Oil Closings w/ China & Turkey – JP54, D2, M100, BLCO, LNG, Crude Oil Makes the World Go Round

RJ Hender – Proven Absolute Oil Integrity
Wed, Dec 24, 2014
Subject: Oil 2015 Preparation
www.MorningLiberty.com

The whole Oil Biz is experiencing upheaval these days. As oil prices are
finding a new foundation, old and bad oil relationships are fading away.
We have had D6 available recently at $1.78 gal, but these fuel products go
quickly to our vetted buyers whoa are ready to move on it.

We have had JP54 available recently at $67/$64 FOB to our vetted End Buyers
who are ready to move quickly and lift at Novo or at Rotterdam. I’d be happy
to help provide you or your End Buyer with fuel products. RJ@MorningLiberty.com

Some of our Direct to Refinery sources of fuel will be back Open for Business, after
January 15th, 2015. Now is the perfect time to exchange Buyer Documents and SCOs
with new buyers. Let me know if we can help you with LNG, ULSD, D6, JP54, LPG, D2,
BLCO, JPA1, REBCO or other oil products. We will need official ICPO or LOI documents
from the End Buyer, along with the CP.

It’s not just the Big Oil Buyers who deserve access to the Oil Supplies of
Jet Fuel, Diesel Fuel, Heating Oil, Crude and other other oil products. The
small oil user has every right to access and procure the fuel products they
need. I would be glad to assist legitimate End Oil Buyers. RJ@MorningLiberty.com

We have many Chinese Buyers of oil products. Yeah, many of us have had bad
experiences selling to the wrong China buyers. Since I work with China personnel,
who are closing oil transactions with my China Buyers, we are ironing out the China
relationships and logistics and getting transactions done. Terry works with every
one of my China Oil Buyers to make sure we get the transactions completed.

Our Oil Seller for our China Buyers provides buyer friendly procedures, and
offers MT199 and MT799 options. Our Seller, to China Buyers, is providing early
stage partial POP, upon Proof of Fund verification from the Buyer.

IMPORTANT: Both our Direct Seller and us have experience, working with China,
and we understand what Chinese client’s need. As our Seller to China is willing
to provide verification of refinery, our vetted china Buyers get to speak directly
with our refinery for verification.

Our Seller to China just finished transaction in China in recent days, and with
Turkey last week for 200,000 MT per month, which are verifiable upon release of
L/C. Every Buyer from China must follow our procedures. These prices have been
available to our Buyers recently, but they may change daily or weekly.

1. Commodity: Fuel Oil M-100 Gost10585/75
2. Price: $460.00 per MT
3. Available QTY: 200,000 per month for 12 months (or 24 months)
4. Origin: Russian Federation —
5. Payment: By confirmed Irreovcable Revolving Non-Transferable L/C or DLC
Or MT103 according to procedure
6. Performance Bond from Seller: 2%
7. Inspection: For quality and quantity, SGS or equivalent at loading port
at Seller’s expenses. Dip test at Buyer’s expenses at discharged port.

In my lap are 3 Strong Direct Sources for BLCO. One of my BLCO Seller
Mandates is taking off the whole month of December after a busy year of
closing many Bonny Light deals. In 2015 we will have more BLCO available,
but you may as well take the time now to exchange buyer oil docs and our
seller oil docs with each other. Below are more details for FOB or CIF
transactions for BLCO…

Seller’s Procedures for official NNPC BLCO
Specifications:
1. PRODUCT: Nigerian Bonny Light Crude Oil
2. QUALITY: Standard Export Quality APT @ 60 Deg F Min 35.5 Max 37.00
3. QUANTITY: TBA million barrels (+/-10%)
4. DURATION: Spot lifting then a contract for 12months with possible rollover right on
buyer.
5. SHIPMENT: TBA million Barrels (+/-10%) per month.
6. DELIVERY: TBA (Bonny Ocean Terminal Loading Port).
7. PRICE: Based on 3 (three) days average of the mean Brent (DTD) Platt (Dated New
York) price,less discount. The price shall be average of the day before the date of
loading, the day of loading and the day after the day of loading. The applicable currency
in respect of payment for the cargo shall be
United States Dollar (USD).
8. DISCOUNT: AS PER AGREEMENT.
Procedures: (only use the one that is applicable to your transaction)

FOB BLCO PROCEDURES
1. SELLER AND BUYER SIGN CONTRACT AND BUYER RETURNS SIGNED
CONTRACT WITH VALID VESSEL DOCUMENTS, CPA, INVOICE OF CHARTER AND
Q88 FOR SELLER TO VERIFY.
2. SELLER GIVES BUYER PARTIAL POP FOR VERIFICATION.
3. BUYER ISSUES PRE ADVISE MT199 (SEE VERBIAGE) TO SELLERS BANK BY
SWIFT.
4. SELLERS BANK ISSUES 2% PB TO BUYERS BANK
5. BUYERS BANK ISSUES MT 760 SBLC FOR THE TOTAL VALUE OF THE CARGO.
6. SELLER CALLS IN BUYERS VESSEL FOR LOADING, AFTER LOADING,
NOMINATE AN INDEPENDENT INSPECTION COMPANY FOR Q AND Q.
7. Q AND Q IS DONE AND IT’S OK BY BOTH PARTIES.8. SELLER’S ISSUES ALL DOCUMENTATION IN BUYERS NAME.
9. SELLER MOVES THE VESSEL TO INTERNATIONAL WATER FOR BUYERS
INSPECTION TO CONDUCT SECOND Q AND Q. AND IT’S OK BY BOTH PARTIES.
10. FULL PAYMENT FOR THE PRODUCT IS MADE VIA MT103 TO SELLER AND
ALL BROKERS.

CIF BLCO PROCEDURES
A. BUYER AND SELLER SIGN AND SEAL CONTRACT AND LODGE WITH THEIR
RESPECTIVE BANKS; ELECTRONIC COPIES OF EXECUTED CONTRACT ARE
DEEMED LEGAL. BUYER VERIFIES THE BULK ALLOCATION INFORMATION
CONTAINED IN THE CONTRACT WITH APPROPRIATE AUTHORITIES AS THIS
SERVES AS SELLER’S POP.
B. BUYER’S BANK SENDS RWA TO SELLER’S NOMINATED BANK STATING
WILLINGNESS AND ABILITY TO CONCLUDE THE TRANSACTION AND
CONFIRMATION THAT FUND IS SET ASIDE FOR THIS CONTRACT.
C. UPON SELLER’S BANK RECEIPT OF THE RWA, SELLER INSTRUCTS HIS BANK TO
CONFIRM TO BUYER’S BANK, SELLER’S ABILITY TO PLACE 2% PERFORMANCE
BOND.
D. UPON BUYER’S RECEIPT OF THIS CONFIRMATION (PROCEDURE 3 ABOVE),
BUYER’S BANK WITHIN 5 BANKING DAYS, PLACES INSTRUMENT FOR ENTIRE
CARGO VIA MT760 BG OR MT700 DLC. SELLER’S BANK RESPONDS WITH A 2%
PERFORMANCE BOND TO BUYER’S BANK WITHIN 3 BANKING DAYS OF POSITIVE
VERIFICATION OF THE FINANCIAL INSTRUMENT.
E. WITHIN 5 BANKING DAYS, SELLER LOADS VESSEL, ISSUES COMPLETE CARGO
DOCUMENTS TO BUYER AND INSTRUCTS CAPTAIN TO ISSUE NOR TO REFINERY
/PORT OF DISCHARGE. CAPTAIN OF VESSEL SHALL ISSUE A CONFIRMED ETA.
F. CAPTAIN OF VESSEL SHALL ISSUE ATB TO BUYER’S INSPECTORS AND
SUPERCARGO AT LEAST 24HOURS BEFORE ARRIVAL AT POD.
G. WITHIN 24 HOURS AFTER BERTHING AT POD, BUYERS INSPECTORS SHALL
CARRY OUT Q AND Q INSPECTION INSIDE THE VESSEL BEFORE DISCHARGE AND
ISSUE AND REPORT TO SELLER AND BUYER.
H. BUYER’S BANK MAKES FINAL PAYMENT VIA SWIFT MT103 AND ALL
INTERMEDIARIES ARE PAID. IF THESE PROCEDURES ARE ACCEPTABLE TO YOU,
PLEASE PROVIDE US WITH THE NAME OF THE BUYER (COMPANY NAME) AND OUR
SELLER WILL We can kick this process off… RJ@MorningLiberty.com

ATTN: PRINCIPAL END BUYER
REF:
ISSUED DATE:
VALID: THROUGH Jan 1, 2015
SOFT CORPORATE OFFER – Prices May Change Without Notice…
We “XXXXXXXX XXXXXXXXX” with legal responsibility under penalty of Perjury hereby Confirm the
Availability and Capability to Supply the under list Product for Immediate Spot and Contract sales. The Supply is guaranteed to meet the Specifications and pass through the stringent requirements of SGS or Equivalent. Financial Statement from the Buyer’s bank clarifying buyer’s financial capability will be required to consider buyer’s negotiations. Only direct negotiations from end buyers, representative and mandates will be considered.

PRODUCT: D2 DIESEL GASOIL GOST LO-02-62-305-82
ORIGIN: RUSSIAN FEDERATION
GRADE: EXPORT STANDARD BLEND
QUANTITY: 50.000MT SPOT CIF ANY SAFE WORLD PORT WITH R&E INTO YEARLY CONTRACT
SPOT PRICE: US$770.00 GROSS / US$760.00 NET PER MT
QUANTITY: 50.000MT TRIAL SHIPMENT & 150.000 X 12 MONTHS FOB RUSSIAN PORT
FOB PRICE: US$750.00 GROSS / US$740.00 NET PER MT

PRODUCT: MAZUT M100 GOST 10585-75 or 99
ORIGIN: RUSSIAN FEDERATION
GRADE: EXPORT STANDARD BLEND
QUANTITY: 50.000MT SPOT CIF ANY SAFE WORLD PORT WITH R&E INTO YEARLY CONTRACT
SPOT PRICE: US$450.00 GROSS / US$440.00 NET PER MT
QUANTITY: 50.000MT TRIAL SHIPMENT & 150.000 X 12 MONTHS FOB RUSSIAN PORT
FOB PRICE: US$430.00 GROSS / US$420.00 NET PER MT

PRODUCT: RUSSIAN AVIATION KEROSENE COLONIAL GRADE (54)
ORIGIN: RUSSIAN FEDERATION
GRADE: EXPORT STANDARD BLEND
QUANTITY: 500,000 BBLs SPOT CIF ANY SAFE WORLD PORT WITH R&E INTO YEARLY CONTRACT
SPOT PRICE: US$ 80.00 GROSS / US$74.00 NET PER BBL
QUANTITY: 1 MILLION BBL TRIAL SHIPMENT & 2 MILLION BBLs x 12 MONTHS FOB RUSSIAN PORT
FOB PRICE: US$ 74.00 GROSS/ US$ 68.00 NET PER BBL

DESTINATION FOR SPOT: ANY SAFE WORLD PORT (ASWP) INCOTERMS: CIF
DISCHARGE PORT FOR FOB RUSSIA: NOVOROSSIYSK / VLADIVOSTOK / NAKHODKA / PRIMOSK
INSPECTION: SGS ON SELLER’S COST AT THE LOADING PORT

INSURANCE: PAID BY SELLER, COVERING 110% OF SHIPMENT VALUE

PROCEDURES FOR SPOT
1. Buyer issues Irrevocable Corporate Purchase Order ICPO with seller procedures.
2. Seller issues the Tanker Take-Over Contract for review and endorsement by the buyer.
3. Seller issues partial Proof of Product and Shipping documents as listed below;
A. Certificate of Origin
B. Company License to Export
C. Product Passport (Analysis Result)
D. Tank Receipt (TRS-Dip Test Result)
E. Bill of Lading
F. Vessel’s Q88
G. Invoice for Allocation Guaranty Deposit
4. Upon receipt of the above documents by Buyer, Buyer makes payment for ALLOCATION GUARANTY
DEPOSIT of the consignment by T/T payable directly to the Refinery.
5. Upon receipt of the above payment, Seller issues the ACT of TRANSFER in Buyers Name, Title of
Ownership Certificate to be followed by all Export Documentation will be sent to the buyer alongside the
S.G.S Report at the loading Port.
6. Upon arrival of the vessel at Discharge Port, the vessel captain will hand over all the original POP documents to the buyer’s representative while buyer pays for the total contract after SGS, CIQ or equivalent inspection at the discharge port via T/T Wire transfer and the amount payable for Allocation Guaranty Deposit will be deducted while offloading will commence immediately.
7. Seller pays Commission to all involved mandates and intermediaries by T/T Wire Transfer as mutually agreed in the NCND/IMFPA.

Procedures FOR FOB
1. Buyer sends ICPO to Seller.
2 Seller issues Draft Contract along with Commercial Invoice (CI), Buyer Signs and returns both to Seller for final endorsement (s). Seller confirms with Refinery commitment letter issue to Buyer.

3 Buyer provides for Seller, Buyer’s vessel information and details Port Clearance through nominated vessel terminal.
4 Seller issues the following documents to Buyer:
A. DTA- Dip Test Authorization
B. SHORE TANK RECEIPT
C. INDIGENOUS ANALYSIS REPORT
D. SGS Report of the Product upon confirmation of Buyer’s share tankage information and vessel port clearance by Seller’s bank.
5. Buyer makes Payment by Non-Transferable/Transferable DLC or MT 103/23 on monthly Delivery
Payable 100% at sight after presentation to the Buyer Bank full set of Documents required for payment.
6. Upon confirmation of buyer’s payment instrument, Seller’ issues the ACT of TRANSFER in Buyers Name, Title of Ownership Certificate to be followed by all Export Documentation.
7. Buyer conducts Dip Test and lifting commerce and Buyer releases payment as agreed by both parties after the positive quality and quantity DIP TEST RESULTS.
“THE BUYER IS EXPECTED TO INSERT THE REFINERY’S TERMS & PROCEDURES AS ABOVE EITHER FOR SPOT OR FOB BASIS IN HIS ICPO FOR SELLER’S IMMEDIATE PROCEEDINGS”

I only want the best for my Direct to Refinery Oil Sellers. At the same time, we
knock ourselves out, every day, for our vetted End Buyers. Let me know if I can assist
you with your oil needs. Contact me RJ@MorningLiberty.com

Here is to a strong 2014 Oil Finish and a profitable 2015 Oil Beginning. RJ Hender


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