Eastern Union Energy is happy to announce a simplified process to acquire Nigeria’s crude oil with well-defined financial requirements to get a vessel loaded and exit Nigerian waters legally.
We can now give you a clear picture of the timeline for a CIF delivery. We invite you to review this timeline as it will answer many questions a prospective Buyer will want to know and understand.
We are publishing this Oil Transaction Timeline and Procedure upon request.
This procedure is specifically for a delivery to Rotterdam. All of the preliminary procedures happen before the BCL is issued by the Buyer. Prior to that is all of the negotiations, an agreed-upon procedure by the Buyer, and proper due diligence after receiving the contract and any supporting documents.
Here is the Oil Transaction Timeline and Procedure:
day 1) Buyer places POF (BCL)
day 4) Seller’s bank finishes confirmation of BCL and posts a 2% non-operative Performance Bond.
day 7) Buyer issues an SBLC for total cargo value, and consequently activates Seller's 2% PB.
day 10) Buyer finishes confirmation forwards to NNPC for programing. Vessel is nominated.
day 11) Vessel clears terminal, sends NOR and ATB for inspectors to board.
day 12) Inspection is completed, results sent to the parties.
day 13) Seller's bank confirms and clears vessel to leave Nigerian Waters.
day 27) Vessel arrives Buyer's port and sends ATB for inspectors to board.
day 28) Inspectors finish report and send to parties. day 29) Seller presents documents to Buyer's bank for payment.
day 31) Everybody is paid.
day 32) Vessel discharges into buyer’s tank farm.
**From Day 13 to Day 27 is the transit time to Rotterdam (approximately 14 days). If the product was going to Houston, transit time would be about 19 days, to China 41 days. So this CIF Timeline should give any buyer a realistic idea of what happens when.
NB: Above timeline is based on our procedure (a standard non-OPEC), which may be made available upon request.
~Eastern Union Energy