K Petroleum Products
We, ‘k-Petroleum,’ proudly declare ourselves as a reputable mandate and intermediary company representing prominent refineries in Qatar, United Arab Emirates, and Kazakhstan. We are pleased to announce and assure the availability of the following products. Our supply is guaranteed to meet the specified requirements and undergo rigorous scrutiny by SGS or an equivalent organization.
FOB WORKING PROCEDURES
The buyer acknowledges and accepts the working procedures of the seller and issues an Irrevocable Corporate Purchase Order (ICPO) addressed to the seller’s refinery.
The seller generates a Commercial Invoice (CI) and sends it to the buyer. The buyer reviews, signs, and returns the Commercial Invoice along with a Tank Storage Agreement (TSA).
The seller provides the buyer with the following documents as part of the Pre-Proof of Product (PPOP) process: A. Authorization to Verify (ATV) B. Product Passport (product analysis report) C. Irrevocable Commitment Letter to Supplier D. Statement of Product Availability E. Tank-to-Tank Injection Agreement (TTIA) to be signed by all parties involved.
The seller furnishes the buyer with additional documentation, including an SGS report, Injection Report, and an unconditional Dip Test Authorization (DTA).
Both parties sign a Non-Circumvention, Non-Disclosure Agreement (NCNDA) or a Master Fee Protection Agreement (IMFPA). Upon successful dip testing in the seller’s tanks, the buyer provides a Tank Storage Receipt (TSR) within 24 hours. Subsequently, the seller proceeds with the Tank-to-Tank injection and provides the buyer with an Injection Report confirming the transfer of the product into the buyer’s tanks.
TANK TO VESSEL / DIP & PAY PROCEDURE
1. Buyer issues official ICPO addressed to the refinery or representative.
2. Seller issues Commercial Invoice (CI), buyer signs and returns the signed invoice to seller.
Seller provide buyer with the below listed PPOP.
• Product Passport (product analysis report)
• Authorization to verify (ATV) via email or call
• Tank Storage Receipt (TSR)
• Statement of Product Availability (Notarized)
• Commitment and Assurance Letter to supply (Notarized)
• Authority to sell and collect (ATSC).
5. Buyer extend seller’s tank and dip test is conducted immediately with buyer’s team to obtain fresh
SGS report.
6. After successful Dip Test in Seller’s tanks, Buyer takes over seller’s tank or Seller injects into buyer’s
vessel / Tank and buyer conducts its own DIP TEST Inspection for Q & Q of the Petroleum Products
aboard vessel / Tank.
7. Buyer after successful Q &Q Dip test on the product, buyer makes the payment for the total value of
product injected into the tanks through the means of MTI03 – TT.
8. Upon seller receives the payment for the product from the buyer, seller issues to
9. Buyer the Title ownership of the product and all exporting document of the Product. 10. Seller pays all
intermediaries involved in the transaction.
TRANSACTION PROCEDURE ON CIF
1. Buyers’ issues Irrevocable Corporate Purchase Order (ICPO) addressed to the Seller Refinery along
with company profile and buyer passport.
2. Seller issues the draft SPA for buyer’s review and signing
3. Seller legalizes and registers the contracts with insurance company and notarize it with the
appropriate Authorities of the ministry of energy along with the below PPOP document:
o) Product Quality Passport-Quality Certificate.
o) Certificate of Product Origin.
o) Product availability
o) Commitment letter to supply the product from Ministry of Energy.
o) [ATSC].
4.Buyer’s bank in accordance with seller’s verbiage shall issue SBLC/DLC within six (6) working days for
first shipment’s value to seller’s financial bank to enable seller commence loading of product with the
shipping company. Seller to finalize loading within six (6) working days. But if buyer fails to issue
SBLC/DLC within six (6) working days, as an alternative provision buyer pays $250,000 directly to the
shipping company via MT103 as transaction guarantee which will be deducted from the product’s
invoice value of product at destination port.
5. After confirmation by seller’s bank, seller at own expense, charters with shipping/logistic company
and alert buyer on shipment ordered graphic/schedule accompanied with submission of nominated
Vessel details to buyer.
6. Seller’s bank responds with contractual operative 2% PB and full POP to buyer’s bank within seventy –
Two (72) hours since buyer’s instrument confirmed by seller’s bank
a) Copy of the Port Storage Agreement.
b) Copy of the CPA, to Transport the Product to Discharge Port.
c) Vessel Q88.
d) Original BL (full set).
e) Copy of SGS Report.
7. Upon successful product confirmation against SGS/CIQ Report of Quality and Quantity at destination
port, buyer makes payment by MT103.
TANK TAKE OVER (TTO) PROCEDURE
1. Buyer issues Irrevocable Corporate Purchase Order (ICPO) with Guarantee Letter to take over Title of
the product.
2. Seller issue draft (MOU) agreement to Buyer counter-sign and return back to seller.
3. Upon Seller receipt of sign MOU-contract from the buyer, Seller legalizes the agreement with the
ministry of energy, agriculture & trade Russian federation.
4. Seller sends to Buyer the following documents for Buyer’s confirmation. A. Seller’s Export
License/Registration Certificate
B. Bill Of Lading-(in the name of previous buyer as Consignee.)
C. Vessel Tanker Details.
D. Product Passport-Dip-Test Report.
E. Proforma Invoice.
F. Agreeable Payment deposit Invoice.
G. Cargo Manifest.
H. Cargo Ullage Report. I. Q88
5. Buyer confirms the goods documents and makes down deposit which stands as an Allocation and
Security Guarantee payment to the seller nominated bank by T/T Wire Transfer within 3 banking days to
enable seller change every document to buyer’s name and instruct the vessel captain to re-route the
vessel to the new buyer’s destination port. The deposit Payment made shall be deducted from the total
payment value of the takeover product.
6. Seller releases a fresh dated Dip-Test Authorization-DTA to Buyer to order SGS inspection or
Equivalent inspection team for Q & Q inspection upon goods/cargo arrival at the discharge port.
7. Upon the successful completion of Dip-test inspection, Buyer make the balance payment by MT103
wire transfer for the total goods value, Seller transfers Title of ownership Certificate to buyer’s name as
the legitimate owner of the goods and commence trans loading.
8. Trans-loading commence immediately.
9. Seller will release payments to the intermediaries involved within 48 hours of receiving the Payment
for the product from the Buyer’s bank.
TRANSACTION PROCEDURE ON CIF 2
The buyer initiates the process by issuing an Irrevocable Corporate Purchase Order (ICPO) addressed to the seller’s refinery. The ICPO is accompanied by the buyer’s company profile and passport.
The seller provides the draft Sales and Purchase Agreement (SPA) to the buyer for review and signing.
The seller proceeds to legalize and register the contracts with the insurance company and notarize them with the appropriate authorities, such as the Ministry of Energy. The seller also provides the following Pre-Proof of Product (PPOP) documents:
- Product Quality Passport (Quality Certificate)
- Certificate of Product Origin
- Product Availability
- Commitment Letter to supply the product from the Ministry of Energy
- Authority to Sell and Collect (ATSC)
The buyer’s bank, as per the seller’s instructions, issues an irrevocable Standby Letter of Credit (SBLC) or Documentary Letter of Credit (DLC) within six (6) working days for the value of the first shipment. This enables the seller to commence the loading of the product with the shipping company. If the buyer fails to issue the SBLC/DLC within the given timeframe, an alternative provision allows the buyer to make a payment of $250,000 directly to the shipping company via MT103 as a transaction guarantee. This amount will be deducted from the invoice value of the product at the destination port.
Once the seller’s bank confirms the buyer’s instrument, the seller, at their expense, charters a shipping/logistics company and notifies the buyer of the shipment details, including the nominated vessel.
The seller’s bank responds within seventy-two (72) hours by providing the contractual operative 2% Performance Bond (PB) and the full Proof of Product (POP) to the buyer’s bank. The POP includes the following documents:
- Copy of the Port Storage Agreement
- Copy of the Charter Party Agreement (CPA) for transportation to the discharge port
- Vessel Q88
- Original Bill of Lading (full set)
- Copy of the SGS Report
Upon successful confirmation of the product’s quality and quantity at the destination port, as indicated by the SGS/CIQ Report, the buyer proceeds to make the payment via MT103.