Frequently Asked Questions On Our Operations

FAQ

1. Can you bend your procedure to accommodate ours?

Answer:

No, we cannot bend our procedure. The procedures for all petroleum products secured by EASTERN UNION are crafted to satisfy you - our esteemed Clients. A shift or bend may not ensure smooth business operations. Our prime reason for being in business is to satisfy Clients by creating a very comfortable business procedure to benefit parties to any transaction. A procedure that affords 50-50 win for both parties.

 

2. What types of financial instruments are more appropriate for you?

Answer:

What we term financial instrument is basically financial Payment Guarantee by a competent bank (a prime world bank). We accept irrevocable, transferable, assignable, divisible Payment Guarantee, such as LC, and MT103 or wire transfer for final payment. This is the only method we accept for guaranteed payment appropriate for our business because this is the appropriate financial Payment Guarantee acceptable by NNPC, our supplier. Anything short of what our supplier requires from us will not be accepted.

 

3. We want to make full payment after our vessel is loaded and Q&Q conducted without the issuance of Payment Guarantee. How feasible?

Answer:

Put yourself in the shoes of the Seller. Would you accept that condition, especially with the nature of the Crude Oil business? Is this prudent? This request will be very difficult to grant by any experienced Seller because the only language NNPC understands is “Payment Guarantee” and the financial capability of the buyer or off-taker before any vessel is programmed for lifting and discharge. Since this is the language of our supplier, it automatically becomes our language. We do not raise instrument (Payment Guarantee) on behalf of our Buyer and we are sorry about that. Buyer should be wary of any Seller that promises such, it might be fraud! And we do not accept Payment Guarantee or Proof of Fund sent to our private company emails. They are issued directly to our Bank and any Seller requesting Payment Guarantee be sent to his private company email is a fraud, and any Buyer succumbing to such nonsense is also a fraudulent company. However, we shall always request a Payment Guarantee be sent to our local Bank via our correspondent Bank where we have our account domiciled for this business.

Note: we advise Buyers to send their Payment Guarantee format for our Bank's perusal before they send the real Payment Guarantee. Payment Guarantee formats can be sent to us via our private email.

 

4. Is this business a Bank-to-Bank transaction?

Answer:

Many people understand the phrase “bank-to-bank” to mean that it is the bank that does the business transaction on behalf of the parties, i.e. Buyer and Seller. If this is what is connoted then the phrase “bank-to-bank” is confused. Our Bank, i.e. Seller’s Bank is responsible for advising us as soon as Buyer’s Bank opens up communication for the issuance of any Payment Guarantee. Seller’s Bank is responsible with receiving the Payment Guarantee on behalf of Seller. it is also responsible for receiving the final payment on behalf of Seller; and it is responsible for presenting final documents for payment by Buyer as agreed upon by parties. These responsibilities of our Bank explained is what is termed “bank-to-bank” transaction and they are disseminated through safe telex messages. It is not the responsibility of our bank to negotiate with our Clients, nor is it the responsibility of our Bank to issue our Full Corporate Offer, Cargo and Vessel Documents, etc. These are not Bank items to be issued by our Bank. In summary our Bank is not responsible for our business deals, negotiations and transactions but only responsible for any financial obligations expected by us, and to give us financial expert advises. 

 

5. Are you capable of a 12-month contract - with possible rolls and extensions of delivering any quantity of Nigeria Light Crude Oil, Low Pour Fuel Oil, Automotive Gas Oil, etc, to our satisfaction? 

Answer:

Yes, we can deliver to any serious Buyer’s satisfaction any quantity of barrels/MT of petroleum product advertised and secured by us for a 12-month contract with possible rolls and extensions even ad infinitum. While we assure you of our strength and capability to sell and deliver legitimate petroleum products, Buyer should also assure us of their willingness, ability, readiness and financial capability to accept and purchase products of interest.

 

6. Is it wise for an off-taker to be in the country before he can buy from us?

Answer:

Yes, it is wise that an off-taker should be physically present to buy petroleum products from us if this is the first time he deals with us. Petroleum products are not products bought in absentia, the serious Buyer must come and see what he is buying before he pays for them or at least verify the references shown to him in the appropriate NNPC quarters. Buyers or off-takers can delegate their Mandates or super cargo to ensure smooth business operations. Where business relationships and trusts have been built over time, it may not be necessary for any Buyer to be physically present to buy our petroleum products.

 

~Eastern Union Energy