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HOW DO YOU ASSURE THAT A NIGERIAN CRUDE OIL SELLER’S ALLOCATION OR DOCUMENT IS AUTHENTIC OR GENUINE?
This statement by the analysis report on the topic, carried out by the Africans in America Information Watch, a New York primarily based non-profit group, in August 2010, sums up the problem:
“There are numerous real crude oil sellers in Nigeria however the issue is getting the true and verifiable ones. Crude Oil commerce is a booming and thriving enterprise and many individuals appear to wish to go into it. Consumers from different nations contact sellers in Nigeria with a view to purchase Nigerian Crude Oil. [But the business is now full of]… scammers on the prowl.” It provides that “There are many crude oil sellers in Nigeria, however the problem there’s the power to search out real and verifiable sellers.”
In reality, as this creator has amply documented elsewhere in one other examine, the assertion that within the arcane world of worldwide crude oil shopping for and promoting in the present day the panorama is actually littered and crawling with fraudsters and scammers, is now a well-established, well-settled fact about which there can hardly be any severe argument or disputation within the modern worldwide oil shopping for and promoting trade.
In consequence, on condition that stark REALITY that “there are lots of real crude oil sellers in Nigeria however the issue is getting the true and verifiable ones,” the massive million greenback query is that this: AS A CRUDE BUYER, HOW THEN DO YOU GET THOSE SELLERS FROM AMONG THE WHOLE LOT WHO ARE THE “REAL AND VERIFIABLE” ONES?
THE KEY? Most consultants, within the case of Nigeria, say that mainly you (the crude purchaser) must demand and demand on the purported Vendor displaying you AUTHENTIC documentation and different proofs of getting real BLCO and FLCO allocation from the Nigerian NNPC, in addition to proof that that product continues to be at present availability. (For Nigeria, the NNPC, which stands for the Nigeria Nationwide Petroleum Company, is a Federal government-owned firm that administers the shopping for and promoting of petroleum, together with giving allocation to real sellers of the crude oil in Nigeria).
THE KEY DOCUMENTS IN NIGERIAN CRUDE OIL BUYING/SELLING INDUSTRY
There are some key paperwork which might be essential within the buying of the Nigerian crude oil transactions. They may embrace the next paperwork, amongst others:
– Vendor’s transport paperwork, akin to: Clear Ocean Invoice of Lading; Vendor’s Business Bill
– Vendor’s Proof of Product (will comprise the License to Export & the Approval to Export, issued by the nation’s authorities, assertion of Availability of the Product, Port Storage Settlement, and many others)
– SGS/Sayboat Certificates of Amount and High quality issued on the loading port
– Certificates of Origin issued by the NNPC
– Certificates of Authenticity issued by the NNPC
– Constitution Occasion Settlement on the vessel, issued to the charterer of the vessel and presumably displaying that the vessel is definitely chartered within the designated Vendor’s title
– the Q88 questionnaire, stuffed out by the managers of the vessel offering the related info and specs of the vessel;
– And so on.
PROOF OF PRODUCT
In all probability a very powerful doc of all {that a} crude purchaser could have to see from the vendor, is the correct Proof of Product (POP). This doc, which needs to be one issued by the suitable division of the NNPC in Abuja, Nigeria, serves as a transparent indication to a crude purchaser that the proprietor of the oil commodity has true possession of the product, and likewise serves as a sign that, a minimum of as on the time of the transaction (however solely at the moment), the vendor has the commodity obtainable on the market.
IMPORTANT: It mustn’t simply be any type of POP, nevertheless. It must be one that’s in a format that can allow passable verification to determine that it’s legitimate and genuine. Primarily based on this author’s analysis, to make sure the optimum probability that this aim might be attained, there are mainly two kinds of POP paperwork which might be acceptable, and none others, and solely sellers whose POP paperwork meet these “most popular” POP paperwork requirements, should be entertained or attended to.
THE POP MUST MEET THE FOLLOWING CONDITIONS.
A). It should have the Loaded vessel paperwork which might be CURRENT (that’s, should not be greater than 2 days outdated, in any other case the doc will instantly be rejected as it might imply that the vessel is not obtainable), and may embrace the next paperwork:
i. A Present Authority to Board (ATB). Vendor should present, for the client’s inspection, the ATB that was particularly issued to the preliminary purchaser (consignee) of the crude in whose title the vessel was issued. The title on the ATB should match precisely with the title on the POP and different paperwork named right here. And, right here once more, the ATB MUST be CURRENT – that’s, it should be not more than 2 days outdated. (An ATB that’s greater than 2 days outdated, needs to be routinely be seen as representing a vessel which is not obtainable and therefore not acceptable).
ii. Certificates of high quality.
iii. Certificates of origin
iv. Cargo manifest
v. Vessel ullage report
vi. Certificates of amount.
vii. Invoice of lading
viii. ATS (Authority to Promote) from the NNPC
B) PROVIDE THE PARTICULARS OF THE VESSEL.
Usually, the Purchaser could require (and therefore the Vendor should be keen and able to launch them), vessel particulars akin to the next: the title of the vessel, location of the vessel, the IMO title, name signal and different vessel particulars. The explanation that is required is so the client can do the monitoring of the mentioned loaded vessel, and to determine its present availability.
C) PROVIDE THESE DOCUMENTS, ALSO, FROM THE NNPC
As within the case of the POP which respected consumers’ facilitating outfits just like the Dependable Dealings Worldwide require from any AWR vendor earlier than they will start to do enterprise with them, the opposite issues which will usually be required from a vendor, would come with the next:
= the Lifting Lease/License from the NNPC, and
= the Letter of Authority to Promote (ATS) from the NNPC. The Letter of Authority to Promote, additionally known as a Letter of Allocation, which ought to normally come from the NNPC’s Crude Oil Advertising and marketing Division, is mainly the official doc which reveals the client that the vendor really has the authority from the official authorities company for the crude product that he is promoting. (Should normally be in a paper format and on NNPC firm letterhead; should comprise the date of subject and expiration date, and be signed. Scanned copies of doc are alright. All paperwork should be licensed, legitimate, genuine and verifiable.)
= If, for instance, the vendor claims that the cargo has been cleared, then he ought to normally have the ability to present the CPA (Constitution Occasion Settlement), the ATL (Authority To Load), and Q88 vessel particulars.
ALRIGHT, BUT HOW DO YOU ASSURE THAT THESE DOCUMENTS ARE AUTHENTIC?
OK, so as an instance you have assembled the correct Proof of Product and the opposite important paperwork akin to these which might be outlined above. There’s one key, in deed crucial, query that also stays for you – how do you guarantee that these paperwork you have gotten from the vendor are even any good? That they’re actual, legitimate, AUTHENTIC and GENUINE to warrant your taking the Vendor’s provide severely?
This query is, maybe, usually essentially the most crucial for a purchaser as a result of, as a rule, most fraudsters and con artists who function within the Nigerian crude oil trade, are merely masterful forgers and copiers of each little bit of the reputable trade paperwork which might be utilized in promoting and shopping for operations by refineries and authorities businesses, and who’re extremely expert on the craft. Consequently, consumers are strictly cautious by no means, ever to just accept outright at face worth or be ever fooled by, any doc submitted by sellers or claims made by them, nevertheless seemingly convincing or real-looking!. And what all of it means, is that one essential facility {that a} crude oil purchaser and his aides should shortly develop and have, are some good, fool-proof, instruments or abilities by which they will INDEPENDENTLY VERIFY the authenticity of a minimum of the important thing, most vital items of paperwork from among the many tons of paperwork that sellers and their brokers will usually current them in the middle of hawking their merchandise. And, above all, that they should have the talents and the data and enterprise sophistication to have the ability to detect which of them amongst such paperwork are real and legit, and which of them may be plain bogus.
To make sure, making such verification and affirmation could usually be problematic for a purchaser. Nevertheless, it isn’t actually that troublesome a process, a minimum of for the schooled and skilled eyes. You solely have to know what and what to search for, the suitable inquiries to ask, and easy methods to counter test and cross test information and data. And, in any case, at any time when in severe doubt concerning the authenticity of a doc, it is best to at all times take the trail of warning – ask for extra proof, and even reject the provide, relying on the actual information at subject in a suggestion.
FOR A FOLLOW UP
YOU WANT TO FOLLOW UP ON HOW YOU CAN ASSURE THAT A NIGERIAN CRUDE OIL SELLER’S ALLOCATION OR DOCUMENT IS AUTHENTIC OR GENUINE?
Please see the educational info within the creator’s useful resource field beneath
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Source by Benjamin Anosike, PhD