Procurement Officer Welcome – JP54, D6, LNG, D2, Mazut, ULSD, BLCO Ready

RJ Hender – Honest Oil Seller
Sun, Apr 19, 2015
Subject; JP54, D2 Major Procedures Available

Below I have recent JP54, D2, ULSD & D6 procedures and prices from my Seller friend Greg…

One of my Direct to Refinery sources only requires a Corporate Profile on Buyer
letterhead, up front from an End Buyer. Since this source is either the Seller or
the Seller Mandate with so many refineries, he prefers to take a legitimate CP and
do Due Diligence on every End Buyer. Prices or procedures, from this source, don’t
get discussed until after the Oil Conference Call between my Seller and the End Buyer
because prices and procedures vary, between all of his refineries. It would help the
transaction if the End Buyer can provide some sort of Bank Reference Letter, with the CP.

I would be glad to bring you, if you are a legitimate End Buyer, to my Seller(s)
but this is not game for us. We are limited on time. Be prepared to provide legitimate
Buyer Docs or don’t bother knocking on our door.

Oil prices continue to fluctuate. Buyers still need oil products, from genuine sources.
As I work with over 12 Direct to Refinery sources of JP54, D6, LNG, Bitumen, D2, Mazut,
BLCO, LPG, JPA1 and other oil products, some weeks one Seller has lower prices than my
other Sellers. Some weeks, another Seller has lower prices than my other sources.

At times we are open to negotiate some Procedures and some Prices with our End Buyers,
but realize that it’s the Refineries that set procedures.

Do you have Oil Tanks at Novo or Rotterdam? Do you have your own Oil Ships for
transporting the fuel to your own destination(s)?

There is information we need to know from every End Buyer…

1 – What is your Real Name?
2 – How do we contact you? Skype preferred Phone # preferred Email address preferred
3 – What quantity do you need of fuel?
4 – What price target for fuel would you prefer?
5 – What procedure best works for you? FOB, CIF, CI, Dip & Pay, TTO, TTT, other…
6 – What payment instrument do you prefer to use?
7 – Corporate Profile on End Buyer letterhead
8 – How many people between you and the End Buyer? We will not go around brokers…
9 – Buyer Docs preferred ICPO or LOI along with the CP in most cases
10 – Have you purchased oil products before?

I received these Procedures, just this morning…

Enclosed are a JP54 and D2 offer;
RJ, please have your buyer review and if
they are interested they must provide CP
and ICPO…

*ORIGIN: Russian;*
*SELLER: Allocation holder with refinery contract;*
*DELIVERY: FOB Rotterdam, The Netherlands;*
*DURATION: 1 year export contract;*
*QUANTITY: 5M-­‐10M barrels (5M initial liftable) (Up to 10M
barrels Term “Rolling Spot Contract”);*
*PRICE: USD $8 Gross/USD $6 Net Less NEW Platts
Base Pricing Index (3) Day Average from date of Dip Test Inspection
*COMMISSION: USD $2.00 per barrel, Split 50/50 $1.00/barrel to
Seller’s facilitator (closed), $1.00/barrel to Buyer’s group;*
*CONDITIONS: Seller will ONLY discharge into Buyer’s Shore
Tank Storage Facility (“VERIFIABLE Activated Bar Coded TSA/TSR required”);*

We have a good source for D6 and MGO out of Houston. The D6 is 1.48 NET
and the MGO is 1.70*
Buyers must provide CP and ICPO, our NCNDA signed and returned first.
This source wants to see all of these Buyer Docs, as well as Shipping
information or Tank information. All comms must be paid by the buyer.*

*Also Seller says Buyer can put their Procedures on the ICPO and he will see
if he can work with them or not. Please also state the buyers requested

(TSR/DTA/Q&Q) ACT FAST. Seller is a US seller and product is in tanks in
Houston ready to be lifted. This is only a spot sale. No contract. THE

1. Buyer Issues company profile to the seller
2. Seller issue Commercial invoice to be counter signed by buyer and returned to the
3. Seller upon receipt the countersigned and stamped C.I. by the
Buyer. Seller will send to the buyer the Dip Test Authorization, Tank
Storage Receipt and the product passport (quality, quantity, Analytical
4. Buyer proceeds with Dip Test and upon successful Dip Test
Report makes payment for 100% product value by MT103 and seller title
transfer simultaneously to the buyer. PS..Seller side closed…Buyer side

We continue to receive many requests for Mazut, BLCO and other fuel products
for China buyers. There is still a Banking Bottleneck with China buyers.
We prefer to sell to China buyers with some sort of FOB procedures. I may have
displayed this report on China before, but from a Skype conversation, I will share
it with you again…

The problem is that a little while ago the government relaxed the import restrictions on petroleum product. AS a result, there has been an avalanche of “new” importers without much experience. They have been duped by fake deals, issuing DLC’s and then refusing to pay the fee to the banks when the product did not materialise.
Banks have begun actions and that has caused a lot of political problems as many of these importers are well connected politically. So banks are now requiring cash backing and if a deal falls over, they have the cash to cover their fees
At present, there are 16 million bbls of BLCO on ships in Chinese waters where Sellers can not demonstrate they have legal title and Chinese Customs are not allowing then to enter port. each one has a DLC!!!!!

We have several Mazut contracts to complete, once these China issues have been resolved.

We do not go around good Brokers or Intermediaries who assist us in getting oil
transactions completed. Yeah, in the Oil Biz there are sharks who continue to stab
the very people who helped them, in the back. Karma can be a bitch.

I expect the 2015 Oil Year to be successful for you… RJ Hender – Honest Oil Seller

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