign and return with their (a). NOMINATED VESSEL particulars (CPA, Charter Invoice and Q88) to Seller. (b) Authority to Load (ATL) addressed to the Nigerian National Petroleum Corporation (NNPC) via Seller according to the specified format. (c). Passport ID of Buyer’s Supercargo & Inspector.

3. Buyer’s Bank S.W.I.F.T their Ready, Willing and Able Letter (RWA) to the Nigerian National Petroleum Corporation (NNPC) via Seller’s Bank STRICTLY according to the specified format.

4. Seller programmes Buyer’s Vessel for loading at NNPC Terminal and sends  ‘NOTE OF READINESS’ (NOR) to Buyer’s Vessel Captain and copy Buyer.

5. Buyer place proper charter on their vessel and send the CHARTERED VESSEL details (CPA, Charter Receipt) to Seller.

6. The vessel arrives NNPC Terminal, Buyer conduct the inward clearance for their vessel and product is pumped into Buyer’s Vessel

7. Buyer’s Bank issues their irrevocable, transferable and divisible and confirmed cash backed MT-103 in favour of Seller STRICTLY according the verbiage

8. Seller’s moves cargo to LAGOS OR COTONOU or GHANA waters for Q&Q analysis with Buyer’s Supercargo & Inspector onboard. Buyer’s Inspector conducts Q&Q test and releases the report to the Bank of both parties within 12 hours.

9. Seller releases all official cargo/shipping documents issued by NNPC in BUYER’S NAME to Buyer’s Bank for payment. Buyer’s Bank SWIFT payment via MT-103 into Seller’s Account and commission Agents immediately according to IMFPA. Buyer’s Vessel sails away with NNPC Security Escort. 
Gross Price: BRENT | Discount: $13/9/brl | Net to Buyer: $9.0/brl. Commission $4.00/brl  

TANKER TAKE OVER (TTO) PURCHASE PROCEDURE FOR BONNY LIGHT CRUDE OIL

1.Buyer sends an ACCEPTANCE LETTER of this offer to Seller and Seller sends an INDEMNITY AGREEMENT for Buyer to sign, NOTARIZE in court and return to Seller as a caution against failure from any party.

2. Seller sends their signed contract (SPA) for Buyer to counter-sign and return with their ATB format and Supercargo/Inspector’s Passport ID with their phone numbers. 

3. Buyer’s Bank SWIFT their READY, WILLING AND ABLE (RWA) LETTER to Seller’s Bank STRICTLY according the verbiage specified.

4. Seller loads a vessel after of the confirmation of the Bank RWA Letter and instruct the Vessel Master to send his Attestation to Buyer while they send the POP of the cargo laden to Buyer.

5. Buyer’s Bank issues their irrevocable, transferable, divisible and confirmed cash backed STANBY LETTER OF CREDIT (SBLC) in favour of Seller STRICTLY according the verbiage specified.

6. Seller instructs the Vessel Master to send ETA to Buyer and move the cargo to LAGOS, COTONOU OR GHANA International Waters for Q&Q test at Buyer’s expense.

7. Seller release MARINE ATB  for physical inspection and confirmation of cargo By  Buyer’s Supercargo and Inspector.

8. Buyer’s Inspector conduct Q&Q test and email the report to the Account Officers of both parties within 12 hours.

9.  Seller sends their final Commercial Invoice and shipping documents issued by NNPC in BUYER’S NAME to Buyer’s Bank. Buyer’s Bank SWIFT payment into Seller’s Nominated Account immediately and Commission Agents are paid according to IMFPA.

10. Seller introduces Buyer to the vessel handlers, Buyer re-charters the vessel and takes over cargo.

Gross Price: BRENT | Discount: $12/8 /brl | Net to Buyer: $8.0/brl. Commission $4.00/brl  

COST & FREIGHT (C&F) PURCHASE PROCEDURE FOR BONNY LIGHT CRUDE OIL

1.Buyer sends an ACCEPTANCE LETTER of this offer to Seller and Seller sends an INDEMNITY AGREEMENT for Buyer to sign, NOTARIZE in court and return to Seller as a caution against failure from any party.

2. Seller sends their signed contract (SPA) for Buyer to counter-sign and return with their ATB format and Supercargo/Inspector’s Passport ID with their phone numbers. 

3. Buyer’s Bank SWIFT their READY, WILLING AND ABLE (RWA) LETTER to Seller’s Bank STRICTLY according the verbiage specified.

4. Seller confirms Buyer’s Bank RWA Letter and sends the proof of product to Buyer for Buyer to verify and confirm

5. Buyer’s Bank issues their irrevocable, transferable, divisible and confirmed cash backed STANBY LETTER OF CREDIT (SBLC)  in favour of Seller STRICTLY according the verbiage specified.

6. Seller loads vessel and instructs the Vessel Master to send ETA to Buyer’s Discharge port. Buyer’s acknowledges the E.T.A by sending a Port ENDORSED ‘Invitation Letter’ for the cargo laden Vessel for easy clearance of cargo by Buyer on arrival.

7. Seller moves cargo to Buyer’s discharge port and instructs the Vessel Captain to release marine ATB for Buyer’s Inspector to board the vessel for physical confirmation of cargo as well as Q&Q test at Buyer’s expense.

8.Buyer’s Inspector conducts Q&Q test and submits the reports to the Bank of both parties within 12 hours. Seller’s their commercial invoice and soft copies of shipping documents issued by NNPC in BUYER’S NAME to Buyer’s Bank.

9. Seller’s Cargo Handlers discharge product into Buyer’s storage. Buyer’s Bank makes payment for the entire cargo into the Seller’s Account and Commission Agents are paid according to IMFPA. Hard copies of all necessary documents are handed over to the Buyer.

Gross Price: BRENT | Discount: $9/6/brl | Net to Buyer: $6.0/brl. Commission $3.00/brl  

 

FULL PRODUCT SPECIFICATION AND ASSAY FOR BONNY LIGHT CRUDE OIL

 

For full product specification and Assay, Click here to Download Bonny Light Crude Oil Specification and Assay