PROCEDURE FOR PETROLEUM PRODUCTS

1. Buyer issues ICPO inclusive of a MT-799.  (In the event of Rebco the ICPO shall reflect the refinery number).

2. Seller issues draft contract to Buyer.

3. Contracts are signed electronically; Buyer signs and sends by courier 8 originals to Seller. Seller returns 4 originals.

4. Within 7 (Seven) banking days:

From receipt and acceptance of the MT-799 and signed contract the Seller shall submit via its bank to the Buyer’s bank Proof of Product (POP) and a non-operative Performance Guarantee in the amount of two (2%) of the value of one (1) month’s lifting of said commodity.

5. Within 3 (Three) days:

After receipt of POP and non-operative PB the Buyer’s bank shall issue to the Seller’s bank, an irrevocable, revolving Documentary Letter of Credit

6. Performance Bond becomes operative

7. Delivery Commences as per contract.


Please note:  A MT-799 is not deemed to be conclusive proof of funds.