PROCEDURE FOR 10KMT TANK FARM DELIVERY TO LAGOS
1. Seller sends signed contract to buyer; buyer signs contract and returns it to seller with NOR-ETA format,
ATB format, valid, full tank farm details, payment receipt, tank farm manager's full contacts, supercargo and
inspector's details and valid throughput Agreement.
2. Seller receives signed contract, and then verifies the documents and particulars, and if okay, sends Letter of
Indemnity for N5million to buyer. Buyer signs, notarizes and returns Letter of Indemnity (Unedited and
converted to PDF Format) to seller. Note that the Letter of Indemnity shall be effective, if buyer fails to block
the sum of N100million after receiving MNoR from seller and, or, if buyer fails to acknowledge the MNoR within
48hours from receipt of the MNoR
3. Both the signed and notarized Letter of Indemnity and signed SPA become enforceable, and are deposited with
both parties’ bankers, which shall be confirmed via bank-to-bank official email by the both parties’ respective
bank account officers.
4. Upon confirmation of such SPA and Letter of Indemnity with both parties’ bankers, Buyer issues MNoR to
buyer’s tank farm within Five (5) working days. CAUTION: If buyer fails to acknowledge the MNoR within 48hours
of receipt of the MNoR, buyer still shall indemnify seller with the sum of N5,000,000 (Five Million Naira), only.
5. Within maximum of 48 hours from receipt of MNoR, buyer / tank farm manager acknowledges MNoR, and blocks
the sum of N100million in seller’s account in favor of seller all within a maximum time.
6. Seller confirms the Acknowledgement and blocked funds, and then moves the loaded vessel to Buyer's tank farm
according to the stated ETA.
7a. Upon arrival of cargo at tank farm, buyer / supercargo / inspector conducts Q&Q and, upon successful Q&Q
Report, buyer's N100million turns cash in seller's account.
7b. Buyer places MT 103 on full cargo, or issues Bank Payment Assurance Letter (BPAL) to seller.
8. Upon confirmation of N100million payment and MT103 or BPAL on full cargo by seller, seller allows product to be
discharged into tank farm.
9. Upon full, complete discharge of product, buyer pays cash for total cargo less N100million via MT 103 to sellers
account in favor of seller, and simultaneously, Buyer pays all facilitators, agents and intermediaries; all within 48 to
10. Seller confirms full payments and hands over all original, hardcopy documents to Buyer.
11. End of transaction…and, possibly, next transaction commences