Russian Petroleum Products (Limited Soft Offer) (Valid For 5 Days from the Day of Reception)

Transcription

1 SCO Code Reference: 2013/WGG/D2/JetFuel/Mazut/LPG/180/380/25k-150KMT 1 Russian Petroleum Products (Limited Soft Offer) (Valid For 5 Days from the Day of Reception) We, The Wright Global Group, LLC (WGG) in association with our fuel partners and affiliates, hereby confirm with full corporate authority and full legal responsibility, that we are ready, willing and able to sell and deliver the following fuel Products according to the specified terms and conditions: 2 Product: Diesel Oil (0.1% max -LSD) Specification: Russian GOST Quantity: Min. 30,000 MT per Month Max. 150,000 MT per Month Price: NWE Platt minus -$35 1 PLEASE NOTE that both the market price as well as the refinery s available capacity fluctuates daily. Therefore, because this is a production contract and the fuel has not yet been contracted and ordered from the refinery (which would lock in the price), the available quantity and price stated in this SCO is subject to change without notice. 2 As a Seller, obtaining fuel directly from the refinery, we get two common questions. Below are the questions, accompanied by the answers: Can you give a better discount? We currently provide some of the most competitive discounts you can find on genuine Russian fuel. However, we can offer an additional $15 discount in our prepayment program. Russian fuel must be paid for upfront. Therefore, when we purchase fuel that is to be sold to our clients, we insure that Fuel with Loyds of London for up to 110% coverage before it leaves the refinery. It costs us approximately $15 per metric ton to effectuate our purchases. Thus, if a buyer prepays for their fuel, our funding expenses are eliminated and we can pass those savings to the buyer. Additionally, we will transfer the insurance policy to the buyer s name, removing the risk of lost. If you want an additional $15 discount on your fuel and no financial instrument requirement, take advantage of our norisk prepayment program. Which products are available? In the petrochemical field we can provide diesel no. 1, diesel no. 2 (also called gasoil or AGO), ultra-low sulphur diesel (EN-590), diesel no. 6 (mazut in all grades of sulphur contents), jet fuel JP 54 (Jet A), Jet A-1, Intermediate Fuel Oil CST-380 and CST-180, LPG, unleaded gasoline with 92 or 95 octane rating, etc. Page 1 of 5

2 Product: Diesel Oil ULSD EN-590 (0.001% max - 10 ppm) Specification: Russian GOST Quantity: Min. 30,000 MT per Month Max. 150,000 MT per Month Price: NWE Platt minus -$30 Product: JP54 (Jet A) (NOT CURRENTLY AVAILABLE) Specification: Russian Export Grade, Standard Specification Quantity: 50,000 MT per month max (apprx 380,000 bbls) Price: minus -$12 per barrel under NWE Platts Product: Jet A-1 Specification: Russian GOST Quantity: min 25,000 MT per month (apprx 190,000 bbls) - 50,000 MT per month max (apprx 380,000 bbls) Price: -$10 per barrel under NWE Platts Page 2 of 5

3 Product: Mazut M Specification: Russian Export Grade Type II to VII Sulfur Content Quantity: 150,000 MT min, 200,000 MT max Delivery: CIF Qingdao, China Price: Type I (less than 0.05%) $540 per MT (Not Available) Type II (0.05% - 1%): $515 per MT (150,000) Type III (1% - 1.5%): $507 per MT (150,000) Type IV (1.5% - 2%): $499 per MT (150,000) Type V (2% - 2.5%): $492 per MT (200,000) Type VI (2.5% - 3%): $485 per MT (200,000) Type VII (3% - 3.5%): $478 per MT (200,000) Product: LPG Specification: 50%-propane/50%-butane Quantity: min 25,000 MT per month - 50,000 MT per month max Delivery: CIF Rotterdam or CIF Qangdong/Ningbo, China Price: $773 per MT Fixed 3 Please Note: With regard to MAZUT M100-75/GOST The GOST number was replaced in the Russian Industry Standards and Technical Regulations Catalog, # on October 20, 2005, with the GOST number There is only one Mazut M100 product, and that is M100/99 GOST number M100 is however graded according to its percentage of mass fraction sulfur content. The grades are 1 through 7, with 1 being the lowest sulfur content of less than 0.5%, and 7 being the highest sulfur content at 3.5%. Page 3 of 5

4 Product: CST-180 Bunker Oil (low sulfur) Specification: Intermediate Fuel Oil CST-180 Russian Grade Quantity: 50,000 MT per month max Delivery: CIF Rotterdam Price: $612 fixed Product: CST-380 Bunker Oil (low sulfur) Specification: Intermediate Fuel Oil CST-380 Russian Grade Quantity: 50,000 min to 150,000 MT per month max Delivery: CIF Rotterdam Price: $588 per MT fixed PROCEDURES (NON-NEGOTIABLE): NOTE: This Offer is for a Production Contract. This means that the product is not being sold on Spot and is not liftable. Therefore, POP does not exist until the product is delivered from Refinery for shipping. However, Buyer can obtain verification of Seller s unblemished record regarding its past fuel sales from Seller s insurance companies (including Loyds of London) as well as reference from past clients. 1. Buyer issues Irrevocable Corporate Purchasing Order (ICPO) in the name of The Wright Global Group, LLC Seller JV agreeing to these procedures, with full banking and soft probe authorization along with Corporate Profile (CP). Page 4 of 5

5 2. Upon approval, Seller issues draft contract (also referred to as purchase agreement). 3. Buyer and Seller sign this purchase agreement, exchange banking information and lodge the contract with their respective banks (Seller s finance company s bank). 4. Within 48 hours Buyer s bank (Prime bank) issues Seller s finance company s bank an MT199 confirming that Buyer has funds available specifically for this contract. 5. Within two (2) USA business days from signature of contract, Seller s finance company s bank shall issue a letter by MT199 stating that the Seller s finance company s bank shall issue a 2% performance bond upon the Buyer s bank issuing an SBLC per the verbiage specified in Appendix A of the contract. 6. Seller provides verifiable Proof of Past Performance (POPP). 7. Within 48 hours of receiving POPP, Buyer lodges SBLC from a top 25 world bank to Seller s finance company s bank. 8. Upon receipt of an acceptable SBLC from the Buyers bank to the Seller s finance company s bank, Seller s finance company s bank shall issue a Performance Bond valued at 2% (two percent) of the face value of the SBLC in the form of a bank guarantee or stand-by letter of credit. 9. First shipment shall commence and shall be completed within 25 days from receipt of the SBLC from the Buyer to the Seller s finance company s bank. The Seller shall submit full set of shipping documents for each shipload, to be submitted within two (2) business days from completion of loading. Upon receipt of shipping documents, Buyer shall pay for the quantity shipped by wire-transfer to Seller s designated bank account. Page 5 of 5