The United States of America.
All our Bulk Refinery Direct products are sold on a Production Contract basis.
We have a Strategic Partnership with a Privately Held Refinery Group based and licensed in the USA. The Group owns or has ownership in 14 Refineries around the World including 4 in the Houston, Texas area, as well as Peru, the Caribbean, and Italy to name a few. This allows us to offer the below listed regular products along with specialty orders Internationally.
The Bulk of the Business this Refinery Group does is for the US Government. Through our Strategic Partnership we have an opportunity to bring in Bulk Buyers through their Trade Desk Arm.
All our Products in the USA are sold FOB Houston to Buyer Logistics. That said, since the Refinery Group also has a logistics ARM with access to Vessels, as well as Tanks, Pipeline Agreements, Rail Cars and Rail Spurs around the Nation, if needed, we can assist the Buyer with Logistics to their Destination. There will be a separate additional cost for logistics if this service is requested.
Our Refinery Group also owns their own WTI crude producing wells in Texas therefore we can offer WTI Crude on a Production Contract basis as well.
Our process and agreement as to our Strategic Partnership with the Refinery Group Trade Desk is as follows: Our Team markets the fuel and I vet all Potential New Buyers and get them Registered with the Refinery Group Trade Desk.
NEW BUYER REGISTRATION & PURCHASE OVERVIEW:
New Customer Account KYC - required supporting documents are listed on the bottom of the attached Blank Form. If your Buyer has their own form and it contains the same information we are requesting on the attached form then they can go ahead and send their own form along with the required supporting documents attached. Also need a Completed Draft of their Irrevocable Corporate Purchase Order (ICPO)- Draft Attached. Don't need it signed or endorsed yet.
Once we receive the above fully completed documents then CFO will perform the Required New Buyer Due Diligence and, if approved, Register the New Buyer Signator & Company with our Refinery Group. All invoicing, Contracts and payments will be direct between the Refinery Group Trade Desk and the Buyer.
Since our Bulk Product is sold as a Production Contract Buyer must either Prepay for the Full First Month on a Specialty Product or on our Regular Products for New Buyers there will be a Deposit required of 2%-50% of the First Month SPOT invoice (Deposit amount will be determined by credit worthiness of Buyer.) Second lift (Contract Portion) will be guaranteed with either an IRDLC or SBLC (Irrevocable Letter of Credit or Standby Letter of Credit). Pre injection report on Regular Products will be released 10 – 15 working days after the payment is received.
As we proceed with a Registered Buyer all subsequent orders will need to be placed through Native Fuel simply via an Endorsed ICPO with Buyers detailed logistic information. The Deposit Payment (DP) requirement will be discussed and based on Buyers performance at some point will be waived on additional New Orders. DP is Firm as outlined above on First Order.
List of our Regular Products: *Current Indicative Pricing on all of the below refined products is USGC Waterborne PLATT . Minimum quantity is 5M Gallons per month.
Fuel Oil
Regular Fuel Oil | IFO 180 | IFO 380
Diesel
D1 | D2 | D6 | ULSD | AGO
Bio Diesel
B10 | B20 | B30
Gasoline
Gasoline 87 Oct. | Gasoline 89 Oct. | Gasoline 92 Oct.
Jet Fuel
JA-1 | JP-54 | JP-58
Propane
HD5
Any other Products are considered Specialty Orders which will be assessed and priced on a case by case basis.
*WTI – Minimum Quantity is 500,000 Barrels, Pricing is 5day WTI Average (on pg 12 of the Market Scan Report) minus $1-1.50 per Barrel depends on volumes and length contracts.
*Pricing does not include Commission for Buyers Representatives. If Buyers Representatives need to be paid by our Group, then the additional cost will be charged to the Buyer through their CI. In this case, the Buyers Representative’s Commission will be listed separately on the CI and will need to be approved in writing by the Buyer prior to initial engagement.
EXAMPLE CLOSING PROCEDURES:
- Buyer submits New Buyer Registration KYC Package, including all Supporting Documents, and Notarized Irrevocable Corporate Purchase Order (ICPO) with the information described in the box below. The ICPO is binding and there will be no further negotiations once the ICPO is accepted by the Seller.
- Upon acceptance of the ICPO, Seller will endorse the order and send back to Buyer with Product Price and an Invoice for the *performance guarantee payment.
*The price will not change once the invoice is signed and performance guarantee payment is confirmed. As this is a new business relationship between the Supplier and the Buyer, we require either full first month SPOT pre-payment or a percentage down payment of 2% to 50 %, for Buyer's commitment and payment guarantee on the first month delivery. (Final amount will be determined by credit worthiness of Buyer.) First Month SPOT lift is not part of the Contract quantity. IRDLC or SBLC (Irrevocable Letter of Credit or Standby Letter of Credit) will be the payment guarantee of the remaining Contract deliveries. Percentage guarantee is only for product specification supplies by seller. Specification supplied by buyer is to be prepaid.
*Due to the fact the Supplier Blocks the Product for the buyer when the order is accepted, if Buyer fails to sign Invoice and submit payment guarantee once the ICPO is accepted and the Invoice is issued then a 5% Penalty will be assessed to Buyer for a Failed Transaction subject to legal collection if necessary.
2.2. Buyer signs PI and returns to Seller along with proof of payment for performance guarantee (Seller’s standard product specification) or full prepayment (for Buyer’s preferred specification). First Lift, Buyer will provide one of the following information below for FOB delivery; logistics must be in the name of the Title Holder (Buyer).
- Tank Farm Information and Documentation. Station and terminal information.
- Q88 from designated Vessel * if applicable
- Terrestrial company information from Trucking Company * If applicable
- Rail tanker manifest and company * if applicable
- Use and sale permit to trade petroleum products
- Import or export license. * If applicable
2.3. Seller will confirm with the Buyer the date for the delivery of product. Pre-Injection Report is to be expected within 10-15 days. Once pre- injection report is released, buyer must prepare their logistics for final injection. Seller will uphold that specification and quantity shown in the pre-injection report will be exactly the same as in the Certificate of Analysis (COA) that will be issued by SGS.
2.4. Seller will release any of the following information for the first lift with the pre injection report within 10-15 working days.
a) Tank Receipt Information.
b) SGS’ COA and *B/L (if applicable).
c) Export Documentation (if applicable).
If Seller fails to release POP or product delivery on the committed date without any reasonable cause, supplier will pay 5% penalty and return the Buyer's performance guarantee payment or product payment.
2.5. Upon successful verification of the above Proof of Products, Seller will issue a Final Commercial invoice. Buyer transfers product payment within 24 hours. Failure of Buyer to perform on the product payment will void the order and Buyer will forfeit the Buyer's performance guarantee. If Buyer’s performance guarantee is less than 5%, Buyer will receive a final invoice for the difference of the 5% performance penalty which is equal to the non-performance penalty on the Seller for the first lift only.
2.6. Seller prepares the Injection and executes delivery of the product within 5 working days into Buyer’s logistics. If Buyer fails to lift the product after 5 calendar days, a daily storage fee will be invoiced to Buyer.
2.7. Seller will release Product documents and Certificate of Product Title to the Buyer according to submitted buyer’s information.
3.0. CONTRACT AFTER THE TRIAL LIFT.
3.1. Seller issues the Draft Contract for the Buyer to review.
3.2. When draft Contract has been agreed by both parties, the Seller prepares final Sales and Purchase Agreement [SPA] for both parties to approve and sign. Buyer and Seller will have a tabletop meeting to execute the Contract. This SPA shall be lodged by Seller / Buyer with their respective banks to process the IRDLC or SBLC (Irrevocable Letter of Credit or Standby Letter of Credit). Other forms of payment guarantee can be discussed. Buyer will be invoiced a 5% performance penalty for the entire Contract quantities if within 15 days of a signed Contract, Buyer fails to submit the Contract payment guarantee. Buyer must submit the following information below. (Electronically signed copies of the Contract are not acceptable).
a. Logistics to pick up or deliver to the entire Contract term.
b. Inspection company with contact details.
3.3. Upon clearance and acceptance of the payment guarantee by the Seller’s bank, Seller issues the Proof of Product 5 working days before each loading date of the Contract, prior to the first loading schedule which will include the following documents below. Supplier is responsible for 5% penalty for each load being delayed from the loading schedule.
a) TSR – (Tank Storage Receipt) (If Applicable)
b) SGS – Fresh Report for Quality and Quantity ;( Less than 3 days old)
c) Export documentation (if required)
Alternative product verification to procedure 3.3 if Buyer is leasing storage tanks from Seller; Seller extends permission to the Buyer and/or their respective assigned inspector to conduct a Dip Test required on each of their leased tanks. (“To Be Designated by Buyer”). Buyer has to provide to Seller their designated inspection company information, to issue Dip Test Authorization to. No second party other than the tank tenant (buyer) will be allowed to dip.
3.4. Buyer verifies the above Proof of Product or conduct the dip test.
3.5. Within 24 hours of successful verification, Buyer must execute the transfer of payment of the final product invoice.
3.6. Seller prepares for Injection and executes delivery of the product into Buyer’s vessel according to Contract.
3.7. Delivery / Shipment commences as per the Schedule of Delivery agreed in the Contract.
3.8. At the time of delivery to the destination port, the Seller and Buyer will conduct a final SGS inspection. (If Seller is doing the delivery, this does not apply to FOB Houston deliveries)
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
NOTE: All our Bulk Refinery Direct Products are Production Contracts. New Buyers must submit FULL New Buyer KYC Package including ALL requested supporting documents. Second lift / Contract Portion will be guaranteed with an IRDLC or SBLC. Pricing is FOB Houston to Buyers Logistics. Delivery can be accommodated by Seller for domestic or ASWP with separate delivery charge to Buyer, payment for such will be required upfront as logistics are needed to place an order.
*Market Pricing References as of the date of this submittal. These prices and procedures are subject to change and may vary greatly.
Specification of WTI
Print 