Navigating the oil and gas industry has never been more streamlined. At KORS Tradelines, our Oil and Gas Operations are underpinned by a meticulous procedure designed to ensure transparency, efficiency, and mutual success.
Trading Procedure
- 1. Setting the Stage
The process initiates as the Seller issues a comprehensive Full Corporate Offer (FCO) and Sales and Purchase Agreement (SPA), framing the trading foundation.
- 2. Mutual Commitment
Buyer’s participation is marked by the issuance of an Irrevocable Corporate Purchase Order (ICPO), accompanied by the Buyer’s company profile (CP). The Buyer signs the FCO and SPA, cementing a mutual commitment to the transaction.
- 3. Procedural Flow
The Seller responds with a Proforma Invoice (PI), to which the Buyer provides a signed and sealed confirmation.
- 4. Financial Instruments Activation
The Buyer’s bank communicates readiness to issue an Irrevocable Standby Letter of Credit (SBLC) and requests the Seller’s bank to confirm their readiness to issue a 2% Performance Bond (PB). Draft copies of the SBLC and 2% PB are attached for verification.
- 5. Financial Assurance
With positive confirmation from the Seller’s bank, the Buyer’s bank issues the SBLC, and the Seller’s bank releases the 2% Performance Bond (PB), cementing the financial underpinning of the transaction.
- 6. Operational Agility
Upon securing approval from the Refinery, the Seller resumes loading of the product. Loading occurs within an estimated timeframe of 4–10 days after payment guarantees are activated. The Refinery conducts a dip test 24 hours before loading.
- 7. Vessel Readiness
The refinery confirms the readiness of the registered Vessel for LAYCAN and notifies the Buyer of the impending movement.
- 8. Transferring Ownership
The seller issues partial Proof of Product (POP) to the Buyer. Within 18–24 days, the Refinery clears the Vessel(s) for departure, with all costs covered to CIF Rotterdam port waters. Charter party, Bill of Lading (BL), and Title transfer to the Buyer upon payment receipt at Off-loading Port.
- 9. Payment and Inspection
Payment (TT) wire transfer occurs within 3 days at the delivery port, following SGS/SAYBOLT inspection, ensuring seamless closure of the transaction.
- 10. Ensuring Commitment
Both parties stand committed. In case of any deviation from the agreed procedure, penalty clauses are in place to uphold the integrity of the transaction.
Through this comprehensive and structured Oil and Gas Operations procedure, we stand as your steadfast partner in the dynamic world of oil and gas trading. Experience the harmony of efficiency, reliability, and transparency as we guide you through seamless transactions that redefine industry standards.