1. Are there certain laws you have to follow in International Global Trading?
The laws are UCP600, Incoterms 2000 and the ICC Paris. You want to make sure whatever you write and whatever documents you sign these laws are mentioned. These laws are applicable to all trading countries in the world including the US. Hence, If your payment instrument is a DLC then you would want to state in your document that your financial instrument is a Documentary Letter of Credit defined under UCP600 procedures. This prevents any misunderstanding of the type of payment being offered. Also, this removes any grief that could prevail without the UCP600 procedures.
2. What is a soft offer?
There is no such thing as a "SOFT OFFER". A "Quote/Offer" is a soft offer. A quote need only to be confirmed. Once confirmed, a full offer is advised. Once accepted the contract is advised.
3. Isn't the buyer with the money the most important thing in securing an oil deal?
Not understanding why the supplier needs to be secured first can get an intermediary in a lot of trouble.
If an end buyer issues a DLC (Documentary Letter of Credit) to your account (the controlling intermediary) under the impression that you have a supplier (because of quotes you received from another intermediary seller) and the intermediary seller really did not have a supplier then you can and will be charged on “fraud”. The end buyer went through an expense setting up the DLC and in return was defrauded by you. It is without say, you are in a serious situation.
So secure the supplier first, find the buyer second. Once you get a quote from the person who is in actual possession of the product (supplier) then seek the buyer.
4. Is there a difference in a "RFQ" (Request for Quote) from an End Buyer to a Buyer/Seller as opposed to a "RFQ" from the Buyer/Seller to the Supplier?
Yes, there is a difference between the End Buyers RFQ and the Buyer/Sellers RFQ. The RFQ from the End Buyer to the Buyer/Seller is a request for a quote to buy the product. The RFQ from the Buyer/Seller to the Supplier is a request for a quote to sell the Supplier’s product. This is why an intermediary cannot give an "ICPO" to a supplier. The intermediary is not purchasing the product. Only the person who is taking possession of the goods is purchasing the product. The intermediary only takes possession of the Title not the product. The intermediary deals in documents only not the product itself. The "Quote from the Supplier is the first most important document. Without a quote from a real supplier you have nothing to start a deal. Supplier first, buyer 2nd. Here is a small example of a RFQ transaction:... Your neighbor Joe has a sports car in his driveway for sale and you say to him ("Hey Joe how much do you want for your sports car; I think I know someone who might want it.) You have just requested for quote from Joe to sell the car, not to buy. Now you advertise that sports car and a potential buyer asks, how much for the car?. The buyer is requesting in here for a quote to buy.
5. If I have secured a supplier should I ask for a mandateship?
No. A mandate to a supplier is an “agent” who acts on behalf of a disclosed principal. A mandate is not just given to a person; (as implied so often). It has to be earned, after a strong relationship has been built from many years of dealing with a “principle supplier”. The mandate agent can only act under the instructions of their principle (supplier) who must disclose to end buyer immediately when the offer is made to an end buyer; and in closing the deal, the “mandate agent” would be paid a by the supplier is often the end result. The mandate agent gets no commission from the buyer’s side of the deal.
A mandate agent has to close many deals in order to get any reasonable commission amount from the supplier. Many intermediaries claim mandateship because they think being next to the supplier as a mandate agent is putting them in a great position. This is incorrect. An intermediary in a chain deal will make a great deal more money than a mandate agent.
The best position in a deal is the “controlling buyer/seller intermediary”. The buyer/sell must know procedures really well and act in the best interest of all parities on both sides of the deal.
Forget about becoming a mandate holder of a principal as it is not a feasible position to hold if you are looking to make the big money. Learn the proper procedures, rules and policies and become the legally defined Buyer/seller.
6. What is really POP?
P.O.P as often seen on the Internet is basically Proof of Product. Intermediaries cannot give POP if they have never even seen the goods; and even if one goes to the supplier's country and looks at the goods he is going to purchase, there is no guarantee that the goods he has seen, will not be sold to someone else tomorrow. A Proof of Product ('POP') is often requested by buyers or intermediaries who believe it will give them some guarantee of the existence of the product and ability of the supplier to deliver. Many POPs produced are fake. The POP offers no proof at all, because once a POP has been drafted, it is automatically out of date. The product could have been sold to another buyer and no longer exists. If an end Buyer were dealing with a supplier, anything can be suggested especially in matters of POP. But no matter what the End buyer demands, he will still need to produce the financial instrument to pay for the goods before a supplier will even consider making any effort in getting goods ready for delivery. When an end buyer asks a buyer/seller he needs a POP before financial instrument is in place, he is really saying : Please tell me who your disclosed principal is so I can circumvent you. POP really does not really give any proof, but it will give the opportunity for circumvention.
7. What does NCND or NCNDA mean?
NCNDA stands for (Non Circumvention, Non Disclosure Agreement.) This document is not worth the paper it is written on. If you have your name on this document and get circumvented, do you have hundreds of thousands of dollars to pay to take this through the international courts? This is a document that is very hard to enforce. Only a misinformed or unskilled intermediary/broker would send you a NCNDA.
8. Is the NCNDA any protection for an intermediary?
Not even close to protection. The NCND is totally useless piece of paper unless the product is in your own country. Internationally, this documents floating around the Internet is impossible to enforce in a court of law.
9. What does FPA, IFPA or IMFPA mean?
IMFPA stands for (Irrevocable Master Fee Protection Agreement.) The FPA (Fee Protection Agreement) and NCND are usually attached to each other. FPA / NCND is not the proper way to protect intermediary/broker’s interests.
Beware if someone claims to be the Mandate, Supplier, End Buyer while at the same time requesting FPA and NCND. A real mandate never fears circumvention as he is protected by the one who extended the mandate to him. A real supplier and a real End Buyer don’t get commissions.
10. Does the MFPA (Masters Fee Protection Agreement) enforce payment of commission?
The flawed document MFPA does not protect a commission payment. There are documents under International Law that can protect your commission but the MFPA is not one of them.
11. Please help me understand the real meaning of LOI and ICPO
LOI: This term is used out on the Internet by inexperienced traders as a “Letter of Intent” which is incorrect. LOI mean “Letter of Indemnity.” Inexperience “intermediary seller” who is claiming to be the supplier will ask for a “Letter of Intent” to purchase goods. You as an intermediary cannot give a letter of intent to buy goods as your intentions are not to buy goods but to sell the "Title" of the goods. So your letter of intent to buy goods would be a lie. Giving a Letter of Intent only means “Yes I intent to buy the goods but I can change my mind anytime. A letter of Intent is not a binding contract. The Letter of Intent is a total waste of time on a worthless piece of paper. An intermediary can only give to the supplier an “Offer” which is to SELL the Title of the suppliers goods.
ICPO: This term means Irrevocable Corporate Purchase Offer. This term will not work for the intermediary. An ICPO may work for the end buyer to the supplier dealing with each other but not for an intermediary. An intermediary works with different applications. Once again, intermediaries cannot “irrevocably offer to purchase” the goods when not purchasing. They are offering to sell the “Title” to the said goods, not purchase and take possession of goods. If any intermediary offers you an ICPO you know they are inexperienced or trying to scam you. Only the end buyer can offer such a document.
The intermediary should first ask the supplier for a “RFQ” (Request for Quote) not issue a (LOI). The next document is an “Offer” for you as a “buyer/seller intermediary” to consider from the supplier (“Offer to Sell”) Not (ICPO). This is all that is needed (Quote, Offer). Not understanding the proper procedures and documents for an intermediary one of two things will happen.
1. The deal will collapse, and/or
2. You as an intermediary will be circumvented. LEARN, STUDY and UNDERSTAND.
Only sometimes these flawed terms and documents will work between an end buyer and a real supplier. Not very often but sometimes, as anything can be implied between end buyer and supplier. For the intermediary, these terms and documents will NEVER work. In the International Trading business, the only thing needed is a “Quote” “Offer” “Contract” “Payments” and “Delivery of goods”.
12. What does BCL mean?
This stands for Bank Comfort Letter. It is a letter provided by the buyer’s bank to confirm that the buyer has sufficient funds to carry out the transaction. The intermediary can't give a BCL because intermediaries does not have the money in their bank account. If you get a BLC from your end buyer and hand it over to the supplier you have just lost the deal. They will deal directly with each other and you are out. An intermediary cannot deal with a BCL. However it may apply to a direct buyer doing business with an end Supplier on some occasion - but cannot simply be applied when intermediaries such as Buyer/Seller are involved.
13. What does RWA mean?
RWA means (Ready Willing and Financially Able.) Like the BCL the same applies to RWA. (“Look I have the money to buy"- IT DOES NOT MEAN I WILL BUY) If an intermediary asks for a RWA or BCL from a Buyer and the Buyer gives a Genuine RWA/BCL, then the intermediary has to continue with the deal which usually means disclosing the supplier to the buyers side - and here is your problem -The supplier is disclosed and the buyer changes his mind, then returns to the supplier at a later time and circumvents everyone in the group. The buyer just saved himself millions of dollars.
14. What does EXW stand for and mean?
EXW stands for "Ex-Work’s and means The buyer pays for all costs of transport from pickup at the suppliers premises. "e.g. EXW Clearwater Florida." This means the supplier has sold off the warehouse floor and at warehouse prices. The buyer makes the arrangements to have it picked up from the warehouse or another place. (Wherever the supplier says the product will be. The Supplier or Buyer/seller only have to provide the goods as per contract at a designated place and nothing more. The contracted driver gives a pickup receipt to supplier and it is this receipt that allows the supplier to collect on the DLC . If the buyer/seller or supplier is going to deliver the goods to the dock, then that's not ex works but FAS (free alongside ship) The price would now be higher.
15. What does FAS mean?
FAS means (Free Alongside Ship)) (The supplier pays costs only to the port of loading) . Loading and shipment are then the responsibility of the buyer. Also means that once you have the goods on the docks on a designated date , then you can collect on your DLC the moment the goods are placed ready near shore Crane tackle for lifting on board ship- If the ship as ordered by the buyer is late- That's the buyers problem-You get paid once delivery "FAS" has applied as per Incoterms delivery rules- However the supplier must clear the goods for export. e.g. "FAS Port Canavera, Florida". Your custom receipt is presented to your bank to apply collection on the DLC.
16. What does a DLC mean in the international trading business?
A Documentary Letter of Credit (DLC) is a type of financial instrument used to pay for goods being ordered. The DLC has terms and conditions applied. The end buyer issues a DLC to supplier and if all conditions are met the supplier can obtain collection of funds. By default a DLC becomes an irrevocable Letter of Credit.
17. What is the best form of DLC?
The best form of DLC issuance are confirmed and irrevocable. The CIDLC is guaranteed by the issuing bank and not the buyer. In other words the bank is saying to the supplier "we don't care what the end buyer says, you the seller have met the condition of the CIDLC, we the bank will guarantee payment for the goods ordered".
18. Should I as intermediary accept a revocable letter of credit from the buyer for payment of goods?
The intermediary should not accept a Revocable Letter of Credit as it can be modified or even canceled by the buyer without notice to the intermediary. The payment instrument should be A Pre Advised "IRREVOCABLE" DLC. The operative word here is "IRREVOCABLE". Once the conditions of the Pre Advise has been met the DLC becomes active and the buyer cannot change his mind and cancel the DLC. With a revocable DLC he can.
19. You have said in the past that a TDLC (Transferable Documentary Letter of Credit) can only be transferred once. If that is the case, then if it is transferred to me from the end buyer. How do I get to transfer it to the supplier? Please explain the mechanics of this TDLC.
The end buyer applies for a "TDLC" to pay for purchased goods to you the “controlling buyer/seller intermediary” as the beneficiary. The Transferable Letter of Credit is not transferred to your account, it is issued as a Transferable DLC by the end buyer’s bank to your bank account. You being the beneficiary of the TDLC can transfer the said amount of suppliers invoice to the suppliers bank. This is one transfer. The balance of the TDLC is left in your account as commission for you and the other intermediary who assisted you on BOTH SIDES. Once it is transferred to the suppliers bank it cannot be transferred again. One transfer only.
Note: The transferable DLC may be transferred to more than one supplier but can only be transferred once. Hence, one supplier gets xx% of the TDLC and another supplier gets yy% of the same TDLC but once transferred to the suppliers it cannot be transferred again.
20. What does Swift MT 760 mean?
SWIFT (Society for Worldwide Interbank Financial Telecommunication) MT (Message Type) and the numbers indicates one of the many standardized message formats which comprise the SWIFT messaging system. These types of payment are internal bank applications for transferring money- Intermediaries cannot use such applications. When a bank issues an MT 760 it practically issues a payment guarantee, on behalf of a customer, typically having first blocked the same amount of funds in the customer's account. Impossible incorrect flawed applications. Intermediaries can only use Non cumulative revolving UCP600 Bank issued Irrevocable Documentary Letter of Credits (PA IDLC) when attempting to close a deal.
21. What does this mean? Branches of a bank in different countries are considered to be separate banks. Am I to understand that branches of a bank in the same country are considered to be the same bank?
Branches of particular banks are able to perform different functions as perceived by the UCP600 provided they are based in different countries. If a bank in London England issues a Letter of Credit, its branch in Manchester England cannot confirm it as they are both in the same county and therefore are considered to be the same bank. If the same bank in London England issues a letter of credit and its office in Dubai were requested to add its confirmation then this is acceptable under UCP600 Article 3 (but not necessarily acceptable to the beneficiary) as the branches are in different countries.
22. My buyer wants a sample first before he enters into agreement with me. Should I send it to him?. This could be very expensive and then he might change his mind.
The buyer is being very inventive. (suppliers hate this). The buyer may be looking to reject the goods even if they perfectly match the shipped goods. This can easily happen. Any sample given overrides any specs in the contracts. In other words, if the goods arrive different even just a little from the sample, the goods can be rejected at port. A buyer could create this problem to get the goods at a lower price. Buyers know what they want. SGS does the analytical inspection of the goods and advises exactly what is being shipped. The safest way to go is No Samples.
23. I have been sent an out dated SGS certificate from a company to prove to me that they have done business in the oil industry before. Is there a way I can check to see if this certificate is real?
To authenticate a SGS certificate you may contact SGS by telephone (+41 22 739 91 11) or fax them the certificate to authenticate at (+41 22 729 98 86). They also will offer to validate a certificate online . It is impossible to forge a SGS certificate as the certificate number can be checked with just a phone call. You can also email them through their Information Request Page at http://www.sgs.com/solution_finder/information_request.htm
24. I was told that the “Bank Performance Guarantee” from the supplier was what activated the Letter of Credit from the buyer. Is this correct? Also when the Letter of Credit is activated does this mean it has turned into actual money?
NO, a Performance Guarantee does not activate the L/C and NO, activation of the L/C does not mean money.
A Bank Performance Guarantee is issued in the form of a Stand by Letter of Credit defined by and subject to the rules of ISP98 (International Standby Practice) by the suppliers bank as a guarantee of delivery to the buyers bank. This is a complete separate entity to the Pre Advised Documentary Letter of Credit.
The Pre Advised Transferable Documentary Letter of Credit is issued by a prime Top World Bank Per UCP600 banking laws by the buyer for purchase of goods and is activated only when the Pre Advise conditions are met. The conditions in the Pre Advise L/C is not the Performance Guarantee.
Activation of a letter of credit is not money in the suppliers bank account. Activation of the L/C means the buyer who issued the L/C cannot change his mind and void the Letter of Credit unless fraud is proven. The active Letter of Credit turns into money only when the delivery documents are presented to the bank and the end buyer.
The L/C is always issued first by the buyer and the Bank Performance Guarantee is issued by the supplier second.
Note: Sometimes instead of a Bank Guarantee the supplier offers a “LDD” (Late Delivery Discount) applied as a credit of XX% to favor of the end buyer on the Sellers invoice if delivery fails to be made on time. The buyer sometimes sees the "LDD" as the favorable choice of delivery guarantee as the % value offered on the LDD is higher than the % value of the SLC.
25. The supplier offered us a 2% Performance Bond for the guarantee of the delivery of the good. My question is: What is the difference between a Performance Bond and a Performance Guarantee?
The Performance Bond (PB) is a guarantee that follows the goods to the destination port in where if the goods can be rejected for good reason, then applying on the collection of P.B supported by a B.G. Both the Performance Guarantee and the Performance bond are "based" on performance yet both are different types of performance assurance.
A Performance Bond is for a deal that works for the supplier in possession of goods and an end buyer taking possession of goods. The delivery of title documents cannot be secured so an intermediary is not to enter in such deals.
A Performance Guarantee is a guarantee given by the seller’s bank to the buyers bank in the form of an unconditional Stand-By letter of Credit. If the delivery fails and the delivery documents are not presented to the bank on the date specified in the contract, the bank just automatically pays buyer bank the Performance Guarantee unconditionally, No questions asked.
So the Intermediary must ask the seller to issue a Performance Guarantee (PG) of 2% (Not a Performance Bond) of the total cost as defined in contract, issued as unconditional as per Stand-by Letter of Credit procedures defined under UCP600 banking rules, issued within 3 days of buyers L/C being transferred.
26. If the end buyer collects on the "2% PG" (Performance Guarantee) for non-delivery of goods, how does the intermediary who is controlling the deal gets compensated for his time and effort?
You as the buyer/seller (controlling intermediary) offer to the end buyer a lesser value to what you obtained from the supplier or you offer no "P.G." to the end buyer even though you still get the "P.G." from the supplier.
27. Does the supplier or the end buyer order the vessel to deliver the purchased goods?
In a FOB deal the End Buyer order/charters the vessel. In a CIF or CFR deal the Supplier secures the vessel. Even though the vessel is ordered by the supplier, the buyer is still responsible for the cost of vessel which is on the supplier’s invoice.
28. If one sees the "CIF ASWP" why would you suspect it to be a scam?
CIF ASWP stands for Cost Insurance and Freight to Any Safe World Port. This is a flawed term which does NOT exist in the real market. The CIF part of the term is correct, the ASWP is wrong. There is a simple logic behind this. The shipment cost cannot be the same to ANY World’s Port! For example the CIF (Cost Insurance and Freight) price to ship sugar from Brazil to China would be double compared to if it was shipped to South Africa. This could make it over half a million dollars price difference. No buyer would be willing to pay extra just to get an “easily” quoted CIF ASWP price.
29. What does NNPC/JVC stand for and mean?
NNPC/JVC stands for- Nigeria National Petroleum Company / Joint Venture Company. NNPC/JVC is often seen on a fraudulent Sales and Purchase Agreement asking for banking information. The NNPC is in joint venture with many companies like Shell, Mobil, Elf, Chevron, Texaco, Agif which means they are doing business with these companies. The NNPC are not in partnership with these companies. The NNPC cannot offer a sales and purchase agreement to any intermediary, company or anyone implying that the companies they are doing business with is part of a sales and purchase agreement. Anyone offering such a sales and purchase agreement does not have oil or even access to it.
If the NNPC and Shell or Mobil or any other company are involved in any sales and purchase agreement with a principal buyer (which is very doubtful) it has to be specifically stated on the sales and purchase agreement. No Sales and Purchase Agreement can be generic as being offered on the Internet.
30. How can I figure out the distance by water from the Bonny Port in Nigeria to the Port in the Bahamas?
Check out www.distances.com
Bottom Line…. It is a fact that there is so much misinformed information going on out there in the international oil trading world that it is hard to know where to begin.
There are three important pieces of information we think one needs to be particularly aware of.
• Shell Screen London
• NNPC (Nigerian National Petroleum Company)
• Lloyds of London
1. Shell Screen London…There is no such thing. There is no website, there is no company. The "Shell Screen" is a complete lie. Regardless of claims, there is no "Shell Screen Company" in London run by Lloyds of London or the NNPC, (Nigerian National Petroleum Company) or anyone else. The “Shell Screen” does not exist, it is a complete lie
2. Lloyds of London… Many misunderstand what Lloyds of London really is. Lloyd's is the world's leading British insurance market place providing specialist insurance services (underwriters) to high risk businesses in over 200* countries and territories. Over 300 years ago Lloyd’s started out in Edward Lloyd’s Coffee House in the city of London, UK, ( http://www.solarnavigator.net/lloyds_of_london.htm ) as a place where people with exposure to risks, could meet people with capital who, for a price, would agree to insure them. The Society of Lloyds was incorporated by 1871. By the turn of the century the traditional club of marine underwriters had become an international market place for high insurance risks of almost every type. We recommend that you visit the Lloyds web site www.lloyds.com which will provide you with more information of the many services and the Underwriters, that Lloyd’s of London provide today. Posting or tracking vessels is not one of their services. Many companies will track vessel for a fee, one of them is http://www.lloydsmiu.com which has no connection with Lloyds of London. http://www.hapag-lloyd.com/en/home.html is a large liner shipping company with over 130 ships, again no connection with the famous Lloyds’ of London.
3. NNPC (Nigerian National Petroleum Company) (Government owned and operated) NNPC was established in April 1, 1977. The NNPC by law MANAGES the joint venture between the Nigerian federal government and a number of foreign multinational corporations, which include Royal Dutch Shell, ExxonMobil, Agip, Total, Fina, Elf, Chevron, and Texaco.
Through collaboration with these companies, the Nigerian government conducts petroleum exploration and development. The NNPC has sole responsibility for upstream (searching for and the recovery and production of crude oil) and downstream (the refining of crude oil, the selling and distribution of natural gas and products derived from crude oil) developments, and is also in control of regulating and supervising the oil industry on behalf of the Nigerian Government.
According to the Nigerian constitution, all minerals, gas, and oil the country possesses are legally the property of the Nigerian federal government which is managed by the NNPC. In 1988 the NNPC was commercialized into 12 strategic business units, covering the entire oil industry operations, which is, exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. In addition to the 12 business units managed by the NNPC, the oil industry is also regulated by the Department of Petroleum Resources (DPR).
The DPR ensures compliance with industry regulations; processes applications for licenses, leases and permits, establishes and enforces environmental regulations. The DPR, and NAPIMS (National Petroleum Investment Management Services) one of the 12 strategic business units managed by NNPC, plays a very crucial role in the day to day activities throughout the industry. Requirements for Buying/Selling Marketing Crude Oil. Those who wish to buy and sell Nigerian crude oil must demonstrate their commitment to the oil industry through allocation of adequate resources of capital, equipment and manpower. Those who are eligible to apply for an allocation must be an upstream investor who has acquired an oil prospecting license and has completed a minimum amount of work on the concession.
Only local refineries, international refineries and international recognized oil & gas traders may apply for an OPL (Oil Prospecting License.) (OPL is a license granted over an area to a company by the Government for the company to conduct exploration activities. Once a commercial quantity of petroleum or gas is located in an OPL (Oil Prospecting License), an OML (Oil Mining Lease) may be granted to the holder of the OPL to carry out Production activities only in the area covered by the OPL license. Usually, the area covered by a single OML is only a portion of the preexisting OPL.
Here’s how it works. The players are:
The Nigerian Government, (who owns all the oil in Nigeria)
NNPC (Nigerian National Petroleum Company) negotiates the signature bonuses with the bidders
NPDC (Nigerian Petroleum Development Company) an E&P(Exploration and Production) Unit also partnership with Agip (a retail gas and diesel Co.)
DPR (Department of Petroleum Resources) sets the rules and issues the licenses.
The Nigerian Government offers block (an assigned area for exploration) to be bid upon by:
• An end user who owns a refinery and a sales outlet.
• A world recognized oil trader with proof of handling large volume of crude oil in the last three years.
• Applicants must have a minimum turnover of no less than $100 million and a net worth of no less than $40 million
• The applicant must invest in opportunities that are in the oil industry or gas sector.
• Applicants are required to post a $1 million performance guarantee through a first class Nigerian bank in addition to the regular crude oil contract provisions.
Each block is assigned an Oil Prospecting License (OPL) number Ex: “OPL 250” “OPL 242” “OPL 244” which participating oil companies can bid upon.
If awarded that block and after oil is located an Oil Mining Lease (OML) is granted to the holder of the OPL to carry out production activities.
High bidder is not always awarded the winning choice block.
Most importantly, and for all those of you who don’t know, NNPC does not sell crude oil. They only manage the sales of Nigerian oil. Unscrupulous individuals claiming to be officials or agents, directors, CEO of oil companies have extorted huge sums of money from foreigners for fraudulent crude oil allocation papers. By the same token, there is nothing like a Presidential, Task Force , Ministerial, Diplomatic, International Agents or any other form of special or privileged allocation, which can be peddled by hawkers, companies or anyone. The NNPC has not given any mandate to anyone person or persons to negotiate the sale of Nigerian Crude oil on its behalf.
The real allocations of oil products are quickly marketed and contracted out to fulfill existing real demand among major oil companies (Shell, ExxonMobil, Chevron,, Texaco), this demand of the major oil companies outweighs the oil supply of Nigeria.
We warn you one more time against having any dealings with anyone claiming to have access to special allocation. If you are contacted with such an offer you can verify it directly with the NNPC Group General Manager at +234 9 234 8200.
There is no official or easy entry to this market on a secondary level. In fact, it is astronomically impossible to enter this market as a non major firm on any level….. One can safely regard any BLCO offer as a pure and simple myth.
To close….An intermediary needs to learn the proper procedures or will end up suffering consequences.
1. If the proper procedures are not followed the deal will never close. Or even get to the acceptance of the offer from the end buyer.
2. If an intermediary use the flawed LOI/ BCL/ ICPO/ POP/ MPA/ NCND/ PB/ ASWP documents, they are an untrained trader that has been misguided by another unskilled and untrained trader.
Note: A trader using the above flawed ambiguous procedures is wasting time on deals that simply cannot be closed. The worst part about this is traders do not understand why it is not working and never gets enough training to correct their mistakes.
Every industry and every country has their own standards and different rules and regulations that govern trading in their jurisdiction. Buyers, Sellers, Brokers, Intermediaries all need to educate themselves in the proper legal procedures for their industry and location.
In any business though, knowledge is power. In the international trading business, knowledge is survival. Not knowing the proper procedures, you will not survive and you will never close a deal.
We look forward to doing business with you and to continue being your resource for deals, capital, relationships and advice.
Your feedback as always is greatly appreciated.
Thanks much for your consideration.
Credit to : Mr. Ziad K Abdelnour from Blackhawk Partner Inc