TANK FARM DELIVERY PROCEDURE
1) Seller and Buyer sign SPA and deposit same with their respective Banks . The Buyer shall return signed SPA to Seller with his tank farm throughput Agreement, Recipe, NOR FORMAT. Storage manager Contacts
2) Buyer issues Block Funds of N70m in account called Escrow block fund not in favour of Seller, seller give performance bond or advanced payment guarantee then Seller move the vessel to Buyer’s Tank farm.
3) Seller issues NOR to Buyer’s Tank Farm facility and nominate NNPC clearing Agent to clear the cargo into Buyer’s Tank farm.
4) Buyer’s Tank farm manager acknowledges the NOR.
5) The Seller instructs the Captain to Send ETA and sail the vessel to Buyer’s designated Tank Farm.upon arrival of vessel at the designated Tank Farm, the Captain tenders Notice Of Arrival (NOA) and issues ATB to Buyer’s Inspection Team to board for calibration and sampling of product for lab analyses.
6, Upon release of Q & Q report the Buyer pays N150m to Seller instead of N70m BLOCKED FUNDS and issues MT103/72 payment instrument for the remaining cargo quantity and the vessel discharges.
7. After the discharge, Seller presents original cargo documents and payment advice to Buyer/his bank.
8. Buyer pays the remaining balance of cargo within 72 banking hours after presentation,
9. upon confirmation of payments, transaction closes.
For serious buyers.