BUSINESS PROPOSAL FOR THE SUPPLY OF BONNY LIGHT

CRUDE OIL

FOR ORGANIZATIONS

BY
ESE AKPEDE
President
Edward Conglomerates
Email Address: eseakpede@gmail.com
TEL: +351920112024; +2348075089492
INTRODUCTION

Bonny Light Crude is in high demand all over the world the API of BLCO is usually estimated at 35
degrees and the sulfur content is 0.14%. In comparison to the Common Brent mix, BLCO is 8% lighter
and has three times less sulfur making it the most sought after crude oil in the world. In comparison to
the Common Brent mix, BLCO is 8% lighter and has three times less sulfur making it the most sought
after crude oil in the world.

USES OF BONNY LIGHT CRUDE OIL (BLCO)

Crude oil in its natural state has little use except as maybe a heating fuel. Refineries in
industrialized countries will refine it to produce the following and more:

a. Liquid Petroleum Gas;

b. Petrol;
c. Diesel;
d. Jet fuel;
e. Gas oil;
f. Heating oil;
g. And residues such as bitumen.

BONNY LIGHT CRUDE OIL (BLCO)

BLCO is Bonny Light Crude Oil pumped from the offshore bonny terminal. It is a premium,
light, low sulfur feed stock in high demand by refineries because, when refined, produces a
higher percentage of middle distillates than just about any other feed stock. In some cases as
much as 30% more diesel fuel (d2) and jet fuel (kerosine, JP54) than other comparable
crudes such as SLCO.

The specifications and approximate valuations of BLCO subject to Q & Q include:

a. Typical cargo size is 950 thousand to 2 million barrels.

b. API gravity for Bonny Light is 35 degrees
c. Sulphur content is 0.2%
d. bbl/mt conversion factor 7.526
e. Specifications: API 35.4°, S.G. 0.85, Sulphur 0.14, Pour point -18°C, TAN
0.27 mg KOH/g, Nickel 3.6 wppm, Vanadium 0.4 wppm, Visc. (50°C) 2.9
cSt

SUPPLIERS OF BONNY LIGHT CRUDE OIL (BLCO)

The suppliers involve various companies working under the NNPC JOINT VENTURE
AGREEMENT. We have over 10 companies under our portfolio and have done several
supplies to companies in Europe and the Americas. ⃰ ⃰ (All our Suppliers supply upfront without
payment and prices are 10% off OPEC prices. In other words, at the date when a buyer and
seller signs contractual agreement, prices will be given to the seller at 10% less OPEC Prices).

TYPES OF CONTRACTUAL AGREEMENTS: Procedures, Nominations &

Shipment
SAMPLE 1
 1. Seller and Buyer counter-signs contract and exchange the signed copies by electronic
mail then lodge document in their respective banks which are binding, enforceable
and cannot be changed without the consent of the other party.

2. Seller (the corporation) shall nominate financing company who shall make funds
available for capital logistics as per this contract. (C.I.F to buyer’s port of discharge)
and with the responsibility of receiving payment from buyer for further crediting to
the corporation’s nominated account(s).

3. Seller (the corporation) shall confirm and show proof to the accredited financing
company that Buyer is qualified to commence lifting in accordance with D.P.R.
regulations/Q1 guidelines, by issuing hardcopy POP and Attestation letter authorizing
the financier to receive fund on behalf of the corporation for buyer’s independent
confirmation.

4. The accredited financing company through the seller shall then issue verbiage of bank
instrument to Buyer. Such as MT799 (90days) BLOCKED FUND.

5. Buyer’s bank shall swift bank instrument in favour of Seller’s nominated bank
account. 5b. Seller’s nominated bank shall then place 2%PB on the received
instrument.

6. Seller shall provide vessel through marine transport division (M.T.D) of NNPC when it
has been confirmed that 5 above has been fully complied with by Buyer.

7. Master of vessel (captain) shall sign charter party agreement (C.P.A) in favour of
buyer.

8. Seller shall position vessel and load with cargo and document the shipment.

9. Buyer or his Agents shall collect full shipping documents including S.P.A’s hard copy.

10. Master of vessel shall send E.T.A to buyer’s discharge port making himself available to
buyer, and then arrive at discharge port and discharge cargo presenting to buyer post
discharge Q&Q report from SGS & ICQ.

11. Payment for the crude oil to be effected by SWIFT K.T.T for the value of crude oil
indicated in the sellers invoice. Payment shall be made within three/five (3/5) working
days after completion of discharge and Q&Q confirmed as being correct.

SAMPLE 2
Procedures, Nominations &Shipment

1. Buyer and Seller sign and seal this Contract including banking coordinates and exchange the
signed copy by electronic mail. The electronic signed copy by both Parties is considered legally
binding and enforceable. Both parties deposit copies of the Agreement with their respective
banks.

2. Seller sends to buyers bank POP for verification.

3. After Buyers bank verify POP, Buyers bank contact Sellers fiduciary bank via pre-advice
(Swift MT-199) indicating interest to issue a Non-operative standby letter of credit)
: Also appending agreed SBLC verbiage.

4. Sellers bank respond within 3-banking days their OPERATIVE 2%- PERFORMANCE BOND to
BUYERS’s bank to activate non operative LC/BG and make it active.

5. Upon activating of LC/BG with 2%PB , Seller immediately nominates VLCC vessel, program
Vessel for loading and then loads the vessel IN BUYER'S NAME. Seller reflects cargo
 Provisional Lifting Rights details in NNPC Database and in the NNPC Loading Terminal
Lifting KeyBoard, and communicates same to buyer for verification.

(NNPC can/may require the buyer to formally indicate in writing that they ACCEPT the nominated
vessel as meeting the conditions of the buyer's Port Of Discharge-(POD)! No "surprises" will be
entertained!).

6. Within 2-days upon receipt of buyer’s POD confirmation of accepting nominated vessel, the
vessel shall be loaded. Upon completion of loading, Seller shall issue COMMERCIAL INVOICE
for buyer’s acceptance. Buyer signs the Invoice and return to seller together with:

a. Port-Of-Discharge Details with harbor master contact information

b. ATB-FORMATs including SUPERCARGO & INSPECTORS DETAILS for Q&Q at discharge
port.

7. Within 48hrs thereafter, Seller’s bank shall transmit soft copies of entire cargo/shipping
documents IN BUYER’S NAME to the Buyer’s bank as may be necessary/agreed:

a. CPA (voyage charter agreement)

b. Clean – on – board ocean Bills of Lading
c. Certificate of quantity (SGS or equivalent)
d. Certificate of Analysis (optional)
e. Certificate of Origin
f. Certificate of Quantities (SGS or equivalent)
g. Seller’s commercial invoice
h. Vessel ullage report {optional}
i. Master’s receipt of samples (optional)
j. Cargo Manifest
k. Master’s Receipt of documents.
**The Master of the nominated vessels must manually sign all Bills of Lading.

8. Seller authorizes master neither of loaded vessel to issue marine NOR to buyer’s discharge port
facility/receiving vessel. Discharge port manager or vessel master shall acknowledge and
confirm readiness to receive cargo on behalf of the buyer. He shall do so in writing and
forward to seller’s captain and the seller by email. .8. Captain advises his ETA upon receipt of
the mail confirmation, and then Vessel departs loading port/anchorage to buyer’s destination
with buyer in full contact with vessel master.

9. Upon arrival at port of discharge and within 24 hours, buyer’s inspectors shall carry out Q&Q
certification of the cargo, on the seller’s vessel before discharge into buyer’s receiving facility.
(SGS, SAYBOLT or equivalent inspection company) Inspectors shall issue Q&Q report to both
parties including their respective bankers in accordance with international standards. Master
of loaded vessel shall commence discharge into buyer’s ready and waiting receiving facility.
.10. upon full discharge within ONE BANKING DAY, Buyer’s bank shall effect payment for the
full value of out- turned barrels in accordance with the Q&Q Report via SWIFT KTT
(TELEGRAHPIC TRANSFER) Wire transfer in United States DOLLARS directly to Seller's
nominated bank account, and simultaneously pays all commissions in accordance with the
Irrevocable Master Fee Protection Agreement (IMFPA) in the SPA Contract.

10. Upon payment confirmations by seller’s bank, seller transfers CARGO TITLE to buyer in the port of
Trinidad and or ASWP.(name of PORT OF DISCHARGE) and the HARD copies of cargo/shipping
documents are handed over to the buyer by the vessel master and vessel sails back to Nigeria. *. The
signatures on this contract by the Buyer and by Seller means both accept all the content as for
Quantity, Discount and Procedures. **. Buyer must ensure that all support equipment and machinery
necessary for the discharge operation is available and ready and functional within 24 hours upon
arrival at POD. Further delay attracts payment of USD$70,000.00 per day to cover demurrage and
shall subsist for 7 days.