PROCEDURES, REQUIREMENTS & PREPARATIONS

REQUIRED OF OUR BUYERS & SELLERS FOR CI, DIP &

PAY DEALS

By Reliable Oil Deals Consultancy (ROD).
We specialize in CI, Dip & Pay Oil Deals

Everybody wants D2, JP54, Mazut, etc., on CI, Dip and Pay basis.
But its not possible for all. We can provide you, if you are a major
buyer or show me your strong profile and previous BL of
successful transactions only. Statement by one of our suppliers.


THE TRANSACTIONS PROCEDURES
.
PRODUCTS: For D2, JP54 & A1, Mazut, LNG, LPG, etc

QUANTITY: We can supply, for JP54 Minimum 500,000bbls liftable, then same every month (x12); for
D2, Mazut, etc., Min. 100,000 MT x 12. (Quantities could sometimes be modified upon the parties
negotiation).
PRICE: Buyer, What is your target price sought for FOB & CIF? Target Discount?

COMMISSION: a) Seller do you pay brokers commission, if and when buyer pays gross?
b) Buyer do you pay brokers/intermediaries commission, if and when buyer pays net?
(The applicable party must be ready and able to issue a Pay Order to pay such commission
SIMULTANEOUSLY with the payment for the product).

LIFTS: Port of lifting? (Seller will furnish this)

BASIC PROCEDURES:

1. Buyer (upon verification, first, of the Seller and its credentials, and due satisfaction that this is a
LEGITIMATE seller), sends ICPO to buyer.
2. NCND/IMFPA documents are duly signed between the sellers/buyers and the intermediaries
3-ICPO &
4- SPA Contract + C/I for liftable quantity of product
5-Full POP + DTA/ATB
6-PAYMENT: No upfront banking instruments, no POF, strictly DIP & PAY.
Payment by MT103 for the liftable quantity, +RDLC
7- Lift and commission payment by buyer
8- Does Seller issuance of 2% Performance Bond apply? No, NOT in our Dip & Pay deals. Since, by such
time, the buyer shall have already dipped, verified, paid, and taken title to the
initial liftable quantity, as well as issued the RDLC.
9-NO UPFRONT issuance of the tank details to the seller by buyer (tank farm managers name and contact
information, line account numbers, etc) prior to buyers receipt of the injection reports.

From the time of receiving the authorization to dip to the conclusion of the deal, the entire
process takes approximately one-and-a-half to two hours in time.

SUMMARY: This is very important - our buyers involved in Dip & Pay deals, have a strict policy of
wanting their deals to be simple, and to be executed fast and quickly, especially for the first lift, by a set day
and time certain. Basically, they simply want to dip and verify, at port, via DTA, that the
(initial) liftable product and quantity claimed or being offered, is actually there. And where
this is positively verified and confirmed, our buyers would generally swap title
immediately in exchange for their payment (by SWIFT of MT103 on the initial liftable),
and would, well as, at the same time activate a Non Transferable RDLC on all remaining
quantities, and/or on the remaining life of the contract, as applicable all usually done in a
time period of less than one hour or so.

VERY IMPORTANT: If you are a Dip and Pay Seller (or even buyer), please note
that Dip & Pay buyers DO NOT just accept any offers or blindly automatically issue
Purchase Orders for an offer that comes along. Rather, prior to their issuing an ICPO, they
will need to have a fully verified offer from the products title holding entity. Or, to
expedite the process, the title-holding company (as would have been fully detailed on the
warrant of title) can simply Invoice the buyers. At such time, the buyer will verify the
offer and its issuing corporation. If found to be satisfactory and acceptable, the buyer will
sign the invoice with the expectation of an immediate DTA. Buyer(s) will then dip to
verify the initial liftable quantity. And if found acceptable, they will then pay the title
holding company on all liftable quantities, and activate, as well, simultaneously, a Non
Transferable RDLC on all remaining quantities, and/or the remaining life of the contract

NOTE: All documents (SCO, FCO, SPA, CI, DTA, Etc.), MUST come from the title
holding company ONLY, as fully detailed on the warrant of title. No Broker documents.
Any broker documents are usually discarded, and will be subject to being reported.

Our IDEAL BUYERS For CI, Dip & Pay:

Are you (and can you provide verification) that you are a major buyer, or show a strong
profile and previous BL or SGS reports of successful past transactions?
Do you (the buyer & its company) own or have available and ready, tanks for storage
of such product in strategic world ports and/or locations e.g., Rotterdam, Houston,
Bremerhaven, St. Petersburg, Singapore, and the like?

Do you have available and prepared, relevant logistical elements such Chemists and
vessels on a standby within a few hours of major world ports like the above, ready to
spring into action IMMEDIATELY (without delays at all) a Dip & Pay opportunity
becomes available?

Do you (the buyer & its company) have a sharp, on-the-ball organization and operation
ready and geared to act RIGHT AWAY, at a split second notification of the availability
of such Dip & Pay offer? (That is, fully prepared and ready, and actually able, to
submit the ICPO, mobilize the testing team, the vessel operators, the financing, etc,
etc., as outlined in the Procedures above)?

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Copyright 2012 by Reliable Oil Deals Consultancy (ROD), New York.
All rights reserved.

CONTACT: info@reliableoildealsconsultancy.com